This page intentionally left blank ManagementAcrossCultures ChallengesandStrategies Management practices and processes frequently differ across national and regional boundaries. What may be acceptable managerial behavior in one culture may be counterproductive or even unacceptable in another. As managers increasingly find themselves working across cultures, the need to understand these differences has become increasingly important. This book examines why these differences exist and howglobalmanagerscandevelopstrategiesandtacticstodealwiththem. Keyfeatures: c Draws on recent research in anthropology, psychology, economics, and manage- menttoexplaintheculturalandpsychologicalunderpinningsthatshapemanagerial attitudesandbehaviors c Introducesalearningmodeltoguideintheintellectualandpracticaldevelopmentof managersseekingenhancedglobalexpertise c Offersuser-friendlyconceptualmodelstoguideunderstandingandexplorationof topics c Summarizes and integrates the lessons learned in each chapter in application- oriented“Manager’snotebooks” CompanionwebsitefeaturinginstructionalmaterialsandPowerPointslidesisavailable atwww.cambridge.org/management_across_cultures. RICHARD M.STEERS isProfessorofOrganizationandManagementintheLundquist CollegeofBusiness,UniversityofOregon,USA. CARLOS J.SANCHEZ-RUNDE is Professor of People Management at IESE Business School,Barcelona,Spain. LUCIARANARDONisAssistantProfessorofInternationalBusinessattheSprottSchool ofBusiness,CarletonUniversity,Canada. Management Across Cultures Challenges and Strategies RICHARD M.STEERS CARLOS J.SANCHEZ-RUNDE LUCIARA NARDON CAMBRIDGEUNIVERSITYPRESS Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo, Delhi, Dubai, Tokyo Cambridge University Press The Edinburgh Building, Cambridge CB2 8RU, UK Published in the United States of America by Cambridge University Press, New York www.cambridge.org Information on this title: www.cambridge.org/9780521513432 © Richard M. Steers, Carlos J. Sanchez-Runde, and Luciara Nardon 2010 This publication is in copyright. Subject to statutory exception and to the provision of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press. First published in print format 2010 ISBN-13 978-0-511-68356-5 eBook (Dawsonera) ISBN-13 978-0-521-51343-2 Hardback ISBN-13 978-0-521-73497-4 Paperback Cambridge University Press has no responsibility for the persistence or accuracy of urls for external or third-party internet websites referred to in this publication, and does not guarantee that any content on such websites is, or will remain, accurate or appropriate. Contents List of exhibits page viii Preface xiii 1 Global rea lities and ma nageme nt cha llenges 1 Globalization,change,andcompetitiveness 3 Thenewglobalrealities 12 Challengesfacingglobalmanagers 17 2 Developingglobalmanagementskills 24 Traditionalviewsofmanagement 26 Globalmanagers:varietyofthespecies 28 Rethinkingmanagerialroles 35 Rethinkingmanagerialskills 36 MANAGER’S NOTEBOOK:Developingglobalmanagementskills 39 3 Culture,values,andworldviews 45 Culture,socialization,andnormativebehavior 49 Coreculturaldimensions:astartingpoint 55 Regionaltrendsandculturaldifferences 64 Diggingdeeper:culturalcomplexitiesandcontradictions 66 MANAGER’S NOTEBOOK:Culture,values,andworldviews 76 4 Insidethemanagerialmind:culture,cognition,andaction 85 Culture,cognition,andmanagerialaction:amodel 88 Patternsofmanagerialthinking 91 Thegeographyofthought 96 Cultureandthemanagerialrole 102 Managementpatternsacrosscultures 106 v vi CONTENTS Aremanagementpatternsconverging? 115 MANAGER’S NOTEBOOK:Insidethemanagerialmind 118 5 Insidetheorganizationalmind:stakeholders,strategies, anddecisionmaking 126 Stakeholdersandstrategicchoice:amodel 128 Thestrategy-structurenexus 134 Organizationaldecisionmaking:amodel 137 Decisionstrategiesacrosscultures 139 MANAGER’S NOTEBOOK:Insidetheorganizationalmind 149 6 Organizingframeworks:acomparativeassessment 155 Cultureandorganizationdesign:amodel 157 UScorporations 159 Japanesekaishaandkeiretsu 165 Chinesegong-si 175 Germankonzern 181 Mexicangrupo 186 MANAGER’S NOTEBOOK:Organizingframeworks 193 7 Communicationacrosscultures 199 Eyeofthebeholder 201 Cultureandcommunication:amodel 202 Language,logic,andcommunication 204 Linguafrancaandmessagecomprehension 210 Cross-culturalcommunicationstrategies 214 Communicationonthefly 228 MANAGER’S NOTEBOOK:Communicationacrosscultures 232 8 Leadershipandglobalteams 241 Themeaningofleadership 245 GLOBEleadershipstudy 253 Cultureandleadership:amodel 256 Globalteams 261 Workingwithglobalteams 262 MANAGER’S NOTEBOOK:Leadershipandglobalteams 270 CONTENTS vii 9 Culture,work,andmotivation 279 Theworldofwork 284 Workandleisure 290 Culture,motivation,andworkbehavior:amodel 292 Cultureandthepsychologyofwork 295 Incentivesandrewardsacrosscultures 299 MANAGER’S NOTEBOOK:Culture,work,andmotivation 310 10 Negotiationandglobalpartnerships 317 Seekingcommoncause 321 Cultureandnegotiation:amodel 328 Thenegotiationprocess:strategies,concessions,andcontracts 330 Negotiationpatternsacrosscultures 337 Buildingglobalpartnerships 342 Managingglobalpartnerships 346 MANAGER’S NOTEBOOK:Negotiationandglobalpartnerships 350 11 Managinginanimperfectworld 363 Rulesofthegame 364 Basesofcross-culturalconflicts 367 Ethics,laws,andsocialcontrol:amodel 373 Ethicalconflictsandchallenges 374 Institutionalconflictsandchallenges 384 MANAGER’S NOTEBOOK:Managinginanimperfectworld 395 12 Epilogue:thejourneycontinues 404 Learningfromthepast 405 Lookingtothefuture 407 AppendixA Modelsofnationalcultures 411 AppendixB OECDguidelinesforglobalmanagers 421 Index 430 Exhibits 1.1 The globalization enigma: contradictions and challenges page 8 1.2 Thechangingglobaleconomy 12 2.1 Globalmanagers:expatriates,frequentflyers,andvirtualmanagers 29 2.2 Buildingglobalmanagementskills 37 2.3 Theexperientiallearningcycle 40 2.4 Alearningstrategyforglobalmanagers 42 3.1 Hofstede’scultureratingsforSwedenandBahrain 49 3.2 Levelsofmentalprogramming 51 3.3 Selectedmodelsofculturaldimensions 56 3.4 Coreculturaldimensions 58 3.5 Anchorsforcoreculturaldimensions 60 3.6 Centraltendenciesofcoreculturaldimensionsacrossregions 65 3.7 Culturalcomplexitiesandcontradictions 69 4.1 Culture,cognition,andmanagerialaction 90 4.2 Cultureandpatternsofmanagerialthinking 92 4.3 Lookingoutside:patternsofEast-Westcognitivedifferences 99 4.4 Lookinginside:patternsofEast-Westcognitivedifferences 100 4.5 Culturaldifferencesandtheidealmanagerialrole 103 4.6 Cultureandactualmanagerialcharacteristics 104 4.7 Culturalinfluencesonmanagerialroles 105 4.8 Cultureandmanagementtrends:France,Malaysia,andNigeria 108 4.9 Convergenceanddivergenceinfuturemanagementpatterns 117 5.1 Thestrategicmanagementcycle 130 5.2 Centralizedversusdistributedstakeholdermodels 131 5.3 Culturalinfluencesonparticipationindecision-making 139 5.4 Managementchallenge:approachestoparticipation anddecisionmaking 140 5.5 Centralizeddecisionmaking(e.g.,Australia,Canada,UK,US) 141 viii
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