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MAN6038 The Global Manager
MAN6038 全球經理

Introduction to the course aims and structure 

Introduction to the course - Main Aim 

  • Through active reflection and self-audit, development planning and application of theory, the module assists in developing skills whilst encouraging students to better appreciate key strategic, cultural, and organisational issues and opportunities in the global market. 

Learning Outcomes 

(as taken from the Modules specification) 
評估(用於人) 
  1. Evaluate the key traits of a global manager and analyse the relevance of adapting management styles in today's rapidly changing global environments. 
  2. Appraise an understanding of practical applications of intercultural competency. 
  3. Analyse the complexities of global organisations and cultural, ethical and value-based considerations for managers wishing to pursue global strategies. 
  4. Undertake a self-audit on to identify skills and competencies and based on audit findings, prepare a development plan. 

Assignment Brief 

Assignment method: 

An approximate -word portfolio weighting of the final mark 
  • Deadline: 
Class A: Saturday July 2024 
Class B: Saturday July 2024 

Required task: 

Using academic theories and a case study, evaluate and analyse key traits of a global manager from a global mindset perspective, include elements of cultural, ethical and value-based considerations, following which carry out a self-audit of your global mindset skills and a personal development plan. 

Assignment Brief 

Assignment indicative structure: 

  • Introduction. Clearly outline the structure of the work (approx. 100 words) 
  • Part 1. A literature review about key traits of a global manager and the importance of a global mindset in today's rapidly changing global environments (approx. 700 words) 2 pages 
Part 2. A literature review about cultural, ethical and value-based considerations (approx. 700 words) 

2pages 

  • Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations (approx. 700 words) 
  • Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words) 
  • Conclusion. Clearly summarise your work (approx. 100 words) 
  • List of references (not included in the word count). In-text citations and the list of references should follow BCU Harvard Referencing style. A minimum of 10-15 academic references are required. 

Reading List 

  • Main textbook: 
Lane & Maznevski (2014) 
Henry W. Lane and Martha L. Mazneuski 
  • Wider Reading List 

International Management Behavior 

  • Articles on Moodle page 

Module/Lectures Theme Overview 

  • Today's complex and highly dynamic global business environment 
  • Managers expected to possess and utilise requisite skills to meet goals 
  • Understanding of global issues affecting managers today 
  • Key Management and Leadership principles in the global context 
  • Intercultural competencies withing global business culture 
  • Ethical and value-based considerations in a global context 
  • Transferable employability skills - practitioner based approach 
  • Preparing you to be global managers of the future 

Additional Tutorials Theme Overview 

(these will be integrated into the weekly lecture sessions) 
  • How to write a literature review 
  • How to avoid plagiarism 
  • How to reference correctly 
  • How to do the self-assessment of a global mindset 
  • How to structure the assignment 

Introduction to the course - Referencing 

  • The tutorials include guidance about 
  • Finding and citing academic evidence 
  • How to develop a critical literature review 
  • Harvard referencing format requirements 
  • Plagiarism avoidance 

Session Plan indicative: changes in sequence possible 

 
Course
Session
Study Topics  Preparatory Work/ Revision 
1 An Introduction to the Course and to the Context 
 
Read book chapter and related
sources
2 Understanding culture Through the Looking Glass 
 
Read book chapter and other
sources
3 Cross-cultural Skill Development Tools for Global Managers 
 
Read book chapter and other
sources
4
 
Managing global teams and networks
Development of a global mindset
 
Read book chapter and other
sources, must read the provided
article (Bowen 2013 )
5 Implementing Strategy Structure and Systems / Value-based Considerations  Read the book chapter and other 
6 Cross-Cultural Adaptation, Effectiveness and Culture Shock and expats  Read the book chapter and other 
7 Leading Innovation and Change / further Value-based Considerations  Read the book chapter and other 
8 Competing with Integrity: Personal Integrity / Ethical Considerations  Read the book chapter and other 
9
 
Competing with Integrity Corporate Sustainability / More Ethical
Considerations
Read the book chapter and other 

BIRMINGHAM CITY
J3 University
MAN6038
The Global Manager
Session 1
An Introduction to the Context of Global Business Management 

Developing a Global Mindset this module's core concept/ "red thread" 

What is GLOBAL BUSINESS? 

Global business, also called international business, is the production and sale of goods and services between countries. The term can also encompass the nulances, politics, and dynamics of doing business in a 
Global business leads to high-level competition among businesses. When any company enters the foreign markets, they have to compete with the local business in that country. Therefore, the foreign businesses must produce high-quality products. 

What is GLOBALISATION? 

  • Globalisation is the word used to describe the growing interdependence of the world's economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information. 
  • McDonald's is the most prominent representation and symbol of globalization. Of all the fast-food chains in the fast-food industry, Mcdonald's is the largest one and is on the top of all global markets. 

Globalisation 

  • Globalisation of markets 
  • trade liberalisation, denationalisation, pressures to grow 
  • Globalisation of customers 
  • Globalisation of production & supply chains 
  • made possible by telecommunications, Internet and cheap transportation 
  • Global competitors 
  • Consolidation 
  • global joint ventures (i.e.Tesco in South Korea), global alliances, mergers & acquisitions 

Globalisation 

  • Cross border M&As, joint ventures and alliances fail about onehalf the time 
  • of bank mergers in the US failed to create significant value 
  • Cultural differences (35%) 
  • Poor planning & execution (20%) 
  • Unrealistic targets (13%) 
  • Inadequate due diligence (11%) Information research 
  • De-motivating employees (10%) 被收理公司員工 
  • Defection (8%) Business detection 
  • Other  

Is Company X a global company? 

In addition to and regional offices shown above - R&D and manufacturing facilities and distribution and education centers in The Netherlands, India, Germany, France, Ireland, Hong Kong, Mexico, UK, Australia, Italy, Argentina and Spain 

Global companies 

Only by operating in multiple locations is not globalisation 
  • Executing global strategy is done by people (on the ground) 
  • You don't globalise companies unless you "globalise" people 

What are some famous global companies that you know? 

  • Are they in almost every country in the world? 
  • In a specific region only? 
  • In very few countries? 
  • Have you heard if they do well or had any business troubles globally or regional or only at home? 
  • Are global companies always large? 
  • Which country/ies is/are headquarters to most of the global companies? 

Analysing « Globalization » at a micro level 

The Transnationality Index (TNI) is a means of ranking multinational corporations that is employed by economists and politicians. It is calculated as the arithmetic mean of the following three ratios (where "foreign" means outside of the corporation's home country).  
  • the ratio of foreign assets to total assets 
  • the ratio of foreign sales to total sales 
  • the ratio of foreign employment to total employment 
The Transnationality Index was developed by the United Nations Conference on Trade and Development.  

BIRMINGHAM CITY
University 

Ranking by:  Corporation  Home economy  Industry   Assets  Sales  Employment 
 
TNI
(Per cent)
 
Foreign
assets
Foreign  Total  Foreign  Total  Foreign   Total 
1 19 Hutchison Whampoa Limited  Hong Kong, China  Diversified  85721 103715 24222 31339 206986 250000 80,9
2 93 CITIC Group 中信  China  Diversified  78602 565884 9561 55487 25285 17,1
3 16 Hon Hai Precision Industries  Taiwan Province of China  Electrical & electronic equipment  65471 70448 128650 132429 810993 1290000 84,3
4 70 Petronas - Petroliam Nasional Bhd  Malaysia  Petroleum expl./ref./distr.  49072 163275 71939 94543 46145 39,2
5 63 Vale SA  Brazil  Mining & quarrying  45721 131478 38326 47694 15680 85305 44,5
6 59 China Ocean Shipping (Group) Company  China  Transport and storage  43452 56126 19139 29101 4400 130000 48,9
7 91 China National Offshore Oil Corp  China  Petroleum expl./ref./distr.  34276 129834 21887 83537 3387 102562 18,6
8 58 América Móvil SAB de CV  Mexico  Telecommunications  32008 75697 37395 58950 67525 158719 49,4
9 67 Lukoil OAO  Russian Federation  Petroleum and natural gas  31174 98961 113801 139171 18144 120300 42,8
10 20 Cemex S.A.B. de C.V.  Mexico  Non-metalic mineral products  30730 36808 11717 14986 35387 45087 80,1
11 92 Petróleos de Venezuela SA  Venezuela, Bolivarian Republic of  Petroleum expl./ref./distr.  27462 218424 46899 123223 4877 126945 18,2
12 80 Samsung Electronics Co., Ltd.  Korea, Republic of  Electrical & electronic equipment  26077 169702 19294 179060 123563 227000 26,9
13 39 Singapore Telecommunications Ltd  Singapore  Telecommunications  25768 32242 9541 14633 10496 23176 63,5
14 83 Hyundai Motor Company  Korea, Republic of  Motor vehicles  25443 113906 11754 75211 38318 98348 25,6
15 44 Jardine Matheson Holdings Ltd  Hong Kong, China  Diversified  24284 63460 29732 39593 217556 360000 57,9
16 54 Sabic - Saudi Basic Industries Corp.  Saudi Arabia  Petroleum expl./ref./distr.  23540 90089 33377 50422 25391 40000 51,9
17 85 Gazprom JSC  Russian Federation  Petroleum and natural gas  23425 396454 92016 153863 27400 431200 24,0
18 24 Wilmar International Limited  Singapore  Food, beverages and tobacco  23088 41920 33622 45463 90575 93000 75,5
19 2 China Resources Power Holdings Company Ltd  Hong Kong, China  Energy  22938 22938 8049 8049 38018 38118 99,9
20 42 Tata Motors Ltd  India  Automobile  21575 31281 26519 34765 20379 62716 59,2
21 17 Ooredoo QSC  Qatar  Telecommunications  20304 26104 7601 9303 15289 17130 82,9
22 88 Formosa Plastics Group  Taiwan Province of China  Chemicals  19994 101998 14405 78130 24287 102763 20,6
23 62 New World Development Ltd  Hong Kong, China  Diversified  19857 36918 2411 4582 14751 47000 45,9
24 100 China National Petroleum Corporation  China  Petroleum expl./ref./distr.  19284 541083 11296 425720 31442 1656465 2,7
25 29 CapitaLand Ltd  Singapore  Construction and real estate  18926 30885 1706 2642 10500 12000 71,1
Web table 28. The world's top 100 non-financial TNCs, ranked by foreign assets, (Millions of dollars and number of employees) 
Ranking by: 排名: Corporation  Home economy  Industry   Assets  Sales  Employment 
 
Foreign
assets
Foreign  Total  Foreign  Total  Foreign   Total 
1 79 General Electric Co  United States  Electrical & electronic equipment  338157 685328 75640 144796 171000 305000 52,5
2 32 Royal Dutch Shell plc  United Kingdom  Petroleum expl./ref./distr.  307938 360325 282930 467153 73000 87000 76,6
3 22 plc  United Kingdom  Petroleum expl./ref./distr.  270247 300193 300216 375580 69853 85700 83,8
4 77 Toyota Motor Corporation  Japan  Motor vehicles  233193 376841 170486 265770 126536 333498 54,7
5 28 Total SA  France  Petroleum expl./ref./distr.  214507 227107 180440 234287 62123 97126 78,5
6 45 Exxon Mobil Corporation  United States  Petroleum expl./ref./distr.  214349 333795 301840 420714 46361 76900 65,4
7 8 Vodafone Group Plc  United Kingdom  Telecommunications  199003 217031 62065 70224 78599 86373 e  90,4
8 62 GDF Suez  France  Utilities (Electricity, gas and water)  175057 271607 78555 124711 110308 219330 59,2
9 61 Chevron Corporation  United States  Petroleum expl./ref./distr.  158865 232982 132743 222580 31508 62000 59,5
10 64 Volkswagen Group  Germany  Motor vehicles  158046 409257 199129 247624 296000 533469 58,2
11 51 Eni SpA  Italy  Petroleum expl./ref./distr.  133445 185493 85867 163566 51034 77838 63,3
12 1 Nestlé SA  Switzerland  Food, beverages and tobacco  132686 138212 96849 98468 328816 339000 97,1
13 71 Enel SpA  Italy  Electricity, gas and water  132231 226878 65966 109098 37588 73702 56,6
14 48 E.ON AG  Germany  Utilities (Electricity, gas and water)  128310 185601 117973 169764 40535 72083 65,0
15 4 Anheuser-Busch InBev NV  Belgium  Food, beverages and tobacco  115913 122621 36013 39758 109566 117632 92,8
16 6 ArcelorMittal  Luxembourg  Metal and metal products  112239 114573 83996 84213 185319 244890 91,1
17 29 Siemens AG  Germany  Electrical & electronic equipment  111570 139252 87236 101604 250000 369000 77,9
18 36 Honda Motor Co Ltd  Japan  Motor vehicles  110142 144811 95792 118983 118923 187094 73,4
19 92 Mitsubishi Corporation  Japan  Wholesale trade  109657 153044 49052 243401 18915 40,6
20 98 EDF SA  France  Utilities (Electricity, gas and water)  103015 330582 38840 93470 30412 154730 30,8

BIRMINGHAM CITY
University 

1

Global MNEs 
of total sales 

BIRMINGHAM CITY
University 

Home-region based 
of total sales 

To conclude 

A GLOBAL industry: when competition takes place at the global level with high pressures on standardization(opposed to Multidomestic industry) 多國内市場行業 
全球影響力 
A GLOBAL company: with a global presence, i.e. in Triad / regional and emerging markets (opposed to local company) 
A GLOBAL strategy: with a global reach (opposed to local strategy) 

A company can be « global, » working in a « multidomestic » industry, developing « local » strategies! 

Again: What is Globalization? 

  • Globalization of markets 
  • trade liberalization, deregulation 
  • pressures to grow 
  • Globalization of customers 
  • Globalization of production & supply chains 
  • made possible by telecommunications, Internet and cheap transportation (e.g. HP) 
  • Global competitors 
  • Consolidation 
  • global joint ventures, global alliances & M & A's 

Then: What is deglobalization? 

  • Deglobalization or deglobalisation is the process of diminishing interdependence and integration between certain units around the world, typically nation-states. It is widely used to describe the periods of history when economic trade and investment between countries decline. 
  • Have we entered such period of deglobalization? 

What indicates a deglobalization trend? 

  • Trade Wars 
  • Increase of sanctions/ embargoes/ import tariffs 
  • Supply chain problems 
  • International mobility problems 
  • Increased protection of local labor (restrictions on work visas) 
  • Political (i.e.: “de-coupling") 
  • Other 

Globalisation is really about complexity 

- Complexity 

  • Multiplicity (M) 多傆性 
  • Interdependence (I) 互相恠頪 
  • Ambiguity (A) 不明维镖情 
  • And continuous, rapid change 

Implications of globalization 

  • Globalization is easy to talk about but difficult to accomplish 
  • Some people in the parent company are going to have to work with people from other cultures 
  • Someone in the company may have to travel to or live in another country 
  • Decisions have to be made about how to operate - our way, their way, a new way? 
  • "We" may have to change as well as "them" 

Global Mindset 

"The ability to develop and interpret criteria for personal and business decisions that are not dependent on the assumptions of a single country, culture or context; and to implement those decisions appropriately in different countries, cultures, and contexts" 

Four Types of Understanding Required to Develop a Global Mindset 

What do managers do in general? 

Mintzberg published his Ten Management Roles in his book, "Mintzberg on Management: Inside our Strange World of Organizations," in 1990 
Managerial roles  Differences across cultures 
Interpersonal roles 
Figurehead 
 
Figureheads have considerable symbolic value in some cultures; in
others, being described as a figurehead is not seen as a compliment.
Leader 
 
Individualistic cultures prefer highly visible "take charge" leaders;
collectivistic cultures prefer more consultative leaders.
Liaison 
 
Some cultures prefer informal contacts based on long-standing
personal relationships; others prefer to use official representatives.
Informational roles 
Monitor 
 
Culture often influences both the extent of information monitoring and
which specific information sources receive greatest attention.
Disseminator 
 
In some cultures, the context surrounding a message is more important
than the message itself; in others, the reverse is true.
Spokesperson 
 
Culture often influences who is respected and seen as a legitimate
spokesperson for an organization.
Decisional roles 
Entrepreneur 
 
Some cultures are highly supportive of innovation and change; others
prefer the status quo and resist change.
Disturbance handler 
 
Some cultures resolve conflict quietly; others accept and at times
encourage a more public approach.
Resource allocator 
 
Hierarchical cultures support differential resource allocations;
egalitarian cultures prefer greater equality or equity in distributions.
Negotiator 
 
Some cultures negotiate all items in a proposed contract
simultaneously; others negotiate each item sequentially.

What is a GLOBAL MANAGER? 

  • A global manager is defined by the work he or she is doing, frequently within a company with global presence or operations. 
  • A global manager is responsible for managing teams of employees or business operations across diverse cultures and time zones, calls for new skill sets and capabilities. 
  • Having a degree in global business management can help you develop problem-solving skills and make you able to think on a global scale. Pursuing courses in Global business management provides opportunities to establish your career in finance, international management, trade or in different multinational companies. 

How do you learn to conduct international business effectively? 

You need to acquire a set of skills that help you work across regional, national and subnational boundaries to propel your business forward. Those skills include the following: 
  • Overseas experience 
  • Deep self-awareness 
  • Sensitivity to cultural diversity 8 
  • Humility 
  • Lifelong curiosity 
  • Cautious honesty 
  • Global strategic thinking 
  • Patiently impatient 
  • Well-spoken 
  • Good negotiator 6 
  • Presence 

The Global Mindset 

"The real voyage of discovery consists not in seeking new
landscapes, but in having new eyes" 

Marcel Proust (French novelist, 1871-1922) 

Developing a Global Mindset 

Skill-Development for Global Managers (1) 

- OVERSEAS EXPERIENCE 

  • Many global executives understand what doing business in a flat world is like because they've lived overseas, sometimes for decades at a time. If you want to become a successful international business leader, transcending your own cultural perspective and learning how business is done in different contexts is essential. 

- DEEP SELF-AWARENESS 

  • Understanding your beliefs and knowing where they might differ from others' is critical to global executive success. Without this key characteristic, you will not be able to adapt to and tolerate the deepseated beliefs of others - and business opportunities will evaporate. Beware of the "I'm right; you're wrong" assumption. 

Skill-Development for Global Managers (2) 

- SENSITIVITY TO CULTURAL DIVERSITY 

  • Are you willing to eat raw fish? Snake? Raw monkey brains? Can you adjust your eating and sleeping habits to match the local executives' routines and patterns? In other countries, seemingly minor things can be off-putting, such as sticking your chopsticks in your rice or touching someone with your left hand. 
  • Much of this insight comes from experience. You must have an intense interest in the lives and cultures of others, recognizing that your culture and background are not inherently superior, to master the global business arena. 

- HUMILITY 

  • Being interested in other cultures and how people in those cultures do things, especially with regard to business, implies a certain humility. Humility here means a belief that other lands and cultures have figured out very interesting answers to life's problems. As a good international business person, you must be open to and fascinated by those answers. This trait requires a willingness and ability to listen well and with real intention. 

Skill-Development for Global Managers (3) 

  • LIFELONG CURIOSITY 
  • The world is constantly evolving. Without an intense curiosity and a desire to learn, you will be left behind and increasingly unable to converse, much less keep up, with your peers. Staying abreast of new learning opportunities requires a humble awareness that what you know is not enough and that you always have more to learn. 

- CAUTIOUS HONESTY 

  • Surprisingly, the definitions of "honesty" and "truth" vary widely in the business arena. People sometimes omit information or only tell the truth they think other people need to know. However you design your ethics and morality in your personal life, in global business settings, executives need to know they can count on you. If you don't deliver on your business promises, your reputation will suffer. Effective global leaders can balance the need to be cautious in different contexts while demonstrating they can follow through. 

Skill-Development for Global Managers (4) 

- GLOBAL STRATEGIC THINKING 

  • When you have a global perspective, you think strategically about managing business using the best people from around the planet. Much of your ability to do this comes from a lifetime of networking at the highest levels in global boardrooms and your aptitude for seeing how various pieces of global industries play out internationally. To make strategic decisions for your company, you need to understand how the business world works on a global scale. 
  • PATIENTLY IMPATIENT 
  • How do you become patiently impatient? You must be in a hurry and yet be patient enough to allow the local and regional processes to unfold as they are meant to. Time and pace are not the same in every country. Balancing the demands of hot competitive and technological trends with the pace of local cultures can be frustrating to the uninitiated. 
  • WELL-SPOKEN 
  • Given the challenges of working via interpreters or fumbling through conversations in more than one language, the ability to say clearly what you mean is a key global business skill. If you converse with others in their native language, you usually earn brownie points - however, if what you have to say is obscure or unintelligible, you'll quickly be in a deficit balance. Clear communication is a powerful leadership trait to have on the global stage. 

Skill-Development for Global Managers (5) 

- GOOD NEGOTIATOR 

  • Doing business across ethnic, national and regional boundaries requires strong negotiating skills. If you can add these skills to an innate enjoyment of the gamesmanship involved in negotiating, you will become a highly effective negotiator. 
  • PRESENCE 
  • A certain chatists as surrounds you if you are an influential global leader. Part of it - but only part - is position or title. The bigger portion is dress, self-confidence, energy level, interest in other people and comfort with the challenges at hand. You may not want to believe these things matter, but they do. 
  • As a global business leader, you must respect the identities and affiliations of others. Some people can do that; many or most cannot. Do you have what it takes to become a global business leader? 

Skill-Development for Global Managers 

  • Further suggestions about global management skill development can be found in the internet! 
  • For example here, but not limited to this only: 

Understanding of business management in a global context 

  • What works in one country might not work in the other 
  • What a message means in one country might not have the same meaning in another. 
  • Context matters. 
  • Knowing and understanding the context is pre-requisite when managing across borders. 

Traditional 'logic' of organization and management 

Different cultures have different expectations from their supervisors? Taken-for-granted! 

Example: Jepsen Company: Expatriates face Differences 

Rethinking management models 

Country  Percentage of managers who agree with each statement 
 
"Managers must have
the answers to most
questions asked by
subordinates"
 
"The main reason for a
chain of command is so
people know who has
authority"
 
"It is OK to bypass
chain of command to
get something done
efficiently"
China  74 70 59
France  53 43 43
Germany  46 26 45
Indonesia  73 83 51
Italy  66 - 56
Japan  78 50
Netherlands  17 31 44
Spain  - 34 74
Sweden  10 30 26
United Kingdom  27 34 35
United States  18 17 32
Country 
 
Manager's sense of drive
and initiative (percentage
of agreement by managers)
Country 
 
Manager's willingness to
delegate authority (percentage
of agreement by managers)
United States  74 Sweden  76
Sweden  72 Japan  69
Japan  72 Norway  69
Finland  70 USA 66
South Korea  68 Singapore  65
Netherlands  67 Denmark  65
Singapore  66 Canada  64
Switzerland  66 Finland  63
Belgium  65 Switzerland  62
Ireland  65 Netherlands  61
France  65 Australia  61
Austria  63 Germany  61
Denmark  63 New Zealand  61
Italy  62 Ireland  60
Australia  62 UK 59
Canada  62 Belgium  55
Spain  62 Austria  54
New Zealand  59 France  54
Greece  59 Italy  47
UK 58 Spain  44
Norway  55 Portugal  43
Portugal  49 Greece  38

Expatriates  

Frequent flyers 
Virtual managers 
Face-toface 

Virtual 

Types of global managers 

 
Characteristics
and management
challenges
Expatriates 

Types of global managers (cont'd) 

 
Characteristics
and management
challenges
Expatriates 

Obviously, global management is not that easy! 

  • Cross border M & A's, joint ventures and alliances fail about one-half the time. 
  • of bank mergers in the US failed to create significant value 
  • Cultural differences (35%) 
  • Poor planning & execution (20%) 
  • Unrealistic targets (13%) 
  • Inadequate due diligence (11%) 
  • De-motivating employees (10%) 
  • Defection (8%) 
  • Other (3%) 
\section*{The reasons why M&A's and joint ventures "fail"  
- May start at the top...  
- "M & A's are illusions" 
  • Paying attention to only half the challenge: 
strategy formulation (ideal, big picture) without execution (reality, details) 
What levels of global managers are involved? 

The reasons why M&A's and joint ventures "fail"(continued) 

  • Tendency to focus on "visible" inputs vs. "invisible" relationships 
  • legal, financial, market data vs. trust, commitment 
  • Ignoring culture (national and organizational) 
  • The "visible" issues are necessary but not sufficient for success 

Example: How Culture ended the DaimlerBenz Chrysler Merger 

The Daimler-Benz merger with Chrysler in 1998 is probably the most famous of all international mergers then ended in failure. 
Cultural differences and organisational culture are both acknowledged to have played their part. 
It was this failed partnership that first rang the alarm bells that cultural factors just cannot be ignored on a global level, especially not within mergers and acquisitions. 

Why the Daimer-Chrysler M&A failed 

  • Analysts agree that the cultural gap in corporate cultures was one of the main reasons for the Daimler-Chrysler failure. Daimler was a German company which could be described as "conservative, efficient and safe", while Chrysler was known as "daring, diverse and creating" (Appelbaum, Roberts and Shapiro, 2009:44) 
  • Daimler was a very hierarchical company with a clear chain of command and respect for authority. 
  • Chrysler, on the other cultural hand, favoured a more team-oriented and egalitarian approach. 
  • The other cultural difference lay in what the companies valued in terms of their clients. Daimler valued reliability and achieving the highest levels of quality, while Chrysler was placing its bets on catchy designs and offering their cars for competitive prices. These two factors resulted in conflicting orders and goals in different departments. American and German managers had different values which drove and directed their work. Different departments were heading in opposing directions. 
  • Employees on both sides felt reluctant to work with each other. During the initial stages of organisational integration, huge bulks of Chrysler's key executives either resigned or were replaced by Germans counterparts. 
  • Moreover, Daimler was much more imposing and tried to dictate the terms on which the new company should work (Appelbaum, Roberts and Shapiro, 2009:44). Such a situation didn't inspire trust in Chrysler's employees and raised some serious communication challenges. 
  • So to summarise the cultural factors in play here: 
    1. differences in corporate cultures and values 
  1. lack of coordination and severe lack of trust among the employees 
  • All three resulted in communication failures which in turn caused a sharp reduction in productivity. 

Example: Cultural Differences in the Daimler alliance with Mitsubishi 

  • One of the lesser known international cooperation blunders is that of the DaimlerChrysler-Mitsubishi alliance in 2000. 
  • Right after acquiring Chrysler, the newly merged DaimlerChrysler decided to gain a foothold in Asia as well. 
  • They saw Mitsubishi Motors as the golden ticket. 
  • The outcome, however, wasn't that successful. 

Why the Daimer-Mitsubishi Alliance failed 

  • In this case Daimler failed to acknowledge any local practices and principles of Japan business culture. 
  • In Japanese culture, trust and attention to others' feelings are essential. This means that Japanese business people value personal relationships more than dry facts. What is important is how you value your client and how you treat him. This differs greatly with a strictly fact-based and pragmatic approach of the German counterpart. 
  • Not paying any attention to the concept of "localization", Daimler appointed German managers who immediately started giving orders as if they were in Germany. As a result, Japanese subordinates felt extremely reluctant to take orders from them (Froese and Goeritz, 2007: 98), which in turn had a negative impact on overall efficiency. Moreover, most Germans were seen as guests which exacerbated the situation since guests usually don't have authority in Japan and on top of that it's hard to be "rude" to a guest. 
  • Cross-department communication was very weak as well. Apart from the R&D department, communication mechanisms weren't installed properly and a chain of command was not clearly defined (Froese and Goeritz, 2007: 101). 
  • The last cultural difference which will be mentioned here is the conflict between cultures that value long-term orientation over short-term orientation and vice-versa. One of the founders of the intercultural theoretical framework, Professor Hofstede, used this difference as one of the key dimensions of culture. Generally speaking, countries in the West tend to be more short-term goal oriented while the countries of the East strive for more long term goal orientation 
  • DaimlerChrysler after some time started feeling reluctant to make any further investments into Mitsubishi. They didn't see any short-time profits which eventually led to "pulling the plug" on their Japanese partner. Mitsubishi on the other hand, wasn't really concerned with the losses. They were more long-term oriented. They perceived the difficulties to be an obstacle to overcome, but not as a reason to dismantle the alliance. That is why, when DaimlerChrysler announced, that it refused to make any further investments, that the little shreds of trust dissapeared. 
  • The joint venture didn't work as intended because of the lack of consideration given to cultural factors. The inability to establish proper communication, build trust and recognise the goals of one's counterpart played a significant role in the outcome of the cooperation. 
  • Moreover, just as in the DaimlerChrysler merger, a German company was imposing its own terms on their partners. Once again this "bargaining in" and "do-it-our-way" attitude proved incapable of delivering results. 

Example: Success-Story of Tata's M&A of Jaguar Land Rover 

  • TATA Jaguar Land Rover In 2008, TATA finalised the deal and acquired Jaguar Land Rover (JLR). However, the outcome was quite different from the previous case studies which ended in failure. This one is a success story. 
One can attribute the difference in the outcomes to the difference in approaches to the merger, acquisition and integration process. TATA employed directly opposite methods to Daimler. The essence of this method lay in respecting the existing culture rather than imposing a foreign culture. 
  • At the start of the process the Managing Director openly stated that "change of ownership has little to do with the changing of culture". This had several consequences on TATA's management style. 
  • Firstly, TATA, in contrast with Daimler, decided to leave the existing management structure intact and leave the national British managers. There wasn't any attempt to impose Indian managers on JLR. All the key personnel retained their positions. 
  • Secondly, TATA didn't just leave the current managers on their own. TATA managed to motivate them through constantly challenging them and working with them. In other words, help was offered only when it was needed and existing practices remained in place, but at the same time managers couldn't afford to be idle because they had goals to reach and plans to implement. 
  • Thirdly, unlike in the DaimlerChrysler and Mitsubishi alliance, TATA managed to inspire trust in JLR. First of all, the fact that most of JLR's personnel were left on their positions showed that TATA trusts JLR, and believed that it is capable of solving their problems. Moreover, more than once in interviews the Managing Director stated that "it is TATA's responsibility" to take care of JLR and that "TATA won't shy away from investments, if it is required". Such clear statements of loyalty contributed positively on the cooperation between the companies. 
  • Finally, TATA kept an open-mind and never hesitated to listen to feedback from subordinates. TATA's top level officials often make trips to their factories and dealerships outside India and collect feedback from local employees. These opinions are being used in the developing company's strategy. 

Successful Global Managers must develop Cross-cultural effectiveness 

  • Cross-cultural effectiveness = ability to live and work effectively in the cultural setting of your assignment 
  • Effectiveness (professional expertise + adaptation + intercultural interaction + situational readiness) 
  • PAIS) 
  • To be effective we need to have an understanding of culture OURS and THEIRS. 

This course concentrates on the following global management issues: 

  • Impact of cultural differences and how to develop a global mindset 
  • Ethical issues / How to be an ethical player / What ethical dilemmas do global managers face and how do they/should they handle those? 
  • Value creation through globalization of markets, supply chain, labor force, financial markets to sell more, to safe cost, to increase profits, to enhance quality, to enhance innovation, etc. 
  • FINALLY: Self-evaluate your own global mindset. How would you further develop it? 

MAN6038 The Global Manager Session 1 SUMMARY 

Course Structure Overview 
What is Global Business 
What are typical Reasons for Failures of Global Alliances 
What are Differences between Global Managers and solely Local Managers 
Why is a Global Mindset so important for the Success of Global Managers 

MAN6038 The Global Manager 

Session 2 
Understanding culture through the looking glass 

Revision 

-What are the key take aways from the previous session? 
  • How does the content of the previous session relate to the assignment and global mindset development? 
  • Any relevant examples to share? 
  • Any clarifying questions? 

Once again: The Assignment Brief 

Assignment indicative structure: 

  • Introduction. Clearly outline the structure of the work (approx. 100 words) 
  • Part 1. A literature review about key traits of a global manager and the importance of a global mindset in today's rapidly changing global environments (approx. 700 words) 
  • Part 2. A literature review about cultural, ethical and value-based considerations (approx. 700 words) 
  • Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations (approx. 700 words) 
  • Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words) 
  • Conclusion. Clearly summarise your work (approx. 100 words) 
  • List of references (not included in the word count). In-text citations and the list of references should follow BCU Harvard Referencing style. A minimum of academic references are required. 
"Part 2. A literature review about cultural, ethical and value-based considerations (approx. 700 words) 
Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations (approx. 700 words) Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words)" 

The following sections are all full of valuable in-sights and concepts that you can use for your assignment and when choosing a relevant case. 

A definition of culture 

  • Culture is a commonly-held body of beliefs and values which define the shoulds and the oüghts of life for those who hold them. 
  • Researcher Geert Hofstede called it the 
  • "Software of the mind" that distinguishes members of one group from those of another. 

Culture is... 

Behaviors 
and artifacts. 
Visible, tangible. 
  • like an iceberg: is below the surface 
Usually not visible and rarely (if 

ever) questioned until a conflict. 

Culture 

  • Learned: acquired from our social environment so early that we are usually unaware of its influence 
  • Shared: a collective phenomenon 
  • Not random: patterns exist 
  • NOTE: CULTURE DOES NOT NECESSARILY MEAN COUNTRY 

Personality and culture 

  • Be aware of Stereoretyping. Be careful not to: 
  • Project from groups to individuals, or 
  • Project from individuals to groups 
  • Variations exist within cultures - not everyone is the same Free from stereotyping 
  • Personality is an individual characteristic 
  • Culture is a group characteristic 
Like fingerprints, you can still be unique and display characteristics of a larger cultural group 

Multicultural competence and managerial success 

Global leaders understand culture more deeply than the superficial differences 
  • It is important to recognizing and respect differences in greeting rituals, titles, business cards, meals, but it is not enough. 
  • Global leaders must understand deeper levels of culture, that influence how people approach work and collaborate with each other 

Global leaders need high Cultural Intelligence (CQ) 

  • Cultural Intelligence (CQ) 
  • The capacity to act effectively in multiple cultural environments 
  • System of interacting knowledge and skills linked by mindfulness 
  • Ability to adapt and work effectively and respectfully with people of other cultures while 
正念 maintaining one's own identity 
  • Is related to Emotional Intelligence (EQ) and adds the condition of working across boundaries 
  • CQ is a critical part of the global mindset 
  • Gives the cultural context of self- and other- awareness 
  • Has a knowledge and a skills component 
  • CQ requires two different types of cultural knowledge 
  • General cultural knowledge (examined in the first part): 
how culture works and how to observe and gain insights about the effect of culture in different settings 
  • Specific cultural knowledge (examined in the second part): 
a set of facts and information about a specific culture (e.g., China, India, Nigeria) 

Understanding cultures Part 1: How cultures work. 

Understanding culture: Through the Looking Glass 

Culture is a shared set of assumptions, beliefs and values. 

  • Kluckhohn and Strodtbeck 
  • a shared, commonly held body of beliefs and values that define the "shoulds" and "oughts" of life 
  • "the culture of a country - or other category of people - 
  • is not a combination of the properties of the 'average citizen' 
  • is not a 'modal personality' 
  • is a set of likely reactions of citizens with a common mental programming" 
  • Hofstede 
  • "the collective programming of the mind which distinguishes one group or category from another" 
  • Culture 
  • can be seen in norms and practices: language, clothing, behavior 
  • meaning and important influence much deeper 
  • shapes assumptions, perceptions, behavior 
  • is passed on through generations formally (school) and informally (stories and social reinforcement) 

All Groups Have Cultures 

  • For any group, culture 
  • Makes action more simple and efficient 
  • Provides an important source of identity for its members 
  • Culture and individuals interact 
  • Group culture defined by what group members share 
  • Individual members differ and subscribe to culture's assumptions and values to a greater or lesser extent 
  • Every individual belongs to different groups with their distinct cultures: national, regional, professional, organizational, age, gender, religion, hobby, etc. 
  • Culture provides an important context for people's behavior in a group 
  • Hall: culture is to people like water is to fish 
  • Fish out of water can't function normally... Fish does not now this till out of water 

Culture affects individuals within groups in many ways 

  • Individuals are usually unaware of their own culture 
  • In fact: Learned, shared assumptions and values provide context for interactions and influences 
  • What is considered to be successful and what not 
  • What are the priorities of the group 
  • How people should behave 
  • Simplifies action 
  • Provides source of social identity 
  • At the surface: Language, clothing, behavior 
  • An individual becomes much more aware of own culture when visiting other culture(s) 
  • Critical to leading in an international context 
  • Necessary to over come the "fish out of water" syndrome 
  • Is a group characteristic, but individuals are all different 
  • Individuals are rarely "typical" all the time 

Understanding culture is fundamental to being an effective global leader. 

  • Two fundamental characteristics distinguish "international management" from "normal" domestic management 
  • working across varying cultures 
  • strategic complexity 
  • To lead effectively in the complexity of globalization 
  • empower people to make decisions 
  • implement these in ways consistent with the company's priorities 
  • understand the relationship between 
  • people and organizations 
  • organizations and their context 
  • All of this complexity involves working across cultures effectively 

Are cultures converging? 

  • If cultures are converging, then it will become less important to understand cultural differences 
  • Is business the same everywhere? Are people basically the same all over the world? 
  • In some ways, yes: 
  • Jeans, Nike, PlayStation, Pokemon, Harry Potter, vuvuzelas, popular music 
  • Globally and instantly traded currencies, global norms and infrastructures for conducting business 
  • In some ways, no: 
  • Number of countries increasing 
  • Genres of music, movies, culture fragmenting 
  • The answer is "they are both converging and diverging" 
  • Convergence allows us to do business together 
  • Divergence manifests itself when people have to interact day-to-day 
  • "To say that we're (Chinese) becoming Westernized because McDonald's does well in Shanghai, is like saying that the U.S. is becoming Easternized because there are a lot of Chinese restaurants there." 

Why Focus on Country Cultures? 

  • In International Management we often focus on the role of country cultures 
  • institutions that carry culture are powerful and consistent with "country" 
  • one "official" language is taught in state schools, is the language of government, is used by most official and unofficial media 
  • one legal system 
  • system of government consistent across regions 
  • single relationship between church and state 
  • Beliefs and values associated with these institutions are taught to people early and unobtrusively 
  • through family norms and institutional practices 
  • most people are unaware of their influence 
  • It is important to remember that there are many other types of culture: regional, religious, local, professional, organizational, etc. 

Culture Influences How We See The World 

  • Assumptions and Perceptions influence our thoughts 
  • Some assumptions are deeply ingrained and it is difficult to ever surface them 
  • taken-for-granted beliefs about the world and how it works 
  • create our world view 
  • define the cognitive environment in which we work 
  • some are deeply 
  • Other assumptions are learned at various stages of our lives 
  • once learned they are taken for granted 

Dynamics of Differing World Views 

  • Our Assumptions influence our Perceptions (understanding) 
  • "We see what we want to see and hear what we want to hear" 
  • Or, "I'll see it when I believe it" rather than “'Ill believe it when I see it" 
  • For example 
  • The financial accountant focuses on financial ratios, earnings growth, dividends; may not focus on programs with long lead time that may enhance the company's reputation for social responsibility 
  • The advertising account manager will likely focus on product features that fit into assumptions about the target audience's motivation, may miss other features 
  • Assumptions are necessary 
  • They eliminate a constant need to inquire about the meaning of events and the motives of others 
  • The more we share assumptions with others, the more easily we interact and communicate effectively 

Clearer Vision With D-I-E Describe, Interpret, Evaluate 

  • Our actions are influenced by a cognitive process, filtered by our assumptions 
  • D: We notice something and describe / observe its characteristics 
  • I: We interpret, or give meaning to what we observed 
  • E: We evaluate the facts, characteristics, dimensions of what we observed and then we take action 
  • We perceive the world based on our assumptions through the D-I-E sequence 
  • When we cross cultural barriers we need to be aware that our D-I-E is based on assumptions that may not apply to the local conditions 
  • Spend more time on description, treat interpretations as hypotheses, defer evaluation until we have explored multiple possible interpretations 

Culture and Individual Behavior (fig. 2.1) 

When Cultures Meet:
Question the Other or Question Ourselves? 

When people from two or more cultures meet or work together they start from a different set of assumptions based on their value systems (cultures) that may direct them to 
  • notice the same characteristics of a situation or different ones 
  • describe the situation they notice differently 
  • interpret what they notice differently 
  • evaluate what they interpreted differentlv 
  • take different actions 

When Cultures Meet Question the Other or Question Ourselves? 

  • How to regain consistency? 
  • Question the other 
  • change our perception of the evidence to match the assumptions 
  • Question ourselves 
  • Change our assumptions to match the evidence 
  • It is generally easier to question the other 
  • less energy 
  • reinforced by others with the same assumptions (boss at headquarters) 
  • is less confusing 
  • we distort what we've perceived to make it fit our assumptions 
  • To question ourselves is less common and more difficult 
  • need to stand back and identify the holes in our own assumptions 
  • energy needed to change our assumptions and those of others too 
  • overcome a tendency to base one's own identity to one's culturally induced assumptions 
  • Key to effective communication: Fit between assumptions and perceptions 
  • no fit: 
  • cognitive inconsistency -> negative feeling, i.e., discomfort 
  • then, -> distortion of perceptions to achieve consistency with assumptions and false comfort 
  • i.e., we seek pleasure to avoid pain 
  • good fit: cognitive consistency -> justified "harmony, comfort" 
  • cross-cultural situations: assumptions are likely to have no fit with perceptions -> misunderstanding 
What's more important, rules or relationships? 
Global and local? 

Understanding Cultures Part 2: Acquiring & Organizing CultureSpecific Knowledge 

Understanding culture: Through the Looking Glass 

Cultural frameworks compare different 

aspects of culture 
Hall & Hall 
V
Hofstede 

Cultural Orientations Framework Kluckhohn & Strodtbeck 

  • Is one tool for "mapping" differing patterns of beliefs held by different cultures 
  • Highlights deep assumptions important for international management 
  • Can promote deeper cultural awareness 
  • BUT, must be used prudently 
  • Presupposes understanding of: 
  • concepts underlying culture 
  • assumptions underlying the framework itself (see next slide) 

The Cultural Orientations Framework is based on well-tested assumptions about culture. 

  • There are universal themes in the challenges that different societies face over time 
  • Kluckhohn & Strodtbeck identified six universal challenges faced by all societies, and a limited number of basic ways of responding to each of the challenges 
  • Different societies developed different shared preferences for coping with each of these issues 
  • The rank ordering of the society's preferences is what creates differences among cultures 
  • All variations of a particular value orientation exist in a given culture 
  • All variations provide good solutions and good ways forward for different situations; there is no such thing as a "better" cultural configuration 
  • People believe there are different ways to deal with a given situation; the society agrees there a preferred way to start 
  • The variation among individuals within a culture provides resources for cultural change and adaptation over time 
The Six Cultural Orientations: Questions every culture must answer, and categories of responses 
  • Environment: What is our basic relationship with the world around us? 
  • Harmony, Mastery, Subjugation 
  • Relationships: To whom and for whom do we naturally have responsibility? 
  • Collective, Hierarchical, Individual 
  • Activity: What is our basic or natural approach to activity? 
  • Being, Doing, Thinking 
  • Time: How do we think about time? 
  • Monochronic, Polychronic (from Hall & Hall) 
  • Human Nature: What is the basic nature of humans? 
  • Good, Evil, Mixed or Neutral 
The first four have the most impact on business interactions, and we focus our discussion on these. 
  • Space: How do we think about and use space? 
  • Public, Private, Mixed 

Relationship with the Environment: How should we work with the environment around us? 

Includes the physical, economic and social worlds. 
Two most influential responses in business are Mastery and Harmony (see text for Subjugation). Both are effective, but take different routes. 
  • Mastery: The environment is separate from us, and something to be managed. Our actions should influence and control the environment to get things to work well. 
  • Examples: Pioneering, colonizing. High pay for CEOs (assumption that the CEO should control / master the business). Goal setting to produce results. 
  • Harmony: The environment is a complex system of which we are one part. Our actions should keep the system in balance, then everything will work well. 
  • Examples: Traditional hunting and gathering. Business systems of engaging many small actions in a coordinated way to bring about a comprehensive result over time. Goal setting to try actions and get feedback. 

Relations among People: How should we think about relationships of power and responsibility? (Examples see next PPT slide) 

Three approaches to relationships combine differently in each society. All are effective, but take different routes. 
  • Collectivism: People in the group should be responsible for each other, and everyone is responsible to fulfil the group's needs. The group may be the extended family, the community, or any other large group. 
  • Examples: Ubuntu, extended families, strong company cultures, 
個人主義 
  • Individualism: Each of us should be responsible for him- or herself alone, and perhaps the immediate family if necessary. Society works better if everyone looks after him- or herself. 
  • Examples: Strict democracy, teams with specific and separate roles 
等級制 
  • Hierarchy: Power and responsibility are arranged such that those above have power over those below, and responsibility for them. Those below should obey the wishes of those above. 
  • Examples: Strict communication and responsibility through an organization chart, privileges by hierarchical level. 

Examples (real life stories) 

  • Collectivism vs Individualism: 
  • Example of International Joint venture of German MNC with Japanese Family Business: Top Management Meeting of the JV Partners 
  • German: direct, critical, individualistic 
  • Japanese: silent, consent seeking among peers, collectivistic 
  • Hierarchies: 
  • Example of German GM asking Chinese Accounting to prepare an analysis where he needs inputs from other departments 

Mode of Activity: What is the basic sequence of activity we agree to use together? (Examples see next PPT slide) 

Two most influential responses in business are Doing and Thinking. All societies engage in both modes, but prioritize them differently. 
  • Doing: We agree it is important to jump into action. When in doubt, do something. 
  • Examples: Quick pilot testing, short-term results focus, budgeting as a way to determine activities. 
  • Thinking: We agree it is important to plan carefully, before taking action. When in doubt, plan and analyze. 
  • Examples: Careful data analysis and re-analysis, planning of incremental milestones, budgeting as a way to engage in planning 

Examples (real life stories) 

  • Careful planning and preparation by German manager vs "flexibility" of Asian partners (i.e. Chinese supplier, Japanese sales executive) 

Approach to Time: Is it linear or flexible? 

How do we measure and use time in an ongoing way? 
  • Monochronic: We measure time in linear, equal units. We prefer to do one thing at a time, then move to the next. 
  • Examples: Punctuality, schedule-driven cultures, watches and clocks are important. 
  • Polychronic: We think of time as flexible, and we do many things at a time. 
  • Examples: Doing things in their time, adjust sequencing and schedules according to needs of the moment. 
  • Globalization is creating a shift towards monochronic time as the common language of time; however, many cultures operate polychronically within the culture. 
  • Remember? Where would you put the partners of the Daimler-Chrysler M&A? 

Cultural orientations contribute differently to task and process. 

Cultural Variable 
 
Contribution to Task
Focus on the immediate problem
 
Contribution to Process
- Drive to solution
Environment  Mastery 
Harmony 
 
- Understand the problem from a holistic
view
- Don't come to closure too quickly 
Relations  High Collectivism 
 
- See the problem from different
stakeholders' perspectives
- Help the group converge and commit 
Low Collectivism 
 
- See the problem from different individuals'
perspectives
 
- Help the group value minority
contributions
High Hierarchy  - Anticipate implementation challenges 
 
- Efficient communication, not endless
communication
Low Hierarchy  - Openly approach information sources  - Encourage ideas regardless of source 
Activity  Doing  - Suggest actions  - Pilot test, try it out 
Thinking  - Conduct in-depth analysis  - Team reflection, careful prototype 

Data from a multi-country study helps map cultural differences. 

  • Cultural orientations and variations study Measures Cultural Orientations 
  • Data gathered at IMD from 10,000+ businesspeople from around the world show differences among countries. 
  • Sample is businesspeople, about managers, MBA students; may not be representative of the general culture! 
  • Everyone included in the following charts was (a) born in their country, and (b) still lives there or lived there longest and (c) identifies with it most closely 
  • Warning: the smaller the sample size, the less reliable the map! 
  • Samples shown here are (with sample size in this database): Argentina (73), Australia (282), Austria (295), Bangladesh (393), Belgium (218), Brazil (328), Canada (967), Chile (50), China (709), Colombia (69), Czech Republic (39), Denmark (281), Finland (115), France (629), Germany (751), Greece (52), Hong Kong (258), India (592), Indonesia (45), Ireland (86), Israel (39), Italy (358), Japan (625), Malaysia (88), Mexico (248), New Zealand (66), Netherlands (493), Nigeria (81), Norway (473), Pakistan (34), Peru (44), Poland (67), Portugal (140), Romania (171), Russia (226), Saudi Arabia (45), Singapore (113), South Africa (212), South Korea (180), Spain (302), Sweden (143), Switzerland (478), Taiwan (134), Thailand (140), Philippines (75), Turkey (64), Ukraine (58), United Kingdom (785), United States (3557), Vietnam (48). 
Figure 2.3. Environment Orientation: Extent to which businesspeople prefer Mastery over Harmony. 
Figure 2.4. Lateral Relations Orientation: Extent to which businesspeople prefer Collectivism over Individualism. 
Figure 2.5. Vertical Relations Orientation: Extent to which businesspeople prefer Hierarchy. 
Figure 2.6. Activity Orientation: Extent to which businesspeople prefer Thinking over Doing. 

Remember, individuals within cultures varv greatly from each other... 

Distribution of Mastery Scores in 
... and countries vary in their level of cultural diversity. 
 
High Cultural
Homogeneity
 
Mod. Cultural
Homogeneity
Mixed 
 
Mod. Cultural
Diversity
 
High Cultural
Diversity
Belgium  Austria  Australia  Greece  Brazil 
Japan  Finland  Denmark  India  Canada 
Korea  France  Hong Kong  Ireland  China PRC 
Saudi Arabia  Germany  Italy  Switzerland  Philippines 
Singapore  Malaysia  UK Romania 
Taiwan  Mexico  USA Russia 
Thailand  Netherlands  South Africa 
New Zealand 
Nigeria 
Norway 
Spain 
Sweden 
New research: Diversity has implications for a country's competitiveness. Competitiveness highest with homogeneity on Individualism-Collectivism preference and diversity on Hierarchy preference.
新研究:多元化對國家競爭力有影響。在個人主義-集體主義偏好方面,同質性的競爭力最高;在等級偏好方面,多樣性的競爭力最高。

The map is not the territory!
地圖不是領土!

A cultural map is a snapshot of some aspects of the way people prefer to do things in the culture
文化地圖是人們喜歡的文化做事方式的某些方面的縮影
  • A great "first guess" to guide your expectations
    一個很好的 "初步猜測",為您的期望提供指導
  • A set of hypotheses to test as you meet unexpected responses
    當您遇到意想不到的反應時,有一套假設可供檢驗
  • Once your knowledge of the territory is better than the map, put the map away
    一旦你對領土的了解勝過地圖,就把地圖收起來吧
  • Bring it out again when you need to navigate again
    當您需要再次導航時,再把它拿出來
  • Using academic theories and a case study of your own choice, evaluate and analyse key traits of a global manager, such as, the appraisal of international culture, ethics and value-based considerations following which you should carry out a self-audit followed by a development plan.
    利用學術理論和自己選擇的案例研究,評估和分析全球經理人的關鍵特徵,例如對國際文化、道德和價值考慮的評估,然後進行自我評估,並制定發展計劃。
  • It requires for example (these are not yet all tasks):
    例如,它要求(這些還不是全部任務):
  • A critical literature review about international culture, ethics and values-based considerations (1200 words)
    關於國際文化、倫理和價值觀的重要文獻綜述(1200 字)
  • A case study about a business of your choice highlighting how the business has / not benefited from international culture, ethics and values-based considerations (1000 words)
    自選一家企業進行案例研究,重點說明該企業如何從國際文化、道德和價值觀中獲益(1000 字)

"Homework" "家庭作業"

  • On your way home today or on your way to work tomorrow, think about any situations you encountered at work or at holidays with people from other cultures and/or when traveling to other countries.
    在今天回家的路上或明天上班的路上,想想你在工作或假日與來自其他文化背景的人相處和/或去其他國家旅行時遇到的任何情況。
  • Have you noticed that they do something different from what you would have done or what you would have expected as "normal"? 
  • Tomorrow, we are interested in listen to some of your and your classmates' observations in encounters with other cultures. 
  • We will see how we can use the cross-cultural research models to explain these differences. We will find out if these models are useful and where their limitations are. 

MAN6038 The Global Manager Session 2 SUMMARY 

What are cultural differences 
What are problems arising from such differences 
How to apply cultural difference frameworks 
How do the frameworks help developing a global mindset? 

MAN6038 The Global Manager 

Session 3 
Cross-cultural skill development tools for global managers 

Revision 

-What are the key take aways from the previous session? 
  • How does the content of the previous session relate to the assignment and global mindset development? 
  • Any relevant examples to share? 
  • Any clarifying questions? 

Once again: The Assignment Brief 

Assignment indicative structure: 

  • Introduction. Clearly outline the structure of the work (approx. 100 words) 
  • Part 1. A literature review about key traits of a global manager and the importance of a global mindset in today's rapidly changing global environments (approx. 700 words) 
  • Part 2. A literature review about cultural, ethical and value-based considerations (approx. 700 words) 
  • Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations (approx. 700 words) 
  • Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words) 
  • Conclusion. Clearly summarise your work (approx. 100 words) 
  • List of references (not included in the word count). In-text citations and the list of references should follow BCU Harvard Referencing style. A minimum of academic references are required. 
"Part 2. A literature review about cultural, ethical and value-based considerations (approx. 700 words) 
Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations (approx. 700 words) Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words)"The following sections are all full of valuable in-sights 
and concepts that you can use for your assignment 
and when choosing a relevant case. 
The following sections are all full of valuable in-sights and concepts that you can use for your assignment and when choosing a relevant case. 

Presentation and discussion of "Homework" 

Using: https://www.hofstede-insights.com/product/compare-countries/ 

  • On your way home today or on your way to work tomorrow, think about any situations you encountered at work or at holidays with people from other cultures and/or when traveling to other countries. 
  • Have you noticed that they do something different from what you would have done or what you would have expected as "normal"? 
  • Tomorrow, we are interested in listen to some of your and your classmates' observations in encounters with other cultures. 
  • We will see how we can use the cross-cultural research models to explain these differences. We will find out if these models are useful and where their limitations are. 

Hofstede dimensions 

Dimensions  Scale anchors 
 
Power distance: beliefs about
the appropriate distribution of
power in society
 
Low power distance: belief
that effective leaders do not
need to have substantial
amounts of power compared
to their subordinates
 
High power distance: belief
that people in positions of
authority should have
considerable power compared
to their subordinates
 
Uncertainty avoidance: degree
of uncertainty that can be
tolerated and its impact on rule
making
 
Low uncertainty avoidance:
tolerance of ambiguity; little
need for rules to constrain
uncertainty
 
High uncertainty avoidance:
intolerance of ambiguity; need
for many rules to constrain
uncertainty
 
Individualism/collectivism:
relative importance of
individual versus group
interests
 
Collectivism: group interests
generally take precedence
over individual interests
 
Individualism: individual
interests generally take
precedence over group
interests
 
Masculinity/femininity:
assertiveness versus
passivity; material
possessions versus quality of
life
 
Masculinity: values material
possessions, money, and the
pursuit of personal goals
 
Femininity: values strong
social relevance, quality of life,
and the welfare of others
 
Long-term versus short-term
orientation: outlook on work,
life, and relationships
 
Short-term orientation: past
and present orientation; values
traditions and social
obligations
 
Long-term orientation: future
orientation; values dedication,
hard work, and thrift
 
Indulgence versus restraint:
Relative emphasis on
individual happiness, leisure
and personal control.
 
Indulgence: Societal
emphasis on enjoyment and
need gratification
 
Restraint: Strict societal
control to suppress or
regulate gratification
of uncertainty that can be tolerated and its impact on rule 
dididualism/collectivism 
elative importance of interests 
Masculinity/femininity 
assertiveness versus 
passivity; materia 
possessions versus quality of iff 
Long-term versus short-term and present orientation; values traditions and social obligations emphasis on enjoyment and need gratification 
Here is a tool to identify some possible (!) cultural differences: 
GO TO: 

https://brainmass.com/business/business-

management/case-study-analysis-communicating- 
between-cultures-403316 
Identify some cultural differences that affect the communication by using the Hofstede-insights-tool! 
Think what each of the involved managers should have done to improve communication to a more effective level! 
Mexico Netherlands  

FIGURE 4.1. LEADING 

Egalitarian cultures 

  • It's okay to disagree with the boss openly even in front of others 
  • People are more likely to move action without getting the boss's okay. 
  • If meeting with a client or supplier, there is less focus on matching hierarchical levels 
  • It's okay to e-mail or call people several levels below or above you. 
  • With clients or partners you will be seated and spoken to in no specific order. 

Hierarchical cultures 

  • An effort is made to defer to the boss's opinion especially in public. 
  • People are more likely to get the boss's approval before moving to action. 
  • If you send your boss, they will send their boss. If your boss cancels, their also may not come. 
  • Communication follows the hierarchical chain. 
  • With clients or partners you may be seated and spoken to in order of position. 

Directness: How straightforwardly do people typically communicate in this culture? 

Van den Bosch's intentions 

  • Cleaning up the email 
  • Sticking to facts and figures 
  • Being direct and clear about what steps are necessary to meet the client's needs. 
  • Insisting on having information on five items "today 

Menedez' possible perceptions 

  • Focusing on facts and figures, not on establishing an empathetic appreciation of difficulties the Mexican partner is probably facing 
  • Not asking any questions to understand the situation from Menendez's point of view 
  • Being treated like a subordinate by his Dutch equal 

Task-based v. relationship-based cultures 

FIGURE 2.2. EVALUATING 
FIGURE 2.3. 

The GLOBE Project Model Global Leadership and Organizational Behavior Effectiveness 

  • A unique large-scale study of cultural practices, leadership ideals, and generalized and interpersonal trust in 150 countries in collaboration with nearly 500 researchers. 
  • An attempt to develop an empirically based theory to describe, understand, and predict the impact of specific cultural variables on managerial and organisational processes and the effectiveness of these processes 
  • Conceived in 1991 by Professor Robert House, supported by Dr. Ali Dastmalchian and Prof. Mansour Javidan as the first to begin the data collection in the Middle East 
  • Has become a leader with award-winning books, more than 400 academic and practice-oriented journal articles, a massive database, and GLOBE has been adopted by university scholars, diplomats and consulting agencies around the world. 

The GLOBE Project Model 

  • Multi-country study and evaluation of cultural attributes and leadership behaviour 
  • Based on beliefs that: 
  • Certain attributes that distinguish one culture from others can be used to predict the most suitable, effective and acceptable organisational and managerial practices within that culture 
  • Societal culture has direct impact on organisational culture 
  • Leader acceptance stems from tying leader attributes and behaviours to subordinate norms 
  • Please visit GLOBE Project website for more information 

The GLOBE Project Model - 9 Cultural Dimensions 

  • Power distance 
  • Uncertainty avoidance 
  • Collectivism I: Social collectivism 
  • Collectivism II: In-group collectivism 
  • Gender egalitarianism 
  • Assertiveness 
  • Future orientation 
  • Performance orientation 
  • Humane orientation 
More about the 9 Culturall Dimensions you can find on the GLOBE Project webpage. 

The GLOBE Project Model 

  • Corresponds generally with those of Hofstede's Model (studied in other modules) 
  • However, different from Hofstede: 
  • many more researchers with varied perspectives were involved vs. Hofstede working alone 
  • and it studied many companies vs. Hofstede's IBM only 
  • GLOBE provides a comprehensive overview of general stereotypes that can be further analysed for greater insight 
  • A comparison of The GLOBE Project & Hofstede's Model 

The GLOBE Project Model - 9 Cultural Dimensions 

Dimension  Highest  Lowest 
Power distance 
 
Morocco, Argentina, Thailand, Spain,
Russia
 
Denmark, Netherlands, South
Africa-black sample, Israel, Costa
Rica
Uncertainty avoidance 
 
Switzerland, Sweden, Germany-
former West, Denmark, Austria
 
Russia, Hungary, Bolivia, Greece,
Venezuela
Institutional collectivism 
 
Sweden, South Korea, Japan,
Singapore, Denmark
 
Greece, Hungary, Germany-
former East, Argentina, Italy
In-group collectivism  Iran, India, Morocco, China, Egypt 
 
Denmark, Sweden, New Zealand,
Netherlands, Finland
Gender egalitarianism 
 
Hungary, Poland, Slovenia, Denmark,
Sweden
 
South Korea, Egypt, Morocco, India,
China
Assertiveness 
 
Germany-former East, Austria,
Greece, United States, Spain
 
Sweden, New Zealand, Switzerland,
Japan, Kuwait
Future orientation 
 
Singapore, Switzerland, Netherlands,
Canada-English speaking, Denmark
 
Russia, Argentina, Poland, Italy,
Kuwait
Performance orientation 
 
Singapore, Hong Kong, New Zealand,
Taiwan, US
 
Russia, Argentina, Greece,
Venezuela, Italy
Humane orientation 
 
Philippines, Ireland, Malaysia, Egypt,
Indonesia
 
Germany-former West, Spain,
France, Singapore, Brazil

The GLOBE Project Model 

Figure 4-9 
GLOBE Analysis: 
Managerial Perspectives 
in the United States and Brazil 

The GLOBE Project Model -9 Cultural Dimensions - Questions for Reflection 

  • Power distance 
  • How much unequal distribution of power should there be in organisations and society? 
  • Uncertainty-avoidance 
  • How much should people rely on social norms and rules to avoid uncertainty and limit unpredictability? 
  • Institutional collectivism 
  • How much should leaders encourage and reward loyalty to the social unit, as opposed to the pursuit of individual goals? 

The GLOBE Project Model -9 Cultural Dimensions - Questions for Reflection 

  • In-group collectivism 
  • How much pride and loyalty should individuals have for their family or organisation? 
  • Gender egalitarianism 
  • How much effort should be put into minimizing gender discrimination and role inequalities? 
  • Assertiveness 
  • How confrontational and dominant should individuals be in social relationships? 

The GLOBE Project Model -9 Cultural Dimensions - Questions for Reflection 

  • Future orientation 
  • How much should people delay gratification by planning and saving for the future? 
  • Performance orientation 
  • How much should individuals be rewarded for improvement and excellence? 
  • Humane orientation 
  • How much should society encourage and reward people for being kind, fair, friendly, and generous? 

The global manager as EXPATRIATE 

  • Managing subordinates and handling peers, customers, suppliers, institutions in most appropriate ways is best learned when living and working outside the own familiar cultural environment. 
  • People in other cultures do not necessarily take for granted what managers are used to assume in their own cultural environment. 
  • Managers who live and work in a different country/ in a different cultural environment than their familiar home, are called EXPATRIATES! 

Pros and Cons of using expatriates 

For Company  For Indiv. Expatriates 
Advantages 
 
- Transfer management
practices
- Bring expertise to host country
- Disseminate global vision
- Closer control & coordination
- Boundary spinning
- Develop personnel & future
executives
 
- Develop broader global
perspective
- Financial gain
- Career advancement
Disadvantages 
 
- High costs associate with
failure of international
assignments
- Increases the "foreignness" of
subsidiary
- Lower local-management
morale & motivation
 
- Problems of adaptability to
a foreign environment
- Personal and family
problems
- Career blockage
- Repatriation readjustment

Considerations in living and working globally 

Success for international assignment 

What Is challenging for expatriates? 

  • Host country language 
  • Lack of social network 
  • Unfamiliar customs & cultural norms 
  • Accommodation 
  • Transportation 
  • Healthcare 
  • Food 
  • Climate 
  • Family problems 
  • New work role 
  • Culturally-bound professional vocabulary 
  • Value incongruence 
  • Future career path 
  • Career blockage 

What helps them adjust more quickly and better? 

  • Supervisor support 
  • Coworker support 
  • Logistic support 
  • Cultural novelty 
  • Spouse adjustment 
  • Role clarity 
  • Role discretion 
  • Role conflict 
  • Role novelty 
  • Experience 
  • Language fluency 
  • Personality 
  • Competence 
  • Efficacy 
  • Acculturative strategy 
some previous culture-specific work experiences no previous culture-specific work experience 
Figure 4. Work adjustment trajectories for expatriates with high and low previous culture-specific work experience. 

Multicultural Personality Questionnaire (MPQ)
多元文化人格問卷 (MPQ)

Cultural empathy The ability to empathize with the feelings,
文化同理心 文化同理心是一種對情感感同身受的能力、

thoughts and behaviors of members from 
different cultural groups. 
Emotional stability A tendency to remain calm in stressful situations 
versus a tendency to show strong emotional 
reactions under stressful circumstances. 
Open mindedness An open and unprejudiced attitude towards 
outgroup members and towards different 
cultural norms and values. 
Social initiative A tendency to approach social situations in an 
active way and to take initiatives. 
Flexibility 
A tendency and ability to adjust one's behavioral 
strategies to different or more restricted 
circumstances within a foreign culture. 

Factors that influence the performance of international managers 

Expat management  HR Practive 
Expat selection 
 
- Establish a selection board of expatriates
-
Selection criteria: multicultural personality, efficacy, cultural sensitivity,
language fluency, prior experience (!)
Screen candidates' spouses and families
Expat training 
 
- Conduct training 9-12 months before assignment
- Cultural intelligence training
- At least some training should go to the expatriate's family
Expat development 
 
- Position the international assignment as a step toward advancement within
the firm
 
Expat reward
- Repatriation programme
- Rrovide career support for spouses
management 
 
- Provide a disposable income equivalent to what the expatriate would
receive at home
Provide an explicit "add-on" incentive for accepting an international posting
The MBI Model for High Performance 

The MBI Model: 

Managing Cultural Diversity for Personal and Team Effectiveness 
High Performance 

MAP

Understand the differences 
  • Cultural Orientations Framework 

BRIDGE 

Communicate across the differences 
-Prepare: 
Motivation, Confidence 
-Decenter: 
Perspective taking, Explain without blame 
-Recenter: 
Common view, common norms 

INTEGRATE Manage the
differences 

-Build Participation -Resolve Conflicts -Build on Ideas 
Differences 
Map differences as a foundation for understanding. 
  • Mapping is the skill of describing differences objectively 
  • ... without inherent judgment 
  • ... based on data, and changing with new observations 
  • ... comparing with a "you are here" point 
  • Remember that the Map is not the Territory, it is a tool to help you navigate the territory 
  • Stop using the Map once you understand the Territory well 
  • Chapter 2 of the textbook is about Mapping Culture 
Bridge gaps to communicate, transmit meaning as it was intended. 
Communicate effectively across differences by 
  • Preparing 
  • Motivation to understand and communicate across differences 
  • Confidence in the ability to communicate effectively and that the outcome will be positive 
  • Decentering without blame 
  • Blame-free explanations: attribute problems and 

B

conflicts correctly
Bridge 
Communicate 
  • De-centering: send and receive messages with the other person's "code" in mind 
  • Recentering 
  • Common reality: foundation for effective communication. Find something you can agree on. 
  • Common rules: agree on norms of behavior 

Integrate to get synergy - build from Maps and Bridges 

Bring the differences together in a synergistic way 
  • Engage participation 
  • Actively seek to involve people 
  • Establish routines to facilitate participation 
  • Vary the modes of participation 
  • Resolve conflicts 
  • Detect disagreement (indirectly expressed?) 
  • Resolve conflicts using bridging skills 
  • Agree on ways to avoid destructive conflict 
  • Build on ideas 
  • Explore differences; build on each other's ideas; try to invent new ideas 
  • Do more than combine and compromise 
You don't need to love each other, just bring out the best in each other! 
Good bridging is possible only with good mapping. 

Map-Bridge-Integrate 

  • Teams that engage in the MBI behaviors well: 
  • are more creative 
  • generate more and better alternatives and criteria for evaluating them 
  • perform better on complex, multi-faceted decision-making tasks 
  • create value through effective innovation and change 
Culturally diverse teams have great potential for performance. 
Diverse teams are creative (generate ideas), but don't necessarily turn the creativity into performance (viable business). 
Most culturally diverse teams suppress the diversity to avoid the problems. 
Manage cultural differences effectively to overcome the barriers and achieve the benefits 
  • Cultural diversity helps the divergent processes - this is obvious 
  • Cultural diversity makes it hard to get the convergent process, but good team and leadership processes can overcome this 
  • Culturally diverse teams tend to have higher satisfaction and motivation to be together than mono-cultural teams - this can be put to work 
  • People like to be in culturally diverse teams to learn, for variety 

MAN6038 The Global Manager Session 3 SUMMARY 

Practical applications of cultural difference frameworks 
Understanding factors, not only culture, that affect the performance of global managers 
MBI model 

MAN6038 The Global Manager
Session 3 TUTORIAL
How to find Academic Evidence for the Assignment 

Your assignment and how to deal with literature sources 

  • Using academic theories and a case study of your own choice, evaluate and analyse key traits of a global manager, such as, the appraisal of international culture, ethics and value-based considerations following which you should carry out a self-audit followed by a development plan. 
  • It requires for example (these are not yet all tasks): 
  • A critical literature review about international culture, ethics and valuesbased considerations (1200 words) 
  • A case study about a business of your choice highlighting how the business has / not benefited from international culture, ethics and values-based considerations (1000 words) 
  • In-text citations and the list of references should follow Harvard style. A minimum of 15 academic references are required. 

Your assignment and how to deal with literature sources 

Assignment indicative structure: 

  • Introduction. Clearly outline the structure of the work (approx. 100 words) 
  • Part 1. A literature review about key traits of a global manager and the importance of a global mindset in today's rapidly changing global environments (approx. 700 words) 
  • Part 2. A literature review about cultural, ethical and value-based considerations (approx. 700 words) 
  • Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations (approx. 700 words) 
  • Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words) 
  • Conclusion. Clearly summarise your work (approx. 100 words) 
  • List of references (not included in the word count). In-text citations and the list of references should follow BCU Harvard Referencing style. A minimum of 10-15 academic references are required. 

Evidence-Based Arguments 

  • What is valued in academic writing is that opinions are based on a sound understanding of the pertinent body of knowledge and academic debates that exist within, and increasing external to, your discipline. You need to support your opinion with evidence from scholarly sources. It should be an objective stance presented as a logical argument. The quality of your evidence will determine the strength of your argument. The challenge is to convince the reader of the validity of your opinion through a welldocumented, coherent, and logically structured piece of writing. This is particularly important when proposing solutions to problems or recommended courses of action. 

Ways to Construct a Compelling Argument 

Keep it simple. Keep your argument concise. 
Make your assumptions clear. 
Rest your argument on solid foundations. 
Use evidence your readers will believe. 
Avoid platitudes and generalisations, and be specific. 
Understand the opposing point of view. 

Creating an Introduction 

  • The argumentative essay begins with an engaging introduction that presents the general topic. The thesis typically appears somewhere in the introduction and states the writer's point of view. 
  • Avoid forming a thesis based on a negative claim. For example, "The hourly minimum wage is not high enough for the average worker to live on." This is probably a true statement, but arguments should make a positive case that affirms something. Instead of arguing something "is not...", an argument essay is stronger when it asserts something "is..." Returning to the example above, a stronger thesis could focus on how the hourly wage is low or insufficient. 

Acknowledging Opposing Ideas and Limits to Your Argument 

  • Because an argument implies differing points of view on the subject, you must be sure to acknowledge those opposing ideas. Avoiding ideas that conflict with your own gives the reader the impression that you may be uncertain, fearful, or unaware of opposing ideas. Thus, it is essential that you not only address counterarguments but also do so respectfully. 
  • Try to address opposing arguments earlier rather than later in your essay. Rhetorically speaking, ordering your positive arguments last allows you to better address ideas that conflict with your own, so you can spend the rest of the essay countering those arguments. This way, you leave your reader thinking about your argument rather than someone else's. You have the last word. 

Bias in Writing 

  • The strength of a personal bias is that it can motivate you to construct a strong argument. If you are invested in the topic, you are more likely to care about the piece of writing. Similarly, the more you care, the more time and effort you are apt to put forth and the better the final product will be. 
  • The weakness of bias is when the bias begins to take over the essaywhen, for example, you neglect opposing ideas, exaggerate your points, or repeatedly insert yourself ahead of the subject by using Itoo often. Being aware of all three of these pitfalls will help you avoid them. 

Fact and Opinion 

  • Facts are statements that can be definitely proven using objective data. The statement that is a fact is absolutely valid. In other words, the statement can be pronounced as true or false. For example, . This expression identifies a true statement, or a fact, because it can be proved with objective data. 
  • Opinions are personal views, or judgments. An opinion is what an individual believes about a particular subject. However, an opinion in argumentation must have legitimate backing; adequate evidence and credibility should support the opinion. Consider the credibility of expert opinions. Experts in a given field have the knowledge and credentials to make their opinion meaningful to a larger audience. 

Example of argument/conclusion based on academic journal sources 

  • Many researchers studied and assessed brand equity based on Aaker's (1991) four-dimensional theory and Keller's (1993) consumer-based brand equity model and their results supported Aaker's and Keller's findings (Cobb-Walgren et al., 1995; Pappu et al., 2005). Yoo et al., (2000) also opened up their study in evaluating brand equity. They combined the two attributes of brand awareness and brand association in Aaker's (1991) four-dimensional model into a threedimensional construct and employed the statistical method of confirmatory factor analysis for assessment. This three-dimensional construct was further finetuned through refining the dimensions. It was later confirmed and supported the three-dimensional brand equity theory for empirical studies (Yoo and Donthu, 2001; Washburn and Plank, 2002). 
  • By reviewing the previous literatures on brand equity evaluation, it is observed that different researchers proposed different approaches from different perspectives for estimating the brand value for different purposes. 
  • The purposes of brand equity valuation are ..... 

Example of argument relevant sources 

Examples of research on digital disruption or transformation are: 
Matzler, K., Friedrich Von Den Eichen, S., Anschober, M., & Kohler, T. (2018). 
The crusade of digital disruption. Journal of Business Strategy, 39(6), 13-20. doi:10.1108/jbs-12-2017-0187 
Zaki, M. (2019). Digital transformation: harnessing digital technologies for the next generation of services. Journal of Services Marketing, 33(4), 429435. doi:10.1108/jsm-01-2019-0034 
D'Ippolito, B., Messeni Petruzzelli, A., & Panniello, U. (2019). Archetypes of incumbents' strategic responses to digital innovation. Journal of Intellectual Capital, 20(5), 662-679. doi:10.1108/jic-04-2019-0065 
Choi, J. J., & Ozkan, B. (2019). Innovation and Disruption: Industry Practices and Conceptual Bases. In (pp. 3-13): Emerald Publishing Limited. 

How to recognize peer-reviewed (refereed) journals 

  • Universities often require that students utilize articles from "peerreviewed" journals. 
  • But what are peer-reviewed journal articles, and why do faculty require their use? 

What is peer review? 

  1. Joumal Editor includes in 

Three categories of information resources: 

  • Newspapers and magazines containing news - Articles are written by reporters who may or may not be experts in the field of the article. Consequently, articles may contain incorrect information. 
  • Journals containing articles written by academics and/or professionals Although the articles are written by "experts," any particular "expert" may have some ideas that are really "out there!" 
  • Peer-reviewed journals - Articles are written by experts and are reviewed by several other experts in the field before the article is published in the journal in order to ensure the article's quality. (The article is more likely to be scientifically valid, reach reasonable conclusions, etc.) In most cases the reviewers do not know who the author of the article is, so that the article succeeds or fails on its own merit, not the reputation of the expert. 

How do you determine whether an article qualifies as being a peer-reviewed journal article? 

  • Limiting a database search to peer-reviewed journals only. Some databases allow you to limit searches for articles to peer reviewed journals only. 
  • In some databases you may have to go to an "advanced" or "expert" search screen to do this. Some databases do not allow you to limit your search in this way. 
  • Or alternatively: Find the official web site of the journal on the internet, and check to see if it states that the journal is peer-reviewed. Be careful to use the official site (often located at the journal publisher's web site), and, even then, information could potentially be "inaccurate." 
  • And there are various lists in the internet, 

Trustable and relevant data sources 

  • Data presented in academic journal research articles 
(careful: do you use the raw data for your own argument or do you follow the interpretation/conclusion of the researcher?) 
  • Data from government / company / association websites 
  • Data from Wiki (?) 
  • Data from newspapers, magazines 
  • Data from internal sources (not public) 
  • Data gathered by yourself (primary) 

Identify the literature which is relevant to the study. 

Locate your present study/argument in relation to the literature. 
Different research areas and topics will have different quantities of relevant literature. 
In some areas the volume can be vast, in some relatively small. More than one body of literature might be relevant 
A good literature review needs to present the overall academic context and how it relates to the research theme. 
It must provide an overview of the history of the development of academic contributions from early theories up to recent research. 
Using theories from the 1960s or 1980s is not enough. Recent research publications (last 5-10 years) that refer to these theories need to be investigated. 

The literature review is a review and not a list of descriptions. 

It provides an overview of the key contributions of VARIOUS authors to the SAME key issue. 
Commonly the most popular or first contributor is cited and then other authors' additions, applications, critique or support are compiled to discuss the issue. 
Only re-telling a theory/research from one and the same source is not a literature REVIEW. 

Remember! LITERATURE REVIEW 

  • What are the relevant theories? 
  • How are these theories applied? 
  • What do they find? (i.e. their outcome) 
  • What evidence / data do they use? 
  • What are the controversial issues? (What does one author write and other author/s disagree or add?) 
  • How is your assignment going to be inspired by and link-up with the work you are reading? 

How to phrase in-text references: CHECKLIST OF WORDS (1) 

  • Peterson (2013) gave account for-give reasons for; explain why something happens 
  • Wiatt (2009) analysed - examine in very close detail; identify important points and chief features 
  • Horshel et al (1999) comment on - identify and write about the main issues, giving your reactions based upon what you have read or heard in lectures. Avoid purely personal opinion 
  • Trompenaars (1997) compared - show how two or more things are similar. Indicate the relevance or consequences of these similarities 
  • Michels and Blant (2010) contrast - set two or more items or arguments in opposition so as to draw out differences. Indicate whether the differences are significant. If appropriate, give reasons why one item or argument may be preferable 
  • Beer et al (1998) critically evaluated - weigh arguments for and against something, assessing the strength of the evidence on both sides. Use criteria to guide your assessment of which opinions, theories, models or items are preferable 
  • Schein (1960) defined - give the exact meaning of. Where relevant, show that you understand why the definition may be problematic 
  • Yin (1996) describe - give the main characteristics or features of something, or outline the main events 
  • Porter (2000) discussed - write about he most important aspects of (probably including criticism); give arguments for and against; consider the implications of 
  • Hofstede (1980) distinguished - bring out the differences between two (possible confusable) items 

CHECKLIST OF WORDS (2) 

  • Miller (1978) evaluated - assess the worth, importance or usefulness of something, using evidence. There will probably be cases to me made both for and against 
  • Stein et al (2010) examined - put the subject 'under the microscope', looking at it in detail. If appropriate, 'critically evaluate' its as well 
  • Wilkinson (2005) explains - make clear why something happens, or why something is the way it is 
  • French (2012) illustrates - make something clear and explicit, giving examples or evidence 
  • Block et al (2013) interpret - give the meaning and relevance of data or other material presented 
  • Julianek (2000) justifies - give evidence which supports an argument or idea; show why a decision or conclusions were made, considering objections that others might make 
  • Holtz (1999) narrates - concentrate on saying what happened, telling it as a story 
  • Vanders (2001) outlines - give only the main points, showing the main structure 
  • Marshal (2000) relates - show similarities and connections between two or more things 
  • Watson (1999) states - give the main features, in very clear English (almost like a simple list but written in full sentences) 
  • Raven (1985) summarises - draw out the main points only (see 'outline'), omitting details or examples 
  • Phatek (2000) points out to what extent - consider how far something is true, or contributes to a final outcome. Consider also ways in which the proposition is not true (the answer is usually somewhere between 'completely' and 'not at all') 
  • Harzing (2001) traced - follow the order of different stages in an event or process 


and
Wrap-Up WEEK 1 (Session 1 -3) 

What you should do in the next days before we continue with session 4: 

1.) Read the chapters in the assigned textbook! 
2.) Identify some major theories/concepts to manage cultural differences (summarize each to 1-2 sentences and write down the full HARVARD reference)! 
3.)Find (in the internet) a global company about which is something written about any cultural management problem or how they manage cultural differences well. Apply some theory (not all) to explain the case incident/s. 
4.) Reflect on your own global mindset: are you already fit to manage cultural diverse teams or to work in foreign countries? If not, what would you do to improve the skill level? 

MAN6038
The Global Manager 

Session 4a 
Managing global teams and networks 

Revision 

-What are the key take aways from the previous session? 
  • How does the content of the previous session relate to the assignment and global mindset development? 
  • Any relevant examples to share? 
  • Any clarifying questions? 

Once again: The Assignment Brief 

Assignment indicative structure: 

  • Introduction. Clearly outline the structure of the work (approx. 100 words) 
  • Part 1. A literature review about key traits of a global manager and the importance of a global mindset in today's rapidly changing global environments (approx. 700 words) 
  • Part 2. A literature review about cultural, ethical and value-based considerations (approx. 700 words) 
  • Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations (approx. 700 words) 
  • Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words) 
  • Conclusion. Clearly summarise your work (approx. 100 words) 
  • List of references (not included in the word count). In-text citations and the list of references should follow BCU Harvard Referencing style. A minimum of academic references are required. 
"Part 2. A literature review about cultural, ethical and value-based considerations (approx. 700 words) 
Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations (approx. 700 words) Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words)" 

The following sections are all full of valuable in-sights and concepts that you can use for your assignment and when choosing a relevant case. 

WORKING IN AND WITH GLOBAL TEAMS: Consider 

  • In what ways can global team synergy be developed and sustained over the long run? 
  • If your boss asked you to develop a two-day team-building workshop for members of several new dispersed global teams, how would you structure the program? What would you include, and why? 
  • In your view, what are the principal qualities for a global team leader? Are these leadership qualities the same or different for co-located and dispersed teams? Why? 
  • Are some people better suited to participate in dispersed global teams than others? How might a company train employees to participate in such teams? 

Global teams 

A global team is a group of heterogeneous employees from two or more countries, and sometimes two or more companies, who work together to coordinate, develop, or manage some aspect of a firm's global operations. 

Why a global team? 

  • Companies use global teams when they need specific crosscultural expertise on some aspect of the business or when they partner with a foreign firm. 
  • Many firms prefer using such teams because they can often do a better job than homogeneous teams consisting exclusively of either home- or host-country nationals. 
  • Global teams can provide an opportunity to incorporate widely differing social, cultural, and business perspectives into key decisions affecting the success of international operations. 

Tuckman's stages of team development 

Forming 
  • confusion 
  • uncertainty 
assessing situation 
testing ground 
rules 
feeling out other 
defining goals 
getting acquainted 
establishing rules 
disagreement over 
priorities 
struggle for 
leadership 
  • tension 
hostility 
clique formation 
Peforming 
  • successful 
performance 
  • flexible, task roles 
  • openness 
helpfulness 
  • delusion, 
disillusion and acceptance 

Adjourning 

  • disengagement 
  • anxiety about separation and ending 
positive feeling 
towards leader 
  • sadness 
self-evaluation 

Cultural diversity & team performance 

The performance of multicultural groups at work was typically either much better than that of mono-cultural groups, or significantly worse (French, 2010). 

I-P-O model of team effectiveness (McGrath) 

Types of team behaviours 

  • Task/action behaviors - Occur after planning processes as team members work on the task 
  • Checking/monitoring: check progress toward goals; update members' progress; take corrective action 
  • Cooperation: help each other; back each other up 
  • Coordination: share information effectively; coordinate actions 
  • Interpersonal behaviors - Relate to the manner in which team members manage their relationships throughout the lifecycle of the team 
  • Conflict management: prevent dysfunctional conflict; resolve conflict constructively 
  • Affect management: maintain a positive emotional climate 
  • Confidence building and motivation 

Team synergy 

Process gain 

The extra performance, over 
that of the individuals 
working on their own, 
gained by the team working 
together 

Process loss 

The reduction in performance, over that of the individuals working on their own, that results from the team working together 

Synergy: when the interactive efforts of two or more people have a greater impact than the sum of their independent efforts 

BELBIN'S 9 TEAM ROLES 

Enter your sub headline here 
Plant  PL
Monitor Evaluator  ME
Specialist  SP
Shaper  SH
Implementer  IMP
Completer Finisher  CF
Coordinator  co
Team Worker  TW
Resource Investigator 
Team Role Contribution 

Allowable Weakness 

Creative, Imaginative, Free thinking. 
Generate ideas and solves hard problems 
Sober, strategic and discerning. Sees all options and judges accurately. 
Single minded, self starting, dedicated. 
Controw front. 
Provides rare knowledge and skils. Dwells on Technicalities. 
Challenging, dynamic, thrives on  Prone to provocation. 
presssure. Has drive to overcome 
Prone to provocation. 
Offends People's feelin 
obstacles. 
Practical, reliable, efficient. Turns ideas 
Somewhat inflexible. Slow to respond to new possibilities. 
Inclined to worry unduly. Reluctant to 
Painstaking, conscientious, anxious. deligate. Finds errors. Polishes and perfects. 
Mature, confident, identifies talent. 
Can be seens as manipulative. Offroads own share of the work. 
Co-operative, perceptive and diplomatic. 
Indecisive in crunch situations. Avoids Listens and averts friction. confrontation 
Outgoing, enthusiastic, Communicative. Explores opportunities, develops Over optimistic. Loses interest, onc Explores 
contacts 
Ionores incidentals. Too Pre-occupied to ully communicate. 
Lacks drive and ability to inspire others. Can be overly cititical 
MANAGEMENT STYLES ACROSS FOUR DIFFERENT CULTURES 

The influence of culture on the nature of trust and trust development 

Building mutual trust: Can people be trusted? 

Country 
 
Agreement
Country 
 
Agreement
 
Agreement
Brazil  7 Austria  32 United Kingdom  44
Turkey  10 Mexico  34 Ireland  44
Romania  16 South Korea  35 United States  47
Slovenia  17 Spain  35 Canada  52
Latvia  18 India  35 Netherlands  54
Portugal  23 Russia  37 Denmark  58
Chile  24 Germany  38 China  60
Nigeria  24 Japan  42 Finland  64
Argentina  24 Switzerland  43 Norway  67
France  24 Iceland  44 Sweden  68

Trust from the head v. trust from the heart 

  • Cognitive/ Instrumental 
  • Trust in the behaviors of others: consistency, competency, reliability 
  • E.g. "He's predictable" 
  • We can trust both friends and enemies under this definition 
  • Critical to executing in teams 
  • When you say you're going to do something we can rely on it 
  • Affective 
  • Rooted in shared values, emotions, and destinies 
  • E.g. "She's got my back." 
  • Allows for productive task conflict without relationship conflict 

Conflict tipping point 

The effects of affective trust 

Teams without Affective Trust 
Teams with Affective Trust
情感信任團隊
Task Conflict 任務衝突
 
Idea
Generation
and Problem
Solving
 
Good
Performance
and Team
Viability

Negotiations within teams and with partners 

There are some similarities among ways how to negotiate with team members as well as with outsiders (i.e., customers, suppliers, partners, competitors, ...) 
Presented in the following! 

Preparing for cross-cultural negotiations 

Selecting the right partner 

Negotiating strategies and processes 

-The competitive approach: a win-lose game 
-The problem-solving approach: a win-win solution 

Competitive v problem-solving approach 

 
Stages in
negotiation
Competitive bargaining  Problem-solving bargaining 
(1) Preparation 
 
Identify current economic and other
benefits your firm seeks from the
deal. Prepare to defend your firm's
position.
 
Define the long-term strategic interests
of your firm. Prepare to overcome cross-
cultural barriers to defining mutual
interests.
 
(2) Relationship
building
 
Look for weaknesses in your
opponent's position. Learn about
your opponent, but reveal as little as
possible.
 
Adapt to the other side's culture.
Separate the people involved in
negotiation from the problems and goals
that need to be solved.
 
(3) Information
exchange and first
offer
 
Provide as little information as
possible to your opponent. Make
your position explicit. Make a hard
offer that is more favorable to your
side than you realistically expect to
achieve.
 
Give and demand to receive objective
information that clarifies each party's
interests. Accept cultural differences in
speed of response and type of
information needs. Make firm but
reasonable first offer.
(4) Persuasion 
 
Use dirty tricks and pressure tactics
when appropriate to win.
 
Search for new creative options that
benefit the interests of both parties.
(5) Concessions 
 
Begin with high initial demands.
Make concessions slowly and
grudgingly.
 
Search for mutually acceptable criteria
for reaching accord. Accept cultural
differences in starting position and in
how and when concessions are made.
(6) Agreement 
 
Sign only if you win and then ensure
that you sign an ironclad contract.
 
Sign when the interests of your firm are
met. Adapt to cultural differences in
contracts when necessary.

FIGURE 1.1. COMMUNICATING 

Low Context Good communication is precise, simple, and clear. Messages are expressed and understood at face falue. Repetition is appreciated if it helps clarify the communication. 
High Context Good communication is sophisticated, nuanced, and layered. Messages are both spoken and read between the lines. Messages are often implied but not plainly expressed. 

Strategies for working with people from highercontext cultures 

  • Speak less, listen more 
  • Read between the lines (listen to what is meant instead of what is said) 
  • Clarify when unsure 
  • Do not assume the other party purposely omits information or is unable to communicate explicitly 

Strategies for working with people from lowercontext cultures 

  • Be as transparent, clear, and specific as possible. 
  • Tell them what you plan to say, say it, tell them what you've said. 

FIGURE 8.1. SCHEDULING 

Germany J  Japan Netherlands  Poland  Spain Italy  Brazil China 
 
Saudi
Arabia
Switzerland  Sweden US UK  Czech Republic  France  Russia  Mexico  India Nigeria 
Linear time Project steps are approached in a sequential fashion, completing one task before beginning the next. One thing at a time. No interruptions. The focus is on the deadline and sticking to the schedule. Emphasis is on promptness and good organization over flexibility. 
Flexible time Project steps are approached in a fluid manner, changing tasks as opportunities arise. Many hings are dealt with at once and interruptions accepted. The focus is on adaptability and glexibility is valued over organization. 

Sequential and holistic bargaining strategies 

Holistic bargaining: Both parties negotiate the entire contact as a whole, moving back and forth across items until they are fully satisfied with the entire document. [items 1-3] 

Getting to "Yes" across cultures 

Preparing to Face Your Counterpart 
The map below sorts nationalities according to how confrontational and emotionally expressive they are. 
Although negotiators often believe that the two characteristics go hand in hand, that's not always the case. 
In class discussion / group work: 
Working in your groups, you are required to choose one of the topics from the list below and, as a group, prepare an oral presentation. 
The presentation should be built on the heels of theory and industry examples. The presentation should be 3-5 minutes long. 
  1. Which team formation is better, homogenous or diverse? 
  2. Explain the role of diverse teams on performance 
  3. Mapping of international cultures (identify differences which are positively and which are negatively contributing to team success) 
  4. Define the characteristics of an Asian and an US manager 
  5. How is culture related to personality of group members? 
  6. What is the best way to manage the (cultural) difference? 
  7. Conflict resolution in international business 

The Promise of Teams 

  • On average teams outperform individuals on certain tasks and in certain contexts 
  • Global virtual teams 
Examples? 

Leading virtual global teams: how do social, cognitive, and behavioral capabilities matter? 

  • The framework seeks to identify and explain the role of social, cognitive, and behavioral capabilities as important determinants of effective VT leadership and success 
  • To remain competitive and ensure growth 
  • Team-members use technology 
  • No physical movement across borders 
  • Frequent interaction 
  • Agile and flexible and are scattered across the globe/different time zones 
  • Phased approach 
  • Preparation 
  • Launch 
  • Performance observation and management 
  • Training and team development 
  • Disbanding 
  • Virtual team perspective 

The old normal, the new normal, the forever normal: Virtual Teams are the Norm, not the Exception... 

A virtual team is a group of people with a common purpose, working on interdependent tasks... 
...that functions across boundaries of space, time, and organization, and is supported by technology. 
Shell SEOP T³ Background Information, Arie Baan 
Most managers and professionals in today's multinational organizations work in two or more virtual teams at the same time. 

Adding diversity and distance in teams 

  • Diverse teams provide 
  • A wide range of perspectives 
  • A large variety of potential solutions for problems or opportunities 
  • The potential for synergy 
  • But ... there is the potential for conflict as individuals may interpret events and information differently 
  • Distance in teams provides 
  • Access to more resources, embedded in more contexts 
  • Getting the right people on the task, no matter where they are located 
  • But... invisible communication and high coordination costs 

Manage diversity for opportunity. 

  • Cultural diversity 
  • Time zones 
  • Local markets 
  • Ecosystem connections and networks 
  • Etc. 

Overcome Barriers and Gain Opportunities 

  • Overcoming barriers of virtuality is difficult for us, especially given our experiences with face-toface 
  • Leading well in global teams requires tremendous effort and focus 
  • Get the basics right. 
  • Sequence communications "technology" to match task interdependence. 
  • Lead the network, not just the team. 
  • Manage diversity for opportunity. 
  • Payoff is more focused travel, more connections, potential knowledge sharing and other synergies in multinational companies 

MAN6038 The Global Manager Session 4a SUMMARY 

Benefits and challenges of international teams 

What factors affect international team performance 

And how to manage them 

MAN6038
The Global Manager 

Session 4b 
Developing a global mindset 
MAN6038 The Global Manager 
PPT from a Guest Lecture by Prof Mansour Javidan (US) 
Traits of a Global Manager and Developing a Global Mindset 

What do global managers need in order to succeed? 

Global Managers need a
Global Mindset 

Global Managing Starts with a Global Mindset 
  • A global mindset is the capacity to analyse situations and develop criteria for personal and business performance that are independent from the assumptions of a single country, culture or context; and to implement those criteria appropriately in different countries, cultures and contexts. 
(Lane & Maznevski, 2004) 

Traits that global managers need 

  • Research shows up to 250 competences are needed! 
  • Only a superhero can be a global manager then? 
  • Researchers created some frameworks to capture most important criteria in selecting these skills and competences 
-> one is The Global Mindset Model (Javidan & Bowen, 2013) 
The Global Mindset Model (Javidan & Bowen, 2013) 

GLOBAL MINDSET 

The Global Mindset Model (Javidan & Bowen, 2013) 
The Global Mindset Model (Javidan & Bowen, 2013) 
The Global Mindset Model (Javidan & Bowen, 2013) 

Social Capital (SC) 

The Global Mindset Model (Javidan & Bowen, 2013) 

Developing a Global Mindset 

  • A global mindset is not something innate, it can be learned 
  • However, it cannot be developed by simply reading a book on an airplane or by being lectured about in a classroom 
  • It has to be shaped or developed, which implies changes have to take place 

What kind of changes? 

Developing your own Global Mindset 

  • Requires active learning - engage problems where you must assess the situation, see options, make decisions, implement actions, and experience feedback 
  • Requires mindfulness - pay close attention to your own reactions and to what is happening in the environment 
  • Requires self-awareness - become aware of how your assumptions and frameworks shape perceptions, values and behaviour only as you confront different sets of assumptions guiding the views and practices of others 

Developing your own Global Mindset 

"The real voyage of discovery consists not in seeking new 
landscapes, but in having new eyes" 
Marcel Proust (French novelist, 1871-1922) 


and
Wrap-Up Session 4a and 4b 

1.) Read the chapter about global team management in the assigned textbook! 
2.) Study the provided article: Bowden (2013) The Global Mindset of Managers! This is essential for the assignment task part 2 as well as part 4, and indirectly driving the direction in part 3! It is essential to discuss and apply this model. 
3.) Reflect on your own global mindset: What would you do to improve the skill level? 

Revision 

-What are the key take aways from the previous session? 
  • How does the content of the previous session relate to the assignment and global mindset development? 
  • Any relevant examples to share? 
  • Any clarifying questions? 

Once again: The Assignment Brief 

Assignment indicative structure: 

  • Introduction. Clearly outline the structure of the work (approx. 100 words) 
  • Part 1. A literature review about key traits of a global manager and the importance of a global mindset in today's rapidly changing global environments (approx. 700 words) 
  • Part 2. A literature review about cultural, ethical and value-based considerations (approx. 700 words) 
  • Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations (approx. 700 words) 
  • Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words) 
  • Conclusion. Clearly summarise your work (approx. 100 words) 
  • List of references (not included in the word count). In-text citations and the list of references should follow BCU Harvard Referencing style. A minimum of academic references are required. 
"Part 2. A literature review about cultural, ethical and value-based considerations (approx. 700 words) 
Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations (approx. 700 words) Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words)"The following sections are all full of valuable in-sights 
and concepts that you can use for your assignment 
and when choosing a relevant case. 
The following sections are all full of valuable in-sights and concepts that you can use for your assignment and when choosing a relevant case. 

Global Managers must be able to make valuebased considerations 

Global managers must analyse the complexities of global organisations and cultural, ethical and value-based considerations for managers wishing to pursue global strategies. 
Global companies chose to place their activities there where they deliver the best value for their business: 
Where to sell 
Where to produce/ to do the service 
Where to develop/ innovate products/ services 

Executing Strategy: Value-Creation in the Global Environment 

  • Managers must understand how culture influences a firm's strategy, structure, systems 
  • Managers must use this understanding to 
  • Scan for information from the MNC's multiple environments 
  • Use their experientially acquired tacit knowledge of these environments to understand this information 
  • Combine this understanding of the firm's complex environment with a clear understanding of its internal competences 
  • Translate implications of such understanding to set the firm's strategy, structure and systems 
  • Managers must 
  • Recognize the firm's organizational heritage 
  • Realize its roots in a home country culture 
  • Create the firm's global culture 
The Upsalla Model: In the early stage of globalization expansion internationally was stepwise. 
Today, an increase of "born global" start-ups is observed. 

Tensions from Operating Globally: 

Global Integration vs Local Responsiveness 
Bartlett, C. A., & Ghoshal, S. (1989). Managing across borders: The transnational solution. Boston: Harvard Business School Press. 
  • Global Integration results from the need to achieve global efficiency 
  • goods/ideas/systems moved around the world with little change across borders 
  • economic efficiencies: causes 
  • elimination of trade barriers 
  • tariff barriers 
  • non-tariff barriers 
  • global media/communications: convergence of tastes, standards 
  • information technology: facilitation of MNC's subsidiary coordination 
Tensions from Operating Globally: Global Integration vs Local Responsiveness 
Bartlett, C. A., & Ghoshal, S. (1989). Managing across borders: The transnational solution 
Boston: Harvard Business School Press 
  • Local responsiveness results from the need to satisfy local needs 
  • cultural preferences for: 
  • goods and services 
  • structural relations 
  • systems preferences 
  • tensions leading to local responsiveness 
  • non-tariff and tariff barriers 
  • trading blocks 
  • foreign exchange shortages 
  • production technology 
  • reduces economies of scale 
  • allows customization 

Strategic Choice: Appropriate Integration-Responsiveness Balance 

Bartlett, C. A., & Ghoshal, S. (1989). Managing across borders: The transnational solution. Boston: Harvard Business School Press. 
  • Dependence on MNC's industry / competitive arena 
  • Four strategies for organizing globally 
  • Global 
  • Multidomestic 
  • International 
  • Transnational 
  • Global Customer influence on strategy implementation 

Four Global Business Strategies  

Bartlett, C. A., & Ghoshal, S. (1989).Managing across borders: The transnational solution. Boston: Harvard Business School Press. 

Bartlett & Ghoshal - Diagram axis explained 

  • Local responsiveness - Business considerations 
  • The company might have to consider the requirements of the local population. 
  • The company will have to consider domestic competition. 
  • Cost pressure - Business considerations 
  • Business must consider the implications/costs on the business of differentiating its product or service in a variety of global markets. 
  • Business must consider if it will be able to use the same branding and marketing techniques and materials to be successful internationally. 

Bartlett & Ghoshal - Diagram axis explained 

  • Multi domestic: Low Integration and High Responsiveness 
  • Aims to meet the needs of the local market. 
  • Tailor products and services to suit the local market. 
  • Low pressure for global integration. 
  • Decentralised structure. 
  • Unique marketing and sales approach to each individual market. 
  • E.g. Nestle 

Bartlett & Ghoshal - Diagram axis explained 

  • Global: High Integration and Low Responsiveness e.g. Pfizer 
  • Global companies are the opposite of multi-domestic companies. 
  • They offer the same product worldwide. 
  • Their goal is to maximize efficiencies in order to reduce costs as much as possible. 
  • Global companies are highly centralised. 
  • All worldwide branches are very dependent on the headquarters. 
  • A company example would be Pfizer. 

Bartlett & Ghoshal - Diagram axis explained 

  • Transnational: High Integration and High Responsiveness e.g. Unilever 
  • This is a mix between both transnational and multidimensional. 
  • It will aim to respond both locally and gain benefits of integration. 
  • They will be independent but also integrated with their headquarters and strive to achieve the company's global mission, aim and objective. 
  • A great example of a transnational company is Unilever. 

Bartlett & Ghoshal - Diagram axis explained 

  • International: Low Integration and Low Responsiveness 
  • This strategy was not originally in Bartlett & Ghoshal's theory. This part of the theory was created by others. 
  • This part of the theory believes there is little need for local adaptation and global integration. 
  • The majority of the main activities will be maintained at the headquarter. 
  • This strategy is also often related to an exporting strategy. 
  • A good example would be large wine brands around the world. 
Strategies for Expanding Into Global Markets 

But What is Strategy?
但什麼是戰略?

  • Henry Mintzberg defined strategy as a pattern in a stream of decisions to contrast with a view of strategy as planning
    亨利-明茨伯格將策略定義為決策流中的一種模式,與將策略視為規劃的觀點形成對比
  • Henrik von Scheel defines the essence of strategy as the activities to deliver a unique mix of value - choosing to perform activities differently or to perform different activities than rivals
    亨利克-馮-舍爾將策略的本質定義為提供獨特價值組合的活動--選擇以不同的方式進行活動,或進行與競爭對手不同的活動
  • Max McKeown argues that strategy is about shaping the future and is the human attempt to get to desirable ends with available means
    麥克斯-麥基翁認為,策略是關於塑造未來的,是人類以現有手段達到理想目的的嘗試

Executing Global Strategy
執行全球策略

  • The formulation and implementation of a strategy requires understanding market demands, competitors, and external constraints, such as government policies. 
  • However, in addition to choosing, for example, markets and manufacturing sites, important organizational actions include choosing structures, work systems, and administrative mechanisms to motivate employees toward the desired goals. 
  • The success of any business is determined by the effectiveness of the strategy it follows. 
  • A strategy explains how a company plans to compete in a market and how it intends to grow at a profit. 

Executing Global Strategy 

  • Today's global organisations need skilled global managers 
  • Cultural understanding and good intercultural skills are important managerial competencies 
  • However, as a manager in the global economy you will need more than intercultural competency 
  • You also have to understand how the intercultural context may influence your company's strategy, structure, administrative systems, and operations 

Strategy Execution Is Embedded In Context: Know Your Assumptions 

  • As a company spreads beyond its home country and creates a global network, top managers need to recalibrate their cultural "filters" through education and the acquisition of personal experience. 
  • Specifically, this should include knowledge about their different market environments, company activities in these countries, and the linkages among this network of activities. 
  • With properly interpreted information, global executives can make informed strategic decisions and influence the design and implementation of culturally-sensitive organization structures and systems to achieve strategic goals. 
  • Executives can put into use the global mindset they have developed in executing a global strategy. 

But Which Strategy to Adopt? 

  • Which part of strategy to globalize? Which to localize? 
  • globalize activities which achieve economies of scale 
  • localize activities which depend on local people for effective implementation, except those which need to keep the eye on the global picture 
  • What legal constraints? 
  • What do we know how to do well? What do we still need to learn and how? 
  • How can we make sure that our strategy is interpreted correctly in each local culture? What are the "gaps" which will still offer resistance? 
  • Can we take the time to implement our global strategy? 
  • Do we know enough about a country to assess risk? 

Culture and Strategy 

Impact of Culture Differences on Strategy 

  • Managers often make decisions on the basis of cultural/ governance system in their home country 
  • use rational analyses with domestic assumptions 
  • economic environment 
  • cost-benefit analysis 
  • competitive assessment 
  • employee selection/training/motivation 
  • develop structures, systems, practices with domestic assumptions 
  • can these systems apply to other countries which operate with different assumptions? 
  • if not, how can managers know what to do abroad? 
  • In international business, organizations are more than sociotechnical systems, they are socio-cultural-technical systems 

Impact of Culture Differences on Strategy 

  • Managers use "judgment" to assess organization's environment and internal strengths/ weaknesses 
  • "Judgment" requires use of explicit and tacit knowledge of differences among countries and cultures 
  • As well as differences of international business from domestic business 
  • government system 
  • economic system 
  • legal system 
Methods to Expand Into Global Markets 

Developing a Global Presence Overseas Entry Decisions 

  • Geographic entry decisions 
  • Where to go: culture distance vs geographic distance 
  • How to go: mode of operation in overseas market 
  • How to organize 
  • Culture distance vs geographic distance 
  • Mode 
  • wholly owned subsidiaries (FDI) 
  • international joint ventures (FDI, joint ownership) 
  • Franchising/Licensing 
  • Exports/Imports 
  • How to organize: global vs multidomestic strategy 
Developing a Global Presence Methods to Expand Into Global Markets 
  • Exporting direct to international customers 
  • Selling via international agents and distributc 
  • Opening overseas operations 
(i.e. Starbucks in Australia) 
  • Mergers and Acquisitions (M&As) 
(i.e. Exxnon and Mobil; Disney and Pixar) 
  • International Joint Ventures 
(i.e. Sony Erickson) 
  • Strategic Alliances 
(i.e. Spotify and Uber) 

Opening Overseas Operations 

  • Establishing a legal form in a new foreign market. 
Benefits 
 
Local contact with customers
and suppliers
 
Significant cost and management
time
 
Gain market experience first
hand
 
Potentially much higher investment
and lead time before up and running
 
Direct control over quality and
customer service
 
Need to understand and comply
with local legal and tax issues
 
Avoids protectionism (e.g.
tariffs, quotas)
Higher risk 

Opening Overseas Operations  

Examples: 

  • Tesco (UK) entered in the US in 2007 but pulled out in 2015 
  • Starbucks (US) entered Australia in 2000 but had a massive downturn in 2008 

Mergers & Acquisitions (M&As) 

  • A Merger is the combination of two firms which subsequently forms a new legal entity under the banner of one corporate name. 
  • In an Acquisition one company purchases another outright. 
Benefits  Drawbacks 
 
Obtaining valuable assets, quality
staff or additional skills, knowledge
of industry
 
Could become expensive if terms do
not get agreed
 
Can save an unprofitable firm from
going out of business
 
Two very different firms may struggle
to merge
 
More investment and research
from higher profits
 
A firm with monopoly power may
become inefficient
Reducing costs and competition 
 
Less choice for consumers and job
losses

Mergers & Acquisitions (M&As) 

Examples: 
  • Anheuser-Busch InBev - merger between Interbrew (Belgium) and AmBev (Brazil) in 2004, and Anheuser-Busch (US) in 2008 
  • Disney acquired Pixar in 2006 and Marvel in 2009 
  • Facebook (now Meta) acquired Instagram in 2012 and WhatsApp in 2014 

International Joint Ventures 

  • Creating a new entity owned jointly by two or more "parent" organisations to enter a market where at least one of the parent organisations is non-resident. 
Benefits  Drawbacks 
 
Speedy and potentially
transformational
 
The highest risk - particularly if the
wrong JV partner is selected
 
Reduced risk if shared with joint
venture partner
 
Significant cost and investment of
management time
 
Buying into existing expertise and
market presence
 
Need to understand and comply with
local legal and tax issues
JVs may be a requirement to enter 
some international markets 
 
Costly to withdraw if the strategy goes
wrong

International Joint Ventures 

Examples: 
  • Sony (Japan) + Ericsson (Sweden) => Sony Ericsson (between 2001-2012) 
  • Jaguar Land Rover (UK) + Chery Automobile (China) => Chery Jaguar Land Rover (since 2012) 

Strategic Alliances 

  • An agreement between two or more companies to engage in cooperative activities without equity involvement. 
Benefits 
A low-cost entry into new industries, risk and cost being shared between partner 
Changing the competitive environment through creating new technology standards 
Improving operations due to the ability to learn from the other partner(s) 
Positively influence the brand and perception of the companies 

Drawbacks 

Partners may misrepresent what they bring to the table (lie about competencies that they do not have) 
Partners may fail to commit resources and capabilities to the other partners 
One partner may commit heavily to the alliance while the other partner does not 
Partners may fail to use their complementary resources effectively 

An organization needs to achieve alignment or "fit" 

  • Internally 
  • strategy, structure, work tasks, people 
  • Externally 
  • organization's strategy and environment 
  • GLOBAL value considerations: how to create value WHERE 

Impact of National Culture Differences 

  • Managers use "judgment" to assess organization's environment and internal strengths/weaknesses 
  • "Judgment" requires use of explicit and tacit knowledge of differences among countries 
  • Difference of international business from domestic business 
  • national culture 
  • governance system 
  • government system 
  • economic system 
  • legal system 

Impact of National Culture Differences 

  • Managers often make decisions on the basis of cultural/governance system in their home country 
  • use rational analyses with domestic assumptions 
  • economic environment 
  • cost-benefit analysis (VALUE CREATION!) 
  • competitive assessment 
  • employee selection/training/motivation (VALUE CREATION) 
  • develop structures, systems, practices with domestic assumptions (VALUE CREATION) 
  • can these systems apply to other countries which operate with different assumptions? 
  • if not, how can managers know what to do abroad? 
  • In international business, organizations are more than socio-technical systems, they are socio-cultural-technical systems: impact of cultural differences on process effectiveness and efficiencies! 

Strategy-Structure-People-Performance 

Factors that affect Value-based Considerations! 

Global Strategy Success Factor: Global Learning (value creation) 

  • Transfer and sharing of new ideas and knowledge across the MNC's "network" globally! 
  • technology 
  • marketing strategy and research 
  • consumer understanding through identification of differences 
  • product design 
  • Transfer through global alignments of the "best of" 
  • organization systems (formal and informal processes) 
  • individuals 

Overseas Entry Decisions: WHERE is value created 

  • Geographic entry decisions Considerations: 
  • Where to go: culture distance vs geographic distance 
  • How to go: mode of operation in overseas market 
  • How to organize 
  • Culture distance vs geographic distance (Considerations) 
  • Mode (Considerations) 
  • wholly owned subsidiaries (FDI) 
  • international joint ventures (FDI, joint ownership) 
  • Franchising/Licensing 
  • Exports/Imports 
  • How to organize: global vs multidomestic strategy 

Overseas Entry Decisions: What was the value-based consideration? 

Examples: 

  • Disneyland Tokyo, Paris, Hong Kong, Shanghai 
  • Topshop in Hong Kong 
  • Starbucks in Hong Kong 
  • Walmart in Germany 
  • Carrefour in Russia 

Culture and Strategy: Considerations about... 

  • About Strategy Formulation 
  • About Start-up challenges 
  • About Operational pitfalls 
  • About Headquarters-subsidiary relations and communication 
  • Joint-venture management 
  • About Relationships 

Value-based Considerations lead to Strategy Formulation and Decisions 

  • Which part of strategy to globalize? Which to localize? 
  • globalize activities which achieve economies of scale 
  • localize activities which depend on local people for effective implementation, except... 
  • those which need to keep the eye on the global picture 
  • What legal constraints? 
  • What do we know how to do well? What do we still need to learn and how? 
  • How can we make sure that our strategy is interpreted correctly in each local culture? What are the "gaps" which will still offer resistance? 
  • Can we take the time to implement our global strategy? 
  • Do we know enough about a country to assess risk? 

Organization Structures: value-based considerations 

  • Different structures make sense for different situations 
  • International division 
  • Product division 
  • Geographic/Regional structure 
  • Matrix organization 
  • Transnational or networked organization 

Managerial Philosophies: Affecting Design/ Structures 

Framework created by Howard V Perlmuter and Wind and Douglas in 1969. 
Ethnocentric 
Polycentric 
Geocentric 
The ethnocentric approach is used by firms that operate internationally the same way they do domestically. 
The polycentric approach is used by firms that customize their operations for each foreign market they serve. 
The geocentric approach is used by firms that analyze the needs of their customers worldwide and then adopt standardized operations for all markets they serve. 
Figure 14.1 Samsung's Global Product Design 

Global Product Design 

Advantages 

  • Managerial expertise 
  • Production efficiencies 
  • Production flexibilities 
  • Flexible response to change 
  • Marketing flexibility 

Disadvantages 

  • Unnecessary duplication 
  • Coordination and cooperation difficult 

Global Area Design 

The Global Area Design organizes 

the firm's activities around specific 
areas or regions of the world. 

Figure 14.2 Cadbury Schweppes PLC Global Area Design 

Disadvantages of Global Area Design 

  • Firm may sacrifice cost efficiencies 
  • Diffusion of technology is slowed 
  • Design unsuitable for rapid technological change 
  • Duplication of resources 
  • Coordination across areas is expensive 

Global Functional Design 

The global functional design calls for a 
firm to create departments or divisions that 
have worldwide responsibility for the 
common organizational functions-finance, operations, marketing, R&D, and 
human resources management. 
Figure 14.3 British Airways Global 

Functional Design 

Global Functional Design 

Advantages 
  • Transference of expertise 
  • Highly centralized control 
  • Focused attention of key functions 

Disadvantages 

  • Practical only when firm has few products or customers 
  • Coordination difficult 
  • Duplication of resources 

Global Customer Design  

The global customer design is used when a firm serves different customers or customer groups, each with specific needs calling for special expertise or attention. 

Figure 14.4 Eastman Kodak's Global Customer Design 

Global Matrix Design 

A global matrix design, the most 
complex of designs, is the result of 
superimposing one form of 
organization design on top of an 
existing, different form. 

Global Matrix Design (continued) 

Advantages 

  • Brings together the functional area and product expertise 
  • Promotes organizational flexibility 
  • Provides access to all advantages of other designs 

Disadvantages 

  • Appropriate for firms with many products and unstable environments 
  • Employees accountable to multiple supervisors 
  • Decisions may take longer 
Figure 14.5 A Global Matrix Design
圖 14.5 全域矩陣設計

Internationalization of the Firm's Value Chain What is done best where
企業價值鏈的國際化 什麼地方做得最好?

Upstream Value-Chain Activities  Downstream Value-Chain Activities 
 
Market
Research
R&D Sourcing  Production  Marketing  Distribution 
 
After-Sales
Service
 
Dell conducts
continuous
market research,
through direct
interaction with
thousands of
customers
everyday,
worldwide.
 
R&D allows Dell
to develop new
notebook
models and
improve existing
ones. Notebooks
are completely
redesigned every
twelve months.
Dell engineers in
the United
States conduct
R&D jointly with
specialized
notebook
designers in
Taiwan.
 
The parts for the
notebook are
sourced
worldwide, but
mainly from
suppliers in Asia.
For example, Intel
microprocessors
are sourced from
Intel factories in
China, Costa Rica,
and Malaysia; LCD
displays are
sourced from
factories in South
Korea, Japan, and
Talwan.
 
The notebook is
assembled and
software installed
at one of Dell's
six factories in
Brazill, China,
Ireland, Malaysia,
or the United
States.
 
Dell sells
computers to
buyers worldwide,
but especially in
the United States,
where it holds
one-third of the PC
market, and online
sales are common.
Outside the United
States, Dell has
about 12 percent
of total market
share.
 
For its U.S. sales,
Dell uses air
transport to ship
notebooks from its
factories to the
express delivery firm
UPS, in Nashille,
Tennessee. UPS
then ships the
notebooks to final
customers.
For sales in other
countries, Dell uses
local express
dellivery firms. The
time period from
order submission to
final order delivery is
typically less than
two weeks.
 
Dell performs service
and technical
support in its major
markets, especially
Europe, Japan,
and the United
States. It employs
technical support
personnel in Europe,
India, Japan, and the
United States.

Exhibit 16.1 證據 16.1

Sourcing for the Dell Inspiron Notebook Computer 

See Appendix 

  • Find examples for global companies that are 
  • Product-centric (value created by focus on where to design and do manufacturing) 
  • Or
  • Customer-centric (value created by focus on where to sell product / services) 

BIRMINGHAM CITY
University
MAN6038
The Global Manager
Session 5 TUTORIAL
Plagiarism 

Plagiarism 

Four common forms 

  • Stealing material from another source 
  • Submitting material written by another 
  • Copying material without quotation marks 
  • Paraphrasing material without documentation 
Adapted from Park (2003), cited in Easterby-Smith et al. (2008) 

Plagiarism 

- Turnitin 

  • Turnitin is a tool that identifies levels of similarity between your writing and other student assignments and published work. 
  • All written assignments have to be submitted to Turnitin. You are encouraged to submit your work ahead of the deadline to generate your own "Orginality report". This enables you to check how similar your work is to other sources. You can then withdraw the assignment to make any necessary changes and resubmit it in revised form. 

Turnitin: What to change 

Passages of highlighted text 

  • The highlighted content in an Originality report shows you where your phrasing matches another source too closely. 
  • In the example here, the writer has directly lifted the highlighted text from a film review. In addition, the original source has not been acknowledged via in-text referencing. Directly lifting content from other sources and presenting it verbatim in your assignments is considered plagiarism, unless you have both quoted and referenced this text (and even then you should quote sparingly). 
  • This would be considered plagiarism by your markers. You therefore need to paraphrase or summarise this content into your own words to demonstrate you have understood it, as well as provide a reference to the source. 
(2011) on its release. Indeed, aside from the ending the Coens' film is pretty similar to the 
first movie in plot terms, and a sceptic might feel the Wayne classic has been fed into a 
special machine which turns old movies into hip indie-arthouse product. However, Bridges' 

Turnitin: What to change 

Poor paraphrasing 

  • The writer has directly lifted the highlighted text from a webpage, only changing a few words here and there (as shown by the gaps between the highlights). You can see that these changes are only superficial: the writer has not demonstrated that they have understood the material as they have not attempted to thoroughly translate it into their own words. So Turnitin still identifies this text as being similar to another source and, more importantly, your marker will too. The original source has not been referenced either, so this would be considered plagiarism. 
consistently popular, by the late 1930 s Westerns were widely regarded as a 'pulp' genre in 
Hollywood, but their prestige was dramatically revived in 1939 by several major studio 
productions including Dodge City (with Errol Flynn), Jesse James (with Tyrone Power in the 
lead role), Union Pacific (with Joel McCrea), Destry Rides Again (with James Stewart in his 
first Western, alongside Marlene Dietrich) and perhaps most famously, the release of John 

Turnitin: What to change 

Copied the highlighted text from a journal article but provided an in-text reference 

  • Although the reference acknowledges the source of this information, this would still be considered plagiarism because the writer has not paraphrased the content or indicated with quotation marks where content has been copied directly. 
The Big Lebowski named The Stranger also serves as intertextual bridge between the two 
films, representing a ghost of cowboys past, carrying traces of the mythic West into the contemporary world, focusing the audience's attention upon the spectral relations of that past to the present (Campbell et al. 2013, p. 315). This intertextual connection to The Big 

Self Plagiarism 

  • Formulations used in previously in other courses assessed assignments must be paraphrased as well. 
  • Students might think that they do not have to paraphase as these were their own words. However, also here the same paraphrasing rules apply. 

Using a full line of arguments and evidences and references used by another author 

  • For example, when writing a literature review, it is not allowed to "borrow" a large portion of a literature review made by somebody else. 
  • For example, in one journal article is a long paragraph with many references that the original writer compiled to support the topic review. Even if students would paraphrase the words of the original author but still use all of his/her references (without actually having read the original material of these references), it is stealing of another person's work. 
  • In best case, if there would be any justification to use the set of references used by another author, then the reference must indicate "as cited in...". 

Original source (disseration by another student): 

However, the success or not of the partnership depends on various factors. Nijhof, Bruijn and Honders (2008) prove that the necessity to involve NGOs in embedding social issues in the strategies and day-today operations of businesses is not always justified. It presents arguments when certain forms of NGO involvement are required. The varied interest of NGOs has to take in consideration. Thus, it is important to determine appropriate criteria for partner selection before engagement and commitment to a partnership (Seitanidi & Crane, 2008). Elkington & Fennell (1998) developed a spectrum of eight possible types of relationship between an NGO and a company. They have devised a new typology of NGOs and companies based on their strategy towards stakeholder engagement and sustainability agenda that may improve the understanding of NGO-Business partnerships. They also stressed that NGOs have realized that with businesses participation was essential to the development of any long-lasting solutions. 

"Stolen version": 

If partnerships are successful depends on various factors, such as where Nijhof, Bruijn and Honders (2008) prove that the necessity to let NGOs embed social issues in the strategies and day-to-day operations of businesses is only sometimes justified. 
This is only when certain forms of NGO involvement are required. The interests of NGOs have to be taken in consideration. Important is to determine appropriate criteria for partner selection before engagement and commitment to a partnership (Seitanidi & Crane, 2008). Elkington & Fennell (1998) described a spectrum of eight types of relationship between an NGO and a firm. They have developed a new typology of NGOs and companies based on their strategy towards stakeholder engagement and sustainability to improve the understanding of NGO-Business partnerships. They also stated that NGOs have realized that businesses participation was essential to their development of long-lasting solutions. 

REFERENCING 

Please make yourself familiar with the details here: 

Harvard Referencing Guide 

This includes information on formatting the In-text references and the reference list 

Referencing Roadmap (Harvard) Identify your source 

  • To work out how to reference a source you must first identify what it is 
  • Choose whether your source is Print, Electronic, Sound/Visual or Other 
  • Select the appropriate link below to enter the Roadmap 
  • Read the description each time you choose a source type to ensure that your source matches 
  • Read the notes as well as the format and layout to find out how to reference using the Harvard style 

References: An article published in an academic journal 

In-text citation 

Format and layout: 

Author's family name (year, page number if applicable) 
(Author's family name year, page number if applicable) 

One author 

O'Hara (2009, p. 1548) supports... ...received some support (O'Hara 2009, p. 1548). 

Two authors 

Wolff and Perry (2010, p. 296) note... ..marked trends (Wolff & Perry 2010, p. 296). 

Three authors 

Marques, Azevedo and Pereira (2012, p. 293) argue... ...is important (Marques, Azevedo & Pereira 2012, p. 293). 

Four or more authors 

Yuile et al. (2012, p. 53) suggest... ...has been suggested (Yuile et al. 2012, p. 53). 

Reference List / Bibliography 

Format and layout: 

Author's family name, Initial(s) year, 'Title of article', Title of Journal, vol. , no. . 

One author 

O'Hara, MJ 2009, 'Flood basalts, basalt floods or topless bushvelds? Lunar petrogenesis revisited', Journal of Petrology, vol. 41, no. 11, pp. 1545-651 

Two authors 

Wolff, H & Perry, L 2010, 'Trends in clean air legislation in Europe: particulate matter and low emission zones', Review of Environmental Economics and Policy, vol. 4, no. 2, pp. 293-308. 

Three authors 

Randhawa, B, De Lacey, P & Saklofske, D 1986, 'Personality and behavioural measures: gender, age, and race contrasts in an Australian setting', International Journal of Psychology, vol. 21, no. 4/5, pp. 389-402. 

Four or more authors 

Yuile, C, Chang, A, Gudmundsson, A & Sawang, S 2012, 'The role of life friendly policies on employees' work-life balance', Journal of Management & Organization, vol. 18, no. 1, pp. 53-63. 

References: A whole book, edited book, book chapter or translated book 

In-text citation
Format and layout: 

Author's family name OR Authoring body (year, page number if applicable) 
(Author's family name OR Authoring body year, page number if applicable) 
One author 
Chabon (2008, p. 108) discusses... 
...was discussed in the study (Chabon 2008, p. 108). 

Authoring body/organisation 

Deni Green Consulting Services (2008, p. 5) proposes.. 
...a better world (Deni Green Consulting Services 2008, p. 5). 

Two or three authors 

Campbell, Fox and de Zwart (2010, p. 46) argue... 
...alternatives are preferable (Campbell, Fox & de Zwart 2010, p. 46). 

Four or more authors 

As suggested by Henkin et al. (2006, p. 14)... 
...has been suggested (Henkin et al. 2006, p. 14). 
Book with no date or an approximate date 
This is emphasized by Seah (n.d.) when... 
This is emphasised by Seah (c. 2005) when... 
2nd, revised or later edition of a book 
Bordwell and Thompson (2009, p. 33) explain... 
...influenced his work (Pearce 2015). 
Reference List / Bibliography 
Format and layout: 
Author's family name, Initial(s) OR Authoring body year of publication, Title of book, edition if necessary, Publisher, Place of publication. 
One author 
Chabon, M 2008, Maps and legends, McSweeney's Books, San Francisco. 

Authoring body/organisation 

Deni Green Consulting Services 2008, Capital idea: realising value from environmental and social performance, Deni Green Consulting Services, North Carlton, Victoria. 

Two or three authors 

Campbell, E, Fox, R & de Zwart, M 2010, Students' guide to legal writing, law exams and self assessment, 3rd edn, Federation Press, Sydney. 

Four or more authors 

Henkin, RE, Bova, D, Dillehay, GL, Halama, JR, Karesh, SM, Wagner, RH & Zimmer, MZ 2006, Nuclear medicine, 2nd edn, Mosby Elsevier, Philadelphia. 
Book with no date or an approximate date 
Seah, R n.d., Micro-computer applications, Microsoft Press, Redmond, Washington. 
Seah, R c. 2005, Micro-computer applications, Microsoft Press, Redmond, Washington. 2nd, revised or later edition of a book 
Bordwell, D & Thompson, K 2009, Film art: an introduction, 9th edn, Mc-Graw Hill, New York. 
Pearce, B 2015, Master of stillness: Jeffrey Smart, rev. edn, Wakefield Press, Mile End, South Australia. 

References: An article in a newspaper containing news or editorial
Notes 

Omit initial The in English language newspaper titles, e.g. The Australian is written as Australian. 
If a newspaper article has no author, cite the newspaper title as author and include the specific date of publication in 
brackets in-text, e.g. 
In-text: The Australian Financial Review (22 October 2012, p. 46) examines... 
Reference list: Australian Financial Review 2012, 'US comes to a turning point', 22 October, p. 46. 

In-text citation 

Format and layout: 
Author's family name OR Authoring body (year, page number if applicable) 
(Author's family name OR Authoring body year, page number if applicable) 

Examples 

Westwood (2012, p. 15) states... 
...in contemporary literature (Westwood 2012, p. 15). 
Reference List / Bibliography 
Format and layout: 
Author's family name, Initial(s) year, 'Title of article', Title of newspaper, date OR publication information, . 

Examples 

Westwood, M 2012, 'Welcome into an exclusive fold', Australian, 4 September, p. 15. 

References: A collection of pages or individual HTML documents on the World Wide Web. translated book 

Webpage 

Description: A single page that is part of a website Notes 
One webpage usually has a separate title and is taken from a larger website. 
If you are having difficulty identifying authorship of a single webpage, try visiting the website's homepage. A homepage is the main, opening page on a website. It usually provides information about the website, its owner, its purpose and some sort of table of contents with links to other parts. It may also contain an 'About us' or 'Contact' link where authors or authoring bodies are clearly identified. 
Italicise the title of the specific webpage you are referencing and present the whole website name in plain font. 

In-text citation 

Format and layout: 

Author's family name OR Authoring body (year) 
(Author's family name OR Authoring body year) 

Examples 

...viable options (Department of Immigration and Citizenship 2012). 

Reference List / Bibliography 

Format and layout: 格式和佈局:

Author's family name, Initial(s) OR Authoring body year, Title of webpage, Title of website, Publisher where known, viewed date, .
作者姓名、首字母縮寫或創作機構年份、網頁標題、網站標題、已知出版商、瀏覽日期、......、......。

Examples 

Department of Immigration and Citizenship 2012, Permanent visa options for doctors, Department of Immigration and Citizenship, Australian Government, viewed 6 November 2012, http://www.immi.gov.au/skilled/medicalpractitioners/permanent-visas.htm. 

References: many other sources are possible 

Sources: 
Print 
Electronic 
Sound and Visual 
And other 
Also: foreign (non-English) publications - how to convert them (i.e. a reference is originally in Mandarin and needs to be changed into an English equivalent). 
Look up for the exact formatting requirements and apply accordingly! 

MAN6038 The Global Manager Session 5 SUMMARY 

What factors affect international strategy, structure and systems? 
And how are they inter-related? 

MAN6038 The Global Manager 

Session 6 
Cross-cultural adaptation, effectiveness and culture shock - Expats 

Revision 

-What are the key take aways from the previous session? 
  • How does the content of the previous session relate to the assignment and global mindset development? 
  • Any relevant examples to share? 
  • Any clarifying questions? 

Once again: The Assignment Brief 

Assignment indicative structure: 

  • Introduction. Clearly outline the structure of the work (approx. 100 words) 
  • Part 1. A literature review about key traits of a global manager and the importance of a global mindset in today's rapidly changing global environments (approx. 700 words) 
  • Part 2. A literature review about cultural, ethical and value-based considerations (approx. 700 words) 
  • Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations (approx. 700 words) 
  • Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words) 
  • Conclusion. Clearly summarise your work (approx. 100 words) 
  • List of references (not included in the word count). In-text citations and the list of references should follow BCU Harvard Referencing style. A minimum of academic references are required. 
"Part 2. A literature review about cultural, ethical and value-based considerations (approx. 700 words) 
Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations (approx. 700 words) Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words)"The following sections are all full of valuable in-sights 
and concepts that you can use for your assignment 
and when choosing a relevant case. 
The following sections are all full of valuable in-sights and concepts that you can use for your assignment and when choosing a relevant case. 

Managing the Global Organization 

  • Culture influences human resource systems 
  • what they are 
  • must fit global strategy 
  • to what extent and how they can be designed 
  • HR systems dependency on external influences varies 
  • government and of unions less important in US than Europe 
  • external constraints must be integrated in HR system 
  • Standardization vs adaptation 
  • outcome should be the "driving" force 
  • systems are tools not ends in themselves 

MNCs challenges in internationalising 

  • Since the 1990s there has been: 
  • An increase in companies operating in multiple states (MNCs) 
  • Increase in labour mobility (migration). 
  • Problems of expatriate managers' performance abroad. 
  • Failures of cross-border business ventures (Harris et al, 2007) which are (in part) linked to HR. 
  • Organisational culture(s) within single businesses (Scullion and Starkey, 2000). 
  • Cross-border teamworking (and virtual teamworking). 
  • Culture can play a role in organisational learning. 

Strategic Mode, Organizational Variables, and Staffing Orientation 

 
Aspect of
enterprise
Ethnocentric  Polycentric  Regiocentric  Global 
 
Strategic
orientation
International  Multidomestic  Regional  Transnational 
Perpetuation 
 
Expatriates
used for key
positions
 
Locals used
for key
positions
locally
 
Regional
people used
regionally
 
Best people
used
anywhere
E Evaluation 
 
Home
standards
applied
 
Determined
locally
 
Determined
regionally
 
Globally
integrated

Managing Expatriates: Selection 

IHRM Process to Maximize Effectiveness of Expatriate Assignments 

What aspects of HR are most affected by local practices? 

  • Leave entitlement 
    • 35 days' paid holiday in France (mandated), O days in USA (mandated), 28 days UK. 
  • Benefits - 
  • Gender composition - 
  • Training - 
  • Executive bonus 
    • Capped of pay (EU, with exceptions) 
  • Participation - TU, Work Councils. 

Cross-Cultural Training 

Culture Shock 

  • A state of disorientation and anxiety about not knowing how to behave in an unfamiliar culture 
  • The goal of training is to ease the adjustment to the new environment 

Subculture Shock 

  • When a manager is transferred to another part of the country, where there are cultural differences 
  • The "shock" comes from feeling like an "immigrant" in one's own country 

Integrating Training with Global Orientation 

Export Stage 

  • Training need: low to moderate 
  • Content: interpersonal skills, culture, customer values, business behavior 
  • HCNs: train to understand parentcountry products and policies 

Multidomestic Stage 

Training need: moderate to high 
  • Content: interpersonal skills, culture, technology transfer, business practices and laws 
  • HCNs: familiarize with production and service procedures 

Integrating Training with Global Orientation 

Multinational Stage 
  • Training need: high moderate to high 
  • Content: interpersonal skills, two-way technology transfer, corporate value transfer, strategy, stress management, culture, business practices 
  • HCNs: training in technical areas, products and services, corporate culture 

Global Stage 

  • Training need: high 
  • Content: global corporate operations, corporate culture transfer, customers, global competitors, strategy 
  • HCNs: training in proficiency in production and efficiency systems, corporate culture, business systems, global conduct policies 

Training HNCs 

  • Facilitates indigenization 
  • Links successful corporate culture and local culture 
  • Facilitates e-business adoption 

To consider about selection of managers 

The choices of senior managers are made through the cultural lenses that they were socialised into (education, training, experiences of work, etc). 
In turn, those choices and norms are then reflected in institutions which they create, modify, and perpetuate certain norms within society. 
There is a relationship between individual choices and institutional norms. Both are shaped and mediated by culture. 

Some Key Issues 一些關鍵問題

  • Expatriates: cross-country transfer employees 
  • local country issues 
  • legal: hiring/firing 
  • quotas: explicit/implicit, politically sensitive 
  • ethnic or racial backgrounds 
  • interpersonal differences 
  • ethnic, tribal, linguistic, religious 
  • gender issues 
  • styles: management, decision making, negotiating 

Expatriates/Inpatriates 

  • Expatriates: managers serving in market away from their "home" 
  • Inpatriates: 
  • managers serving away from their "home" viewed from the "host" point of view 
  • HQ focus and short-term rather than long-term assignments 
  • High failure rate; high cost 
  • High value to MNC; high value to manager's career 
  • Expatriation develops understanding of different cultural and strategic perspectives 
  • global vs local strategy view 
  • cross-cultural understanding 
  • global corporate culture 

Globally Minded Managers... 

  • Conditions for success 
  • high-potential individuals 
  • careful selection 
  • training 
  • career management, repatriation issues 
  • family fit 
  • Selection 
  • proven high potential/performance 
  • at "home"? at internationally focused job? 
  • ability to work with foreign employees (often ignored...) 
  • technical expertise/knowledge (most often considered...) 
  • adaptability 
  • personal and family 
  • gender 

Acculturative Stress (culture shock) 

 
First
year
 
Pre-
Departure
3 4 5 6 7 8 9 10 11 12
Dec. 

Symptoms 

  • homesickness 
  • boredom 
  • withdrawal (reading is an obsession, focus on home nationals, avoid host nationals) 
  • excessive sleep need, compulsive eating and drinking 
  • irritability 
  • exaggerated cleanliness 
  • marital stress, family tension, conflict 
  • stereotyping host nationals 
  • hostility towards host nationals 
  • loss of ability to work effectively 
  • fits of weeping 
  • psychosomatic illnesses 

What to do??? 

  • stay home... or 
  • prepare!! 
  • study the culture 
  • become familiar with patterns of communication 
  • cultural self-awareness 

Culture Shock! 篮 

  • Disorientation upon entering new cultural environment 
  • Normal use of own cultural filter fails 
  • interpretation of perceptions 
  • communication of intentions 
  • All experience culture shock... experience and training can shorten its length 
  • Responses 
  • Gone native (assimilation): accepts the new... rejects own 
  • Participator (integration): adapts to the new ... but retains own 
  • Tourist (separation): avoids the new... 
  • Outcast (marginalization): won't/can't adapt... rejects own... 

Phases 

  • honeymoon 
  • euphoria, unrealistically positive attitudes towards host country, stay in hotel shields from mundane difficulties, house hunting/school hunting exciting, sightseeing!! 
  • irritation and hostility (the crisis stage) 
  • problems adjusting at work, local clocks don't fit yours, difficulties getting the routine daily tasks done (always taking "tests" to meet the daily needs), everything stinks, some never recover 
  • gradual adjustment 
  • can manage, cope with situation now 
  • adjustment 
  • ability to function in both cultures, acceptance of local customs and values for what they are (not going native), possible to get by, positive and growth gaining experience 

Four Orientations to Adjustment 

Berry, J. W. (1997). Immigration, acculturation, and adaptation. Appl. Psychol. 46, 5-34. doi: 10.1111/j.1464-0597.1997.tb01087.x 
Host Culture 
Right 

What to do? 

  • tolerate ambiguity; react to new and unexpected situations without irritation 
  • display empathy; be able to put yourself in others' shoes 
  • personalize observations; recognize that your truth is not everybody's truth... 
  • show respect; this does not mean "go native" but it does mean knowing why the locals do what they do 
  • be non judgmental; what is "appropriate" or not is different across cultures, your wish to "get things done quickly" may be resisted for example 
  • be resourceful; do your best with limited resources to cope with new situations 
  • keep you sense of humor; don't take yourself too seriously. 

What else to do? 

  • Avoid home country ghettos 
  • Be adventurous 
  • Involve the whole family 
  • Manage stress 
  • Stay healthy 
  • Be realistic 
  • Let go of home 
  • Realize there are no absolutes 
  • Have self-confidence and confidence in locals. Mistakes you will make. 
Your good-will shall come across in the long run. 

How People Change during an assignment abroad 

  • Positive changes in themselves 
  • Changed attitudes 
  • Improved work skills 
  • Increased knowledge 
  • Closer family relationships 

Re-Entry (returning home from a foreign assignment 

  • problem finding new niche in corporate structure: responsibility span diminished, old colleagues/allies gone, career options unclear 
  • while coping with culture shock abroad expatriate may over-idealize the attributes of home culture; on return great disappointment 
  • changed executive may never fit the old culture again 
  • standard of living may actually go down on return 
  • anger at how unaware of world friends, colleagues and neighbors are... and how uninterested they are in trying to learn 
  • total lack of psychological support for the returnee; he/she is expected to fit back home!! 
  • no interest on part of home colleagues and friends to learn from returnee's experiences 

Return to the home country 

Making meaning of the experience 

Step over the portal... 

The Return: The Challenge of Readjustment 

  • High degree of uncertainty 
  • Lack of interest in one's experience 
  • Idealization of home and false expectations 
  • Test: really changed abroad? 
  • Missing life abroad 
  • Loss of prestige, autonomy, being special 

The Return - The Reward of Readjustment 

Master of two worlds 

  • Freedom to pass back and forth across the world's divisions 
  • Biculturalism and use of skills/ attitudes learned abroad 
  • More well-rounded 
  • Ability to adapt to change 
  • International network of contacts 
  • Ability to perceive paradox 
  • Broader world perspective 

If so problematic, why using expatriates? 

  • Control (historically) 
  • Learning/knowledge transfer 
  • Global integration 
  • Management development; careers 
  • Fill skills gap (technical > managerial) 

Relocation problems: 

  • Results 
  • "Failure" rate: estimates of  
  • But Brookfield data shows of respondents 
  • Reasons for failure* 
  1. Partner dissatisfaction 
  2. Family concerns 
  3. Inability to adapt back 
  4. Job not meeting expectations 
  • Source: Global Relocation Trends, 2005 and 2008 Survey Reports, GMAC and 2012 Survey 

To minimize attrition 

  1. Use existing international experience 
  2. Greater choice of position 
  3. Greater recognition 
  4. Repatriation career support 
20 years ago Now* 
 
Expat assignment
duration
years 
 
Diverse: Long-term (1-5
years), Short-term (< 1 year),
Permanent, Commuter,
Extended business traveler (30-
180 days)
Focus  People management  Projects 
Accompanied by  Trailing spouse  Dual career partner 
Viewpoint  Interesting; $  Career development 
Success  Survival  Performance criteria 
On return  Stay in company  Leave 
Cross-cultural training  None 
 
Approx. 37% (for all
assignments); 24% mandatory

Characteristics for expat selection 

  • Professional skills? 
  • Technical expertise, past performance, company knowledge 
  • Personal characteristics? 
  • Trustworthy, reputation, demonstrated interest, gender, flexibility 
  • Family situation? 
  • Spouse's support, dual career issues, children, elderly parents 

Research on expatriate selection 

  • Historically decisions not made in an organized and coherent manner 
  • Confidence 
  • Similarity to decision-maker 
  • Available and interested 
  • However, it seems to be improving somewhat 

Expat Selection based on Crosscultural Adaptation and Effectiveness 

  • Effectiveness is the ability to live and work effectively in the cross-cultural setting of an assignment 
  • satisfaction effectiveness 
  • previous experience effectiveness 
  • previous experience increased satisfaction, ease of adjustment, less stress 
  • Effectiveness (PAIS) 
  • PAIS Professional expertise + Adaptation + Intercultural interaction + Situational readiness 

Trend: Women expatriates 

Year  1994 2005 2007 2012
 
of expatriate
population
Historical average is  
Sources: Global Relocation Trends, 2005 and 2008 Survey Reports, GMAC and 2012 Survey Report Brookfield Global Relocation services 

Women in International Business: 

Two Views* 
  • Employer's View 
  • Woman 
  • potential customer problems 
  • potential office problems 
  • potential spouse problems 
  • Customer's View 
  • Professional 
  • experienced 
  • qualified 
  • corporate sponsored 
  • decision-maker 
  • gender not relevant 
-Adapted from a presentation, “Women in International Business" by Gail Ellement, Ivey Business School, Canada. 

Lessons Learned 

  • The problem is more with men in the home country than men in the foreign country. 
  • Possible tendency to protect women from imaginary difficulties and foreign men. 
  • Being foreign is more noticeable than being female. 
  • A foreign woman is not expected to act like a local woman. 
  • Relationships are critical and women tend to be relationship oriented. They: 
  • tend to approach negotiations with a win-win orientation 
  • tend to be good listeners and are empathetic 
  • tend to be participative 

Suggestions for male colleagues to work with female managers 

  • Senior executives 
  • Don't make decisions based on stereotypes 
  • Peers 
  • Clarify relationships 
  • Include women in conversations and diversify topics of conversations 
  • Diversify social activities 
  • Subordinates 
  • Introductions and relationships 
  • Re-direct questions as appropriate 

Recommendations 

  • Send the best person for the job 
  • If a woman is sent on an international assignment she should 
  • be at a senior level 
  • have significant decision-making responsibility 
  • Prepare women well for the difficult assignments 

Case/ Example discussions 

Case 1: 

Long-term US expat in Korea behaves more Korean than US-like 

Case 2: 

Role of women in leadership positions in Japan 

MAN6038 The Global Manager Session 6 SUMMARY 

Role of expatriates 
Adaptation to the unfamiliar cultural work environment 
Factors that influence effectiveness 
Women expats 


and
Wrap-Up WEEK 2 (Session 4 -6) 

What you should do in the next days before we continue with session 7: 

1.) Read the chapters 4-6 in the assigned textbook! Some topics link to chapters 1-3. 
2.) Identify some major theories/concepts to manage value-based considerations (summarize each to 1-2 sentences and write down the full HARVARD reference)! 
3.)Find (in the internet) a global company about which is something written about any value creation problem or how they manage value creation globally well. Apply some theory (not all) to explain the case incident/s. 
4.) Reflect on your own global management skills: are you already fit to design and implement global strategies to create best value,? Do you meet already the selection criteria? Can you acculturate? If not, what would you do to improve the skill level? 

MAN6038
The Global Manager
Session 7
Leading innovation and change through value-based considerations 

Revision 

-What are the key take aways from the previous session? 
  • How does the content of the previous session relate to the assignment and global mindset development? 
  • Any relevant examples to share? 
  • Any clarifying questions? 

Once again: The Assignment Brief 

Assignment indicative structure: 

  • Introduction. Clearly outline the structure of the work (approx. 100 words) 
  • Part 1. A literature review about key traits of a global manager and the importance of a global mindset in today's rapidly changing global environments (approx. 700 words) 
  • Part 2. A literature review about cultural, ethical and value-based considerations (approx. 700 words) 
  • Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations (approx. 700 words) 
  • Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words) 
  • Conclusion. Clearly summarise your work (approx. 100 words) 
  • List of references (not included in the word count). In-text citations and the list of references should follow BCU Harvard Referencing style. A minimum of academic references are required. 
"Part 2. A literature review about cultural, ethical and value-based considerations (approx. 700 words) 
Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations (approx. 700 words) Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words)"The following sections are all full of valuable in-sights 
and concepts that you can use for your assignment 
and when choosing a relevant case. 
The following sections are all full of valuable in-sights and concepts that you can use for your assignment and when choosing a relevant case.
以下各節都包含大量有價值的觀點和概念,您可以在作業和選擇相關案例時加以利用。

Leading Innovation & Change and value considerations
引領創新與變革以及價值考量

  • Value considerations 價值考慮
  • is defined as the degree to which an innovation is perceived as better than the idea or product that it supersedes (Wang et al, 2018) 
  • Strategic change 
  • strategically-aligned alterations in systems and patterns of employee behavior 

Strategic Alignment 

Strategic Change and Renewal 

Three Faces of Change* 

Turnaround  targets 
 
Assets
e.g. Physical assets
Human assets
 
Techniques /
tools
targets 
 
Process
e.g. Balanced scorecard
Six Sigma
MBO
Transformation  targets 
 
Behaviors
May target all 3 in crisis
change
*Adapted from Spector, Bert Implementing Organizational Change: Theory Into Practice, 3rd Edition, 

trans . for . ma . tion, n. 

an intervention designed to motivate employees to alter their patterns of behavior to meet the shifting needs of the external environment 

Why Change Behaviors? 

Three components in strategy 
  • Who is our target market? 
  • What is our product/service? 
  • How do we develop/deliver our product or service? Changes in how may be driven by changes in who and/or what or may be independent 
When the how changes, behaviors often will need to change 
  • New roles 
  • New skills (technical & interpersonal) 
  • New responsibilities & relationships 
Key questions: can employees change (knowledge, skills) and will they change (motivation)? 

Ultimately, all change is behavioral 

Understanding Change 

  • Change means behavioral change. 
  • Behavior = f(beliefs/assumptions, perceptions, roles and responsibilities). 
  • Change often brings discomfort and resistance. 
  • People need to understand 
  • Cost of the status quo vs. payoffs of the new way 
  • You need to work with 
  • People (individuals and groups) 
  • Structures, systems and practices 

Appraising the Readiness for Change 

Adopting the New Behavior 

Training or selection  
  • Building Support 
Communication/education 
Negotiation 
Force 
  • Gaining commitment 
Involvement in determining the problem/solution 
Feedback on change process 

Reinforcing the Change 

Change Management: Global Implications 

Change local ways into the home country ways? Do in Rome as the Romans do only? 
Understanding what motivates the people to do the change? 
Trust in outcomes? 
Influencing factors? 
Best practices? 

Understanding Change 

Understanding Change 

  • Change means behavioral change. 
  • Behavior (beliefs/assumptions, perceptions, roles). 
  • Change usually brings discomfort and, often, resistance. 
  • Effective communication is essential. 
  • "Telling" is not communication or execution. 
  • People "see" and understand the same situation differently. 
  • Understand what other people "see". 
  • They need to understand what you "see". 
  • Create a shared frame of reference. 
  • Your way? Their way? Or a New way? 

Understanding Change 

  • They need to understand 
  • Cost of the status quo vs. payoffs of the new way 
  • You need to work with 
  • People (individuals and groups) 
  • Structures, systems and practices 
  • You need a way of thinking about the process - a framework 
Basic models of managing change stemming from 
value-based considerations 

Implement change carefully don't leave success to chance! 

  • Change does not just "happen"; it must be managed 
  • The content of change (the "what") often receives a lot more attention than the planning and management of the change process (the "how") 
This is a mistake! 
  • The "how" can have an enormous impact on the outcome - as shown in the simulation 
  • Successful change requires good content as well as a good change process 

How motivated are people to change? 

MC , where 

MC Motivation to Change 
Vision of desired state 
Process that removes obstacles that block access to desired state 
D = Dissatisfaction with current state 
What if you don't have all three of Vision, Process, and Dissatisfaction? 
  • without is the bottom of the inbox 
  • without is a fast start that fizzles 
  • D without is anxiety and frustration 
Adapted from Harvard Business School 

What is the context of the change?  

Reactive Change 


+ easy to get buy-in,  
align people  
- few options, can't  
build capabilities 
}

How do we approach different stakeholders? 

Adapted from Gilbert & Buechel Capability to Make the Change 

Don't forget the S-curve dynamics! 

Adapted from Prof. John Weeks, IMD 
Time 

Sources of Organizational Resistance to Change 

Lewin's Three-Step Change Model 

Unfreezing Movement Refreezing 

Lewin's Three-Step Change Model 

Unfreezing 
Change efforts to overcome the pressures of both individual resistance and group conformity. 
Refreezing 
Stabilizing a change intervention by balancing driving and restraining forces. 
Driving Forces 
Forces that direct behavior away from the status quo. 
Restraining Forces 
Forces that hinder movement from the existing equilibrium. 

Kotter's 8-Step Model 

  • Kotter's eight-step model is one of the best known: 
  1. Establish the need for urgency 
  2. Ensure there is a powerful change group to guide the change 
  3. Develop a vision 
  4. Communicate the vision 
  5. Empower the staff 
  6. Ensure there are short-term wins 
  7. Consolidate gains 
  8. Embed the change in the culture 
Dimension  Promoting innovation  Inhibiting innovation 
Challenge 
 
people experience challenge, joy and
meaning in work and invest high energy
 
people are alienated, indifferent,
unchallenged, and are apathetic
Freedom 
 
people make contacts, give and receive
information freely, discuss problems, make
decisions, take initiative
 
people are passive, rule-bound,
anxious to remain within their
well-established boundaries
Idea support 
 
people listen to each others; ideas and
suggestions are received in a supportive
way by bosses and colleagues
 
suggestions are quickly rejected with
counter-arguments; usual response
is to find faults and obstacles
 
Trust and
openness
 
high trust climate; ideas can be expressed
without fear of reprisal or ridicule;
communications are open
 
low trust climate; people are suspicious
of each other, afraid to make mistakes,
fear having their ideas stolen
 
Dynamism
and liveliness
 
new things happening all the time; new
ways of thinking and solving problems;
'full speed'
 
slow jog with no surprises; no new
projects or plans; everything as usual
 
Playfulness
and humour
 
relaxed atmosphere with jokes and
laughter; spontaneity
 
gravity and seriousness; stiff and
gloomy; jokes improper
Debates 
 
many voices are heard, expressing
different ideas and viewpoints
 
people follow an authoritarian pattern
without questioning
Conflicts 
 
conflict of ideas not personal; impulses
under control; people behave in a mature
manner; based on psychological insight
 
personal and emotional tensions; plots
and traps; gossip and slander; climate
of 'warfare'
Risk taking 
 
decisions and actions prompt and rapid;
concrete experimentation is preferred
to detailed analysis
 
cautious, hesitant mentality; work
'on the safe side'; 'sleep on the matter';
set up committees before deciding
Idea time 
 
opportunities to discuss and test fresh
ideas that are not part of planned work
activity; these chances are exploited
 
every minute booked and specified;
pressures mean that thinking outside
planned routines is difficult

Table 18.4 Dimensions of the creative organization climate 

Achieving change: Lessons from the models 

  1. Don't forget the how. 
  • Vision and dissatisfaction without a plan for a process will lead to anxiety and frustration. 
  1. Don't ignore the context. 
  • Is this anticipatory? Urgent? Crisis? How can you communicate that and use it? 
  1. Don't wait until everyone's on board. 
  • Start with a core of high motivation - high capability people and organizations. 
  1. Don't get discouraged. 
  • Change takes time and discipline. 

And now think: What are the issues for global managers and MNCs? 

  • Examples: 
  • Japanese family business considers consent of all key stakeholders, often family interest, private interests, sensitive to how it affects friends and long-term partners 
  • Daimler with focus on long-term success rather than quick profits with low quality 
  • Google, Apple, other? 
  • Remember: cultural differences, ie. trust, hierarchies, time orientation, face, ... - but it all depends (sub-cultures, personalities,...) 

MAN6038 The Global Manager
Session 7b ADD ON
Leading innovation and change through value-based considerations 

Examples for Value Considerations in GLOBAL CORPORATIONS
全球公司價值考量實例

  • Cost Savings 節約成本
  • Sales Revenue Increase 
  • Product Attributes (to deliver better Value for Users) 
  • Social Gains: Improving Situation for People/ Planet 
  • Context: 
Market Differentiation, Iong-term Serviceablility 
Organisational Learning 組織學習
  • Other? 

Issues about Global Value Creation 

  • Cost Savings through outsourcing to i.e. low cost manufacturers in less developed countries ethical considerations, cultural considerations, leadership considerations 
  • M&A, Joint Ventures with local firms cultural considerations, how to facilitate that the combination of both cultures results in better organizational learning or product improvement etc? 
  • Entering Foreign Markets how to understand the customers and the legal etc environment there? 
  • Sustainability by being "a good global citizen" how to contribute to CSR (Corporate Social Responsibility) activities that go beyond economic values (profit, revenue) and help Planet and People? 

Aperian Global Consulting states: 

"A well-designed human integration strategy is vital not only during mergers & acquisitions, but also in design and implementation of other large-scale global transformations and change initiatives, such as downsizing, outsourcing, digitization, global IT implementation, and the launch of a new product. An appropriately planned global change management process is also crucial for smaller-scale alterations such as departmental reorganizations, opening a new branch and IT integrations." 

Some websites that give some inspirations about these topics: 

BEWARE! THESE WEBSITES ARE COMMERCIAL CONSULTING COMPANY WEBSITES AND CANNOT BE USED AS REFERENCES! 
STILL, THEY ARE HELPFUL TO GET IDEAS ABOUT THE TOPICS AND TRIGGER ABOUT WHICH TOPICS TO SEARCH WHEN DESIGNING “VALUE BASED CONSIDERATIONS" FOR YOUR ASSIGNMENT!! 

Example 

  • Remember the DAIMLERCHRYSLER case: 
  • They wanted to create the largest automotive company in the world by combining the USA and EUROPE market strength of both partners into ONE global successful corporation. 
  • To achieve benefits from cross-cultural teams to improve product and market development it needs good cross-cultural team management 
  • However, cultural differences were not considered well and led to poor cooperation and finally to a separation of the partners. 

and
Assignment Instructions: 
Have you found literature, which, where? 
And have you found (one) case for your assignment? Any difficulties? 

MAN6038 The Global Manager 

Session 8 
Competing with integrity: personal integrity 

Revision 

-What are the key take aways from the previous session? 
  • How does the content of the previous session relate to the assignment and global mindset development? 
  • Any relevant examples to share? 
  • Any clarifying questions? 

Once again: The Assignment Brief 

Assignment indicative structure: 

  • Introduction. Clearly outline the structure of the work (approx. 100 words) 
  • Part 1. A literature review about key traits of a global manager and the importance of a global mindset in today's rapidly changing global environments (approx. 700 words) 
  • Part 2. A literature review about cultural, ethical and value-based considerations (approx. 700 words) 
  • Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations (approx. 700 words) 
  • Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words) 
  • Conclusion. Clearly summarise your work (approx. 100 words) 
  • List of references (not included in the word count). In-text citations and the list of references should follow BCU Harvard Referencing style. A minimum of academic references are required. 
"Part 2. A literature review about cultural, ethical and value-based considerations (approx. 700 words) 
Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations (approx. 700 words) Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words)"The following sections are all full of valuable in-sights 
and concepts that you can use for your assignment 
and when choosing a relevant case. 
The following sections are all full of valuable in-sights and concepts that you can use for your assignment and when choosing a relevant case. 

Global Mindset Framework Applied to Ethics 

Individual/Personal 
Self 
 
Clarify and understand my beliefs about
ethical behavior.
 
Clarify and understand my organization's
approach to corporate sustainability.
Other 
 
Clarify and understand other beliefs about
ethical behavior in the context of other
cultures and principal theories of moral
philosophy.
 
Clarify and understand other corporate
approaches to sustainability in the context of
other industries, other cultures and principal
codes of conduct.
Choice 
 
Belief in and commitment to a set of ethical
principles.
 
Belief in and commitment to an approach to
corporate sustainability.

Behavior Classification Framework 

Competing with Integrity 

  • Ethics: 
principles of conduct concerned with right/wrong or should's/should not's of human decisions 
  • Concerned with: 
duties, obligations between people, groups, organizations human consequences of decisions and actions, not solely profits, technology, or larger market share 

- Requires: 

extending consideration beyond one's own self-interest and 
behaving according to a better or higher standard of conduct 

Philosophy and the study of ethics 

  • The complicated and controversial nature of moral theory 
  • The role of rationality 
  • Knowledge, experience and intuition 
  • Philosophical analysis enables us to reflect critically on the hidden commitments in the things people say, so as to test out assumption, biases and preconceptions 

What are ethics? 

  • Metaethics vs applied ethics 
  • ethical vs moral decisions 
  • Ethics is 'the study of individual and collective moral awareness, judgement, character and conduct' [Petrick and Quin, 2000] 
  • the dominant ethical perspectives: 
deontological and consequentialist perspectives 
  • other approaches: 
virtues, justice, rights based, feminist 

Approaches to ethics: Deontology 

  • Emphasises duties, rights and principles 
  • Good or bad is evident in the act itself, irrespective of consequences 
  • Often take the form of lists of types of actions that be encouraged or refrained from 

Approaches to ethics: Libertarianism 

  • Centrality of individuals' rights to choose 
  • Role of government would be minimal 

Approaches to ethics: Consequentialism 

  • Utilitarianism 
  • Happiness of the greatest number 
  • The end justifies the means 
  • Economic utility 

Business Ethics 

  • Why the surge of interest? 
Private sector scandals 
Public sector and its ethos 
  • Nolan committee and the set of guiding principles 
  • Ethical issues and the management of people 

Ethics and HRM 

  • Deontological: notion of duty to fellow members of the community; respecting the moral agency of humans; treating employees not solely as a means to and end but an end in themselves. 
  • Consequentialist: net benefits accruing from employment practices; regular and continuing employment. 
  • Libertarian: employment as an important means by which an employer and a worker can freely exchange labour for reward. 

Ethics and its legitimacy in employment practice 

  • Greater ethical awareness is to be applauded if it results in more balanced consideration of the ethical dynamics involved in employment relationships 
  • Parker (1999:295) argues that a study of ethics can 'encourage us to challenge our deeply held beliefs, taken for granted assumptions and not merely wrap us in certainties that prevent us from thinking the absurd' 

Professional codes of conduct 

  • The promotion of ethical behaviour 
  • Standard setting 
  • Guidelines in difficult circumstances 
  • Establish rights and responsibilities 
  • Professional statement of principles 
  • Contractual 
  • Developmental 
  • Status enhancing 
  • Client expectations 

Codes of conduct 

  • Who draws them up? 
  • What function do they perform? 
  • What do they consist of? 
  • Who do they apply to? 
  • Are they necessary and do they make a difference? 

Private sector use of codes of conduct 

  • Employee conduct and the acceptance of gifts (100%) 
  • community and environmental interests (65%) 
  • Customer service and product quality (58%) 
  • shareholder return (39%) 
  • suppliers and contractors (23%) 
  • political interests (13%) 
  • innovation and technology (6%) 

Why ethical codes? 

  • Provide employees with guidelines 
  • socially responsible 
  • improve the public image 
  • improve management 
  • better corporate culture 
  • comply with government guidelines 
  • reduce white collar crime 

Critiques of ethical codes of conduct 

  • A false sense of security 
  • Can't cover all eventualities 
  • Vague and generalised 
  • Minimises responsibility 
  • Protect from public criticism 
  • Interests of the weakest stakeholders may be marginalised 
  • ineffective in dealing with systemic corruption 
  • self-regulation may not be in the interests of clients, customers and citizens 
  • assumed homogeneity of the organisation 

ETHICAL MANAGEMENT IS FIRMLY ON THE AGENDA 

  • The impact on managers of managing in an increasingly complex and ambiguous environment 
  • The increasing demands for managers to take more responsibility 
  • Reconciling individual values with organisational values 
  • The nature of CSR 
  • The changing organisational context and the resulting pressure on staff 
  • The motivation of those working in organisations 
  • The ascription of responsibility to managers 
  • The pressures that are brought to bear on managers 

SISSION'S MODEL OF RHETORIC AND REALITY IN HRM  

Rhetoric Customer first Total quality management Lean production Flexibility Core and periphery Devolution/delayering Downsizing/right-sizing 

Reality 
Market forces supreme 
Doing more with less 
Mean production 
Management 'can do' what it wants 
Reducing the organisation's commitment 
Reducing the number of middle managers 
Redundancy 

SISSION'S MODEL OF RHETORIC AND REALITY IN HRM (Cont'd)

New working patterns
Empowerment
Training and Development
Employability
Recognising contribution of individual
Teamworking
Part-time instead of full-time jobs
Making someone else take the risk and responsibility
Manipulation
No employment security
Undermining the trade union and collective bargaining
Reducing the individual's discretion

Business Ethics Objectives

  • Create an awareness of the ethical components of the decision
  • Legitimize the consideration of ethical issues in the decision process
  • Analyze the ethical components with some framework
  • Apply technique of ethical analysis to decision situations

Competing with Integrity

  • Integrity and ethical behavior
  • the imperative to act with integrity does not insist on moral perfection, but demands taking ethics seriously
  • "Integrity is consistency among what you believe in your heart; think in your head; what you say with your mouth; and what you do your behavior and actions."
  • Professor Glen Rowe from the Ivey Business School

Competing with Integrity

- Ethical frameworks

Person X: "If we don't pay what he is asking we will lose the contract and people back home will lose jobs. Is that ethical when people can't feed their families?" (utilitarianism)
Person Y: "I don't care. What you are suggesting is absolutely wrong." (categorical imperative)
Person Z: "Now hold on, it doesn't seem to be against the rules there. It is different in that culture. Everyone is doing it. They need the extra money to support their families. Besides, we should not impose our system of morality on other cultures." (cultural relativism)

- Process of intellectual and ethical development

  • dualism
  • relativism
  • commitment in relativism

A Manager's Context

Many conflicting interests may impinge on manager's decisions!

Guidelines

  1. Who are stakeholders with interest in the decision?
-shareholders, home- host- government, customers, suppliers, employees, communities, unions
  1. What are the responsibilities to stakeholders? (organizational? personal?)
  2. What are ethical implications of a decision in addition to economic and legal?
  3. Do you have facts? best info? take time...

Further Guidelines!

  1. What are your assumptions? what is your ethical framework?
  2. Any options you have not considered?
  3. How should you act as an individual? (night sleep issue...)
  4. Don't accept responsibility for actions which are not your responsibility

More Guidelines!

  1. Do make decisions on issues which are your responsibility
  2. Be aware of and careful of dependency relationships you are entering...
  3. Don't hide behind the "culture" excuse...
  4. Do best for all stakeholders; meet obligations / contracts; act legally; don't harm; don't deceive

Even More Guidelines!

  1. Look after your own interests as well as the company's
  2. Use the "billboard" or "light-of-day" tests
  3. Remember: when in Rome do as the BETTER Romans do
  4. Be honest with yourself: are you a leader in the area of global social responsibility? are you doing the minimum to get along? Are you resisting?

Competing with Integrity

Figure 9.1 Corruption Perception Index, 2000
10 = "very clean", "highly corrupt"

World Corruption Index

Discuss:
What might be the dilemma for global managers?

MAN6038 The Global Manager

Session 9
Competing with integrity: corporate sustainability

Revision

-What are the key take aways from the previous session?
  • How does the content of the previous session relate to the assignment and global mindset development?
  • Any relevant examples to share?
  • Any clarifying questions?

Once again: The Assignment Brief

Assignment indicative structure:

  • Introduction. Clearly outline the structure of the work (approx. 100 words)
  • Part 1. A literature review about key traits of a global manager and the importance of a global mindset in today's rapidly changing global environments (approx. 700 words)
  • Part 2. A literature review about cultural, ethical and value-based considerations (approx. 700 words)
  • Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations (approx. 700 words)
  • Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words)
  • Conclusion. Clearly summarise your work (approx. 100 words)
  • List of references (not included in the word count). In-text citations and the list of references should follow BCU Harvard Referencing style. A minimum of academic references are required.
"Part 2. A literature review about cultural, ethical and value-based considerations (approx. 700 words)
Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations (approx. 700 words) Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words)"The following sections are all full of valuable in-sights
and concepts that you can use for your assignment
and when choosing a relevant case.
The following sections are all full of valuable in-sights and concepts that you can use for your assignment and when choosing a relevant case.

Global Sustainability

Global Sustainability - the ability to meet the needs of the present without compromising the ability of future generations to meet their needs around the world.
Table 17.1 Corporate Social Responsibilities for Multinational Enterprises (MNEs) Recommended by International Organizations

MNEs and Host Governments

  • Should not interfere in the internal political affairs of the host country (OECD, UN)
  • Should consult governmental authorities and national employers' and workers' organizations to ensure that their investments conform to the economic and social development policies of the host country (ICC, ILO OECD, UN
  • Should reinvest some profits in the host country (ICC)

MNEs and Laws, Regulations, and Politics

  • Should respect the right of every country to exercise control over its natural resources (UN)
  • Should refrain from improper or illegal involvement in loca politics (OECD
  • Should not pay bribes or render improper benefits to public servants (OECD, UN)

MNEs and Technology Transfer

  • Should develop and adapt technologies to the needs of host countries (ICC, ILO, OECD)
  • Should provide reasonable terms and conditions when granting licenses for industrial property rights (ICC, OECD)

MNEs and Environmental Protection

  • Should respect the host country laws and regulations concerning environmental protection (OECD, UN)
  • Should supply to host governments information concerning the environmental impact of MNE activities (ICC, UN)

MNEs and Consumer Protection

  • Should preserve the safety and health of consumers by disclosing appropriate information, labeling correctly, and advertising accurately (UN)

MNEs and Employment Practice

  • Should cooperate with host governments to create jobs in certain locations (ICC)
  • Should give advance notice of plant closures and mitigate the adverse effects (ICC, OECD
  • Should respect the rights for employees to engage i collective bargaining (ILO, OECD)

MNEs and Human Rights

  • Should respect human rights and fundamental freedoms in host countries (UN)
Sources: Based on (1) ICC: The International Chamber of Commerce Guidelines for International Investrnent (www.iccwbo.org); (2) ILO: The International Labor Office Tripartito De (1) The international Chamber of Commerce Guideines for international investment (www.iccwbo.org. (2) The international Labor Office Tripartite Declarations of Principles Concerning Multinational Enterprises and Social Policy (www.ilo.org); (3) OECD. The Organization for Economic tions (www.un.org).

Stakeholder Groups

Primary Stakeholder Group - constituent on which the firm relies for its continuous survival and prosperity.
Secondary Stakeholder Group - those who influence or affect, or are influenced or affected by, the firm but are not engaged in transactions with the firm and are not essential for its survival.
Triple Bottom Line - economic, social, and environmental performance that simultaneously satisfies the demands of all stakeholder groups.

A Stakeholder View of the Firm

Figure 17.1 A Stakeholder View of the Firm
Source: Adapted from T. Donaldson & L. Preston, 1995, The stakeholder theory of the corporation: Concepts, evidence, and implications (p. 69). Academy of Management Review, 20: 65-91.

Fundamental Debate

  • Free market advocates argue that if firms attempt to attain social goals, such as providing employment and social welfare, managers will lose their focus on profit maximization.
  • CSR advocates argue that a free market system that takes the pursuit of self-interest and profit as its guiding light may breed greed, excesses, and abuses.

Institutions, Resources, and Corporate Social Responsibility

Figure 17.3 Institutions, Resources, and Corporate Social Responsibility

Institution-Based View

Formal institutions governing
CSR in home/host countries
Informal norms, values, and culture
governing CSR

Corporate Social
Responsibility

Resource-Based View

Generic Strategies of Social Responsiveness

Carroll (1979) has identified four generic strategies of social responsiveness:
  • Reaction - the firm denies responsibility for social issues, e.g. by blaming others or by pointing to the responsibility of government.
  • Defence - the firm admits responsibility but tries to do the very least; e.g., the firm uses CSR superficially to improve PR without pursuing CSR seriously.
  • Accommodation - the firm accepts responsibility and does whatever is demanded by the key stakeholders.
  • Proaction - the firms seeks to exceed industry norms and anticipates future expectations by doing more than is expected.

The US Chemical Industry Responds to Environmental Pressures

Table 172
The US Chemical Industry Responds to Environmental Pressures
Phase Strategic response Representative statements from the industry's trade journal, Chemical Week
Reactive
Denied the severity of environmental problems and argued that these problems could
be solved independently through the industry's technological prowess.
"Congress seems determined to add one more regulation to the already 27 health
and safety regulations we must answer to. This will make the EPA [Environmental
Protection Agency] a chemical czar. No agency in a democracy should have that
authority" (1975).
1983-88 Accommodative
"The EPA has been criticized for going too slow. . Still, we think that it is doing a
good job" (1982). "Critics expect an overnight fix. The EPA deserves credit for its pace
and accomplishments" (1982).
1989-
present
"Green line equals bottom line-The Clean Air Act (CAA) equals efficiency. Everything
you hear about the 'costs' of complying with the CAA is probably wrong ... Wiser
competitors will rush to exploit the Green Revolution" (1990).
Sources: Extracted from text from A. Hoffman, 1999, Institutional evolution and change: Environmentalism and the US chemical industry, Academy of Management Journal, 42: 351-371. Hoffman's last phase ended in 1993. Its extension to the present is done by the present author.

Business Benefits of CSR

  • Key business benefits of CSR:
  • Brand value and reputation
  • Risk management
  • Human capital
  • Revenue
  • However, it is often difficult to assign a monetary value to CSR strategies and many business benefits from CSR are intangible.
  • Indeed, it is wrong to see CSR as a return on investment because there are always better alternative investment opportunities.

Key Areas:

  • Ethics
  • Motivations for corporate social responsibility (CSR)
  • Dimensions of CSR
  • Approaches to CSR

Ethics in international business

  • Ethics is an individual's personal beliefs about whether a decision, behaviour, or action is right and wrong.
  • Determined mainly by:
  • Person's belief system shaped by parenting, education and religion.
  • Society - social norms, national cultures and customs.
  • Business Ethics refers to how the company integrates values such as honest, integrity, respect and fairness into its policies, practices and decision-making.

Ethics in cross-cultural and international contexts

Defining corporate social responsibility

Corporate social responsibility (CSR) is:
  • An obligation, beyond that required by the law and economics, for a firm to pursue long term goals that are good for society.
  • The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as that of the local community and society at large.
  • About how a company manages its business process to produce an overall positive impact on society.

Possible motivations for engaging in CSR (see Graafland and Van de Ven, 2006)

  • Economic motives
  • Economic CSR implies that it is a strategic tool to enhance economic objective., increase profit and wealth creation.

- Moral (Ethical) motives

  • Ethical CSR implies that a firm has a moral duty towards society to behave responsibly.
  • The role of business is create value and improve societal and environmental health.

Prominent Areas of CSR

  • Companies are obligated to comply with local, national and international law with regards areas such as employment, environmental protection, corruption, human rights and product safety.
  • Philanthropy
  • Refers to the idea of giving back to society. Through philanthropic donations.

Corporate Philanthropy in Practice: Example

  • Johnson & Johnson, which made cash gifts and project contributions of to world causes in 2004 , regards India as one of the biggest emerging markets in the next 20 years.
  • One of its worthy projects is facilitating the administration of vitamin A and anti-parasitic tablets to 250,000 children in the country, in partnership with the Vitamin Angel Alliance.

Prominent Areas of CSR

  • Worker rights and welfare
  • Concerned with the prevention of worker exploitation such as forced labour, child labour and discrimination.

- Environmental Management

  • Avoiding damage to the natural environment - pollution, contamination and resource depletion.

Summary: The Triple Bottom Line - People, Planet, Profits

Although there may be some minor differences in the specific categories, dimensions or values that each of the three organizations use, it is clear that there is convergence around the idea that corporate sustainability encompasses continued, strong economic performance, a broad concept of social justice and a concern for environmental quality; and recognizes the interdependency between the three areas. John Elkington, founder of SustainAbility coined the concept and term, "triple bottom line," in his 1994 book, Cannibals wilh Forks. Susainability is about performance and progress on the "three pillars" of sustainability - people, planet and profits - and the triple bottom line is a way of measuring and reporting this performance.
TABL.E 9.3 GE's Areas of Sustainability Focus
Peopole Rlanat Econowy
Helping Our Gustomers
Succeed
- Partnerships on
Sustainahility
- Keeping Our Employees
Confident & Productive
- Health & Safety
- Soliciting Opinions
- Diversity
- Integrity & Privacy
- Labor Relations
- Building Enduring
Commurnities
- Volunterism
- Education
- Health
Creating Shareholder Value
- Water Scarcity
- Management
- Footprint
- Products
Energy Consumption
. Management.
- Footprint
- Products
Environment & Resource
Management
- Environment, Health
&c Safety Program
- Management
- Supply Chain
- Suppliciency Expectations
- Supplier Program
- Metrics
- Resource Optimization
- Public Policy
- Rule of Iaw
- Human Rights
- Conflict Minerals
- Political Activities
- Climate & Energy
- Healthcare
- Strengthening
Global Economy
- Countries of
Concern
Compliance
- Compliance
- Controllership
- Government
- Business
Sustainable Systems
Climate
- Transportation
- Responsible Lending
- Accessible
- Healthcare
-
- Creation

Violations of CSR Principles - Nike:- From Sinner to Saint

  • The sportswear manufacturer's business model depends heavily on outsourcing and critics were quick to complain about standards within the factories of its Third World suppliers.
  • Activists regard prominent organizations as fair game and not surprisingly set out to damage Nike's standing. Like any wounded animal, the company soon went on the defensive.
  • Nike's next goal was to create policies commonly agreed with suppliers and competitors.

Violation of CSR principles- Case of Coca Cola in India:

  • The high degree of public protests against the Coca Cola plant in Plachimada, Kerala, India got international attention and also led to government intervention for closure of the plant.
  • The plant at Plachimada was alleged to have exploited the ground water resources leading to drying up of wells and other natural water resources in the area.
  • However the protests from the local community have led to world wide reaction and has even led to open campaigns for boycott of products of Coca Cola. The government of Kerala also ordered the stopping of operations of the plant at Plachimada to safeguard the interests of the local community.
  • Coca Cola's behavior in its expanding Indian market has led to world wide apprehension with the international media and agencies showing support to the protests against the multinational.

Approaches to social responsibility

Approaches to social responsibility

- Obstructionist stance

  • Do as little as possible
  • Deny or avoid accepting responsibility for actions.

- Defence stance

  • Adhere to legal obligations only and nothing more.
  • Will generally admit to mistakes when they are identified and then take appropriate action.
  • E.g Nike

Approaches to social responsibility

  • Accommodative stance
  • Meets its legal and ethical requirements but will go beyond these requirements in selected cases.
  • Pro-active stance
  • Exceed the accommodative stance and indicates a sincere and potent commitment to the general social welfare of a country.
  • E.g. Body Shop, Ben and Jerry and Timberland

CSR: some criticisms?

  • CSR is anti-business
  • A threat to the effective functioning of capitalism and free markets, and hence to global prosperity.
  • Distraction to management - managing multiple stakeholders.
  • The scope of CSR is too narrow
  • Criticised for not addressing what are seen as important areas of corporate behaviour.
  • CSR fails to achieve its goals
  • Bennett and Burley (2005) point out that only 3% of MNEs report on social and environmental performance.

Ethic Conflicts

  • Can an organization be unethical or is it the people that would make it unethical?
  • Tobacco: Smoking can cause cancer!
  • Coffee: Buying for extremely low price.
  • Slave labor: Below minimum wage, 16h/d
  • Child labor: Two sides of the coin.
  • Tuna, shark fin, etc.: Animal protection

Discuss:

Should companies take advantage of people and environments in lower developed countries?
What about the saying "when in Rome do as the Romans do"?
Does a better understanding of cultural differences make better global managers and better global companies?


and
Wrap-Up WEEK 2 (Session 7 - 9)

What you should do in the next days before we start with the assignment:
1.) Read the chapters in the assigned textbook!
2.) Identify some major theories/concepts to manage ethical behaviours globally (summarize each to 1-2 sentences and write down the full HARVARD reference)! 3.)Find (in the internet) a global company about which is something written about any ethical problem or how they manage ethics globally well. Apply some theory (not all) to explain the case incident/s.
4.) Reflect on your own global mindset: What would you do to improve the skill level?

MAN6038
The Global Manager

Session 10
How to do the Self-Audit
Final Assignment Clarifications (Q&A)

MAN6038 The Global Manager

Skills Self-Audit and Developing as a Global Manager
One of this module's learning outcomes and the correspondent assignment task

marking band

Outstanding attempt made to undertake a self-audit to identify skills and competencies.
Based on audit findings, outstanding attempt to prepare a personal development plan suitable for operating in global business arena.
There is not only clear integration of literature but also the cross-referencing is evident to support the building up of the personal development plan.

Self-awareness

  • Self-awareness - "arguably the most fundamental issue in psychology, from both a developmental and an evolutionary perspective“ (Rochat, 2003)
  • Self-awareness theory (Duval & Wicklund, 1972) - when we focus our attention on ourselves, we evaluate and compare our current behaviour to our internal standards and values objective self-awareness

self-a・ware.ness

noun
conscious knowledge of one's own character, feelings, motives, and desires.

Self-assessment

  • In psychology - the process of looking at oneself in order to assess aspects that are important to one's identity
  • In business - a performance management tool where employees share which skills they believe they have developed and how much progress they believe they have made during a certain amount of time on the job, used to keep employees on track to meet goals, but also to grow, develop, and

ultimately reach their full potential

Self-assessment tools

  • BCU Career+ Online Tools-support you with understanding your own skills, strengths, experience, personality, preferences and potential career matches - click HERE to check online tools available.
  • Psychometric Tests - questionnaires used by employers as part of the recruitment process to identify your skills, knowledge, aptitudes and personality, usually during the preliminary screening stage or as part of an assessment centre. They are very common in graduate jobs, work placements and internships - click HERE for skills assessment and HERE for psychometric tests on UK Government National Careers Service website.

Know yourself

Self-assessment for The Global Manager assignment

Required Task:

Part 4. Using a self-audit, score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words)

Self-assessment for The Global Manager assignment

  • Choose 3 skills from the Global Mindset Model (Javidan & Bowen, 2013)

Alternatively

  • You may want to focus on one specific area and analyse it in depth
  • Carry out your self assessment - select the global mindset skills/ competencies/ traits that you feel are most relevant to you and your future career path. Specific test results (if you take any) can go into appendices.
  • We recommend to be displayed in a table as this will not add to the word count
  • We are more interested in the process of you being aware of your own global mindset skills. It is important that you are realistic and forward focussed. You need to demonstrate your self-awareness of how you can develop as an effective future global business professional/ Global Manager.
Self-assessment for The Global Manager assignment
Skill Knowledge Low High
E.g.
Interest in
getting to
know
people
from other
parts of
the world
How much do I know/ understand about this
trait?
How important is this? Can I evidence this?
How far do I demonstrate/ practice this?
Am I confident that I really understand what
this means and how it relates to a global
mindset?
How important is this to my future career as a
global manager/ business professional?
1 2 3 7 9 10
... 1 2 5 1 9 10
... 1 2 3 45 6 7 9 10
The Global Mindset Model (Javidan & Bowen, 2013)

GLOBAL MINDSET

The Global Mindset Model (Javidan & Bowen, 2013)

Social Capital (SC)

Developing your own Global Mindset

  • Requires active learning - engage problems where you must assess the situation, see options, make decisions, implement actions, and experience feedback
  • Requires mindfulness - pay close attention to your own reactions and to what is happening in the environment
  • Requires self-awareness - become aware of how your assumptions and frameworks shape perceptions, values and behaviour only as you confront different sets of assumptions guiding the views and

practices of others

PDP to develop your own Global Mindset for The Global Manager assignment

  • the process of creating a written documented action plan based on awareness, values, reflection, goal-setting and planning for personal development.
  • This should be a natural consequence of your self-assessment and can be as detailed as you like.
  • We recommend to be displayed in a table as this will not add to the word count.
  • Targets need to be SMART and the plan is expected to be used as a template for your future development.

PDP to develop your own Global Mindset for The Global Manager assignment

  • In your skills self-audit section you will identify the traits/ competencies you need to develop (table given)
  • In your PDP section you will show how you intend to do this (table given), for example:
  • To (actively) listen to what others have to say
  • To be more willing to collaborate (rather than trying to do everything yourself)
  • To learn to be comfortable in uncomfortable situations (taking opportunities to push yourself out of you comfort zone)

PDP to develop your own Global Mindset for The Global Manager assignment

  • Create SMART objectives - these may be short/ medium/ long term
  • Identify resources which may help your achieve this: can the learning centre help?
  • Workshops available? Internet? Student services? Careers+ service? Self-help reading/ self-discovery/ exposing yourself to new situations and people? Developing an interest in those who aren't similar to you/ making time to talk to people and get to know them?
  • Establish a realistic timeframe
PDP to develop your own Global Mindset for The Global Manager assignment
What is the
skill?
Why is it
important?
How can you
do it?
Specific
actions
Target end
date
Measure: How
will you know if
you have
achieved it?
E.g. Interest in
getting to
know people
from other
parts of the
world
...
PDP to develop your own Global Mindset for The Global Manager assignment

Summary

Concepts covered:
  • Self-awareness, self-assessment and Global Mindset skills self-audit
  • Personal Development Plan (PDP) to develop your own Global Mindset
Where you can use these concepts in your assignment:
  • Part 4 - skills self-audit and PDP (what are the global mindset skills needed in your future career, and how do you plan to develop them to succeed as a future global manager/ business professional?)
MAN6038 The Global
Manager
Final Assignment Guidelines

Assignment Brief

  • Assignment method:
An approximate -word portfolio weighting of the final mark.

- Deadline:

Class A: Saturday July 2024
Class B: Saturday July 2024

- Required task:

Using academic theories and a case study, evaluate and analyse key traits of a global manager from a global mindset perspective, include elements of cultural, ethical and value-based considerations, following which carry out a self-audit of your global mindset skills and a personal development plan.

Assignment Brief

Assignment indicative structure:

  • Introduction. Clearly outline the structure of the work (approx. 100 words).
  • Part 1. A literature review about key traits of a global manager and the importance of a global mindset in today's rapidly changing global environments (approx. 700 words).
  • Part 2. A literature review about cultural, ethical and value-based considerations (approx. 700 words).
  • Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations (approx. 700 words).
  • Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits (approx. 700 words).
  • Conclusion. Clearly summarise your work (approx. 100 words).
  • List of references (not included in the word count). In-text citations and the list of references should follow BCU Harvard Referencing style. A minimum of 10-15 academic references are required.

Part 1. A literature review about key traits of a global manager and the importance of a global mindset in today's rapidly changing global environments ( words)

  • Evaluate key traits, skills and competences of global managers from a theoretical perspective using frameworks and models studied throughout the module, as well as elements related to the importance of a global mindset in today's rapidly changing global environments. These have been covered in:
  • Lecture - Introduction to The Global Manager Module: Global companies; Globalisation and de-globalisation/ localisation; Global Mindset.
  • Lecture - Cultural Considerations in a Global Business Context: Cultural Intelligence (CQ).
  • Lecture - Traits of a Global Manager and The Global Mindset Model (Javidan & Bowen, 2013).
  • Lecture - Critical thinking and writing a critical literature review.

Part 1. A literature review about key traits of a global manager and the importance of a global mindset in today's rapidly changing global environments ( words)

  • You can use any theoretical model delivered in the lecture slides or from your wider reading. Use relevant references based on the materials given on the Moodle page or from your wider reading. Check also the additional resources section available on the Moodle page.
  • Try to be more critical then descriptive and explain the relevance of the theories analysed - how to do this has been covered in the Lecture.
  • Remember: Part 1 & 2 should reflect only theoretical concepts, whereas Part 3 should explain how your chosen business applies concepts into practice!

Part 2. A literature review about cultural, ethical and value-based considerations ( 700 words)

  • Evaluate cultural, ethical AND/ OR value-based considerations from a theoretical perspective using frameworks and models studied throughout the module. You can choose one, two or all the three areas, if you choose one single area then you will analyse it in depth. These have been covered in:
  • Lecture - Cultural Considerations in a Global Business Context: Cultural differences and various theoretical frameworks in assessing cultural differences (GLOBE, Hofstede, Kluckholn...)
  • Lecture - Ethical Considerations in A Global Context: Personal ethics - global managers behaviour and ethical integrity; Corporate ethics - corporate accountability, corporate responsibility, corporate sustainability.
  • Lecture - Value-Based Considerations in A Global Context: Value-Based Management Model (McKensey, 1990) - manage the organisation to create value; Values-Based Leadership Model (Kraemer, 2010) - manage the organisation aligned with the managers' and the company's core values.
  • Lecture - Critical thinking and writing a critical literature review.

Part 2. A literature review about cultural, ethical and value-based considerations ( 700 words)

  • You can use any theoretical model delivered in the lecture slides or from your wider reading. Use relevant references based on the materials given on the Moodle page or from your wider reading. Check also the additional resources section available on the Moodle page.
  • Try to be more critical then descriptive and explain the relevance of the theories analysed - how to do this has been covered in the Lecture.
  • Remember: Part 1 & 2 should reflect only theoretical concepts, whereas Part 3 should explain how your chosen business applies concepts into practice!
Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations ( words)
  • Chose a real global company, start by making a short introduction to the company, and then identify some specific issues related to cultural, ethical AND value-based considerations, in which the business has been successful or has failed:
  • For cultural-based considerations: you can analyse the company's issues related to cultural differences (Lectures), strategies and methods of expanding into global markets and developing a global presence (Lectures), managing global teams and networks (Lectures), and any other relevant topic discussed in this module.
  • For ethical-based considerations: you can analyse the company's issues related to their global managers behaviour and ethical integrity (personal ethics), or corporate accountability, corporate responsibility and corporate sustainability (corporate ethics) (Lecture).
  • For value-based considerations: you can analyse the company's issues related to value creation, as well as the managers' and the company's core values (Lecture).
Part 3. A case study about a business of your choice highlighting how the business has or has not benefited from elements related to cultural, ethical, and value-based considerations ( words)
  • Explain how the company managed those issues, whether and to which extent it is considered a success or a failure, and what you can learn from this from a global perspective.
  • You can use the model we followed during the seminars when analysed different examples of company case studies.
  • Remember: Part 1 & 2 should reflect only theoretical concepts, whereas Part 3 should explain how your chosen business applies concepts into practice!
Part 4. A self-audit, in which you score yourself on a scale of about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits ( 700 words)
  • Using the Global Mindset Model discussed this semester, identify 3 global mindset skills/ traits/ competences of a global manager that you consider relevant having in mind your future career plans. Alternatively, you can focus on one specific area and analyse it in depth.
  • Score yourself on a scale of to about these three traits, based on the table provided in the final Week Seminar (tables are not word counted).
  • Then draw a detailed personal development plan (PDP) about how and by when you intend to develop these same traits, based on the table provided (tables are not word counted).
Part 4. A self-audit, in which you score yourself on a scale of 1-10 about global mindset skills and competences, followed by a detailed personal development plan about how and by when you intend to develop these traits ( 700 words)
  • The Global Manager module it is about your FUTURE, about what you want to achieve from this point on, about how you plan to succeed in your career as a potential global manager or global business professional working in today's rapidly changing global context.
  • No evidence from the past is needed, no reflective models either, and your selfscore can be at the minimum, but you need to explain why and how you consider the respective global mindset traits relevant in your future career.
  • Remember: Part 4 of your assignment should reflect how you intend to develop as a future successful global manager with a cultivated global mindset, by showing self-awareness of the main skills needed in your future career, as well as an action plan to enhance these skills further!

File Submission

  • Make sure you fully respect the structure given in the assignment brief and in the previous slides, covering all 4 parts corresponding to the 4 learning outcomes of this module.
  • Throughout the text embed your references using BCU Harvard Referencing format available on the Moodle page, and don't forget to add a detailed List of References at the end of your assignment, again using BCU Harvard Referencing guidelines.
  • Remember this is a level 6 final year final semester undergraduate piece of work and the quality of the content is everything.
  • Before submitting, please proof read and check for spelling errors - this is important and first impressions count!
  • Please submit your file together with your BCU feedback and coversheet in Word, a copy of this is on Moodle next to the submission link.
Final Wrap-Up
  • Q&A

Good luck!

We hope you have enjoyed this module!
Good luck with your assignment submission as well as in your future careers!

  1. Egalitarian The ideal distance between a boss and a subordinate is low. The best boss is a facilitator among equals. Organizational structures are flat. Communication often skips hierarchical lines.
    Hierarchical The ideal distance between a boss and a subordinate is high. The best boss is a strong director who leads from the front. Status is important. Organizational structures are multi-layered and fixed. Communication follows set hierarchical lines.
  2. Good bridging leads automatically to good integrating; poor bridging prevents integrating.