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24 Pages • Complete Study Notes • Year: Pre-2021
`MGMT2102 Notes Lecture 1: Globalisation (various definitions) - Absence of borders and barriers to trade (Ohmae, 1995) - Crystallization of the world as a single place (Robertson, 1995) - Overlapping of the interests of business and society (Renesch, 1992) - “Globalization as a process whereby worldwide interconnections in virtually every sphere are growing (Parker, 2005) Increase in interconnections due to shifts in technological, political and economic domains How has globalization affected global managers? - Economic interconnectedness - EU, North American Free Trade Agreement (NAFTA), and the Asia Pacific Economic Cooperation (APEC) account for 1/3 of world’s trade - Multinational firms manufacture and sell on a global basis - All of these factors shape the environment in which managers work Globalisation Forces Global Players - The firm - Foreign constituency - Home- and host-country governments - Special interest groups - International agencies - Economic alliances - Gangs, terrorists - Migration e.g. more women and more skilled workers Complex and Dynamic Work Environments - Stability of work environments within organisations have occurred as a result of globalization Downsizing Privatisation Team-based management - Changes are often implemented in order to “compete in a global environment” - Most significant force toward globalization are changes in IT Elements of Global Manager’s Environment - Global manager’s environment can be broken up into four categories 1. Economic 2. Legal 3. Political 4. Cultural - Culture can be identified as uniquely important a) Economic, legal and political characteristics of a company are a result of a country’s national culture and history b) Culture is largely invisible c) The practice of management focuses on interpersonal interactions What do global managers do? - Mintzberg (1973) – managers have formal authority over their organizational unit - Divided activities into: Interpersonal / Informational / Decisional - Characteristics of managerial work as: Brief / Varied / Fragmented / Highly interactional Culture and Managerial Roles - Global managers face demands and constraints that are different from domestic managers - Managers from different cultures make different choices about roles - May be due to context E.g. Boisot & King (1992) Chinese managers spend same amount in downward communication, but 4 times as much time in communication with supervisors and only about ½ as much time in communication with outsiders/peers. Limitations in Present Management Studies Reliance on research designed/conducted in the U.S - Much contemporary knowledge arose in post WW2 USA - Less than 5% of published articles focused on cross-cultural studies and recent studies show little change in this figure - Results due to PAROCHIALISM Focus on U.S context has brought a unique cultural orientation - Extreme individualism - A belief that individuals control their own circumstances and can (to great extent) control environment and future events - Low-context communication (most meaning is in explicit communication as opposed to context surrounding exchange of messages) What are the Pros and Cons of Different Types of Cross-Cultural Research? 1. Domestic - Description: Research designed and carried out in a single country - Cultural Assumptions: Culture ignored, universality assumed - Constrained by its ability to advance theory/practical application - Before such research can be applied to another culture, its generalizability must be demonstrated 2. Replication - Description: Study conceived in one country and then attempt to replicate in another country - Anticipate that the constructs being tested will have same meaning to participants in both cultures - Cultural assumptions: Universality questioned, no theory of culture - Research question: does this theory from culture A apply in culture B? 3. Indigenous - Description: Focuses on different/varies ways in which managers behave, and organizations are run in a specific cultural setting in a way that highlights that something unique is to be expected. Conducted in a single country. - Cultural assumptions: Cultural differences exist, indigenous theory is needed - Research Question: How can we explain and predict the behavior of people in organisations in country X? 4. Comparative - Description: 2+ countries examined - Seek to identify cultural similarities and differences in a management issue across countries9 - Cultural assumptions: similarities and differences exist, universal theory questioned - Research question: What similarities and differences exist in the behaviour of people in organisations? Is this theory universal? 5. International Description: Studies that focus on multinational organisations - Cultural assumptions: Similiarities and differences exist across cultures, however, culture is ignored - Research question: How do organisations that operate in multiple countries function? 6. Intercultural Description: Seeks to understand intercultural interactions between different individuals in organizational settings - Cultural assumptions: Part of a theoretical framework focused on similarities and differences between groups and considers all cultures of interacting parties - Research Question: How is this theory influenced by cultural differences, and how is it universal? How do Researchers Deal with the Methods Problems of Cross-Cultural Research? - Studies that involve two or more cultures share several methodological features - Equivalence → cross cultural equivalence CANNOT be assumed in a) Conceptualization of theoretical constructs b) Study design c) Data analysis Conceptual or construct equivalence – extent to which constructs have the same meaning in different countries Method equivalence – similarities and differences in the way in which cultural groups being studied respond to measurement instruments in general ^Threats to this type of equivalence include Acquiescence Bias: tendency of some cultural groups to agree (or disagree) with most or all questions asked Extremity bias: extent to which cultural groups systematically select the extreme points or middle points on rating scales Metric equivalence – refers to the extent that questions have similar properties across different groups Non-equivalence can result from poor item translation, complex item wording, culture-specific aspects of the ways that questions are phrased Sampling - Goal of sampling is to conduct research with small amount of participants who accurately represent a population - If samples differ between countries, then distinguishable sample differences from country differences can be very difficult - The ability to generalize from the sample to the population as a whole needs to be evaluated Data Collection Methods - Questionnaires (quantitative) - Interviews (qualitative) – Most commonly used in cross-cultural research Need to consider appropriateness of methods given cultural values Methods Problems: Critiques - Questionable theoretical base → relying to heavily on a small set of dimensions, emphasize differences rather than similarities - Parochialism → culture often ignored - Samples that assume country homogeneity → representation of sub-cultures needs to be documented - Lack of relevance → questions that are important to the US are not important for whole world - Reliance on single method – surveys - Bias toward studying large companies - Reliance on a single organizational level - Limited to a small number of locations – know little about Eastern Europe/Middle East/Africa/Latin America Lecture 2 Describing Culture Defining Culture - Large number of definitions of national culture Examples: - Kluckhohn (1963). “Culture consists of patterned ways of thinking, feeling and reacting, acquired and transmitted mainly by symbols, constituting the distinctive achievement of human groups, including their embodiment in artifacts; the essential core of culture consists of traditional (historically derived and selected) ideas and especially their attached values” - Triandis (1972) “Subjective perceptions of the human-made part of the environment. This includes the categorization of social stimuli, associations, beliefs, attitudes, roles and values that people share” - Hofstede (1980): “culture consists of shared mental programs that control individuals response to their environment” Main Features of Culture - Culture is shared - Culture is learned Features of Culture Culture is systematic and orga
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