Expectations of Manager s Across Cultures It is important for managers to have at hand precise answers to most of the questions their subordinates may raise about their work Percentage agreeing with the above Sweden 10 Germany 46 Spain Japan 78 USA 18 Average vacation days for employees with one year of service USA 10 days Spain 22 days Germany 18 Sweden 30 Finland 20 Japan 10 Parental Leave Sweden 90 pay for 12 months Denmark 90 pay for 28 weeks Germany 14 weeks 100 pay Ireland 14 weeks 70 pay Italy 20 weeks 80 pay USA 12 weeks unpaid FMLA Culture defined The collective programming of the mind which distinguishes the members of one human group from another the interactive aggregate of common characteristics that influence a human group s response to its environment Hofstede Socially derived taken for granted assumptions that shape behavior or structure one s perception of the world What are Americans like Direct don t talk around things Competitive Independent and individualistic Questioners Ask a lot of questions Dislike silence Would rather talk about the weather than deal with silence Punctual Why Study International Management For managers who have to operate in an unfamiliar culture training based on homecountry theories is of very limited use and may even do more harm than good An American was sent to manage a bank in Venezuela He asked the employees for their input and recommendations to solve a problem How did the employees react Expatriates People from one national culture working in another for a fixed period of time U S expatriates 3 years is the average assignment Average 3 year assignment can cost firms up to 1 million per expat Moving expenses education expat premiums cost of living differences inflation etc Why U S managers would accept an international assignment Cross cultural experience 52 Gain a greater understanding of another way of life Money 40 Higher salary more fringe benefits Career Advancement 21 Increased opportunities exposure Why U S managers would NOT accept an international assignment Location Political unrest dangerous Career High risk of job failure isolation from home company forgotten Family Dual careers spouse unwilling to move Repatriation Issues Will I have a job at the same company when I return 46 of U S firms do not guarantee a position at home upon completion of the assignment Mergers downsizing layoffs An international assignment may be a high risk career strategy Why type of job will I have upon return Less challenging lower status and less responsibility High rate of turnover for expats upon return 25 within a year Consider the cost of an expatriate assignment about 1 million and the potential loss of part of this investment Reasons for Expatriate Failure U S Expats up to 45 failure rate 1 Inability of spouse to adjust Career disruption Social needs Personal career identity 2 Manager s inability to adjust 3 Other family reasons Children at school related adjustments Issues with family in the U S elder care Expatriate Selection Issues Personality issues High tolerance for ambiguity High self monitor Emotional stability Nonjudgmental nonevaluative Flexibility willingness to try new ways Initiative Expatriate Selection Issues cont Family Issues Would your spouse be interrupting a career to accompany you If yes how might this affect your spouse and your relationship with each other Are you prepared to have less contact with your extended family AT T s self assessment of cultural adaptability Hofstede s Study Study of IBM employees across the world National culture explained more of the differences in work related values and attitudes than did Position within the organization Profession Age Gender Found four core dimensions of national culture Hofstede s Dimensions of National Culture Individualism versus collectivism Individualism USA Australia Emphasis on the individual make primary contributions to oneself Collectivism Japan Emphasis on the group make primary contributions to group goals and objectives Members are expected to look after other members Implications Organizational loyalty teamwork social loafing Hofstede s Dimension s cont Power distance measures the extent to which the less powerful members of an organization accept expect an unequal distribution of power Large PD Venezuela Philippines Wide differences in power are accepted and often preferred Titles hierarchy are very important Small PD Denmark Ireland Power differences are played down Boss is not someone to fear Implications Organizational structure pyramid vs flat Decision making issues Participative vs authoritarian decentralized vs centralized Hofstede s Dimensions cont Uncertainty Avoidance The extent to which people feel threatened by ambiguity uncertainty risk and therefore try to avoid such situations Implications Career stability job security formal rules High in uncertainty avoidance Portugal Greece Concept of lifetime employment Formal rules help to reduce uncertainty Working hard is a way of reducing uncertainty karoshi Low in uncertainty avoidance Denmark Singapore Risk taking is more accepted encouraged Hofstede s Dimensions cont Quantity vs quality of life Quantity emphasizes acquisition of money and things materialism USA Quality emphasizes relationships and overall quality of life time for activities outside of work is important Sweden Implications for work hours vacation time pay issues Gender roles The extent to which career and family roles for men and women are distinct Similar Both men and women work outside the home and take care of family obligations Sweden Unique Men work outside of the home women take care of the family Japan Austria Mexico Implications for paternity maternity leave on site day care flex time