MANAGING ACROSS CULTURES - GBV · 2011-04-13 · Off-the-job training and education 156. xii I Contents Organizational training 157 Rewards and remuneration 157 Centralized rewards

MANAGINGACROSS CULTURES

C O N C E P T S , P O L I C I E S A N D P R A C T I C E S

Contents

List of Tables and Figures xxviList of Mini Case Studies xxixAuthor Biography xxxiGuided Tour xxxiiAcknowledgements xxxiv

Part I Introduction 1

1 Why Study Managing Across Cultures? 3Why study the subject of managing across cultures? 3This book: rationale, aims and structure 5

Rationale , 5Aims 6Structure 6

How to use the book 7Learning outcomes 8Chapter review 8

References / 9

2 The Meaning and Importance of Managing Across Cultures 11Emergence of managing across cultures 11

The triggers 11Expatriates' failure to complete assignments abroad 12Recession in the 1980s 12Economic development of Japan and South-east Asia 13Economic development of China and India 13'Westernization' of Central and Eastern Europe 14

The drivers 14Multinational companies 14International competition 15Regional economic integration 15Technical changes and flow of information 16Trade and financial services 16Political and cultural influences 17

VII

viii I Contents

Western management education and the use ofEnglish in business 17

Reforms in developing countries 18The meaning of managing across cultures 18

Managing local employees globally 21Building a global corporate culture 21Forward diffusion of knowledge and skills 22

Managing global employees locally 23National norms and values 24National economic trends and organizational characteristics 25National institutions and legal systems 26Assessing and avoiding risks 27Reverse diffusion of knowledge and skills 28

Summary 29Revision questions 30References 30

3 Contexts and the Cultural Dilemma of Managing Across Cultures 35Introduction 35The contexts of managing across cultures 36

The global-international context 37Economic challenges 38Political challenges 38Legal challenges 39Technological challenges 39

The local-national country context 40The political environment 40The legal environment 41The economic environment 41

The organizational context 42The ethnocentric approach 43The polycentric approach 44The geocentric approach 44The regiocentric approach 45

Organizational culture 46Is management a universal phenomenon? 47

Convergence theory 47Divergence theory 49

The cultural dilemma of managing across cultures 50Definitions of culture 51Dimensions of culture 52

Kluckhohn and Strodtbeck (1961): cultural valueorientations 53

Contents I ix

Geert Hofstede: cultural dimensions of societies 53Fons Trompenaars' (1993) Cultural Framework 60The Project GLOBE cultural framework (House et al., 2004) 62


Part I Case Study Bob Over the Globe - Chevron and Saudi Aramco 71Introduction 71The birth and growth of Saudi Aramco 72Chevron-Saudi Aramco interface 72The globalizing power of business versus the localizing powerof culture in managing people internationally 73Questions 76References 76

Part II Managing in Anglo-Saxon Countries 77

4 The US and Canada 79Introduction 79Contexts: economics, politics and culture 80

Economics 80Politics 81Culture 81

Labour market trends 82The services sector '' 83Unemployment 83Flexible working practices 83Job insecurity and high turnover 84Diversity . 85Ageing working population 85

Management and organization 86Strategic awareness 87Avoidance of trade unions 87Employee-employer agreements 89Managing diversity 90

Managing human resources 91Recruitment and Selection 91

Equal opportunities 91Graduate recruitment 92

Selection 93Education, training and development 94

Organizational training 94

Contents

Business and management education 95Vocational education 96

Rewards and remuneration 96Performance appraisal 96Performance-related pay and negotiated pay 97Minimum wage 97

Employee relations 98Trade unions 98Collective bargaining 100Industrial action 101Settlement of industrial disputes 102


The UK and Ireland 107Introduction 107Socio-economic and political context 108


Labour market trends 111Shortages of skilled labour 112Employment of women 112The older workforce 113Employment of migrant workers 114Flexible working practices 114The unemployment rate 115

Management and organization 115Strategic integration 116Outsourcing 117Collective bargaining 117Pragmatism 118Flexibility and cost reductions 118Commitment to quality improvement 119International management orientation 120

Managing human resources 120Recruitment and selection 120

Recruitment 121Graduate recruitment 121Selection 123

Training and development 123Apprenticeship training 124

Contents I xi

Employee training and development 124Management education, training and development 125Vocational training 126Lifelong learning 127Investors in People (IP) 127

Rewards and Remuneration 128Performance appraisal 129Performance-related pay 129Statutory minimum wage 130Wage inequalities 131

Employee relations 131Trade unions 133Collective bargaining 135Strikes and industrial action 135Settlement of industrial disputes 136Employee involvement and participation 136


6 Australia and New Zealand 145Introduction 145Contexts: economics, politics and culture 146

Economics 146Politics 147Culture ' 147

Labour market trends 148Employment of women 149Flexible working practices 149Employment of older people 150Employment of ethnic minorities 151Unemployment 151

Management and organization 152HR and corporate strategy 152Reliance on legal experts 153



Training and development 155On-the-job training and apprenticeships 156Off-the-job training and education 156

xii I Contents

Organizational training 157Rewards and remuneration 157

Centralized rewards system (rewards set by collectiveagreement) 158

Decentralized rewards system (rewards set by individualarrangements) 158

The minimum wage 159Employee relations 160

Trade union organization, membership and density 162Collective bargaining 163Industrial conflicts and strikes 165Settlement of industrial disputes 165Employee involvement and participation 166


Part II Case Study 9/11 - The Effects and Organizational Response 171Introduction 171The impact of 9/11 on travelling and tourism 171Dealing with and responding to the crisis 172

Redundancies - the common response to a crisis 173Recruiting and retaining key employees 174Training for possible attacks 175Communication and crisis management plans 175

Conclusion .••' 176Questions 177References 177

Part III Managing in South-East Asian Countries 179

7 Japan and South Korea 181Introduction 181Contexts: economics, politics and culture 182


Labour market trends 184Low unemployment rates 185Chaebol and zaibatsu 186A hard-working, committed and loyal workforce 187Female employment 187Older working population 188

Contents

From full-time employment to flexible employmentManagement and organization

Quality improvementConsultation, communication and decision-making: the

ringi systemPaternalistic leadershipJob security: from lifetime employment to employment

adjustmentManaging human resources

Recruitment and selectionRecruitmentGraduate recruitmentSelection

Training and developmentCompany induction trainingOn-the-job training and job rotationEnterprise-specific skills trainingContinuous trainingSelf-developmentManagement training and development

Rewards and remunerationMinimum wageSeniority-based rewardsRewards and organizational size and sectorBonus systemsPerformance-related payPromotion

Employee relationsTrade unionsEnterprise unionsCollective bargainingIndustrial actionThe settlement of industrial disputes

SummaryRevision questionsReferences

China and Hong KongIntroductionContexts: economics, politics and culture

EconomicsPoliticsCulture

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xiv Contents

Labour market trends 219Skills shortages 220Rural-urban migration 221Joint ventures and foreign-owned companies 221Stratification and exploitation of the labour force 222

Management and organization 223State- and party-orientated management 224Heavily regulated management 225Culturally determined management 226Western management 227


From lifetime employment to labour contract assignments 229From centralized to decentralized recruitment 229From non-existent to more formalized recruitment and

selection methods 230Training and development 232

Education and learning process 232Vocational training and education 234Organizational training 235Management education, training and development 235Management education on a wider scale 236Training as many managers as possible at home and abroad 236Supporting Chinese managers in learning from joint

ventures and foreign-owned companies 236Rewards and remuneration 237

Minimum wage 238Performance appraisal and performance-related pay 239

Employee relations 240Trade union composition and membership 240The role of trade unions 241The workers' congress 242Industrial action 243Settlement of industrial disputes 244


Indonesia and Malaysia 249Introduction 249Contexts: economics, politics and culture 250

Economics 250Politics 252'

Contents

CultureLabour market trends

Unemployment rateEmployee turnoverDemand for skilled and professional labourEmployment of women and ethnic groupsEmployment of immigrant workers

Management and organizationRegulated managementPaternalistic managementIntegrated managementQuality-based managementAdopted management

Managing human resourcesRecruitment and selection

Affirmative actionWord of mouthKinship recruitmentNeed-based recruitment

Training and developmentEducationTraining

Rewards and remunerationMinimum wagePerformance appraisal and performance-related pay

Employee relationsTrade unionsFrom state unions to company unionsCollective bargainingIndustrial actionThe settlement of industrial disputes


Part III Case Study The 1997 Asian Financial CrisisIntroductionCausesThe effectsResponses and recovery measuresConclusionQuestionsReferences

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xvi I Contents

Part IV Managing in Western European Countries 285

10 Belgium and France 287Introduction 287Contexts: economics, politics and culture 288


Labour market trends 290Unemployment 291Flexible working practices 292Female participation 293Migrant labour 294Older working population 295

Management and organization 296Formality and bureaucracy 296Elitism and intellect 297

• ~ Strategic awareness 298Internal partnership and empowerment of line managers 298



Training and development 300Education / 301Vocational and employer-provided training 302Vocational training for young people 302Employer-provided training 303

Rewards and remuneration 304Minimum wage 305Performance-related pay 305

Employee relations 306Trade unions 306Trade union membership and density 307Collective bargaining 307Worker participation 308Industrial action 310Settlement of industrial disputes 310


Contents I xvii

11 Germany and the Netherlands 315Introduction 315Contexts: economics, politics and culture 316


Labour market trends 318Unemployment 319Equal opportunities and diversity 320Older versus younger workers 321Immigrant workers 323

Management and organization 323Integrated management 323Strategic management 324Participative management (co-determination) 324


Recruitment 326Selection 327

Training and development 327Education 328Vocational training 329

Rewards and remuneration 331The minimum wage 332Allowances and benefits 333Performance-related pay 333

Employee relations 334Trade unions 334Works councils 335Collective bargaining 338Industrial action 339Settlement of industrial disputes 340


12 Denmark, Norway and Sweden 345Introduction 345Contexts: economics, politics and culture 346


xviii Contents

Labour market trends 348Unemployment 349Female participation 350Flexible working 351Migrant labour 352

Management and organization 353Social partnership 353Egalitarianism and consensus 354Empowerment of line managers 354Industrial democracy 354



Training and development 357Education 357Vocational training 357Organizational training 358Life-long learning 358

Rewards and remuneration 359Performance-related pay 360

Employee relations 360Trade unions 361Trade union membership 363Collective bargaining 363Industrial action .' 364Settlement of industrial disputes 365


s

13 Greece, Italy and Spain 369Introduction 369Contexts: economics, politics and culture 370


Labour market trends 372Unemployment 373Temporary employment 374Flexible working practices 375Immigrant labour 376

Management and organization 377

Contents

Ownership and management practiceInternationalized management


RecruitmentGraduate recruitmentSelection

Training and developmentEducationVocational trainingOrganizational training

Rewards and remunerationThe minimum wagePerformance appraisal and performance-related pay

Employee relationsTrade unionsTrade union membership and densityCollective bargainingIndustrial actionSettlement of industrial disputes


Part IV Case Study EU Enlargement and its Implications forWork and Employment

IntroductionThe transitional clauseDrivers of immigrationImplications and responsesQuestionsReferences

XIX

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Part V Managing in Developing Countries 403

; 14 African Countries 405Introduction 405

i: Contexts: economics, politics, and culture 406I Economics 406I; Politics 408I Culture 409I Labour market trends 410

High unemployment 410

xx I Contents

Declining public sector employment 411Growth of informal sector employment 412Low participation of women in formal employment 412Child labour and illegal employment practices 412Effects of HIV and AIDS on employment 413Migration of skilled and professional labour 414Shortages of skilled and educated labour 415

Management and organization 416Centralization of decision-making 416Public sector management and bureaucracy 417Politicization of management practices 418Ubuntu management 418

Managing human resources 420Recruitment and selection 420Training and development 422

Inadequate education systems 422Inappropriate education and training programmes 422Inefficient management of education and training bodies

and institutions 423Insufficient organizational training 423The influence of culture on training 424

Rewards and remuneration 425Minimum wage 425From seniority to merit-based pay 426Performance appraisal 426Supplementary pay . 427Promotion by decree 427Informal welfare system 427



15 Arab Countries 437Introduction 437Contexts: economics, politics and culture 438

Economics 438Politics 442Culture 442'

Contents

Labour market trendsUneven composition and distribution of labourUnemployment and youth unemploymentFrom foreign to national labour employment: localizationPublic versus private sector employmentForeign investmentFemale employmentChild labour and illegal employment practicesImmigration of skilled and professional labour

Management and organizationInherited management policies and practices

AuthoritarianismPaternalismCentralization of decision-makingPolitically oriented managementBureaucracy

Adopted management policies and practicesAdopted'socialist management systemsAdopted capitalist management systems

Factors conditioning management and organizationin Arab countriesTraditional norms and valuesIslamic values and principles


RecruitmentSelection

Training and developmentVocational trainingOrganizational trainingManagement development

Rewards and remunerationSeniority-based payNationality-based payPay for goodwillPerformance appraisalPerformance-related pay

Employee relationsTrade unionsCollective bargainingIndustrial actionSettlement of industrial disputes

XXI

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: 452

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xxii I Contents


16 IndiaIntroductionContexts: economics, politics and culture


Labour Market TrendsUnemploymentAgricultural employmentIncreasing employment in ITEmployment and foreign direct investmentInformal sector employmentFemale participation in the labour market

" * Child labour and illegal employment practicesSkill shortages

Management and organizationAuthoritative and paternalistic managementIntegrated and international management


RecruitmentSelectionGraduate recruitment

Training and developmentEducation and learningVocational education and training

, Organizational trainingRewards and remuneration

Basic pay, benefits and allowancesPerformance appraisal and performance-related pay

Employee relationsTrade unions

Collective bargainingIndustrial actionSettlement of industrial disputes


Contents

17 Central and Eastern EuropeIntroductionContexts: economics, politics and culture


Labour market trendsFrom state-owned large companies to privately

owned small and medium size enterprisesCompany closures, downsizing and mass redundanciesA well-qualified and skilled workforceFemale employmentFlexible working

Management and organizationAuthoritarian managementExperimental managementInitiative management


Too many applicants to choose fromApplicants in high demandApplicants by recommendation

Training and developmentOrganizational training

Rewards and remunerationLimited use of performance-related payRewards based on managerial judgementsRising wage inequalities

Employee relationsTrade unionsCollective bargainingIndustrial actionThe settlement of industrial disputes


18 South AmericaIntroductionContexts: economics, politics and culture


XXIII

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xxiv I Contents

Labour market trends 533Unemployment 534Agricultural employment 535Declining public sector employment 536Informal sector employment 536Self-employment 537Temporary, seasonal and short-term employment 537Multinationals and employment 538Increasing employment of women 539Child labour 539Labour migration 540

Management and organization 540Person-centred approach 540Authoritarian management 541Centralized approach 541Procedural formality and formal behaviour 542Paternalism 542Face-to-face communication 543



Training and development 545Organizational training 545Apprenticeships 546Vocational training 546Management education and training 547

Rewards and remuneration 548Minimum wage 548Rewards and the family 549Pay inequalities 549Limited employment benefits 550Performance appraisal 550



Contents I xxv

Part V Case Study Making Poverty History 557Introduction 557Aid, trade and security 558

The need for sustainable and developmental aid programmes 559The need for fair international trade and more

foreign direct investment 559The need for peace, equality and justice 560

Management and organization 561Conclusion 562Questions 562References 562

Part VI Conclusion 563

19 Emerging Issues and Future Challenges in ManagingAcross CulturesIntroductionManaging diversityManaging equality

Employment of womenEmployment of ethnic minoritiesEmployment of older peopleThe need for international equal opportunities policies

Managing flexibilityFlexible working practicesFamily-friendly policies

Ethics in managing across cultures.Vlanaging information technologiesManaging environmental awareness and employee well-beingSummaryRevision questionsReferences

Glossary

Index

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MANAGING ACROSS CULTURES - GBV · 2011-04-13 · Off-the-job training and education 156. xii I Contents Organizational training 157 Rewards and remuneration 157 Centralized rewards

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