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Title:

Using Cultural Differences

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Brazil. Yugoslavia. Individualism. Power Distance. HRM: Strategic Planning ... It is not all about culture other socio-economic factors are at play ... – PowerPoint PPT presentation

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Title: Using Cultural Differences


1
Using Cultural Differences
  • For Fun and Profit

2
Approaches to Managing Cultural Differences
  • Multi-domestic
  • Assumption diversity has no impact.
  • Each national unit is regarded as independent and
    autonomous with random rather than planned
    interaction between parts
  • International
  • Assumption diversity causes only problems.
    Homogeneity is desirable and is a source of
    efficiency.
  • Corporate (headquarters) culture dominates
  • Multi-national
  • Assumption diversity can either cause problems
    or lead to benefits.
  • Geographical differentiation is considered
    indispensable. Cultural interaction is
    encouraged but a balance is maintained between
    diversity and uniformity

3
Applications
  • Negotiations
  • Human resources management
  • Motivation
  • Leadership
  • Strategic Planning
  • Design of organizations
  • Marketing
  • Cultural Differences (Tastes)
  • Income Differences (Demographics)

4
General Conceptual Framework for Planning a
Negotiating Strategy
  • Enumerate and characterize the parties
  • Assess their interest and no-deal alternatives
  • Envision potential agreements and bargaining
    ranges
  • Craft processes for both creating value and
    claiming it
  • Pay attention to the sustainability of agreements
  • Develop a negotiating strategy (i.e. decide on a
    negotiating process)

5
Negotiation Process
  • Four stages
  • Non-task sounding or relationship building
  • Task-related exchange of information
  • Persuasion
  • Making concessions and reaching agreements
  • Context, duration and importance of each stage
    can differ significantly across cultures

6
Negotiation Behavior
  • Differences
  • Styles of persuasion (e.g. appeal to logic versus
    affective-intuitive style)
  • Conflict resolution preferences (e.g.
    confrontation versus balance and restraint,
    resolution through discussion of mutual interests
    versus referral to higher levels )
  • Initial bargaining positions (e.g. low versus
    high initial offers)
  • Concession patterns (e.g. viewing concessions as
    acceptable or viewing them as displaying weakness)

7
HRM Motivation Approaches
Awards for Mastery of Work-related Skills
US
Australia
Employee Relations
Canada
Italy
Germany
Austria
Japan
Individualism
India
Argentina
Brazil
Hong-Kong
Taiwan
Korea
Uncertainty Avoidance
8
HRM Leadership Styles
Legitimate Power Reward Power Referent Power
India
Yugoslavia
Brazil
Hong-Kong
Korea
Taiwan
Japan
Expert Power
Italy
Argentina
Power Distance
US
Canada
Germany
Australia
Austria
Individualism
Individualism
9
HRM Strategic Planning
  • High-impact Planning
  • Research
  • Rules
  • Analysis

US
Australia
Canada
Italy
Germany
Austria
Japan
Individualism/Collectivism
Flexible Planning Approaches Trust-based
Interactions
India
Argentina
Brazil
Hong-Kong
Taiwan
Korea
Uncertainty Avoidance
10
Design of Organizations
  • Structures
  • Authority sources
  • Delegation
  • Rules
  • Conflict resolution processes

11
Culture and Advertising 1 (Hoecklin)
12
Culture and Advertising 2 (Hoecklin)
13
Culture and Advertising 3 (Hoecklin)
14
Marketing Dealing with Socio-economic Differences
  • The developing world presents a great opportunity
    for corporate growth
  • The attitude toward developing countries must
    change and better understanding of their business
    environment much be acquired
  • It is not all about culture other
    socio-economic factors are at play

15
1980s Imperialist Mindset
  • New markets for old products
  • Squeezing out profits out of sunset
    technologies
  • Corporate center as the locus of innovation

16
Late 1990s Flip-side of the Coin
  • Competitive advantage is based on rethinking and
    reconfiguring business models based on direct
    experience in emerging markets.
  • New logic understand economic, social, and
    cultural constraints and transform them into
    opportunities (preferences, infrastructure)

17
Why A Different Mindset?
18
Key Questions
  • Understand the specific needs of the local market
    (different demographics)
  • Understand the state and the evolution of
    distribution networks
  • Choose an appropriate mix of global/local
    leadership
  • Decide if customized or consistent strategies are
    preferable
  • Learning from local partners, when possible
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