Management 13th edtion by schermerhorn bachrach chapter 05

John R Schermerhorn, Jr Daniel G Bachrach Management th 13 edition Chapter Global Management and Cultural Diversity Planning Ahead — Key Takeaways  What are the management challenges of globalization?  What are global businesses and how they work?  What is culture and how does it influence global management?  How can we benefit from global management learning? Copyright ©2015 John Wiley & Sons, Inc Chapter Outline Management and Globalization  Global management  Why companies go global  How companies go global  Global business environments Global Businesses  Types of global businesses  Pros and cons of global businesses  Ethics challenges for global businesses Copyright ©2015 John Wiley & Sons, Inc Chapter Outline Culture and Global Diversity  Cultural intelligence  Silent languages of culture  Tight and loose cultures  Values and national cultures Global Management Learning  Are management theories universal?  Intercultural competencies  Global learning goals Copyright ©2015 John Wiley & Sons, Inc Management and Globalization  Key concepts in the challenges of globalization:  Global economy  Globalization  Global management  World 3.0  Global manager Copyright ©2015 John Wiley & Sons, Inc Management and Globalization  Global economy  Resources, markets, and competition are worldwide in scope  Globalization  The process of growing interdependence among elements in the global economy  World 3.0  Nations cooperate while respecting different national characters and interests Copyright ©2015 John Wiley & Sons, Inc Management and Globalization  Global management  Managing business and organizations with business interests in more than one country  Global manager  Is culturally aware and informed on international affairs Copyright ©2015 John Wiley & Sons, Inc Management and Globalization  International businesses  Conducting for-profit transactions of goods and services across national boundaries  Reasons why businesses go global: Profits Customers Suppliers Capital Labor Copyright ©2015 John Wiley & Sons, Inc Risk Management and Globalization  Market entry strategies involve the sale of goods or services to foreign markets but not require expensive investments Copyright ©2015 John Wiley & Sons, Inc Management and Globalization  Types of market entry strategies:  Global sourcing  Exporting  Importing  Licensing agreement  Franchising  Types of direct investment strategies:  Joint venture  Strategic alliance  Owned subsidiary Copyright ©2015 John Wiley & Sons, Inc Global Businesses Ethical challenges for Global Businesses: • • • • Corruption Sweatshops Child labor Conflict minerals Copyright ©2015 John Wiley & Sons, Inc Global Businesses  Ethical issues for Global Businesses: Corruption – illegal practices that further one’s business interests Foreign Corrupt Practices Act – makes it illegal for U.S firms and their representatives to engage in corrupt practices overseas  Bribes to foreign officials  Excessive commissions  Non monetary gifts Copyright ©2015 John Wiley & Sons, Inc Global Businesses  Child labor and Sweatshops: Child labor – full time employment of children for work otherwise done by adults Sweatshops – employ workers at very low wages for long hours in poor working conditions Copyright ©2015 John Wiley & Sons, Inc Cultures and Global Diversity Culture • The shared set of beliefs, values, and patterns of behavior common to a group of people Culture shock • Confusion and discomfort a person experiences in an unfamiliar culture Cultural intelligence • The ability to adapt and adjust to new cultures Ethnocentrism • Tendency to consider one’s own culture as superior to others Copyright ©2015 John Wiley & Sons, Inc Cultures and Global Diversity Confusion Stages in adjusting to a new culture: Small victories The honeymoon Irritation and anger Reality Copyright ©2015 John Wiley & Sons, Inc Cultures and Global Diversity Silent languages of Context culture • • Space • Proxemics Low context High context Time • • Monochronic Polychronic Copyright ©2015 John Wiley & Sons, Inc Cultures and Global Diversity Context Low context cultures - emphasize communication via spoken or written words  United States  Canada  Germany Copyright ©2015 John Wiley & Sons, Inc Cultures and Global Diversity Context High context cultures – rely on nonverbal and situational cues as well as on spoken or written words  Thailand  Malaysia Copyright ©2015 John Wiley & Sons, Inc Cultures and Global Diversity Time Monochronic cultures – people tend to one thing at a time United States Polychronic cultures – time is used to accomplish many different things at once Egypt Copyright ©2015 John Wiley & Sons, Inc Cultures and Global Diversity Space Proxemics – study of how people use space to communicate  In the U.S people value “personal space”  Many Latin and Asian cultures expect much less personal space Copyright ©2015 John Wiley & Sons, Inc Cultures and Global Diversity Tight and Loose Cultures  Cultural tightness-looseness • • • • Strength of norms that govern social behavior Tolerance for any deviance from norms Tight = Japan, Korea, Malaysia Loose = Brazil, Hungary, Australia Copyright ©2015 John Wiley & Sons, Inc Cultures and Global Diversity Values and national cultures (Hofstede): Power distance Uncertainty Individualism- Masculinity- avoidance collectivism femininity Copyright ©2015 John Wiley & Sons, Inc Time orientation Figure 5.3 How countries’ short-term thinking and long-term thinking compare on Hofstede’s dimensions of national culture Copyright ©2015 John Wiley & Sons, Inc Global Management Learning  Comparative management How management systematically differs among countries and/or cultures  Intercultural competencies  Skills and personal characteristics that help us be successful in cross-cultural situations  Global managers Need to successfully apply management functions across international boundaries Copyright ©2015 John Wiley & Sons, Inc Global Management Learning Global learning goals: Not universal Engage critical thinking Look everywhere for new management ideas Always consider culture! Copyright ©2015 John Wiley & Sons, Inc ... the management challenges of globalization?  What are global businesses and how they work?  What is culture and how does it influence global management?  How can we benefit from global management. .. global management learning? Copyright ©2015 John Wiley & Sons, Inc Chapter Outline Management and Globalization  Global management  Why companies go global  How companies go global  Global... Chapter Outline Culture and Global Diversity  Cultural intelligence  Silent languages of culture  Tight and loose cultures  Values and national cultures Global Management Learning  Are management