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Edit Comment Close Premium member Presentation Transcript Slide 1: MANAGING ACROSS CULTURES DEFINITION OF THE MANAGING ACROSS CULTURES : DEFINITION OF THE MANAGING ACROSS CULTURES Involves the ability to recognize and embrace similarities and differences among nations and cultures and then approach key organizational and strategic issues with an open and curious mind. Culture = The dominant pattern of living, thinking, and believing that is developed and transmitted by people, consciously or unconsciously, to subsequent generations. Cultural values = Those consciously and subconsciously deeply held beliefs that specify general preferences, behaviors, and define what is right and wrong. CHARACTERISTICS OF CULTURE : CHARACTERISTICS OF CULTURE Observed behavioral regularities Norms Dominant Values Philosophy Rules Organizational Climate HOW ORGANIZATIONAL CULTURE STARTS ? : HOW ORGANIZATIONAL CULTURE STARTS ? Develop a new idea. Bring key people together & share a common vision Act of creation of an organization Collaborate Take accountability CORE ABILITIES OF THE MANAGING ACROSS CULTURES : CORE ABILITIES OF THE MANAGING ACROSS CULTURES Understand, appreciate, and use cultural factors that can affect behavior Appreciate the influence of work-related values on decisions, preferences, and practices Understand and motivate employees with different values and attitudes Communicate in the local language Deal effectively with extreme conditions in foreign countries Utilize a global mindset (use a worldwide perspective to constantly assess threats or opportunities) STRATEGY FOR MANAGING ACROSS CULTURES : STRATEGY FOR MANAGING ACROSS CULTURES MNC strategies must address the cultural similarities and differences in their varied markets Globalization Production and distribution of products and services of a homogeneous type and quality on a worldwide basis National responsiveness Need to understand the different consumer tastes in segmented regional markets and respond to different national standards and regulations imposed by autonomous governments and agencies Need to adapt tools and techniques for managing the local workforce MANAGING ACROSS CULTURES : MANAGING ACROSS CULTURES Meeting the Challenge Globalization imperative Belief that one worldwide approach to doing business is the key to both efficiency and effectiveness Factors that help develop strategies for different cultures Diversity of worldwide industry standards Continual demand by local customers for differentiated products Importance of being an insider Difficulty of managing global organizations Need to allow subsidiaries to use their own abilities and talents and not be restrained by headquarters Challenges of adjusting global strategies to regional markets MNC must stay abreast of local market conditions MNC must know the strengths and weaknesses of its subsidiaries MNC must give subsidiary autonomy to address local demands SIX BASIC CULTURAL VARIATIONS : SIX BASIC CULTURAL VARIATIONS What is the nature of people? Good(changeable/unchangeable) A mixture of good and evil* Evil (changeable/unchangeable) What is person’s relationship to nature? Dominant* In harmony with nature Subjugation What is person’s relationship to others? Lineal (hierarchic) Collateral (collectivist) Individualist* What is the modality of human activity? Doing* Being and becoming Being What is the temporal focus of activity? Future* Present Past What is the conception of space? Private* Mixed Public CROSS-CULTURAL DIFFERENCES AND SIMILARITIES : CROSS-CULTURAL DIFFERENCES AND SIMILARITIES Similarities Across Cultures Some similarities across cultures have been uncovered by researchers Russian and U.S. managers both: Carry out traditional management, communication, human resources, and networking activities Use organizational behavior modification successfully Korean and U.S. employees both: Are more committed to the organization when they occupy higher level positions, have more tenure in their position, and are older Are more committed to the organization when the structure is more employee-focused and the organizational culture is perceived in a more positive light CROSS-CULTURAL DIFFERENCES AND SIMILARITIES : CROSS-CULTURAL DIFFERENCES AND SIMILARITIES Many Differences Across Cultures MNCs have discovered that they must understand the cultures where they plan to do business and modify their approaches appropriately Foreign subsidiaries differ in the standards used to: evaluate personnel provide wages and benefits Based on Hofstede’s work, can link cultural clusters to compensation strategies Useful to develop a contingency model to analyze HRM practices on a country-by-country basis Conventional wisdom and common assumptions about HRM practices in certain countries often are incorrect CASE STUDY OF MC DONALDS : CASE STUDY OF MC DONALDS Ray Kroc worked as a salesman Started a sideline business with partner Took the rights for franchisee of McDonald and then bought McDonald. Culture Followed in MCDonald Four basic concepts-Quality, Cleanliness, Price & Services Training at McDonald University How to manage the business Ray died but left the culture behind “If you’ve got the time to lean, you’ve got time to clean”. CULTURAL DIFFERENCES IN SELECTED COUNTRIES AND REGIONS : CULTURAL DIFFERENCES IN SELECTED COUNTRIES AND REGIONS Doing Business in Russia When dealing with the Russians, one must: Build personal relationships with partners Use local consultants Consider business ethics Be patient Stress exclusivity Deal with just one firm at a time Keep financial information personal Research the company Stress mutual gain Clarify terminology Be careful about compromising or settling things quickly Doing Business in China When dealing with the Chinese, one must: Be a good listener Understand that the Chinese are less animated than Westerners Understand that the Chinese place values and principles above money and expediency Allow Chinese host to signal the beginning of a meeting Understand that Chinese are slow to decide on a course of action, but stick to the decision once made Understand that reciprocity is important in negotiations Not display emotions during negotiations CONCLUSION : CONCLUSION Why Culture ? Indian Culture Example. Culture Was, Is & Will be. You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.