Lecture 4

Question 1

cultural synergy takes place when

Answer 1

one manages the impacts of cultural diversity not by avoiding diversity, but by minimizing the potential problems.

Question 2

cultural synergy-

Answer 2

a new way of thinking which helps to free one from outdated pattern of thinking by breaking the shell of permitted ignorance.

Question 3

cultural synergy happens when the total output/outcome of the diverse elements

Answer 3

surpasses the total output/outcome of the sum of individual’s input. (1+1 >2), one can say there is synergy

Question 4

There are two assumptions that can have a positive or negative implications for management

Answer 4

Misleading assumptions

Appropriate assumptions

Question 5

Misleading assumptions

Answer 5

melting pot myth (homogeneity)

similarity (all are just like me)

parochialism (only one way myth)

ethnocentrism (one best way myth)

Question 6

Appropriate assumptions

Answer 6

heterogeneity (image of cultural pluralism)

similarity and difference (they may not be just like me)

cultural contingency (our way is one possible way)

Question 7

The role of diversity in an international organization

Answer 7

1. During expansion
2. Better understanding of local employees
3. Ability to work effectively with diverse employees
4. Ability to understand the local customers
5. Ability to understand the local business environments (political, social, legal, economic and and cultural factors)

Question 8

1. During expansion

Answer 8

Understanding the meaning of expansion

Creation of expanding alternatives

Question 9

What are the challenges of diversity within an organization? (4)

Answer 9

It increases ambiguity, complexity and confusion

Causes difficulties in communication and reaching at a consensus among diverse group members

Causes difficulties in executing actions

Leads to over generalizing of policies, strategies, practices and procedures

Question 10

Why can’t people adapt cultural synergy?

Answer 10

a. People are afraid of being called:
unsophisticated

immoral

primitive

judgmental

b. Afraid of negative impact on their personal career

Question 11

Strategies for managing cultural diversity

Answer 11

Pa r o c h i a l ( worst scenario)

Ethnocentric Management Policy (Non-inclusive)

Question 12

Pa r o c h i a l ( worst scenario)

Answer 12

Ignoring cultural differences

Believing that my/our way is the only way.

Adapting non-inclusive management policy

Question 13

Ethnocentric Management Policy (Non-inclusive):

Answer 13

Ethnocentric management policy recognizes diversity, but practices a management policy based on the following beliefs:

diversity is naturally a problem

“our way” is the best way policy

other approaches (other management styles do exist but they are inferior)

Question 14

S y n e r g i s t i c Management

Answer 14

Considers cultural diversity as both advantage and disadvantage

Recognizes cultural differences

Acknowledges neither our way nor their way as superior

Believes in managing the impacts of differences.

Doesn’t believe in minimizing cultural differences.

If diversity is manageable, the outcome is always positive.

Question 15

Procedures that lead to cultural synergy

Answer 15

Step one: Description of the situation.

Step two: Interpretation of the situation precisely.

Step three: Find a synergistic solution.

Question 16

How do organizations manage cultural differences?

Answer 16

Cultural Dominance

Cultural Accommodation

Cultural Compromise

Cultural Avoidance Strategy

Cultural Synergy

Question 17

Cultural Dominance

Answer 17

Historically strong firms (with significant resources in finance, technology and larger in size), manifest dominant culture.

Question 18

Cultural Accommodation

Answer 18

This approach contrary to cultural dominance, advocates the imitation of the local practice by following the motto, “When you are in Rome, do as the Romans.”

Question 19

The down side of cultural accommodation is the fact that

Answer 19

colleagues in the parent company may accuse expatriates for “going native” or deviating from the head quarter’s fundamental business principles.

Question 20

Cultural Compromise

Answer 20

This approach combines the cultural dominance and cultural accommodation practices.

In reality the stronger side gives up less than the weaker partner.

The ultimate goal of negotiating of two entities should be to find out a solution that is agreeable to both parties.

The party that gives up more can be labeled as weak negotiator and “caving in”.

Question 21

Cultural Avoidance Strategy

Answer 21

To act as if no differences or conflicts exist.

This managerial cultural behavior is practiced in developing countries, especially in Asia, Middle East, Africa and Latin America.

The objective of cultural avoidance (known as “saving face”) is to knowingly ignore the differences for the sake of maintaining long-term business relationship or attaining potential contract.

Question 22

Cultural Synergy

Answer 22

It is a managerial style which believes in developing new solutions to problems while representing all cultural values.

An example of synergistic cultural practice takes place during a joint venture set up between an American and a Japanese firms, and when both parties agree to use “The Hague Arbitration” legal practice in case of conflict instead of using the American or Japanese legal procedures; or both are willing to use both of their national languages in preparing a binding document.