I.B. Flashcards
Module 1: Importance of IB
Lack of knowledge/sensitivity can cause failed negotiations and interactions
42% of international assignments fail
83% of firms experience international assignment failure
Convergence: as we interact across borders, practices shift to becoming more similar
Divergence: more aware of own culture when you see others and then you protect it
Culture is critically important to all IB activities ○ Cross-national negotiations ○ Sales interactions ○ Leading and motivating a workforce ○ HR
Your cultural lens reference point is called a self-reference criterion
Awareness (of your own culture), respect (appreciate differences), reconciliation (adapt/integrate)
Module 1: Are we becoming more culturally similar?
While firms are growing structurally more similar, the behavior of people within the firms is maintaining its cultural uniqueness
People are becoming more adaptable to different cultures but that does not change your own cultural identity.
Awareness makes you focus on your own practices which makes you enhance/maintain that trait.
Module 1: Parochialism
Definition: Viewing the world solely from own perspective (blind to cultural differences)
- Do not recognize different ways of living and working
- Do not believe cultural diversity can offer opportunities/consequences
The greater CQ, the less parochial you are to cultural differences
Canadian culture encourages parochialism by telling us to not place people into groups and only seeing people as individuals
Module 1: Ethnocentrism
Definition: The belief that your way is the best way
Believe cultural diversity has a negative impact on firms
They aim to minimize cultural diversity
You should make a conscious effort to recognize cultural diversity without judging
Your way IS the best way in your own cultural context.
Module 1: Stereotyping
Definition: A form of categorization that organizes our experience and guides our behavior towards various groups in society.
We are programmed to anticipate, categorize and stereotype or else we would be overwhelmed.
Your conscious mind is not a good multitasker (elephant rider) but the unconscious has much more power that can be tamed when identified (elephant)
Stereotyping are the hysterics that guide you through your life.
Do not apply scores or evaluations to individuals, only groups
Ex. avg. Canadian is more individualistic than most Malaysians, however, there are some Malaysians who will be more individualistic than some canadians.
Module 1: Convergence and Divergence, and the answer
- Truth to both arguments
- In a study of Japanese and Korean firms, it found that globalization was a source of convergence of org. structures
- Evidence also exists that suggests effects of culture are more evident at the individual level of personal behaviour
- Countries cultural values and practices continue to exert strong influence on behaviour of ppl within firms (divergence)
- So in a sense, individuals are maintaining or in some cases enhancing cultural distinctiveness
- Effects of culture on specific management functions are particularly noticeable when we attempt to impose our own values and systems on another society
- Vast majority of ppl in world understand and relate to others only in terms of their own culture
- We all view world through own cultural lens
- Self-reference criterion: unconscious reference point of one’s own cultural values
- As global economy continues to grow, clear cultural differences will influence international business and management practices in multiple ways
- Managers must understand they should never assume they can successfully their own on any other culture
- Should strive to identify differences that exist, which matter given circumstances and develop ways to address differences
Module 1: statement by IB managers
Understanding culture affects: ○ How we run business ○ Characteristics we look for ○ How we develop global talent ○ How we conduct meetings and manage employees
Module 1: Stereotypes are helpful when:
They describe a norm for a members of a group not individual behavior
They are consciously held
Accurate (otherwise harmful)
Descriptive not evaluative (aka recognize without judging)
A first best guess (only used when there is no other info)
Modifiable - if it is inaccurate let it go
Module 1: The CQ Wheel
CQ Drive
Drive: your interest and confidence to adapt to multicultural situations (out of your comfort zone)
Believe it can be fun, educational, and beneficial to be around other cultures
Module 1: The CQ Wheel
CQ Knowledge
Knowledge: Understanding how cultures are similar and different
Do’s and don’ts and understand the deeper values and ideas that distinguish cultures
Able to determine if something is affected by personality or by culture
Module 1: The CQ Wheel
CQ Strategy
Strategy: awareness and ability to plan for multicultural interaction
Check your assumptions for stereotypes when dealing with other cultures
Plan work in other cultures that accommodates their behavior/values
Module 1: The CQ Wheel
CQ Action
Action: ability to adapt when working across cultures
Act in a way that is not natural to you or against your own ways without changing yourself
Module 1: CQ Performance
Critical for global mobility for success and can be developed
Individuals with High CQ are better: Strategic decision makers, team leaders, networkers, innovators, negotiators
They report greater enjoyment and satisfaction with intercultural work and relationships
CQ is a stronger driver of success than: Gender, IQ, EQ (emotional intelligence)
Module 1: Cultural Layers:
Surface/outside (visible - dress, food, customs, architecture, gestures, etiquette)
Hidden / middle (values, religions, beliefs)
Invisible (the bases for values and beliefs)
Module 1: Culture (your software):
Shared by all members of a social group
Learned through interactions with the social environment
An organized system of values, attitudes, beliefs and behaviors
Shared mental programs that control a response to the environment
Race relates to hereditary, physical appearance, and genetic markers (your hardware)
Born without culture but with race
Module 1: Mental Programing Levels:
Even within the same sets of groups you will find many differences in individuals
Human Nature - universal, biological
Culture - specific groups, learned
Personality - specific to individuals, both inherited and learned
Module 1: National Culture
set of norms, values and beliefs that exist within the population of a nation
- Composed of many subcultures
Module 1: Environmental Variables and Management Functions
National Variable Drivers: politics, legal system, economic system
Sociocultural variable drivers: religion, language, education
↓ influences
Cultural Components: Norms, values ((general belief of what is right or wrong), beliefs
↓
Attitudes: individualism, time, materialism
↓
Work Behavior: individual and group (motivation, punctuality, commitment)
Module 1:
Cultures Circle of Influence:
Cultural drivers → values → attitudes → behaviours
Ex. Avg. Canadian values time as being precious and should not be wasted, they have a positive attitude towards punctuality and typically arrive on time.
Module 1: Hofstede’s Cultural Dimensions
attitudes most of the time not EVERYONE ALWAYS
Power distance: low (equal) vs. high (steep hierarchy, respect for authority)
CANADA - slightly low, MEXICO - high
Individualism (prioritize own needs/interests), Collectivism - prioritize group, primary loyalty
CANADA - high, MEXICO - low
Masculinity (more distinction, assertiveness, material rewards) vs. Femininity (less gender role distrunction cooperation, caring for weak)
CANADA - moderate, MEXICO - slightly more masc.
Uncertainty Avoidance: Low (resist rules, like ambiguity), High (want guidance/policies)
CANADA - 48 moderate, MEXICO - high
Long-term orientation: Short term (past and present, maintain traditions), Long term (future)
CANADA 36 - somewhat low (short term)
MEXICO - low
Indulgent (have fun, free gratification) vs. restrained (strict norms)
CANADA - 68 (somewhat high)
MEXICO - VERY HIGH
Module 1:
Trompenaars Dimensions:
Universalism: high importance on laws/rules vs. Particularism: rules change by circumstances
CANADA - Highly universalistic
MEXICO - moderately universalistic
Neutral: control emotions vs. Affective: express emotions
CANADA - Neutral
MEXICO - very low (highly emotional)
Specific: separate work and personal lives vs. Diffuse: overlap lives
CANADA - Highly specific
MEXICO - moderately specific
Achievement: respect is earned with accomplishments vs. Ascription (power, title, position)
CANADA - Highly achievement oriented
MEXICO - highly achievement oriented (slightly more than Canada)
Sequential (punctuality, plans) vs. Synchronous (past/present/future interwoven, flexible)
CANADA - Highly sequential
MEXICO - highly synchronous
Internal direction: you control environment to achieve goals vs. Outer: envir. controls you
CANADA - Highly internal
MEXICO - moderately high outer
Being (quality of life) vs. Doing (keeping busy, meeting goals)
CANADA - high (doing), MEXICO - low (being)
Cooperative vs. Competitive
CANADA -moderately competitive, MEXICO - moderately cooperative
Relationship (foster conversations, feelings, goodwill) vs. Task (get down to business)
CANADA -very high task, MEXICO - very relationship
Low Context (VERBAL/words) vs. High (body language) CANADA -very low, MEXICO - very high
Direct (straight shooter) vs. Indirect (subtle hints, general statements, don’t want to look rude)
CANADA -very low, MEXICO - very high
Informal (convo with first names, chill) vs. Formal (titles, ranks)
CANADA - low, MEXICO - high
Module 1: clusters
Nations that have similar value orientations and history/religion/economic/etc.
Arab - Kuwait, morroca, UAE
Near East - turkey and Greece
Far East - (India, Malaysia, Philippines), and (Pakistan, Iran, Indonesia, Thailand)
Confucian Asia - (mainland china, Hong Kong, Singapore Taiwan) and (Japan) and South Korea)
Latin America - (argentina, bolivia), and (brazil, Costa Rica, Gautamala) and (Columbia, ecuador, mexioc, Venezuela) and (chile, El Salvador, peru, Uruguay)
Africa - Nigeria and South Africa
Latin Europe - Belgium, France, Italy, Portugal, Spain, Switzerland (French-speaking) and Isreal
Nordic - Iceland, Norward, Swedan and Denmark, Finland, The Netherlands
Germanic - Austria and Germany, Switzerland
Eastern Europe - Cyprus, Belarus, Bulgaria, Georgia, Russia, Romainia, Ukraine and Hungary, Poland, Slovenia, Slovakia, and Czech Republic, Estonia
Angio - Australia, Canda, Ireland, New zeealen, South Africa, USA, UK
Module 1: Language Translation
Over 6900 languages in the world (+ dialects) - translation is so important.
Many errors go unnoticed to the communicator and can have severe impacts on relationships, contracts, etc.
Module 1: Key Criteria For Translators
Loyalty:
Paid by your firm: counterparts (ex. Business partner) paying for the services enhances the likelihood of information leakage to them
Is an in-house employee: enhances dedication to the company and your task in addition to greater understanding
Competence
- Professionally trained: had completed a certification as there is more than just being fluent
- Technically experienced: understands the jargon and practices of the profession of those whom they are working for
Module 1: Webinar: Interpret/translator assistance
- Brief them in advance: complicated material should be studied beforehand to note potential translation challenges.
- Provide written material as far before the meeting as possible - Provide additional breaks: it is very tiring, alertness requires more rest
- Provide double the number of breaks as normal - Write difficult to interpret info: clarity is critical - small errors (numbers, dates, times) can be very costly
- Write the information in an explicit and complete format - Use extra care when joking - may be offensive across cultures / not translate well
Keep your sense of humor but avoid sensitive topics (ex. Politics, religion) - Do not talk excessively: overwhelms interpreter and undermines your ability to build a relationship with your counterpart
- Have the interpreter stand behind you and speak directly to your counterpart - Check quality of their work: even the best translation will not always be perfect
- Use back-translation to check quality
Module 1: Back-Translation
- Translator A independently translates a document
- Translator B independently translates the new version back into original language
- Compare original and back-translated to note differences and agree on wording
Module 1: (reading) Communicated across cultures
Low/High Context,
direct/indirect,
informal/formal,
task/relationship
Module 1: Peach vs. Coconut
Peach: friendly with strangers - smile, use names, share info, but hard to dive deep (pit)
Lead people to believe they want to be friends, which is disappointing
Can be offensive if too personal
Coconut: guarded with strangers, ask less questions or share, less smiling (hard exterior but long lasting relationships)
Can come across as rude/cold
Lecture 4: U-Curve of Cross Cultural Adjustment:
HONEYMOON (First 3 months):
Enthusiasm and fascination abroad; friendly but superficial contact with locals.
CULTURE SHOCK (4-6 Months)
- Frustration and fear from language, values and behavioral differences; ending contract is sought
- Culture Shock term implies something immediate and sudden, but it is not.
ADJUSTMENT (after 6 months)
Improvement of language skills, dealing with environment, attitude towards local culture
MASTERY (varies)
Acceptance of local culture and customs
Module 1: Global Managers
Often experience the greatest culture shock because they immerse themselves in the local culture but they effectively manage it.
Module 1: Reading: Successfully Managing Multicultural Teams
- Understand the differences
- Minimize parochialism - understand preferences/practices of the other cultures - Build Bonds: have social events
- Establish Trust: most important for team success
- Team purpose and access (all info and resources)
- Team membership: culturally intelligent, and needed skills for the task
- Team protocols and norms (from all cultures) - Actively Learn and Teach (about other cultures) - be culturally sensitive and open
- Be Inclusive
- Elicit Ideas (different comfort levels, establish norms to make it easy)
- Address and Be Creative with Conflict
- Be confident and positive
- Do not obsess over culture
Module 1: Multicultural Team (MCT) performance, Benefits of diversity
Culturally diverse teams have the potential to be more effective than single culture teams
Allows for creativity due to existence of divergent ideas and ability to avoid groupthink
Module 1: Multicultural Team (MCT) performance, Groupthink
Groupthink: striving for consensus while setting aside personal beliefs to adopt others opinion of others.
Symptoms:
- Overestimating the teams power and morality
- Close mindedness
- Pressures towards uniformity
Module 1: Multicultural Team (MCT) performance, Performance Determinants
Team Effectiveness is most dependant upon: team management and task type.
- Routine tasks: repetition - done in same way every time (ex. Assembly line)
- Innovative tasks: creativity (designing a new product)
Degree of Team Effectiveness:
- LOW: poor managed cultural teams with routine tasks
- LOW - MED: poorly managed single culture teams with innovative tasks
- MED-HIGH: well managed single culture teams with routine tasks
- HIGH: well managed culturally diverse teams with innovative tasks
Culturally diverse teams are most effective well managed with innovative tasks
- Single culture is better at routine so cultural diversity does not always mean better
- The diversity should fit the task at hand and be well managed.
Module 1: International Assignee Local Credibility. Enhancement tools and Practices
Identify 2+ cultural translators
- An assignee with lots of experience in the host country. A effective guide and can introduce you to others, which can enhance your local credibility.
- A native with lots of experience working with assignees. These individuals have insight and connects and understand what and who you would need to know.
Develop and Share an Entry Plan
- With 1. Local HR staff, 2. Host country boss, 3. Home boss.
- All 3 people must understand your goals in the host context so they can best assist you
Go to the front lines right away
- Get out of the office - important for those that you might not meet/see on a regular basis.
- Shows you are interested in them/working with them, makes them take you seriously.
Ask questions, avoid statement
- Be open and eager to learn. Locals do not expect you to be an expert on local issues.
- Lessens the chance of appearing ethnocentric.
- You must comprehend local context before you can apply your knowledge there
Focus on the positive (not the problems)
- Stops you from appearing ethnocentric while encouraging others to engage with you and share insight.
- You do not know everything / the savior of all
Module 1: 2nd Year commerce Students vs. the average Canadian
2nd Year Commerce Student vs. the Average Canadian
Much more collectivistic (moderately high)
Higher power distance (moderate)
Higher uncertainty avoidance (moderately high)
About same competitiveness (high)
More long-term oriented (moderate to high)
Much higher context (dead centre)
Even more doing (very high)
Module 1: International Assignment selection
Career Advancement: To what extent will the assignment benefit or hinder your career?
Compensation: What are the financial benefits and costs of the assignment to you?
Job Characteristics: Do you find the job that you will hold during the assignment interesting?
Living and Working Abroad Interest: Are you interested in living and working abroad?
Host Country and Culture Interest: Are you interested in and likely a good fit for the host country and culture? (living, distance, etc)
Family’s View and Fit: Are your accompanying family members interested in and do they fit w the host country and culture? (ex. Schools, jobs, socially, etc)
Others: existence of cultural translator/bridge in assigned country, safety
Module 1: Culture Shock Management
Stability Zones
- Example: home themed pubs or familiar locations. They provide home country’s food, opportunities to speak your language, view the sports teams, etc.
- Purpose: provide a feeling or sense of home and in doing so provide a temporary escape to deal with the stresses of the local culture
Language Study
- Example: informal and formal; daily use beyond textbook (slang))
- Purpose: Helps to better manage daily activities by enhancing their communication with locals and ability to identify cultural differences.
Stress Reduction tactics
- Example: exercise, yoga, meditation, art classes, or others to help stress
- Purpose: by reducing culture shock-driven stressors one is better able to manage those on a continual basis
Journal Keeping
- Example: recording one’s experiences and feelings upon which they can reflect on and observe their progress.
- Purpose: provides insight to you and future assignee’s which enhances their ability to anticipate and deal with differences that might cause
culture shock.
Problem Solving Tactics
- Example: Actively develop tactics to handle the cultural differences and challenges that exist to use going forward proactively.
- Purpose: Helps anticipate potential problems and reduce culture shock.
Compatriot Use
- Example: interacting with others in host country that are from your home country. Experienced assignees are very helpful and should be sought after.
- Purpose: Provides valuable opportunity to gain insight, guidance, and support to manage culture shock.
Module 1: webinar: International Assignee Mentors
Key Practices and Characteristics
- Home and host country mentors are a key driver of international assignment success.
- Both can offer insight, knowledge, and support.
Home Country Mentor
- Validation: Find suitable post-position that fits with their career trajectory and interests.
- Evaluated: on their performance as a mentor (take it seriously)
- Communicate: Keep them informed of home country changes while abroad
- Be senior: Has confidence, power and capital to stand up for assignee. Helps when finding a new position after they return.
- Represent: Voice the assignees interests (prevents “out of sight, out of mind”) - should constantly touch base to know what they want communicated
Host Country Mentor:
- Validation: Aid with local difficulties. Formally responsible for directing/assisting as official part of job description
- Evaluated: Be evaluated on performance as a mentor (makes them take it seriously
- Communicate: Keep assignee informed of local initiatives (in and out of office)
Module 1: International Assignee Selection: Criteria
International Assignee Selection Criteria
Emotional Intelligence: identify, assess, and control emotions of self, others and groups.
- 5 components: empathy, self-awareness, motivation, social skills, self-regulation
Culturally Intelligence: Degree you function effectively across variety of cultural contexts
- 4 components: drive, knowledge, strategy, action
Candidates Motivation
- Beyond career orientation and compensation
- Interest in the culture, country and job is critical
International Experience
- Breadth (number of countries) and depth (number of years) of experience
Family’s View and Fit
- Partners view of the assignment and location; family’s ability to adjust
Host Country Language Proficiency
- Not just textbook, but everyday use (slang) knowledge and serious about learing
- Does candidate already have working knowledge of the local language? If no, are they serious around learning?
Module 1: International Assignee Selection: Stress tolerance
High tolerance for and ability to manage stress. Regardless of destination and assignment, it always has challenges and stress.
Module 1: International Assignee Selection: Selection Process Dangers
Subjectivity - Use objective measures (tests, scales), subjectivity clouds judgement and appoint based on fondness not fit
Soft Skills - Don’t overly emphasize technical skills and home country performance
- Often soft skills determine IB success, superstar at home does not guarantee same abroad.
Module 1: International Assignee Selection: International Assignment HR M Preparation initiatives
Meetings with repats: multiple meetings before the assignment.
- Initial meetings should be supervised by HR staff to ensure that key issues are discussed.
Mentors: suitable home and host mentors before assignment
- Provides a connected and informed support team
Host Country Visit: if justified, send spouse and assignee to country to assess fit and make preparations
- Justification factor: length of assignment
- Helps them make an informed decision and lower stress levels
Language Training - mandatory to be fully completed (tied to job performance)
- Goes towards establishing goodwill with locals and managing culture shock
Cross-Cultural training - mandatory for most involved
- Includes assignee, partners, and host country staff.
- P&G sends assignee and partner to Beijing for 2 months for training!
Module 2:
New Structural Economics: A framework for rethinking development and policy (Lin, J.Y.)
18th century - all economies were poor and based on agriculture
GDP growth 0.05% for millennia, 1% in 19th century, 2% in 20th century
Initial growth in UK and related countries
After WW2 most countries had economic and political independence
High growth rates in China, Brazil and India have reduced poverty
Economic growth happens with structural changes
Poor countries are unable to get away from agriculture and traditional goods into manufacturing and other modern activities.
Module 2:
Paths of Development: An Overview (Engerman & Sokoloff)
Favoured lands by European settlers fell behind economically
- The marginal economic gain in North America vs. Caribbean/South America
Barbados and Cuba had much higher incomes than North America
Divergence occurred in industrialization - North America pulled ahead
Economists and historians have not been able to know why
Module 2: The radio that changed the world: Asia’s miracle (Schuman)
Matthew Perry completed a treaty with Japan and USA that unlocked 2 trade ports
Perry forced them to trade but they decided to fight back and industrialize
Political rebellion - Meiji Restoration - took place fighting for Japan to catch up with the economic, tech, and military powers of the West
Tech, banking, university systems, railroads, communications were imported Japan took what they needed but maintained their culture
The Meiji efforts worked - Japan was the first non-western nation to industrialize
By WW2 Japan’s industrial and tech capabilities matched Europe so their defeat was further motivation
After the war they wanted economy moving ASAP and all of the energy into the war was put into the economy
Module 2: PwC - The World in 2050 Video
China will be the dominant economy, India and USA tied for 2nd then Indonesia, Brazil
- All are current emerging markets
The tUK down to 10th, France out of top 10, Italy out of top 20
The rise of emerging markets presents opportunity and challenges
Module 2: lecture class 8 introduction
Rest of the world such as India and China have unfulfilled demand, growth, large populations (size matters in business)
Industrialized nations (North America, Western Europe, Australia, Japan) account for about 15% of the world’s population
Most populated countries: China, India, US, Indonesia, Brazil, Pakistan, Nigeria, Bangladesh, Russia, Mexico
Module 2: The World in 1868:
West vs. the Rest
- Western countries were wealthy —> UK (most powerful!), Canada, Germany, France, USA
The beginning of Japan’s Meiji Restoration
India and China were wealthy before the 1800’s
In 1800’s Western World got ahead because of:
- Industrialization - using energy for power, mass production, move away from manual labour and agriculture
- Colonization
- Age of Discovery (of the new world)
Module 2: 1869 to 1900: Growing divergence between West and Rest
India life expectancy goes down (war), overall life expectancy goes up
Europe knew a lot about Asia (silk trade)
Christopher Columbus went West to find Asia for a trade route and found N. America
There was no labour there which led to slave imports from Africa
New World (USA, Canada, Argentina) emerges
New World gave wheat and beef to Europe for industrialized goods
Module 2: 1900 to 1938: the Continued divergence between West and Rest
The US emerges as a leader, surge of Germany and Japan
Meiji Revolution in Japan started when they were forced by Michael Perry to trade and decided to industrialize and then invade and take colonies
Eve of WW2 - Germany invades Poland 1939
Module 2: 1938 to 1978: same gaps between West and Rest
Progress in Asia, Latin America, Middle East
Japan continues to rise
The decline of Argentina: have good land but fail to industrialize
Rest begin to catch up to the West
Module 2: Drivers of Economic Development
- Political (gov)
- Economic (structure and system)
- Cultural
