Exam 2 - Corporate Culture - The Trompenaars model, Consumers and culture, advertisement, HR activities, The international manager

Question 1

Describe the incubator

Answer 1

Leaderless team
Low degree of centralization and formalization
Structure: loose and flexible
Person orientated and power of the individual.
Power of ideas - innovation
Do not use top-down communication
Low in both uncertainty avoidance and hierarchy
Achieved status
“we are in it together and achieve together”
Reward: gets joy in creating and celebrating discovery

Question 2

Describe the Guided Missile

Answer 2

Low degree of centralization and high degree of formalization
Task and project orientated “getting the job done”
Effectiveness
You have specialist, managers does not neccessary have all the knowledge
Pay for performance
Power of knowledge/expertise
Individualistic
Performance is the measurement of employees
Reward: high esteem among close peers
Managers focus on their own projects, making it difficult to communicate a wholistic view

Question 3

Describe the Family

Answer 3

High degree of centralization and low degree of formalization
Harmony is the guiding principle
Hierarchy, power of person, personal relationship, entrepreneurial, trust, empathy
High context: when knowing each other people share a lot, not only coworkers but friends.
Management style: fulfilling your obligations to colleagues
Employee characteristics: loyalty, diplomatic and a trusted insider
Reward: Personal recognition and special attention
Examples rather than instruction: diffuse - learning by seeing
Managers are seldom openly criticized, and information can degrade into mere propaganda
Problem: people cannot speak up

Question 4

Describe the Eiffel Tower

Answer 4

High degree of centralization and high formalization.
Role-orientated culture
Hierarchy: subordination to a boss or expert
Ascribed status
Power of position
Control is exercied through systems of rules, procedures, assigned rights and responsibility
Order and predictability in managing (high uncertainty avoidance)
Change is cumbersome and slow adopted - done by changeing rules
Reward: external incentives for exceeding standards
Traditionally top-down, but bottom-up and side-to-side can prove effective
Information is power - managers may keep it from the staff

Question 5

Trompenaars model and advertising

Universal vs. particular

Answer 5

Universal: our brand is THE solution
Particular: the brand as your friend - appeals to a specific need

Question 6

Trompenaars model and advertising

Ascribed or achieved

Answer 6

Chinese campaign: successful – a car company.
• The car is part of the setting
○ Ascribed culture – it fits in
•Achieved would be more with the object in centrum

Question 7

How can the same brand have different status in different cultures?

Answer 7

IKEA as example: The brand have a very different reputation in different cultures
○ Here in the Nordic it is cheap and easy to get
○ In Asian culture: it’s a sign of Sandinavian which is high status

Question 8

Trompenaars model and advertising

Communitarian vs. individualistic

Answer 8

Communitarian: more people doing things together in the advert. Share the joy and happiness with friends and family
Individualistic: Marlboro a single man on a horse back –> signal of a lone ranger. Indulge in the joy of self-expression

Question 9

Trompenaars model and advertising

Neutral or affective

Answer 9

Affective(emotions shown)

Is the tone, colors and the mood shown by emotions

Question 10

Trompenaars model and advertising

Diffuse/specific:

Answer 10

Diffuse: somebody you recognize – don’t have to be an expert in the things the brand is about. (David Beckham in a chocolate advertising)
• Korean(diffuse) logos tend to be more symbolic that US logos

Question 11

Trompenaars model and advertising

Short-term/long-term

Answer 11

One car: ”get it know” – short term. Individualistic.

Long: the car is not the focus

Question 12

Trompenaars model and advertising

Internal/external control

Answer 12

”Just do it”(Nike add) = internal. You can do what you want and the nature has no power over you
External: search for harmony

Question 13

Describe some general assumptions on culture in marketing and advertising

Answer 13

Consumers are more positively disposed towards local advertisements and find them more interesting and less irritating

Understanding the variations in what motivates people is important for positioning brands and for developing advertising appeals in different markets.

The same expressions may have different meanings in different cultures

Question 14

In which four different ways can global brands present themselves? (The four brand characteristics)

Answer 14

Friendly: used in high uncertainty avoidance and low power distance cultures (e.g. Austria and Switzerland)

Prestigious: in high power distance (E.g. Russia, France)

Trustworthy: In high uncertainty avoidance (e.g. Germany, Spain)

Innovative and different: Low power distance and low uncertainty avoidance (e.g. Sweden, Denmark)

Question 15

What is the global-local dilemma?

Answer 15

Whether to standardise advertising for efficiency reasons or to adapt to local habits and consumer motives to be effective

Question 16

How does Power distance influence advertising?

Answer 16

High PD: one’s social status must be clear so others can show proper respect. This is used in global brands advertising. Could be fashion items appealing to social status needs.
○ Emotions are subdued
○ People will acquire information more via implicit, interpersonal communication and base their buying decisions more on feelings and trust in the company (the same is the case in collectivistic)

Low:
○ People will actively acquire information via the media and friends to prepare for purchases.

Question 17

How does Individualism/collectivism influence advertising?

Answer 17

Individualistic cultures assume that their values are valid for the whole world and low-context communication with explicit verbal comm.
○ Get to the point fast - persuasion
○ People are more likely to buy products they haven’t tried before.
○ Categorise object according to rules and procedures.

Collectivistic: identity is based on the social system to which they belong. High-context: indirect communication style.
○ First build relationship and trust - creating trust
○ Emotions is subdued
○ More interested in concrete product features than in abstract brands because they are less used to conceptual thinking
○ Advertisement inducing positive feelings rather than providing information.
○ The use of celebrities in advertising is related to collectivism

Question 18

How does Masculinity/femininity influence advertising?

Answer 18

Role differentiation is important to consider in advertising.
Masculine: performance and achivement: status brands such as jewellery to show one’s success.
* Men do less household shopping, so the adverts should appeal to the women.

Question 19

How does Uncertainty avoidance influence advertising?

Answer 19

High: need for structure and rules and formality. Shown as search for truth and belief in experts. Less open to innovation - new products sould be advert in knowing settings.
○ Focus passive on health: more use of medication

Low: More active attitude towards health by focussing on fitness and sports

Question 20

How does Long-/ short- term orientation: influence advertising?

Answer 20

Short: personal steadiness and stability, and respect for tradition. Pursuit of happiness rather than peace of mind.

Long: investment in future - selling argument in this culture.

Question 21

Culture and HRM practices: Selection

Answer 21

Difficult to find a person that have the competences and fit the corporate culture.

Skills or who you know that is important in hiring
*Maybe it can be possible to make a more “Skill” culture in ”who you know” cultures, but who says that is the ideal?

Russia: the work attitude(honest, ambitious, team player) is more important than the qualifications.

The education systems in different cultures tells different things, therefore one cannot just look at the titles, when hiring from diverse cultures.

Some cultures neglect potential sources of Labour –> Japan women is well represented in university but not in corporate environment

In collectivistic countries nepotism is more natural (importance of relationship and interdependence) - word of mouth and kinship in developing markets.

Online recruitment: Favorised in masculine and individualistic cultures, less in high uncertainty avoidance and power distance.

Question 22

Culture and HRM practices Training

Answer 22

Teaching “know-how” always. Differ for what purpose.

• Generalist: Rotationssystem, create informal network, - Japanese
• Specialist: Recruiting those with previous expertise, learn by doing the specific job, - Chinese and German
• Relationship or task orientated
• Depends on in-house or external seminars

Management education

• Germans: Clear structure, objectives and schedules
• Britains: broad assignments, no timetables, no one correct answer.
• Asian: group training, but hard for them to sell their idea because disagreement can cause loosing face.
• European managers don’t see the point in business games and exercises
• Online training is in Russia not serious. It should be in school.

Individualistic: training towards personal development.

Question 23

Culture and HRM practices: Socialisation

Answer 23

Learn the “company ropes” Absorb the corporate culture. Formal by training or informal by observering and learning the corporate language.
The extent of them being clear is connected to high/low context.

It differs if organisations are making an effort to make a corporate culture and the “culture fit”.

Question 24

Culture and HRM practices: Performance appraisal

Answer 24

Individual vs. team effort evaluated?
Goal setting (MBO)?
Do people expect feedback? – from whom?
Will criticism be accepted?
Can the company reward individuals in a collective culture? – Have to be aware of this!
Direct feedback – will it lead to loosing face?
The primary objective of employee appraisal in Greek firms is promotion rather than career development

Favouritism influences performance appraisal - high in Greek firms.

Question 25

Culture and HRM practices: Compensation and rewards

Answer 25

Do people accept different saleries?
* Masculinity: people can work for themselves and wants to be rewarded

Pay linked to performance? - Yes in masculine cultures, and individualistic. Unthinkable in American culture to be paid according to the number of people in the family you need to provide.

Pay differential acceptable? - Yes in masculine cultures
Bonuses effective? - Not in France - do not want clear objectives.

Team vs. individual rewarded?
Fixed vs. variable salary? - Fixed in high uncertainty avoidance

Financial vs. non-financial rewards preferred?
* Swedes are likely to chose time off than extra money -> quality of life scoring highest on feminism
* In Japan: don’t offer time off. Working overtime is expected.
*

Question 26

Culture and HRM practices: Career Development, Downsizing and Layoffs

Answer 26

Who gets promoted?
* Achieved or ascribed?
* Different perspectives of what a manager is supposed to do
*America: “drive and ability” - pragmatic, individual and achieve.
*Germany: technical competencies and expertise
*Britain: interpersonal skills and communication.
What determines career success?
*France: The school, top managers can move in and out of different industries
What types of career paths are desirable?
Are people mobile?
At what stage are high potentials identified?
Who gets laid off and how?
* Not in Japan (traditional)
* Maybe people that deliver the least?

Promotion criteria:
UK: Bottom line delivery, More than one business area, Experience in another country
BOTH: functional experience, excellent performance record
CHINA: loyalty to party, good relationships, hard worker, good moral practice

Question 27

Which competencies is needed for an international manager? And how can they be developed? (Factors affecting expatriate succes)

Answer 27

Interpersonal skills
Linguistic skills: On short international assignments it is mostly a symbolic value –> shows an eagerness to communicate.

Motivation: “situational readiness” - support from family, and the family’s readiness. Not only money but cultural interest and new experiences.

Cultural intelligence: People that are outgoing in their home-culture are usually not the best in a new culture. Introvers are use to be awkward and silence.
* Cognitive skills, motivational drive, and ability to engage.

• Tolerance for uncertainty and ambiguity: Be open to new procedures and not knowing everything
• Flexibility
• Patience and respect: It will take time for people to know you, show respect for the differences
• Cultural empathy (cf. Ethnocentrism): Ethnocentrism: my culture is the best. Instead you need to want to understand the new culture

Strong sense of self: working with completely different people, you don’t need to change your values and you self.

Sense of humor: be able to laugh about our self, you are going to do something unintented

Developed through:Individual background, Diversified experience, 2D diversity
* 2D diversity: different aspect to see on a group – other differences/diversities than cultural.

Question 28

Culture shock: Explain “the three levels”

Answer 28

Marx’s culture shock pyramid:

Emotions: The u-curve Elation and optimism, then irritability, frustration, confusion, and then adjustment to new environment.

• Vary according to: motivations, degree of uncertainty, and cultural distance.
• The reverse culture shock can be even worse and less expected.

Thinking
*If work with well culture shock can lead to cross-cultural interactions and reinforce stereotypes.

Social skills and identity

• Do I feel like my culture? Americans are so outgoing = very different from Icelanders.
• From national to transnational. - International identity.

Question 29

How to avoid culture shock?

Answer 29

Maybe it is a similar culture as your own, you have been in.
Some people are not part of the culture – constant connected to their own culture back home, so you are only on the surface of the new culture
You were well prepared for the new culture. .

Interaction is important to succeed

Similarity or closeness of host culture to our own:
*Not necessary what you expect and it can still be different and difficult