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International business management > week four - culture and Human Resources in the multinational firm > Flashcards

week four - culture and Human Resources in the multinational firm Flashcards

1
Q

define culture

A

set of beliefs, values and norms embedded in a human group, which provides it with a common identity and makes sense for the behaviour of its members

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2
Q

characteristics of culture

A
  • it is not innate, it is learned
  • it serves as a guide for individuals
  • it is shared by the group but different from the personality of individuals
  • culture builds a system of inter-related elements
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3
Q

determinants of culture

A
  • climate
  • religion
  • eduction
  • history
  • work systems
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4
Q

what is power distance

A

extent to which less powerful members of organisations accept an unequal power distribution

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5
Q

what does high power distance in a company imply

A
  • managers make decisions in a autocratic way, subordinates accept orders without questioning them
  • privileges and status symbols are expected for managers
  • high organisation pyramids with many management levels
  • wide salary range between top and bottom of organisation
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6
Q

what does a low power distance in a company imply

A
  • managers usually consult subordinates before making decisions, subordinates may question orders
  • experience and talent are more important than formal status
  • formal titles and positions are not so important for negotiations
  • decentralised and flatter structures, few management levels
    openness and multi-directional information flows
  • narrow salary range, managers feel adequately paid
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7
Q

what is uncertainty avoidance

A

the extent to which people in a society feel threatened by ambiguity

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8
Q

what does high uncertainty avoidance imply

A
  • strong loyalty to the employer, long length of employment in the same company
  • highly formalised conception of management: key role of rules and procedures
  • preference for tradition, resistance to change and innovation
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9
Q

what does low uncertainty avoidance imply

A
  • weak loyalty to the employer, high mobility across companies
  • low formalisation and structuring of activities: key role of common sense
  • risk-taking and innovation are encouraged
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10
Q

what is individualism

A
  • people define themselves as independent individuals and make their primary commitments just to themselves
  • emphasis on personal initiative and achievement, efficiency, and financial autonomy
  • hiring is based on skills and performance
  • poor performance is the main reason for dismissal
  • treating friends or family better than others is considered unethical
  • greater social mobility across occupations
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11
Q

what is nepotism

A

treating friends or family better than others

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12
Q

what is collectivism

A
  • relatives and friends of the employer are preferred in hiring and promotion decisions
  • personal relationships prevail over efficiency in tasks and company goals
  • treating friends better than others is normal and ethical
  • organisational success attributed to sharing information with the group
  • belief in collective decisions
  • low social mobility across occupations
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13
Q

what is masculinity

A
  • emphasis on income, mutual competition and performance
  • managers are expected to be decisive, firm, ssertive, aggressive, competitive and fair
  • career ambitions are compulsory for men and optional for women
  • managers are generally ready to prioritise their careers over family
  • sickness leave is not popular
  • preference for larger companies and higher pay
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14
Q

what is femininity

A
  • emphasis on quality of life, relationships among people and concern for wellbeing of others
  • high job satisfaction, freedom, flexibility and low stress
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15
Q

what is indulgence

A

the extent to which people try to control their desires and impulses based on the way they were raised

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16
Q

what is relatively weak control called

A

indulgence

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17
Q

what is relatively strong control called

A

restraint

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18
Q

what is long-term orientation

A

how every society has to maintain links with its own past while dealing with the challenges of the present and future, and how society priorities these two goals differently

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19
Q

what does a low score in long-term orientation imply

A
  • normative society
  • prefer to maintain time-honoured traditions and norms while viewing societal change with suspicion
20
Q

what doe a high long-term orientation score imply

A
  • encourage efforts in modern education as a way to prepare for the future
21
Q

what are some correlations with low power distance

A
  • better political practices
  • income equity

vice versa for high power distance

22
Q

what are some correlations with individualism

A

positively correlated with:
- mobility
- national wealth

23
Q

what are some correlations with catholic countries

A
  • high uncertainty avoidance
  • relatively high power distance
  • moderate masculinity
  • relatively low individualism

vice versa for atheist countries

24
Q

what is an expatriate assignment

A

temporary, work-related stay of a highly qualified professional in a foreign country (usually 1-5 years)

25
Q

advantages of using the host country managers

A
  • they speak the host language
  • continuity is guaranteed
  • savings in salaries
  • increasing motivation and career opportunities for local employees
  • subsidiary is better accepted in the host country
26
Q

problems of using expatriates

A
  • lack of adaptation to the new culture and environment
  • can affect local staff motivation
  • negative perception of the subsidiary as a ‘foreign company’
  • higher labour costs
27
Q

why are expatriates used

A
  • qualified managers may not be as widely available in the host country
  • the political environment may be unstable in the host-country
  • the cultural differences may be high across countries
28
Q

what is a PCN

A

parent-country nationality (ethnocentric)

29
Q

advantages of using PCNs

A
  • organisational control and coordination is maintained and facilitated
  • promising managers are given international experience
  • subsidiary will comply with objectives
30
Q

disadvantages of using PCNs

A
  • career opportunities for HCNs become limited
  • adaptation to host country may take a while
  • PCNs may impose an inappropriate style
  • compensation for PCNs and HCNs may differ a lot
31
Q

what are HCNs

A

host-country nationality (polycnetric)

32
Q

advantages of using HCNs

A
  • no language barriers
  • hiring costs are reduced /no work permit needed
  • better continuity because HCNs stay longer in positions
  • government policy may dictate hiring of HCNs
33
Q

disadvantages of using HCNs

A
  • control and coordination of HQs may be more difficult
  • HCNs have limited career opportunities outside of the subsidiary
  • hiring HCNs limits foreign experience for PCNs
  • hiring HCNs could promote a national unit rather than a global unit
34
Q

what are TCNs

A

third-country nationality (geocentric)

35
Q

advantages of using TCNs

A
  • salary and benefit requirements may be lower
  • TCNs may be better informed of the host country than PCNs
36
Q

disadvantages of using TCNs

A
  • transfers have to consider national conflicts
  • host country may not like hiring TCNs
  • TCNs may not want to return to their country after the assignment
37
Q

what are the strategic functions of expatriates

A
  • transfer and acquisition of knowledge
  • coordination mechanism (coordinating activities across MNC network)
  • control mechanism (direct supervision)
38
Q

what is meant by the growing importance of inpatriates

A

managers that are transferred temporarily from the foreign subsidiary to the country where the corporation has its HQs

39
Q

what are the four steps of the expatriation management process

A

1) recruitment and selection
2) training and career development
3) compensation
4) expatriation failure and repatriation

40
Q

what comes under the recruitment and selection stage

A
  • technical qualifications
  • leadership skills
  • cultural awareness
41
Q

what is internal and external recruitment

A
  • internal: filling a vacancy in the business from within the existing workforce
  • external: filling a vacancy in the business from any suitable applicant outside the business
42
Q

what comes under the training and career development stage

A
  • in company training
  • cross cultural training
  • candidate self-training
  • conditions for expatriate success
43
Q

what are three approaches (stages) of training

A
  • information giving approach
  • affective approach
  • immersion approach
44
Q

what comes under the compensation stage

A
  • basic salary
  • expatriation allowances (cost of living/housing/home leave/education/medical allowance etc.)
  • foreign service inducement (hardship caused by assignment)
  • taxation
45
Q

what comes under the expatriation failure and repatriation stage

A
  • high rate of failure (family reasons)
  • problems upon return after assignment (loss of status/lack of planning/reverse culture shock)
46
Q

what can MNCs do to avoid the repatriation problems

A
  • establish the position that will be held upon return
  • connect the assignment with career planning
  • preserve the expats feeling of belonging to the company
  • show evidence that the international experience is well assessed within the company
  • offer seminars dealing with repatriation
47
Q

why is there high resistance to expatriation

A
  • strong attachment to home culture and family
  • difficulties upon return

International business management (6 decks)

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