Cross Cultural Management – Flashcards
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Edward B. Tylor
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Considered the founder of Cross Cultural Management. Defined culture as"that complex whole which includes knowledge, beliefs, arts, morals, law, custom and any other capabilities and habits acquired by man as a member of society = topical Perceived culture as evolving through determinate stages of savagery, barbarism, to civilicatoin Strongly ethnocentric: belief in superiority of Wester civilization, racist
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Globalization
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can be conceptualized as the unification of countries, economies, technology and money which allows the individuals, the companies and the governments to develop faster, cheaper and more effective than it was possible before Also presents an image of paradigm shift in politics and businesses T]he inexorable integration of markets, capital, nation states, and technologies in ways that allow individuals, groups, corporations, and countries to reach around the world farther, faster, more deeply, and more cheaply than ever before' A stretching of social relations, An increased density of interaction, An interpenetration of social and economic practices; Facilitated by an increasingly transnational infrastructure
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3 Phases of Globalization
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1. (1400s-1900s): the globalization of countries, an example of this being colonies 2. (20th Century): the age of the companies; many firms went global 3. (currently, 21st Century): globalization began to reach individuals, mainly because of the enormous number of people that have access to the World Wide Web!
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Global Workflow
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because of globalization and fast and cheaper telecommunications, companies are able to create this, where quality can be reached at lower costs through outsourcing
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Main Drivers for Globalization
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-Higher customer demand and contact with competing products -Higher Innovation and Application of Technology -Increasing power of new markets -Shared Research and Development and global sourcing: outsourcing has become the rule instead of the exception -The capital markets have become more interdependent -Governments are supporting local producers/companies to go global. Trade barriers are decreasing
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Dark side of the Global Landscape
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Huge amount of conflicts with suppliers and distributers, a lack of trust, ever growing costs, personal stress. Main reason for this can be found in the cultural differences and conflicts between partners
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Three main changes can be identified in the global environment:
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-The evolution from intermittent to continual change -From isolation to increasing interconnectedness -From biculturalism to multiculturalism
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Positivism
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Hypothetico-deductive model (preferably quantitative) Both natural and social reality are ruled by causal laws, that are valid irrespective of our knowledge of them. Social science must follow the example of the natural sciences to discover the laws of human behavior and (inter)action. The truth of scientific knowledge does not depend on its recognition by people. Nature doesn't care what we believe or do not believe.
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Social Construction
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Interpretive (hermeneutic) model (largely qualitative) Social reality is to a large extent the product of the meaning we bestow on it. We 'enact' our world views in our behavior. Therefore social reality is not objective but intersubjective; it reflects our shared fantasies. Social science tries to capture the sense making work (the vocabulary) people engage in to justify their behavior. Something can only be true within the context of such vocabularies.
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Evolutionism
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(19th Century, Colonial Expansion)(Tylor, Spencer):: ethnocentric, determinism, social Darwinism; based on 'armchair research', data supplied by amateur-adventurers
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Structural Functionism
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(1900-60 UK, Maintenance of Colonial Power)(Malinowsky, Evans-Pritchard): focus on institutions & social organization through kinship structures, emphasis on stability & tradition (anti-historical); original fieldwork and prolonged participant observation, moderate relativism - cultures deserve to be respected
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Historical Particularism
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(1900-60 US)Focus on American Native Cultures(Boaz, Benedict, Mead): cultural diffusionism (exchange of practices between neighboring cultures), historical reconstruction of unique cultural patterns, 'emic', original fieldwork, strong relativism - every culture has its own merits
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Cultural ecology, conflict and interaction
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Neo Evolutionism(1950-1990 US/UK) environmental determinants of cultural development, emphasis on change and conflict, 'etic' without ethnocentrism
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Structuralism
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1950- (FR/US) Decolonization (Levi-Strauss, Leach): emphasis on unconscious deep-structure of myths (textual/ belief systems), etic, strong relativism, roots in psycho-analysis & linguistics (Freud, Lacan)
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Postmodernism
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1970- (US/EU) Decolonization (Geertz, Derrida): interpretive, focus on texts, ethnography as text (dethronement of the ethnographer), tension between researcher and researched, strongly emic and relativistic
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Organizational Culture
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1990- (US/EU) Globalization (neo-imperialism) : focus on organizational cultures in a globalizing world, managing diversity Organizational culture reflects the norms, values and approved behaviors of particular companies, divisions or departments within organizations. The organizational culture can accept or reject the national culture's values and norms
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Ruth Benedict
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Assigned to the study of Japanese culture for the Pentagon during WW II No opportunity for fieldwork How to understand (fight) this alien culture that seemed to be both aggressive and temperate, militaristic and aesthetic, brutal and polite, rigid and flexible? Probably 'saved' the empirical structure of Japanese society (In)famous for her distinction of guilt and shame cultures (were shame cultures 'inferior'?)
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Guilt and Shame Cultures
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Guilt and shame as instruments of social control exist in all cultures but will receive different emphasis
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Shame
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Linked to pre-oedipal stage of infant development (ego-ideal) - bonding with the group, social harmony (collectivism) Public disgrace Fear of abandonment Related to personal identity (incompetence)
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Guilt
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Linked to oedipal stage of infant development (super-ego) -separation from the group, independence(individualism) Internal conscience Fear of punishment Related to individual action (transgression of norms)
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Guilt Cultures
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Tend to: View children as dependent creatures that need to acquire autonomy Provide separate sleeping arrangements for infants very early (after 6 weeks) May spank, ground or deny privileges to bring kids in line View competitiveness as "standing out" or being "ahead" of the crowd Emphasize moral rules as absolute (to avoid inherent evil in people's impulses; sin)
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Shame Cultures Tend to:
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View children as separate creatures that need to be provided a place in the group Share sleeping accommodation until sexual maturity (until appr. 12 years of age) May use ostracism and 'denial' of children's existence to bring them in line View competitiveness as "keeping up" with the group, not "staying behind" Emphasize moral rules as situational (in which proper behavior depends on who you're dealing with)
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Emic Insight
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the unconscious culture studying or describing a particular language or culture in terms of its internal elements and their functioning rather than in terms of any existing external scheme. of, relating to, or involving analysis of cultural phenomena from the perspective of one who participates in the culture being studied — compare etic
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Evans-Pritchard and the Nuer
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In the 1930's the Nuer posed a serious threat to colonial UK government in Sudan The semi-nomadic Nuer were hard to subdue because there was no central leadership Evans-Pritchard, in the service of UK powers, in spite of hostile reception, provided an in-depth analysis of Nuer social structure based on participant observation But also criticized colonial power for failing to appreciate local custom and circumstances by taking a more 'emic' attitude and humanize colonial policies (cultural relativism) constructs are accounts, descriptions and analyses expressed in terms of the conceptual schemes and categories regarded as meaningful and appropriate by the native members of a culture 'Emic' knowledge is validated through acknowledgement/recognition by participants in a culture; it is 'local' and reflects an insider view
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Etic
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studying or describing a particular language or culture in a way that is general, non-structural, and objective in its perspective. constructs are accounts, descriptions and analyses expressed in terms of the conceptual schemes and categories regarded as meaningful and appropriate from a scientific point of view (given quality requirements on the nature and production of knowledge) 'Etic' knowledge aims for universal (outside observer) validity, irrespective of whether members of a culture recognize it as such
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Phonetics
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One branch of the study of speech sounds in lanuage the language-independent (acoustic/auditory) study of how speech sounds are produced, transmitted and perceived e.g. in German the /w/ in weil is acoustically produced as a labiodental sound, in the English word while it is an (aspirated) bilabial sound
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Phonemics
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One branch of the study of speech sounds in lanuage : the language-specific study of how speech sounds generate differences in the meaning of utterances (the systematic relationships between sounds in a language) e.g. in English the /h/ and /ʃ/ sounds, as in he [hi:] and she [ʃi:] produce a difference in meaning, referring to either male or female persons as in he is mad or she is mad, the only difference being the /h/ and /ʃ/ sounds Thus in English /h/ and /ʃ/ are different phonemes (sound segments with meaning); phonemes are language-bound, you need to appreciate such phonemic distinctions to be a competent speaker of the language
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Epistemological Quandaries of Social Studies
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Self-interpretation alters the nature of social phenomena (they are products of meaning) E.g. you cannot be 'jogging' or 'winking' without meaning to Subjectivity is the objective condition of social reality Social facts are identified by their intended meaning (as perceived by members of a shared & enacted tradition) Thus truth is 'mind-dependent' You cannot, for the sake of 'objectivity', deny people's intentions when they act Standards of truth must reflect this, even though people may 'learn' as to their 'true' motives (which chicken am I afraid of?)
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Clifford Geertz
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) takes culture to be: "an historically transmitted fabric of meaning embodied in symbols, a system of inherited conceptions expressed in symbolic forms by means of which men communicate, perpetuate, and develop their knowledge about and their attitudes toward life." "Man is an animal suspended in webs of significance he himself has spun. I take culture to be those webs, and the analysis of it to be therefore not an experimental science in search of law but an interpretive one in search of meaning." It doesn't presuppose functionality, it is historical, it allows internal paradox, it aims to uncover the self-understanding of members (not our projections!) and it stresses language (symbols, stories &c) as the vehicle of this self-understanding
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Three Ethnographic Fallacies:
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BehavioralEthnography cannot be reduced to brute behavior (no natural laboratory of life)Understanding ≠ mimicry IdealistCultural analysis does not aim for "super-organic" mental schemesEthnography ≠ mind reading CognitivistCulture is not a monolithic logical cognitive structure to be analyzed, i.e. knowing how to wink is not winkingMeaning ≠ an abstract algorithm
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For cultural analysis to be useful, to "follow what is going on" in a situation and "enlarge the scope of discourse" ethnography should:
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Be obsessive about small facts ('microscopic') and imaginative about their wider significance Take social facts as "symptoms" to be described and "diagnosed" both "from within" and from outside Be relativistic and transcend the local logic of a specific culture Accept the incompleteness of analysis and never resign to it As the Dutch anthropologist Peter Kloos said: you have to be able to look cross-eyed at cultural phenomena
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Etic Research
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'The fish not being able to see the water' is exactly why many cross-cultural researchers opt for an etic approach 'The etically oriented researcher approaches the question of a cross-cultural psychology from a trans- or metacultural perspective [...].' 'The etic approach demands a descriptive system which is equally valid for all cultures and which permits the representation of similarities as well as differences between individual cultures.'
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Concept of Culture in Etic CCM Research
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'the collective programming of the mind that distinguishes the members of one group or category of people from others'
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Goal of Management
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to achieve efficiency for the organization's objectives
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Industrial Psychology
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a new discipline outlined as an intermediate between psychology and economics, researched by Hugo Munsterburg
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Bureaucracy
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the most perfect form of an organization, Max Weber coined the term
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Ten basic managerial roles
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figurehead, leader, liaison, monitor, disseminator, spokesperson, entrepreneur, disturbance handler, resource allocator and negotiator
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Three Categories of Managerial Roles
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1. Interpersonal Role 2. Informational Role 3. Decisional Role
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Interpersonal Role
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building and leading effective groups & organizations
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Informational Role
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collecting, organizing, disseminating useful information in a timely fashion
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Decisional Role
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strategies and tactics
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What 2 questions do you ask for managers to be successful when trying to learn about the local environment?
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How does the definition of management differ within different cultures? How can we change towards the expectation, if this is possible at all
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Andre Laurent Study Findings:
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Managers in high context cultures tend to communicate ambiguous goals toward their subordinates, whereas managers in low-context cultures tend to communicate more clear goals
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Rob Coffee and Gareth Jones findings:
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it is best for a global manager to conform to the locals just enough not to be rejected by the local culture: balance is key
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Global Manager
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someone who works with or through people across national boundaries to accomplish global corporate objectives They interact with people from different cultures and adjusts to them Differ from the traditional managers in their global viewpoint, in the understanding of different cultures and their confidence to work in a multinational environment
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Three types of global managers
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The expatriate The frequent flyer the virtual manager
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The expatriate
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Requires in-depth knowlege of a specific country or region. Describes any worker who does business in a foreign country negatives: constant travelling can be stressful, living abroad has a negative effect on the family life
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The frequent flyer
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has a broader knowledge of cultural differences might spend more time on the plane than in the foreign country they have to do business with These types of working days are intensive and connected with many short-term tasks Challenges: managers very often move from one country to another and cannot create lasting personal relationships. because of their frequent trips, they are not given enough time to understand and adjust to the different culture, which is not the case with the traditional long-term expat assignments
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The virtual manager
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works in a virtual space through computers and information technology 2 types: the telecommuter the digital nomad Technology and communications are strongly influential when it comes to this type of global manager Highly important for managers to use all the advantages of new technologies to create good partnerships and beneficial business networks
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The Telecommuter
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type of virtual manager works from home with the help of technology and telecommunications
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The digital nomad
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type of virtual manager works from different countries depending on their current work task and locaiton
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Global Management Myopia
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when a manager fails to see one or more of the company's larger goals and objectives
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3 Major types of Global Management Mypopia
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Regional Myopia Global Myopia Technological Myopia
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Regional Myopia
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when expatriates focus too much on one specific country or region, and are facing the risk of losing the big picture of the company
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Global Myopia
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when frequent flyers focus too much on the global perspective and lose the local or regional focus of the company
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Technological Myopia
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when virtual managers are focusing too much on their technological devices and forget who their real-life partners are, which can be seen as a threat to the employees of the company
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Global Management Skills
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integration and application of management and cross-cultural skills can be achieved by combining managerial competence and multicultural competence managerial competence + multicultural competence = global management skills
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Three main characteristics of culture, of high importance for global managers:
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-Culture is shared by its members and sometimes even defines the membership of the group itself -culture is learnt through membership in a group or comunity -culture influences the behavior and attitude of its members
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Normative Behavior
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culture influences the normative behavior or individuals: it sets limits on what is accepted and unaccepted behavior
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GLOBE Cultural dimensions
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Definition: the shared motives, identities, and interpretations of events that are transmitted from one generation to another Power distance, uncertainty avoidane, humane orientation, institutional collectivism, in-group collectivism, assertiveness, gender egalitarianism, future orientation, performance orientation Global Leadership and Organizational Behavior Effectiveness Research Program, founded in 1991 by Robert J. House (Wharton; pictured) Many books, reports and articles Also uses questionnaires to create cultural dimensions and assess average values per country Focuses on leadership behavior More in-depth, some qualitative work Distinction between desired and 'as-is' behavioral preferences Also distinguishes organizational and societal values
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Hofstede Cultural Dimensions
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Definition: "collective programming of the mind" power distance, uncertainty avoidance, individualism/collectivism, masculinity/femininity, time orientation One of the most cited scholars in the social sciences Hugely influential in the field of management science Clusters of similar characteristics for specific areas
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Hall Cultural Dimensions
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Context, space, time
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Trompenaars Cultural Dimensions
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Universalism/particularism, individualism/collectivism, specific/diffuse, neutral/affective, achievement/ascription, time perspective, relationship with the environment Culture: Explicit culture Norms and values Implicit assumptions These are all directing action Also uses dimensions: Universalism vs Particularism Communitarianism vs Individualism Neutral vs Emotional Diffuse vs Specific Achievement vs Ascription Attitudes to time Also surveys professionals with a range of nationalities
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Culture Theory Jungle
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managerial dilemmas that result from managers having to decide which cultural dimension model will serve their organization best
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Five main questions concerning global managers concerning cultural dimensions
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1. What is the distribution between power and authority 2. Is the society individualistic or collectivistic? 3. what are the perceptions of the surrounding environment 4. what is the perception of time and work 5. what is the level or incertainty
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9 major country clusters
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1. Anglo cluster 2. Arab Cluster 3. Eastern European cluster 4. East/southeast Asian Cluster 5. Germanic cluster 6. Latin American cluster 7. Latin European cluster 8. Nordic cluster 9. sub-saharan african cluster
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5 cultural complexities and contradictions that are found in various degrees in most cultures:
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1. Cultures are stable but change over time 2. Cultures are homogenous, but allow for individuality 3. cultures are often classified into general categories that overlook subtle but importance cultural differences 4. cultures can explain but not predict behavior 5. cultures represent a unified whole, but also consist of multiple and often conflicting subcultures
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Institutional Environment
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consists of the legal-political environment culture and institutional environments are frequently mutually reinforncing
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Power Distance
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: the degree to which one expects power to be distributed equally Uncertainty avoidance: the extent to which one adheres to and relies on rules and
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Uncertainty Avoidance
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the extent to which one adheres to and relies on rules and procedures
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Humane Orientation
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the extent to which fair, altruistic, generous and kind behavior is rewarded and encouraged
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Collectivism I (institutional)
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the extent to which organizational and societal practices are in place that encourage and reward collective action and resource distribution
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Collectivism II (in-group)
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the extent to which individuals take pride in and are loyal to their organizations and/or families
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Assertiveness
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the degree to which individuals are assertive/confrontational/aggressive in relationships with others
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Gender Egalitarianism
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the degree to which gender equality is pursued
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Future Orientation
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: the extent to which one is involved in future-oriented behavior
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Performance Orientation
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the extent to which individual performance and excellence is rewarded
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Nordic Europe Cluster (GLOBE)
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High on Future Orientation, Gender Egalitarianism, Collectivism I, Uncertainty Avoidance
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Germanic Europe Cluster (GLOBE)
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High on Assertiveness, Future Orientation, Performance Orientation, Uncertainty Avoidance Low on Humane Orientation, Collectivism I & II
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Anglo Cluster (GLOBE)
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High on Performance Orientation Low on In-Group Collectivism
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Latin Europe Cluster (GLOBE)
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Low on Humane Orientation and Collectivism I Medium on other dimensions
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Latin America Cluster (GLOBE)
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High on Collectivism II Low on Future Orientation, Institutional Collectivism, Performance Orientation, Uncertainty Avoidance
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Eastern Europe Cluster (GLOBE)
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High on Assertiveness, Gender Egalitairianism, Collectivism II Low on Future Orientation, Performance Orienntation, Unicertainty Avoidance
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Middle East Cluster (GLOBE)
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High on Collectivism II Low on Future Orientation, Gender Egalitarianism, Uncertainty Avoidance
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Confucian Asia Cluster (GLOBE)
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High on Collectivism I & II, Performance Orientation No low scores on any dimension High on Humane Orientation, Collectivism II No low scores on any dimension
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Cultural Membership
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Membership of culture covaries with other phenomena and is 'bundled' together with other variables
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Geertz Definition of Culture
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culture is "an historically transmitted fabric of meaning embodied in symbols, a system of inherited conceptions expressed in symbolic forms by means of which men communicate, perpetuate, and develop their knowledge about and their attitudes toward life."
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Criticism of Hofstede
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Hofstede sees culture as a coherent phenomenon, placed at the top of some kind of control system Humans are reduced to relays of culture (McSweeney, 2012; Snel, 2003, p. 250) However, cultures typically harbor a wide variety of justifications for actions, which are often contradictory: He who hesitates is lost Look before you leap (McSweeney, 2012, p. 163) Both Hofstede (1980, p. 71) himself and Gerhart & Fang's (2005) re-analysis show that only 4.2 percent of variance can be explained by national culture We also have to ask ourselves whether it is possible to 'isolate' culture from other factors, because it is so pervasive Disregard of Internal Diverstity: In Hofstede's own data, within-country variance is greater than between-country variance Static & Conservative:Hofstede assumes that cultures/values are essentially stable When they do change as the result of global changes, they are all expected to change in a similar way But values change all the time, and not just in a progressive direction Why the Nation-state?The nation-state is a relatively young phenomenon Borders are not stable Does culture stop at the border? If so, is the national culture a nation, a nation-state, or a multi-nation-state? (McSweeney, 2012, p. 155) Western Bias: Depending on who you ask, there are 189 to 196 countries in the world In Hofstede's database (Geerthofstede.com, 2015) are 110 entries 11 entries are supra- or sub-national, 99 are states Of the 99 states, only 68 have scores on the original 4 dimensions 31 of the 68 states are European 3 nations are African(?): Iran, Israel, and Morocco
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Reification
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[a criticism of Hostede] Reification is the tendency for individuals to ascribe a definitive value or form to an abstract concept Reification of culture means seeing culture as a 'thing' people take with them; to place culture 'outside' of the people who actively construct it
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Constructivism
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When Hofstede published Culture's Consequences (1980), Geertz' book, in which he criticized conceptualizations of culture like Hofstede's, had solidified the dominance of constructivism in sociology and anthropology Constructivism: Individual sense-making as starting point Emphasizes the relational nature of culture Culture-as-a-repertoire (cf. Swidler, 1986) Case in point: Baumann's (1996) study of cultural manifestation in Southall, London: Different demarcations people use to classify 'their' culture: Colonial Religious Ethnic/racial Geographic
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Why is Hofstede still dominant in cross-cultural management, research, and training?
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Nature of managerial work (Mintzberg, 1980): Power derived from access to information Unrelenting work pace and heavy work load A straightforward depiction of culture saves time and yields accessible information Constructivism useless in that sense Dominance of 'scientific' approach: Firm belief in causal determinism 'Management-as-physics' Chimes with Hofstede's idea of culture as 'software of the mind' (Hofstede et al., 2010) The state still matters! Managers experience differences in economic/legal systems = 'culture' Significant level of socialization (education!)(Magala, 2005, p.2) Central actors, even in era of globalization(Dicken, 2011, pp. 172-217)
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National Habitus
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derived from 'habit' - refers to learned practices and standards that have become so much part of ourselves that they feel self-evident and natural. Habitus is our culturally- and socially-shaped 'second nature'. What we learn as members of a society, in a specific social position, is literarily incorporated - absorbed into our bodies - and becomes our self.' Central concept in figurational/process sociology Form of sociology concerned with historical or long-term processes
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Figurational Process Sociology
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Form of sociology concerned with historical or long-term processes
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National Habitus Formation
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Increasing Interdependence People part of increasingly larger social units People become more aware of others Through mutual adaption more similarities Erosion of other interdependencies Increasing Density People get connected with more people and in more ways Emergence of nationwide institutions, directly affecting people's lives Other institutions (businesses) followed this scale Vertical Diffusion of Standards, Tastes and Practices Cultural phenomena manifest themselves in upper social strata and trickle down because of: Shame Fear of exclusion Aspiration Sometimes enforced or imposed, sometimes not We-Feelings Allowing people who are not very similar in other respects to bond over their shared membership of nation (National) media play crucial role in this!
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National Habitus Decline
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Increasing Interdependence This process has continued, but now transcends state borders Globalization: Global production networks Growth of FDI Transnational governing bodies Trade agreements State still 'gatekeeper' Increasing Density This process has continued as well: possiblities for contact and friendship with people from people across the globe have grown Vertical Diffusion of Standards, Tastes and Practices Ethos of egalitarianism since the 60s/70s: rejection of hierarchy of tastes As a result, trickle-down is failing But: egalitarianism ≠ equality! Social boundaries stay intact, but become more subtle and harder to navigate for people not 'in the know' Growing informalization: 'being yourself' as a norm Growing divergence in lifestyles and values We-Feelings Because of processes described before, there has been a rise in nationalist tendencies across the world, stemming from a desire to articulate a national identity Nationalism is less about national pride and more about exclusion, fear of the 'other' Quest for new national symbols Re-emergence of identity politics
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National Habitus: In Sum
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Leaves room for the state and other national institutions Chimes with notion of culture as a repertoire (Swidler 1986): a range of images and behaviors from which one can choose rather than a set of innate, predisposed value orientations leading to specific behavior Allows for internal and external change and fluidity But: leaves the 'black box' of agency largely unopened
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In order for managers to understand as much as possible about the organizational environment, they must ask four important organization specific questions:
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1. What do we need to know about organizational strategy? 2. What do we need to know about organizational design? 3. Organizational decisoin making? 4. How can we understand local organizational cultures and the role they play in building mutually beneficial partnerships?
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Global Strategy
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a firm's unique solution to manage the challenges of operating internationally the challenge here is to find a strategy that satisfies as many of the stakeholders as possible
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Globally operating firms must deal with two opposing forces:
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-Pressures for cost reduction -Pressures for local adaptation
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AAA Strategic triangle
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by Pankaj Ghemawat. Three basic principal global strategies available to firms -Adaptation Strategy -Aggregation Strategy -Arbitrage Strategy Companies can choose 1 or combine two of the strategies
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Adaptation Strategy
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adjust products to fit local environments
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Aggregation Strategy
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achieve economies of scale by standardizing products or services
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Arbitrage Strategy
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locating different parts of the supply chain to difference places (international specialization)
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Domestic Organizational Design
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the process of choosing a correct global organizational design often starts with some sort of this, which is used mostly when firms first start going global
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Global Organization Design
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when international activities become a more prominent aspect of the total business, the company selects one of these designs Global Product Global Area Design Global Function Global Customer Global Matrix Global Network
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Global Product
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Basis of Organization: Worldwide responsibility for specific product groups assigned to different global operating units
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Global Area Design
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Basis of Organization: Geographic regions of the world
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Global function
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Basis of Organization: functional areas
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Global Customers
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Basis of Organization: unique needs of customers
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Global Matrix
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Basis of Organization: Combination of two global designs
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Global Netowkr
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Basis of Organization: loosely coupled groups and teams
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The global design chosen should support the integration of four types of strategic information, namely:
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Area Knowledge Product Knowledge Functional Knowledge Customer Knowledge
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Area Knowledge
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Understanding local area's culture, economics, social status
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Product Knowledge
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Understanding local area's culture, economics, social conditions
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Functional Knowledge
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Local access to expertise in the various functional areas of business
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Customer Knowledge
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Understanding of particular customer needs
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Hybrid Organization Design
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some companies might want to develop their own design to suit their own unique needs
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Regional Organizational Models
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In general there are four commonly used models to answer the question 'who derives the greatest benefit from the organization's operations?' Investor Models Family Models Network Models Mutual Benefit Models
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Investor Models
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An investor modeled organization is a structure with some sort of investor structure. Here, the investors exert significant power on the organization, management and ultimate destiny of the firm. Generally hold the following properties: Mastery-oriented Powerful CEO's Fluid organization design Low job security This model is mostly found in the Anglo cluster
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Family Model
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Has a central group of family members executing the routine operations of the firm EX: Confucian Chinese business centered around filial piety, absolute loyalty to superiors, strict observance of seniority, subservience to superiors and mutual trust between friends and colleages Typical Chinese family structure: Flat, informal structure relationship-based family management business as a private property Family revenue
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Network Model
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frequently found in Japan Keiretsu: orgs that have served their country well for years, consist of dense network of affiliated companies Internal financing, from the firm's own financial institution Trading companies, highly competent Weak executives, have less power long-term employees enterprise unions, company unions more closely associated with company interests than in the west
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Mutual Benefit Models
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common in germany, the netherlands, and scandinavian countries German version features: Supervisory and Management boards Co-determination and work councils: employees have enhanced power in decisions affecting the future of the organization Meister: managers are respected for what they know rather than for who they are Technik: a particular notion of technical competence, the science and art of manufacturing high=quality and technologically advanced product
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Employee Decision Strategies
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Centralized Consultative Collaborative
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Centralized
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An authoritzarian approach in which the manager makes the decision or solves the problem Is seen in Anglo countries /Chinese family-based companies Issue with this approach is that the employees opinions are often neglected
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Consultative
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The manager asks for advice from his employees and then makes the final decison Typical for a Japanese company Disadvantage of this process: slow decision making, which sometimes does not match the fast global environment
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Collaborative
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The manager works closely with the employees, everybody can express their opinion and the final decision is taken by the collective body. The problem is identified by supervisors and workers and is then taken to another higher level to be further discussed, and then the department heads see if there is a need for improvement, and finally the problem with the possible solution is passed on to the managers. Typical for German, Dutch, and Scandinavian firms where they are more participative Can be very complex due to the variety of stakeholders involved. Moderate pace of analysis, decision process and implementation, in comparison to the slower on in the other two decision making strategies
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Edgar Schein: Framework to identify the organizational culture a manager is dealing with
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-Artifacts and behaviors -Power distribution -Problem-solving mechanisms
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Cognition
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the process by which people acquire, transform, and utilize information about the world in order to achieve their goals. Managers must understand this process in order to understand why people do what they do Cognitive processes are influenced by the culture someone has been raised in. The connection between culture and cognition can be seen in terms of an interactive relationship between thought and action in which culturally determined thought processes influence our behaviors, which often reinforce or challenge our thoughts and beliefs
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Basic cognitive processes contain 3 aspects
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Attention: perpetual selection Interpretation: Action: the categorizing of what we have seen or experienced Action: we decide whether or not we will take action, and what it will look like
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Cognitive Schemas
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mental mind maps of knowledge that store information about what things are, what their features are, and what they might be related to Help people make sense of the world, as they include their knowledge base, expectations, experiences, and biases. The content of these schemas are usually highly influenced by our culture.
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Information acquisition, retention, and recall
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step of the cognitive process -there are substantial differences in the way people acquire and retrieve their information about the world -People from highly individualistic cultures will typically attribute team success to the team leader's skills and efforts, while managers from more collectivistic cultures will typically ascribe it to the skills and efforts of the entire team
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Categorization of Information
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a step of the cognitive process -this step in the process varies within cultures
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Assessment, reasoning and learning
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last step of the cognitive process -the concept of intelligent behavior varies across cultures -for example, 'telling it like it is' is seen as something positive in America and Australia but not as positively in Japan or Malaysia
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Location
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very important when looking at the situational environment Includes geographic location as well as its characteristics. Location often influences the language used during conversation
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Goals - "where are you going"
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Entails 5 questions Who - who are you dealing with What - what do you want to accomplish When - what are the deadlies Where - where will we meet to get the work done Why - why is this taking place? why are you involved?
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Location of the assignment:
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Affects the frames of reference, stress levels, and topics of conversation (a conversation in an office is different than one in a cafe)
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Language - in - use
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speaking the local language enhances mutual understanding
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Communication
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Can be verbal and non-verbal and it is about presenting a message that contains some sort of meaning to other people Purpose is to exchange ideas, and communication differs across cultures in its symbols, meanings, language differences and expressions
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Noise
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can be anything that hinders the message to successfully come across [problem in cross cultural communication] the more the manager can reduce this noise, the greater the message clarity
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There are two important things when you want to get clear messages across:
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Attention Interpretation Shown how these concepts affect communication using the attention-interpretation-message (AIM) Model
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Attention-Interpretation-Message Model
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(AIM) entails the three basic communication ingredients Attention: for a message to be received, the recipient must notice them Interpretation: the recipient must decode the message to understand it Message (or response): the recipient must decide if and what to reply stresses conveying meaning. Meaning may not be conveyed but attributed.
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Culturally mediated cognitions in communication:
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A cultural lense How are people and messages evaluated and processed in the minds of the receivers?
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Culturally mediated communication protocols:
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A cultural lense How do we build up our messages in ways that are meaningful to us and hopefully not problematic for our receivers?
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Four widely used culturally mediated cognitions
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Language and Linguistic structures Selective Perception Cognitive Evaluation Cultural Logic
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Language and Linguistic Structures
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Language structures: the ways in which the meanings of the words are used, required in speaking foreign languages Language Logic: the tendency to interpret the actions of others, by referring to own experiences - Language in use, Formal or informal language, native or non-native speakers
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Selective Perception
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The main way of filtering messages lies in the own perception, which means that what we see is influenced by what the recipient is seeing Message filters include selective perception: when people focus on the message that relates to their current state or the Regency Effect: when recipients focus on the most recent messages Focusing on immediate demands Sensing or missing nonverbal messages
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Cognitive Evaluation
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Attaching meaning to messages If information is consistent within their own culture Norm of authenticity: what you say is what you feel
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Cultural Logic
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the process of using one's own assumptions about normative behavior to interpret the messages and actions of others when people share a cultural logic, it helps filling up the gabs of things that remain unsaid
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Communication Protocols
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every culture has its own values and norms when it comes to communication they tell us more about the topics for discussion, message formatting, conversational formalities and acceptable behaviors
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Topics for Discussion
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can be difficult to decide what is an acceptable topic
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Silent Language
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people tend to send messages through non-verbal communication. Come in various forms Facial expression Personal Space Body Language Secret Communication - for individuals that are insiders of a group and use the same symbols of interaction
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Preparation for Negotiation
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1. Select the right partner 2. Develop a negotiating strategy 3. Manage the negotiation process
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Selecting the Right Partner: 5 key success factors
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1. Compatibility of strategic goals and tactics 2. Complementary value-creating resources 3. Complementary organizational cultures 4. Strong commitment to the partnership 5. Strong philosophical and operational compatibility
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Negotiating Strategy: 5 basic approaches
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1.Start with the end in mind 2. Help the other side prepare 3. Treat alignment as a shared responsibility 4. Send one clear message 5. Management negotiations like a business process
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Negotiation: Competitive vs. problem-solving strategies
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Look at pg 22 of book summary
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Ethics
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Overview of Guidelines by the Organization for Economic Co-operation and Development -Bribes should neither be accepted nor offered by managers -Remuneration of agents must be appropriate and for legitimate services only -Transparency of the manager's activities must be enhanced at all times -Managers should increase employee awareness of company policies against bribery -Control systems must be in place to discourage bribery and corrupt practices -Contributions illegally paid to candidates are strictly forbidden
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5 Process Strategies to Deal with conflicts
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Accommodation Collaboration Competition Avoidance Compromise All 5 vary in their usefulness depending on the importance of the relationship vs importance of the outcome Compromise is in the middle
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Mutual Trust
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there can be a large difference between what a contract says and what it means. This is why it is so important that partners get to know each other and keep nurturing their relationship
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Doctrine of Changed Circumstances
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meaning of contract varies between cultures. in non western cultures, people believe in the doctrine of changed circumstances, which basically says that whenever the circumstances which are beyond the control of a business partner change, both partners are obliged to renegotiate the contract, so that no party is better off than the other meant to maintain harmony amongst partners
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Essence of Leadership Assumptions:
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1. Universal Approach 2. Normative Approach 3. Contingency Approach
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Universal approach
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sees the leader as leader. It treats leadership traits and processes as relatively constant among cultures. However research has shown there is no such thing as a few keys to success
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Normative Approach
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sees the leader as a global maanger focuses on enduring personal skills and abilities that are thought to characterize effective global managers There would be one set of traits, skills and abilities that apply to all managers, regardless of where they are working for example, a global mindset
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Global Mindset
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quality of a global manager Sensitivity and openness to multliple realms of action an meaning Complex representation and articulation of cultural and strategic dynamics A mediation and integration of ideals and actions oriented towards global and local levels alike
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Contingency Approach
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sees the leader as local manager and begins wth the assumption that there is no such thing as one universally effective leader. Assumes that the success of the manager lies in matchin the right person to the right situation
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Limitations on these leadership models
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the meaning of leadership as a cultural construct the variations in local expectations regarding leader behavior
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GLOBE Leadership Study
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Defined leadership as "the ability of an individual manager to influence, motivate, and enable others within the organization to contribute towards the effectiveness and success of the enterprise Have 9 power dimensions, which they identified 22 leadership attributes seen as universally applicable, and 8 dimensions that would be less desireable
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GLOBE Leadership Dimensions
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Autonomous Charismatic/Value Based Humane Participative Self-Protective Team-Oriented Charismatic/Team-Oriented are found in all country clusters, where the other 4 are culturally contingent
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Four key GLOBE attributes that characterize ethical leadership
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Character & Integrity Altruism Collective Motivation Encouragement
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Work Values
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useful to get an insight into someone's person personal beliefs about what their goals are and what he thinks is acceptable behavior to reach this goal
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Psychological Contract
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an unwritten understanding between people concerning exchange relationships For example, benefits, job security, salary They are mutually understood between individuals or groups, even though it might not be on paper perceptions and trust play a major role
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Expectations
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what people appreciate as hard work and what they don't
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Equity Principle
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raises motivation in people to restore equity between themselves and the people they compare themselves to
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Two cultural limitations in the acceptable actions of managers and employees
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Problem Analysis: cultural drivers affect how problems are identified and understood by managers and employees Possible Solutions: cultural drivers affect the variety of solutions or preferred outcomes
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Incentives and Rewards: 2 types
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Intrinsic and Extrinsic
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Extrinsic Rewards/Punishments
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a result of good/poor performance salaries, bonuses, benefits, job security
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Intrinsic Rewards
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a result of satisfactory performance, largely self administered pride, satisfactoin
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Distributive Justice
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emphasizes success of group, focuses on group achievements as equally between people not really individualistic
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Employee Benefits
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study local customers and match corporate benefits to local conditions
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Global Team
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a group of employees selected from two or more cultural contexts, and sometimes two or more companies, who work together to coordinate, develop, or manage some aspect of a firm's global operations can take the form of virtual teams or on-site teams
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Limitations of a Virtual Team
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- Lack of mutual knowledge and context -Over dependence on technology -Loss of Useful details (body language)
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When managing and organizing globally, two factors are important:
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1. managers must understand the principal challenges facing their teams, both the tasks and the processes 2. managers must acknowledge the need to understand what they need to do in order to facilitate team performance
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Task Mangement
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first step for a global team is to have a clear view of their responsibilities and the organization of their members Mission and Goal Setting Task Structuring Roles and responsibilities Decision Making Accountability
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Process Management
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Clarify the Team Building Communication patterns [work language, technologies used for communication] Participation [everyone needs to have a voice] Conflict Resolution Performance Evaluation
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Building a successful Team
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Select members on the basis of skills Provide clear direction Build a positive team culture Build team camaraderie Tie rewards to performance Recognize and build on differences
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When building mutual trust we can ask ourselves two questions
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What is the process by which trust between team members is developed what can team members do to facilitate or enhance trust over time
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Trust Cycle
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Trust expectations -> Trust Judgment -> Trust behaviors -> Trust related outcomes
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Cultural Friction
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a process of adjustment might be required to feel comfortable in the new situation Psychological adjustment: developing a new way of life that is personally satisfying Socio-cultural adjustment: the individual's ability to adjust completely to the host culture
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Psychological Adjustment
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Culture shock 4 stages Honeymoon Disillusionment Initial Adaptation Adaptation and Biculturalism
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Acculturation vs Deculturation
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the acquisition of new habits and the unlearning of some old ones
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Three main stages of Acculturation
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Separation: try to hold on to the home culture and refuse to adapt Assimilation: "Go Native" and let go of the original culture Integration: find a combination of the two above
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Reverse Culture Shock
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resulting from dissatisfaction with the job or with the old way of life in the home country some can feel bored or demotivated
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Three Strategies to cope with reverse culture shock
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1. Resocialized returnees: attempt to fit back by ignoring or rejecting their experience abroad 2. Alienated Returnees: reject values of their own country, many simply wish to return to their adopted home 3. Proactive returnees: are convicted that they can manage to combine the two cultures, seek friends with similar experiences and want to make use of their new skills and knowlesge
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Trickle Down Effect of National Habitus
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In the past, the upper social strata of a society used to set the tone for what is morally and socially acceptable; lower classes would adopt their tastes and manners because of shame aspiration social pressure In the second half of the 20th century, this hierarchy of tastes disappeared and was replaced by an egalitarian ethos Egalitarian is not the same as equal: social differences remain, but they become more subtle!
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Drivers of Globalization
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Increased Customer Demands Increased Tech Innovation Growing role for emerging markets Increased use of shared R&D, global sourcing Increasingly global financial markets Evolving government trade policies but also, Ideology and Power Relations
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Is Globalization Fundamentally new?
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Some say: 'not at all, it is just a continuation or intensification of a trend that has been going on for centuries...' Others say: 'yes, there are simply too many aspects of present-day globalization that sets it apart from inter- and intra-national relations of earlier times...'
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Distinct Phases of Globalization
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Distinct phases of globalization: 1400-1900: relationships with other nations 1950s-60s: globalization of companies Now: globalization noticeable on an individual level: movement of labor, global workflow platforms From intermittent to continual change From isolation to interconnectedness From biculturalism to multiculturalism
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Thomas L Friedman: The World is Flat Richard Florida: The world is spikey
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'In terms of both sheer economic horsepower and cutting-edge innovation, surprisingly few regions truly matter in today's global economy. What's more, the tallest peaks - the cities and regions that drive the world economy - are growing ever higher, while the valleys mostly languish' - Florida Path-dependency: The current global infrastructure still reflects traditional colonial powers: because of France's former colonial influence in certain parts of Africa, AirFrance-KLM has a huge influence on the aviation market in North and West Africa
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The Location Paradox
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The resilience of highly specialized and/or knowledge-intensive regions in an age of globalization (Silicon Valley, the Milan/Paris fashion industry) In part because of simple agglomeration economics In part because of 'sticky' or 'tacit' knowledge A highly complicated infrastructure needs coordination; mostly happens in 'World Cities' or 'Global Cities' (Sassen 2001) States still matter; states as: Containers Regulators Competitors Collaborators
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Samuel Huntington's Clash of Civilizations (1993; 1996)
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Increased contact between civilizations leads to greater self-awareness of civilizations and greater anymosity between them With Western liberalism having triumphed, culture trumps ideology as a source of conflict Conflicts between civilizations will increase Increased contact between civilizations leads to greater self-awareness of civilizations and greater anymosity between them With Western liberalism having triumphed, culture trumps ideology as a source of conflict Conflicts between civilizations will increase [Cultural Divergence as a result of globalization]
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George Ritzer's McDonaldization thesis (2011)
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Overrationalization of all aspects of life, including social life out of a yearning for: Efficiency Calculability Predictability Control (see also: Disneyfication, Walmarting) [Cultural convergence as a result of globalization]
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Globalization: Greater individual independence or increased dependance?
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On the one hand, we are encouraged to pursue our individual interests, download the shows we like through Netflix, instantly communicate with the person of our choice wherever in the world through Whatsapp or Skype, order our stuff through eBay or Amazon, all without much intervention by third parties or participation in a public sphere On the other hand, in order to do this, we rely on an infrastructure (and sometimes feel helpless without it)
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Globalization: Level playing field or exploitation versus enrichment?
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People strengthened as well as limited in their mobility. On the one hand a global elite enjoying freedom, on the other hand have-nots (Bauman 1998) See also Sassen (2001) and her theory of the polarization of the job market in global cities However, empirical results are mixed: upgrading instead of polarization (Fainstein 2006 (2001)) and polarization not necessarily because of globalization (Van der Waal 2010)
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Globalists
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globalization is real and tangible; there is a new global structure with new rules Positive globalists: stretched social relations improving quality of life, raise living standards, multicultural understanding, development of new technologies Pessimistic globalists: world becomes less diverse and more homogeneous, dominance of the Global North, uneven development, pollution
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Inter-nationalists
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skeptical of globalization, disputing evidence of a fundamental shift, emphasize continuities, majority of economic and social activity regional
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Transformationalist
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while the form of global social relations does not display a significant shift, the characteristics are distinctive. Autonomy of nation-states constrained, but globalization not inevitable
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Glocal
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the local (contextual, situated) interpretation and translation of normative ideas, management practices, popular cultural imaginations, etc., circulating within and between different action nets'
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Multicultural Competence
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developing perspectives that stretch beyond domestic borders But: To which culture should we adapt? Many encounters happen on short notice Increasingly virtual
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Challenges for International Managers
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Develop a learning strategy to guide both short and long-term professional development as a global manager Develop a basic knowledge of how different cultures work, what makes them unique, and how managers can work successfully across such environments Develop effective strategies for working with managers from other cultures who may process information differently and view their roles and responsibilities in unfamiliar ways Develop an understanding of the competing interests and demands of various stakeholders in an organization, as well as the organizational processes necessary for achieving targeted outcomes Develop an understanding of how business enterprise can be organized differently across cultures, as well as the implications of these differences for management, cooperation, and competition Develop effective cross-cultural communication skills Develop an understanding of leadership processes across cultures, and how managers can work with others to achieve synergistic outcomes Develop a knowledge of how cultural differences can influence the nature and scope of employee motivation, as well as what global managers might do to enhance on-the-job participation and performance Develop effective negotiating skills and an ability to use these skills to build and sustain global partnerships Develop an understanding of how ethical and legal conflicts relate to managerial and organizational effectiveness, as well as how managers can work and manage in an ethical, fair, and socially responsible manner
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Gorgia's Challenge to Cross-Cultural Communication
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There is nothing Even if there was something, nothing could be known of it Even if something could be known, it couldn't be communicated Generally taken to mean (in reverse order) that what we say is true, inevitably distorts what we see, and what we see always misrepresents what there is. I.e. language, experience and being are inexorably incongruent.
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What counts as a good compromise?
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'Cultural logics' tend to posit different criteria to evaluate the quality of compromise: Is it in the content, the way it is reached or the context of the negotiation effort? Under pressure (of time) everybody reverts to their early ingrained habits
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Sequential Bargaining
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Agreeing on individual items of a contract in a numerical order, each agreement leads to the next one
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Holistic Bargaining
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Both parties negotiate the entire contract as a whole, moving back and forth across items until they are fully satisfied with the entire document
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Problem Solving Strategy of Bargaining
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Integrative result (win-win, cooperative)
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Competitive Strategy of Bargaining
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Distributive Result (zero sum, win-lose)
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Issues of Negotiation: Us vs Them
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Issues according to the Japanese Language and expectationHard to express themselvesWork ethic of SpaniardsExcessively long breaks Decision makingConsensual decision process to ensure broad supportStrict quality control on production and components Issues according to the Spaniards Language and expectationThey are "all business", No inter-personal relation, They look down on our customs Decision makingEndless rounds of discussion are not efficientSeniors should decide on their ownFlexibility in procurement
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Questions & Answers
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an integrative bargaining strategy of sharing information on preferences, priorities and interests, to reach mutually value-creating offers and joint gains
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Substantiations & OFfers
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a distributive bargaining strategy based on appeals to justification, duty (cold), threat and emotion (hot) underlying one's position, to motivate counterpart's concessions.
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Problem solving 'logics' or rationalities typically posit distictive criteria of:
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Relevancewhat counts as a legitimate issue or concern (e.g. insult) Qualityhow, by which method(s), are issues best settled (e.g. cost/benefit analysis) Successwhat counts as an acceptable solution (e.g. based on ethical standards)
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Problem of the Criterion
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Also known as the 'dialellus' or 'vicious circle' argument, this is one of the most wicked problems in philosophy "What do we know? How do we determine that?" In order to know what it is we know, we need a criterion (method), that allows us to separate all 'true' knowledge from all 'false beliefs' But in order to know whether such a criterion is valid, we need to know whether it succeeds in picking out all 'true' knowledge, for which we must already know what is true and what isn't.
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Repressed Knowedge
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The unconscious ground of our behavior and habits "Dirty secrets", the skeletons in our cupboards Ideologically or politically unwelcome knowledge
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Justified True Beleif
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Nonaka & Takeuchi (1995) define knowledge as "justified true belief" It can be either explicit (codified) or tacit (mental models and know-how). While tacit knowledge is uncodifiable, it can be shared interactively through metaphor in Communities of Practice For this to succeed members must be able to grasp the other's world "from within", i.e. gain emic insight!!
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Constraints to knowledge sharing in organizations("stickiness" and psychological distance):
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Ethnocentrism (regarding own knowledge as superior) Lack of a common language No clear goals for sharing knowledge or to innovate Dominant groups (HQ) ignore local thinking and attitudes
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Facilitators for knowledge sharing & transfer(absorptive capacity):
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Dominant groups do not impose their own thinking & values Long term commitment to learning and innovation Cross-border networking irrespective of hierarchies Trust and the ability to handle multicultural groups
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sources of conflict between different belief systems/cultures
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How conformity to a set of beliefs is socially sanctioned and reinforced (social rewards and practices of exclusion) i.e. how absorptive capacity is restricted in practice What determines the possibility of mutual understanding between members of different cultural backgrounds i.e. how 'psychological distance' can be reduced How language differences can be reconciled to foster successful cross-cultural communication i.e. which constraints exist in creating a 'new' language to overcome intercultural difference
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Lingua Franca
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Holden puts his faith primarily in developing a CCM 'lingua franca', an artificial common language that offers: A descriptive vocabulary for management tasks (SMART) A interactive instrument to facilitate networking A repository for (shared) company knowledge & vision and thus is able to overcome the diversity of local cultures by translating their "common knowledge" into this new language. As such it will contain: General cultural knowledge (explicit, free access, objective) Specific cultural knowledge (often tacit, subjective , peculiar to local sources, and as such in danger of losing accuracy of representation) Cross-cultural know-how (mostly tacit, interactive experience of knowledge sharing, passed on through socialization, promoting "participative competence" and learning)
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Translation of Cultural Knowledge
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Holden is well aware of the difficulties of translation: Translation is more than simply replacing words in one language with words in another; it is more than linguistic transcoding Translation entails integration of texts into a wider network of social relations; it is interactive
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Three Major constraints to successful knowledge transfer and translation
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Ambiguity:Multiple meanings in an original language should be tolerated, though they may not always be translatable, but ambiguity shouldn't be aggravated by the translation itself Interference: We should be careful not to impose our own linguistic and cultural background assumptions too much on the knowledge to be translated Lack of equivalence:Target languages may have no translational equivalents for certain expressions in a source language. But at least, through circumscription, we can try to "achieve harmonization of view, purpose and priorities" between languages in the translation effort
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Evans Pritchard's research with the Azande
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He claimed that the Azande culture of witchcraft is intellectually coherent ('rational'): cognitively: what counts as rational, is explained through 'knowledge' practically: whether something is true, is tested in practice Incongruences are also internally explained: Mistakes in rituals, interference of other witches (i.e. they have a theory of error) Some incongruences are simply ignored, declared irrelevant Pritchard presupposed: That 'rationality' is universal, i.e. culture independent That different frames of reference (languages) are always mutually translatable without change or loss of meaning
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Principle of Charity
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If we know, that someone holds a statement to be true and we suspect, that he does not speak the same language as we do, ... then we can only presume to understand him (as representative of another culture) by assuming that he roughly believes the same things we do (i.e.: that his convictions can be translated into our language)! So: "count him right in most matters"
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Paradigms
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[belief systems, frames of reference, world views When paradigms [belief systems, frames of reference, world views, &c.] enter, as they must, into a debate about paradigm choice, their role is necessarily circular. Each group uses its own paradigm to argue in that paradigm's defense." (Kuhn (1970) The Structure of scientific revolutions, p. 94) Why? Because paradigms consist of an "inextricable mixture" of: Legitimate questions and ways (methods) to resolve them Conceptual distinctions offering a language for thought & interaction Standards of relevance, quality and success to evaluate solutions As a result they are incommensurable, they have "no common measure": There is no impartial way to compare and evaluate their merits and claims to truth
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Paradigms cut up the world in different ways
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Meaning variance: they offer (largely incompatible) conceptual schemes that prefigure what our experiences may mean; they set our expectations of what the world may look like (and what people do within it) Standard variance: they provide (usually divergent) sets of standards to assess the relevance and quality of how we make successful sense of things, i.e. what counts as a good interpretation of things and events and how to act upon them Therefore when belief systems clash, there is no impartial way to compare them and resolve their disparity: Either we invoke standards that are incompatible with both systems Or we use standards that are essentially biased towards one of them (cf. Einstein)
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Shareholder v Stakeholder views of management
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Profit maximization (for whom?) v justice (for all?) (How) can these standards be reconciled or only compromised?
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Internal sources of conflict in organizations
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Sales v R&D: different perceptions of product quality HR v Finance: employees as a mere production resource (human capital) or aiming for self-actualization (Maslow)
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Translation Failure
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Incommensurable conceptual schemes cannot be translated into one another without change or loss of meaning Their networks of lexical relationships have different structures precluding straight-forward translation of expressions from one network into the other. Words attach differently to one another (meaning) and to the world (reference). As a result translation failure occurs: expressions in one language cannot be replaced with exactly co-referential expressions in another that completely preserve their meaning.
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Understanding must come first, because:
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We do not translate 'in our heads' when we converse with others in a foreign language; that would be far too laborious. If understanding required translation into a prior language, how could we acquire our 'first' language? We have no 'innate' grammar. We learn second languages just as children learn their first one, i.e. by direct immersion; and as we do so, we actually become bi-lingual. You can only (try to) translate a foreign expression, when you first understand what it means; but hypotheses about what something means are not translations and translation does not have to succeed.
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what happens when we compare/evaluate the knowledge claims of one belief system with the standards of another?
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Standards and knowledge constitute mutually reinforcing, self-justifying systems As such standards will inevitable be partial (biased) to the knowledge they were designed to justify No two incommensurable belief systems can be mediated by a third one that is compatible with both (i.e. there is no neutral language)
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In the comparison of rivalling belief systems there is no recourse to a universal set of values to evaluate them:
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Standards of different systems differ in their legitimacy, relative priority and concrete application; there is no universal or impartial standard to dictate what we should believe or do Evaluation is not a trade-off: there will always remain good reasons for the choice options we reject, i.e. there is no lack but an abundance of legitimate reasons for choice, even if they contradict one another There even is no universal concept of rationality to help us out here: incommensurability of values is not the absence of rationality, but its direct product (deriving from the self-awareness of knowledge). Reason leaves us free to choose, although such choice is never indifferent.
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Zizek on Communication: Becoming a cultural chameleon
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You can only understand others to the extent that you do NOT under-stand yourself Use your own internal ambivalence to choose your cultural 'color' and open up to others Detachment, not identification, is the road to cross-cultural heaven In any case face the dilemma, what specific expectations (cognitive or moral) require you to do concretely. There is no recipe!
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Organization
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a system of consciously coordinated activities of two or more people aiming to achieve common objectives (Chester Barnard)
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Investor Model of Organization
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Mastery Oriented Powerful CEO Fluid Organization Design Low Job Security
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Family Model of Chinese Gong-si
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Flat organization Structure with family owner-managers Guanxi Network - mutual exchange relationships Face or requirement of personal and public respect Rank or strong seniority system Harmony Oriented
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Network model of Japanese Keiretsu
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Internal or self-financing Strong treading companies Relatively weak executives Long term employees, high job security Enterprise or company unions
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Mutual Benefit Model of a German Konzern
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Supervisory and Management boards Codetermination and works councils Mesiter or master technicians Technik
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Employee Involvement in Managerial Decision Making
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Centralized: manager may not seek employee involvement and will then make the decision largely unilaterally (US, UK, China, Mexico) Consultative: manager will actively seek employee involvement and input, discuss issues with others, and then make the decision (Japan) Collaborative: manager will work closely with employees at all levels to seek a consensus decision if possible (Germany, Netherlands, Scandinavia)
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Action plans for working with global organizations
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1. Understand the relationships between stakeholders, strategies, and structures 2. Understand the characteristics of local work environment 3. Learn about other organizations by better understanding your own
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Basic forms of organizations:
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steep pyramids, flat networks, flexible clusters, cloudy plots
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Psychological Contracts
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Work related mutual expectations that are largely tacit and unwritten understandings of what one is supposed to do People tend to fill in the blanks on such things as deadlines, fairness, performance, independence, team consultation etc. from the background of what they're used to Ties into positive, skill based team culture and work methods
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Interactions between Team Roles
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Balancing tasks, people and ideas are key to team success. Pay attention to and monitor team vulnerabilities (blind spots) Amongst business students shapers, coordinators and investigators seem to be the most commonly preferred team roles Plants, completers and team workers generally are the least common Especially in cross-cultural contexts team workers are important to create trust and keep everyone on board See where your team strengths and vulnerabilities lie; a questionnaire is available on BB
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Weber's sources of legitimate power
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Charismatic (archaic)based on personal excellence of character and virtue, "grace" Traditional (feudal)patrimonial, often hereditary basis of social inequality, communitarian Legal/rational (modern)bureaucratic, rule based exercise of functional superiority
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Giorgio Agamben (1995) Homo Sacer, sovereign power and bare life
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Italian philosopher and classicist Most notorious for his claim that a straight line can be drawn from the French Revolution (the institution of popular sovereignty) to the death camps of the Nazi Reich and beyond to our days
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The logic of the exception
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Karl Schmitt: "Sovereign is who decides on the state of exception (Ausnahme)" the decision in its purest form: the institution/suspension of the rule of law An exception is a case from which the rule of law withdraws ("abandon", outlaw) but still retains a relation to through its suspension (an inclusive exclusion)
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Biopolitics
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Agamben picks up the thesis of Foucault, according to which politics in the modern age has increasingly turned into bio-politics and thanato-politics (a politics of life and death). The French Revolution for the first time in history turned the 'bare life' of the citizen into an object of political decision ('bio-politics') The Déclaration des Droits de l'Homme et du Citoyen granted people inalienable birth rights, but almost immediately excludes groups of people (children, women, criminals, the insane, foreigners) from 'active citizenship' that can have no influence on the 'public interest' (Sieyès) . Who belongs to 'the people' of a nation, thus becomes a political issue that blurs the boundary between 'democracy' and 'totalitarianism'. Civil rights have to be 'earned' and can be 'revoked' (most European nations issued such laws in the early 20th century). Once revoked you are at the 'mercy' of the law.
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Homo Sacer
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"he who can be killed with impunity but may not be sacrificed" The Roman category of law of the bandito (outlaw), who neither fell under civil nor divine law As such he has no qualified life as citizen ( bios ), but only his 'bare life' ( zoè ) counts before the court
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Sovereignty
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basically is a (con)fusion of power and authority into one person or institutional body (the executive) In the Roman Republic power (potestas, imperium) and authority (auctoritas) were separate. Power belonged to the Consuls or the people, authority to the Senate Authority originally referred to the capacity of the Senate to grant validity to the acts and policies of the Consul or Comitia When this validity was refused, the consul lost legitimacy (dictatorship) With the transition to the Roman Principate (Augustus) the emperor appropriated the authority of the Senate As a result there was no longer a check on the acts of the ruler and his power became absolute
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There is a remarkable historical similarity across cultures regarding the separation of power and authority
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In imperial China the emperors derived their legitimacy from the Mandate of Heaven, which was guarded by the Confusian Junzi, men of virtue, often part of the civil service, supporting imperial rule. In Islamic doctrine the Caliph derived his authority from the Qur'an through the mediation of the 'Ulama, theological experts in the interpretation of the scriptures
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Recently Agamben shifted his attention to the enigma of how sovereignty, authority and power are actually exercised
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The enigmatic nature of authority, the foundation of normative validity, is explained through the history of logic In his work De Interpretatione Aristotle basically limited the field of logic to statements that can be true or false; the had to be apophantic (truth-revealing) But a large part of human discourse is non-apophantic, e.g. commands, orders, requests, appeals, recommendations etc. cannot be either true or false According to Agamben the have a different ontology: Apophantic statements constitute a relationship between language and reality in which what is said has to conform to reality ('is') In non-apophantic utterances this relationship is turned around; basically they appeal to reality to conform to language ('be!')
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Apophantic Statement
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constitute a relationship between language and reality in which what is said has to conform to reality ('is') In non-apophantic utterances this relationship is turned around; basically they appeal to reality to conform to language ('be!')
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Speech Acts
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In modern linguistics non-apophantic utterances are studied primarily in speech act theory (Austen, Searle) Speech acts are forms of social interaction that take place uniquely through the exercise of language Their essence lies not in the propositional content of what is said (the locution), but in their communicative force (illocution), i.e. in what they intend Leadership is mostly expressed through non-assertive speech acts
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Types of illocutionary acts
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Assertives (statements)asserting, stating, believing, knowing, denying, concluding, predicting, etc. Directives (appeals)asking, requesting, pleading, ordering, challenging, advising, inviting, etc. Commissives (obligations)promising, swearing, ensuring, etc. Expressives (emotions)apologizing, congratulating, thanking, abhorring, regretting, complaining, etc. Declaratives (rulings)declaring, appointing, judging, deciding, etc.
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Concepts
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are mobilized in political contexts (they distribute power and status) - this process warrants researcher's attention Concepts from the social sciences influence everyday understandings people have of themselves and the worlds they inhabit Concepts may seek to describe what is going on, but they also actively contribute to people's self-understanding Performative: Statement that aims to bring about what it represents as actual ("I hereby declare you husband and wife") Concepts may materialize through internalization - they are incorporated in "native's point of view" Etic categories (social science concepts) become emic classifications
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National Culture - Critiques (Hofstede Effect)
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Nation as unit of culture -> naturalized Unchanging. Internal conflict & pol/soc/organizational change absent No individual agency (collective programming) No context - but these concepts are deployed in particular soc/pol context Values are not neutral + take into account effects of its own representation Culture often used to naturalize selves (positively) and discipline others (or exclude them as deviants)
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Socially situated use of concepts
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Constructed: Concept as shifting constructs Strategic: Specific interests involved in their employment (n.b. power asymmetries) Situated: In certain moment/certain settings
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Capitalism
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Central features: wage-labor, competition, private property, capital accumulation, technical process, commodification of social activities. It transforms continuously -> highly variable over time/space Spirit/culture of Capitalism Justifies commitment to capitalism Makes it attractive
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Critical Discourse Analysis
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Critical Discourse Analysis: Discourse ∞ Social Actvity Discourse/Semiosis = meaning making Figures as part of social activities (use of language by manager) Figures in (self)representations of social activities Figures in ways of being, constitution of identities CDA: Dominance/power configuration: e.g. fact that this course may be considered 'marginal', or 'core course' at RSM is not a natural, God-given order of things
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Audit Culture
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Audit culture. Documents the management of diversity Bureaucratization of diversity (Mirza 2005) Diversity as (measurable, auditable) performance indicator Paper trail demonstrates "evidence of system" Documentation is way in which organization performs an image of itself, and it is a way in which organization performs in the sense of "doing well" (594) Doing well: something that can be ticked, measured, distributed and shared (595)
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The paradoxical effects of documentation
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A document that documented the racism of the organization became usable as a measure of good performance. (597) Its very existence is taken as evidence that the institutional world documented by the document (racism, inequality, injustice) has been overcome (597) Document works to conceal the very inequalities that the document was written to reveal (597) Being good at writing documents becomes a competency that is also an obstacle for diversity work, as it means that the organization gets judged as good because of the document (598) Danger: writing documents or having good policies becomes a substitute for action (599) Document can block action, insofar as the document then gets taken up as evidence that we have 'done it'. (599) Hence, statement of commitment can block action by constructing the organization as 'already committed' or behind X (603) Through such documents, organizations are constituted as if they have these qualities (603)
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Rebranding and its effects
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Diversity's' appeal: change in appearance, but does not necessarily challenge organizational culture Critical management scholars on managerial focus on diversity: individuates difference conceals continuation of systematic inequalities within organizations What does word 'diversity' do? Image management: Diversity work changes perceptions of whiteness rather than the whiteness of organizations (605) Documents create fantasy images of the organizations they describe. The document says 'we are diverse', as if saying it makes it so (607) Strategy: refuse to read such documents as doing what they say (607) Use the documents to 'show' the gap between what organizations 'do do' what they 'say they do' (or how they appear)(607)
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Concept of Creatvity
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Another seemingly commonsensical, positive concept Part of inspirational discourse of third spirit of capitalism The appreciation of creative, loose thought has a history too...
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The power of concepts
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Concepts may seem commonsensical, unchanging, ahistorical When concepts are part of common-sense, they have the most effect Why study concepts? Concepts from the social sciences influence everyday understandings people have of themselves and the worlds they inhabit (culture) Thesis: Concepts are mobilized (implicitly or explicitly) in political contexts Look at the socially situated use of concepts: Constructed: Concept as shifting constructs Strategic: Specific interests involved in their employment Situated: In certain moment/certain settings Historicize!
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Real Cosmopolitanism
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Referring to the dramatic split in the age of "real socialism" between socialist ideology and the dismal reality of socialist life
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Is Cosmopolitanism going in the same direction?
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Portraying a world of boundless travel, choice of living and immediate contact between people all around the globe But meanwhile erecting "gated communities" to exclude the Multitude from participation Or confining them to their own banlieues, favelas and ghettos
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Next to the already mentioned 'self-fulfilling' character of ideologies (the chicken problem) I want to stress three aspects that clarify the way ideology functions:
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Fetishistic illusion Attributing "sacred" powers to things, speech, actions Ideological fantasy Establishing the role of the individual in society Freedom as forced choice Curtailing choice options
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Science of Ideas
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Destutt de Tracy, depute to the General Assembly in revolutionary France, coined the term in a book Éléments d'Idéologie (1804) for a Science of Ideas, a meta-science for the study of all sciences, to establish the genealogy and legitimacy of their ideas (whether or not they were rooted in objective facts).
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Commodity Fetishism
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Marx associated the concept with commodity fetishism -the worship of wealth over social relationships- in which people manifest a distorted consciousness, to be corrected by objective knowledge. The universal fetishistic formula in ideology: "I know very well that [there is nothing magical about red shoes], but still [I cannot resist them]" "I know very well that money is an expression of social relations, but still I treat it as if it were an embodiment of wealth in itself" "I know very well that our consumption patterns are unsustainable, but still ..."
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Taboo
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The concept of taboo is closely associated with that of the idol and the fetish; the attribution of some "sacred power" to things or values Tetlock (2003): the taboo on the secular trade-off of sacred values Value incommensurability is met with strong moral indignation E.g. you don't swap life for money (the Hospital experiment); even pondering such trade-offs is considered morally reprehensible But consider the history of "human capital"-theory (Foucault, Agamben) Or the taboo on contesting growth in CSR discourse (Kallio, 2007) The most prominent taboo in our time (according to Žižek) is the taboo on unhappiness (the hedonist imperative): Enjoy! Associated with the widespread contemporary notion that when you are unhappy you can only have yourself to blame
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Ideological Fantasy
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Fantasy teaches us how to desire" It is not a personal idiosyncratic craving for something (e.g. eating strawberry cake), but is fundamentally relational The question of the individual directed at society: "Che vuoi?" ("What do you want from me?", "Who do you want me to be?", "Why am I who you say that I am?") I.e. what is the mandate, place or role of the individual in society; this is the question ideologies answer Fukuyama: from now on the only option is to be a "full-fledged consumerist" Fantasy always hides the trauma (lack, guilt) of the individual not knowing their place in society to begin with ("not being at home in this world")
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The open society and its enemies (popper, 1943)
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Popper transfers his notion of falsificationism (the fallibility of knowledge) to the realm of politics Against Plato's cycle of political regimes, he argues that democracy (the "open" society) has always been misunderstood: Not a right of the people to choose their leaders, but the power to replace them! Which requires open, critical discussion (the courage to learn from one's mistakes)
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Piecemeal Social Engineering
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The fallibility of knowledge demands caution in its application (incrementalism) Social engineering = applying non-refuted hypothetical social scientific and economic knowledge to address political and economic problems Piecemeal = no overambitious pretentions, but small step-by-step change Planned economies, based on elaborate blueprints of society and organizations, according to Popper are doomed to fail Political science = "the science of muddling through" (Lindblom)(Note the stark contrast with management science!)
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Two faces of the Open Society
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Anti-bureacratic thinking Neo-institutional control The open society is constructed on the imaginary fantasy of being able to suture the wound of social antagonism (the lack of Harmony) in society (the symbolic order, the "Big Other"). As such the Open Society is itself ideologically closed as well, sustaining the hegemony of global capitalism:
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Anti-bureaucratic thinking
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In politics: neo-conservatism, aggressive normative control (Bush) In business: culture management, glorification of charismatic leadership and entrepreneurship (Tom Peters)
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Neo-Institional Control
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In politics: institutional controls to protect democratic capitalism and pluralism In business: corporate governance to counter the excesses and scandals of Capitalism (Armbrüster)
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The Forced Choice
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Through Marketing and Public Relations liberal-democratic society offers us a deluge of options to choose from Still, the coordinates of this freedom of choice themselves are not transparent Thus freedom is presented as a forced choice: do not think to step outside the confines of the options offered
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The Curtailment of Imagination
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Edward Bernays, nephew of Sigmund Freud, became one of the most influential figures of 20th century politics and business To "Make The World Safe For Democracy" the desires, values and opinions of the masses had to be carefully channeled through a "secret government" to avoid the explosion of irrationalism in society He was one of the founding members of the Council of Foreign Relations To his admirers belonged Joseph Goebbels and Benito Mussolini The applied discipline of Marketing is a direct extension of propaganda, the embodiment of the "secret government" Bernays had in mind
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Neoliberalism
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the first instance a theory of political economic practices that proposes that human well-being can best be advanced by liberating individual entrepreneurial freedoms and skills within an institutional framework characterized by strong private property rights, free markets, and free trade. The role of the state is to create and preserve an institutional framework appropriate to such practices. Neoliberalism has become so pervasive that most of its core tenets might seem truisms to those of you raised in the West. Here is one oft-invoked neoliberal trope: The idea that, for governments, budgettary discipline is of utmost importance
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Public vs. Private Sector
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In her book The Entrepeneurial State, Mariana Mazzucato criticizes the oft-used dichotomy of state and private enterprise: Products that seem the result of entrepeneurial individuals and companies (for instance, Steve Jobs'/Apple's iPhone) in fact rely on technologies made possible by long-term public investment In that light, the idea that the state should 'stay out' of the private sector in order to make innovation happen is problematic
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Truism: Innovation = Good
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Using the common definition of innovation (an incremental or radical change to or a new product or service leading to increased customer satisfaction), we can ask ourselves: Who are the customers? Are there other stakeholders besides customers? Does it make a difference to focus on long-term satisfaction instead of short-term customer satisfaction? What is the product's influence on society-as-a-whole?
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The Knowledge Economy
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In A Stupidity-Based Theory of Organization, Mats Alvesson and Andre Spicer question the assumption that sophisticated thinking and use of advanced knowledge are a core characteristics of many contemporary organizations 'Functional stupidity is organizationally-supported lack of reflexivity, substantive reasoning, and justification. It entails a refusal to use intellectual resources outside a narrow and 'safe' terrain. It can provide a sense of certainty that allows organizations to function smoothly. This can save the organization and its members from the frictions provoked by doubt and reflection.'
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The fast-changing international environment
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In The Rise and Fall of American Growth, Robert Gordon claims that despite all the talk about 'disruption', 'constant flux' and so on... ...innovation and growth in the US and other nations has been relatively stable over the past 40 years or so. Although we see current technological innovations as pretty radical, the most influential developments have been in: Electricity Urban sanitation Chemicals and pharmaceuticals The internal combustion engine Modern communication
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Trickle-down economics
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lol
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The flexible labor market
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In Good Jobs, Bad Jobs, Arne Kalleberg argues that, although in general we are more skilled than ever... ...polarization in terms of earnings, but also in job-satisfaction and autonomy between low- and high-skilled workers ...especially lower-skilled work is now more precarious and less secure ...the social contract between employers and employees has been broken ...many people now work in so-called 'secondary labor markets' ...job satisfaction/satisfaction with the intrinsic aspects of work is lower
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Technological solutionism
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In To Save Everything, Click Here, Evgeny Morozov challenges the idea that... ...technology has all the answers to society's wicked problems ...traditional institutions and politics are too hypocritical, corrupt, bureaucratic to deal with these problems efficiently and therefore, they need to be replaced by technological innovations
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Overton Window of Political Opportunites
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Policy that is not too radical, in between more/no freedom In 1971, this was in the VVD (conservative liberals) political manifesto: Material security requires social justice Our society has the duty to care for those of us who make too little money to make ends meet We want to structurally increase unemployment benefits This was in the most recent political manifesto of the PvdA (labour party): In order for the economy to recover, budget cuts are inevitable
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Orientalism
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In Orientalism, Edward Said (2003) criticizes innacurate and simplistic representations of 'the East' by Western scholars Until this day, Western scholars treat non-Western societies as backwards or 'not there yet', often unwilling to face up to Western civilization's own shortcomings The current cultural and economic hegemony(?) is projected on history, arguing that 'we' went through enlightenment, and that, for instance, Arab countries are lagging in their development But 'our' current economic hegemony is relatively recent and while 'we' in the West were culturally stagnant in Medieval times, Arab scholars were translating and re-interpreting the works of ancient scholars, spawning intellectuals like Averroes, al-Khwarizmi, Alhazen and Ibn Khaldun