Cross Cultural Management

Edward B. Tylor
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

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

3 Phases of Globalization
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!
Global Workflow
because of globalization and fast and cheaper telecommunications, companies are able to create this, where quality can be reached at lower costs through outsourcing
Main Drivers for Globalization
-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
Dark side of the Global Landscape
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

Three main changes can be identified in the global environment:
-The evolution from intermittent to continual change
-From isolation to increasing interconnectedness
-From biculturalism to multiculturalism
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.

Social Construction
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.

(19th Century, Colonial Expansion)(Tylor, Spencer):: ethnocentric, determinism, social Darwinism; based on ‘armchair research’, data supplied by amateur-adventurers
Structural Functionism
(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
Historical Particularism
(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
Cultural ecology, conflict and interaction
Neo Evolutionism(1950-1990 US/UK)
environmental determinants of cultural development, emphasis on change and conflict, ‘etic’ without ethnocentrism
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)
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
Organizational Culture
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

Ruth Benedict
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’?)
Guilt and Shame Cultures
Guilt and shame as instruments of social control exist in all cultures but will receive different emphasis
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)
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)
Guilt Cultures
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)
Shame Cultures Tend to:
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)
Emic Insight
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

Evans-Pritchard and the Nuer
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

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

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

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

Epistemological Quandaries of Social Studies
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?)
Clifford Geertz
) 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

Three Ethnographic Fallacies:
Behavioral Ethnography cannot be reduced to brute behavior (no natural laboratory of life) Understanding ≠ mimicry
Idealist Cultural analysis does not aim for “super-organic” mental schemes Ethnography ≠ mind reading
Cognitivist Culture is not a monolithic logical cognitive structure to be analyzed, i.e. knowing how to wink is not winking Meaning ≠ an abstract algorithm
For cultural analysis to be useful, to “follow what is going on” in a situation and “enlarge the scope of discourse” ethnography should:
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
Etic Research
‘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.’
Concept of Culture in Etic CCM Research
‘the collective programming of the mind that distinguishes the members of one group or category of people from others’
Goal of Management
to achieve efficiency for the organization’s objectives
Industrial Psychology
a new discipline outlined as an intermediate between psychology and economics, researched by Hugo Munsterburg
the most perfect form of an organization, Max Weber coined the term
Ten basic managerial roles
figurehead, leader, liaison, monitor, disseminator, spokesperson, entrepreneur, disturbance handler, resource allocator and negotiator
Three Categories of Managerial Roles
1. Interpersonal Role
2. Informational Role
3. Decisional Role
Interpersonal Role
building and leading effective groups & organizations
Informational Role
collecting, organizing, disseminating useful information in a timely fashion
Decisional Role
strategies and tactics
What 2 questions do you ask for managers to be successful when trying to learn about the local environment?
How does the definition of management differ within different cultures?
How can we change towards the expectation, if this is possible at all
Andre Laurent Study Findings:
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
Rob Coffee and Gareth Jones findings:
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
Global Manager
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

Three types of global managers
The expatriate
The frequent flyer
the virtual manager
The expatriate
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

The frequent flyer
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
The virtual manager
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

The Telecommuter
type of virtual manager
works from home with the help of technology and telecommunications
The digital nomad
type of virtual manager
works from different countries depending on their current work task and locaiton
Global Management Myopia
when a manager fails to see one or more of the company’s larger goals and objectives
3 Major types of Global Management Mypopia
Regional Myopia
Global Myopia
Technological Myopia
Regional Myopia
when expatriates focus too much on one specific country or region, and are facing the risk of losing the big picture of the company
Global Myopia
when frequent flyers focus too much on the global perspective and lose the local or regional focus of the company
Technological Myopia
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
Global Management Skills
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

Three main characteristics of culture, of high importance for global managers:
-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
Normative Behavior
culture influences the normative behavior or individuals: it sets limits on what is accepted and unaccepted behavior
GLOBE Cultural dimensions
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

Hofstede Cultural Dimensions
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

Hall Cultural Dimensions
Context, space, time
Trompenaars Cultural Dimensions
Universalism/particularism, individualism/collectivism, specific/diffuse, neutral/affective, achievement/ascription, time perspective, relationship with the environment

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

Culture Theory Jungle
managerial dilemmas that result from managers having to decide which cultural dimension model will serve their organization best
Five main questions concerning global managers concerning cultural dimensions
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
9 major country clusters
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
5 cultural complexities and contradictions that are found in various degrees in most cultures:
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
Institutional Environment
consists of the legal-political environment
culture and institutional environments are frequently mutually reinforncing
Power Distance
: 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
Uncertainty Avoidance
the extent to which one adheres to and relies on rules and procedures
Humane Orientation
the extent to which fair, altruistic, generous and kind behavior is rewarded and encouraged
Collectivism I (institutional)
the extent to which organizational and societal practices are in place that encourage and reward collective action and resource distribution
Collectivism II (in-group)
the extent to which individuals take pride in and are loyal to their organizations and/or families
the degree to which individuals are assertive/confrontational/aggressive in relationships with others
Gender Egalitarianism
the degree to which gender equality is pursued
Future Orientation
: the extent to which one is involved in future-oriented behavior
Performance Orientation
the extent to which individual performance and excellence is rewarded
Nordic Europe Cluster (GLOBE)
High on Future Orientation, Gender Egalitarianism, Collectivism I, Uncertainty Avoidance
Germanic Europe Cluster (GLOBE)
High on Assertiveness, Future Orientation, Performance Orientation, Uncertainty Avoidance
Low on Humane Orientation, Collectivism I & II
Anglo Cluster (GLOBE)
High on Performance Orientation
Low on In-Group Collectivism
Latin Europe Cluster (GLOBE)
Low on Humane Orientation and Collectivism I
Medium on other dimensions
Latin America Cluster (GLOBE)
High on Collectivism II
Low on Future Orientation, Institutional Collectivism, Performance Orientation, Uncertainty Avoidance
Eastern Europe Cluster (GLOBE)
High on Assertiveness, Gender Egalitairianism, Collectivism II
Low on Future Orientation, Performance Orienntation, Unicertainty Avoidance
Middle East Cluster (GLOBE)
High on Collectivism II
Low on Future Orientation, Gender Egalitarianism, Uncertainty Avoidance
Confucian Asia Cluster (GLOBE)
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
Cultural Membership
Membership of culture covaries with other phenomena and is ‘bundled’ together with other variables
Geertz Definition of Culture
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.”
Criticism of Hofstede
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 (, 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

[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
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

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:

Why is Hofstede still dominant in cross-cultural management, research, and training?
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
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)

National Habitus
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

Figurational Process Sociology
Form of sociology concerned with historical or long-term processes
National Habitus Formation
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:
Fear of exclusion
Sometimes enforced or imposed, sometimes not

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!

National Habitus Decline
Increasing Interdependence
This process has continued, but now transcends state borders
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

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

National Habitus: In Sum
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

In order for managers to understand as much as possible about the organizational environment, they must ask four important organization specific questions:
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?
Global Strategy
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
Globally operating firms must deal with two opposing forces:
-Pressures for cost reduction
-Pressures for local adaptation
AAA Strategic triangle
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

Adaptation Strategy
adjust products to fit local environments
Aggregation Strategy
achieve economies of scale by standardizing products or services
Arbitrage Strategy
locating different parts of the supply chain to difference places (international specialization)
Domestic Organizational Design
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
Global Organization Design
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

Global Product
Basis of Organization: Worldwide responsibility for specific product groups assigned to different global operating units
Global Area Design
Basis of Organization: Geographic regions of the world
Global function
Basis of Organization: functional areas
Global Customers
Basis of Organization: unique needs of customers
Global Matrix
Basis of Organization: Combination of two global designs
Global Netowkr
Basis of Organization: loosely coupled groups and teams
The global design chosen should support the integration of four types of strategic information, namely:
Area Knowledge
Product Knowledge
Functional Knowledge
Customer Knowledge
Area Knowledge
Understanding local area’s culture, economics, social status
Product Knowledge
Understanding local area’s culture, economics, social conditions
Functional Knowledge
Local access to expertise in the various functional areas of business
Customer Knowledge
Understanding of particular customer needs
Hybrid Organization Design
some companies might want to develop their own design to suit their own unique needs
Regional Organizational Models
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

Investor Models
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:
Powerful CEO’s
Fluid organization design
Low job security

This model is mostly found in the Anglo cluster

Family Model
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
family management
business as a private property
Family revenue

Network Model
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

Mutual Benefit Models
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

Employee Decision Strategies
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

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

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

Edgar Schein: Framework to identify the organizational culture a manager is dealing with
-Artifacts and behaviors
-Power distribution
-Problem-solving mechanisms
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

Basic cognitive processes contain 3 aspects
Attention: perpetual selection
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
Cognitive Schemas
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.

Information acquisition, retention, and recall
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

Categorization of Information
a step of the cognitive process

-this step in the process varies within cultures

Assessment, reasoning and learning
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

very important when looking at the situational environment

Includes geographic location as well as its characteristics.
Location often influences the language used during conversation

Goals – “where are you going”
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?
Location of the assignment:
Affects the frames of reference, stress levels, and topics of conversation (a conversation in an office is different than one in a cafe)
Language – in – use
speaking the local language enhances mutual understanding
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

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

There are two important things when you want to get clear messages across:

Shown how these concepts affect communication using the attention-interpretation-message (AIM) Model

Attention-Interpretation-Message Model
(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.

Culturally mediated cognitions in communication:
A cultural lense

How are people and messages evaluated and processed in the minds of the receivers?

Culturally mediated communication protocols:
A cultural lense

How do we build up our messages in ways that are meaningful to us and hopefully not problematic for our receivers?

Four widely used culturally mediated cognitions
Language and Linguistic structures
Selective Perception
Cognitive Evaluation
Cultural Logic
Language and Linguistic Structures
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

Selective Perception
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

Cognitive Evaluation
Attaching meaning to messages
If information is consistent within their own culture

Norm of authenticity: what you say is what you feel

Cultural Logic
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

Communication Protocols
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

Topics for Discussion
can be difficult to decide what is an acceptable topic
Silent Language
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

Preparation for Negotiation
1. Select the right partner
2. Develop a negotiating strategy
3. Manage the negotiation process
Selecting the Right Partner: 5 key success factors
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
Negotiating Strategy: 5 basic approaches
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
Negotiation: Competitive vs. problem-solving strategies
Look at pg 22 of book summary
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

5 Process Strategies to Deal with conflicts

All 5 vary in their usefulness depending on the importance of the relationship vs importance of the outcome
Compromise is in the middle

Mutual Trust
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
Doctrine of Changed Circumstances
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

Essence of Leadership Assumptions:
1. Universal Approach
2. Normative Approach
3. Contingency Approach
Universal approach
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

Normative Approach
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

Global Mindset
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

Contingency Approach
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

Limitations on these leadership models
the meaning of leadership as a cultural construct

the variations in local expectations regarding leader behavior

GLOBE Leadership Study
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

GLOBE Leadership Dimensions
Charismatic/Value Based

Charismatic/Team-Oriented are found in all country clusters, where the other 4 are culturally contingent

Four key GLOBE attributes that characterize ethical leadership
Character & Integrity
Collective Motivation
Work Values
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
Psychological Contract
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

what people appreciate as hard work and what they don’t
Equity Principle
raises motivation in people to restore equity between themselves and the people they compare themselves to
Two cultural limitations in the acceptable actions of managers and employees
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

Incentives and Rewards: 2 types
Intrinsic and Extrinsic
Extrinsic Rewards/Punishments
a result of good/poor performance

salaries, bonuses, benefits, job security

Intrinsic Rewards
a result of satisfactory performance, largely self administered
pride, satisfactoin
Distributive Justice
emphasizes success of group, focuses on group achievements as equally between people not really individualistic
Employee Benefits
study local customers and match corporate benefits to local conditions
Global Team
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

Limitations of a Virtual Team
– Lack of mutual knowledge and context
-Over dependence on technology
-Loss of Useful details (body language)
When managing and organizing globally, two factors are important:
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

Task Mangement
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

Process Management
Clarify the

Team Building
Communication patterns [work language, technologies used for communication]
Participation [everyone needs to have a voice]
Conflict Resolution
Performance Evaluation

Building a successful Team
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
When building mutual trust we can ask ourselves two questions
What is the process by which trust between team members is developed
what can team members do to facilitate or enhance trust over time
Trust Cycle
Trust expectations -> Trust Judgment -> Trust behaviors -> Trust related outcomes
Cultural Friction
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

Psychological Adjustment
Culture shock

4 stages

Initial Adaptation
Adaptation and Biculturalism

Acculturation vs Deculturation
the acquisition of new habits and the unlearning of some old ones
Three main stages of Acculturation
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
Reverse Culture Shock
resulting from dissatisfaction with the job or with the old way of life in the home country
some can feel bored or demotivated
Three Strategies to cope with reverse culture shock
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
Trickle Down Effect of National Habitus
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
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!
Drivers of Globalization
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

Is Globalization Fundamentally new?
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…’

Distinct Phases of Globalization
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

Thomas L Friedman: The World is Flat

Richard Florida: The world is spikey

‘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

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

The Location Paradox
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:

Samuel Huntington’s Clash of Civilizations (1993; 1996)
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]
George Ritzer’s McDonaldization thesis (2011)
Overrationalization of all aspects of life, including social life out of a yearning for:

(see also: Disneyfication, Walmarting)
[Cultural convergence as a result of globalization]

Globalization: Greater individual independence or increased dependance?
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)
Globalization: Level playing field or exploitation versus enrichment?
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)
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

skeptical of globalization, disputing evidence of a fundamental shift, emphasize continuities, majority of economic and social activity regional
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
the local (contextual, situated) interpretation and translation of normative ideas, management practices, popular cultural imaginations, etc., circulating within and between different action nets’
Multicultural Competence
developing perspectives that stretch beyond domestic borders
To which culture should we adapt?
Many encounters happen on short notice
Increasingly virtual
Challenges for International Managers
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
Gorgia’s Challenge to Cross-Cultural Communication
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.

What counts as a good compromise?
‘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
Sequential Bargaining
Agreeing on individual items of a contract in a numerical order, each agreement leads to the next one
Holistic Bargaining
Both parties negotiate the entire contract as a whole, moving back and forth across items until they are fully satisfied with the entire document
Problem Solving Strategy of Bargaining
Integrative result (win-win, cooperative)
Competitive Strategy of Bargaining
Distributive Result (zero sum, win-lose)
Issues of Negotiation: Us vs Them
Issues according to the Japanese
Language and expectation Hard to express themselves Work ethic of Spaniards Excessively long breaks
Decision making Consensual decision process to ensure broad support Strict quality control on production and components

Issues according to the Spaniards
Language and expectation They are “all business”, No inter-personal relation, They look down on our customs
Decision making Endless rounds of discussion are not efficient Seniors should decide on their own Flexibility in procurement

Questions & Answers
an integrative bargaining strategy of sharing information on preferences, priorities and interests, to reach mutually value-creating offers and joint gains
Substantiations & OFfers
a distributive bargaining strategy based on appeals to justification, duty (cold), threat and emotion (hot) underlying one’s position, to motivate counterpart’s concessions.
Problem solving ‘logics’ or rationalities typically posit distictive criteria of:
Relevance what counts as a legitimate issue or concern (e.g. insult)
Quality how, by which method(s), are issues best settled (e.g. cost/benefit analysis)
Success what counts as an acceptable solution (e.g. based on ethical standards)
Problem of the Criterion
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.

Repressed Knowedge
The unconscious ground of our behavior and habits
“Dirty secrets”, the skeletons in our cupboards
Ideologically or politically unwelcome knowledge
Justified True Beleif
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!!
Constraints to knowledge sharing in organizations (“stickiness” and psychological distance):
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
Facilitators for knowledge sharing & transfer (absorptive capacity):
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
sources of conflict between different belief systems/cultures
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
Lingua Franca
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)

Translation of Cultural Knowledge
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
Three Major constraints to successful knowledge transfer and translation
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

Evans Pritchard’s research with the Azande
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

Principle of Charity
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”
[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

Paradigms cut up the world in different ways
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)
Shareholder v Stakeholder views of management
Profit maximization (for whom?) v justice (for all?)
(How) can these standards be reconciled or only compromised?
Internal sources of conflict in organizations
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)
Translation Failure
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.
Understanding must come first, because:
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.
what happens when we compare/evaluate the knowledge claims of one belief system with the standards of another?
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)
In the comparison of rivalling belief systems there is no recourse to a universal set of values to evaluate them:
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.
Zizek on Communication: Becoming a cultural chameleon
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!
a system of consciously coordinated activities of two or more people aiming to achieve common objectives (Chester Barnard)
Investor Model of Organization
Mastery Oriented
Powerful CEO
Fluid Organization Design
Low Job Security
Family Model of Chinese Gong-si
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
Network model of Japanese Keiretsu
Internal or self-financing
Strong treading companies
Relatively weak executives
Long term employees, high job security
Enterprise or company unions
Mutual Benefit Model of a German Konzern
Supervisory and Management boards
Codetermination and works councils
Mesiter or master technicians
Employee Involvement in Managerial Decision Making
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)

Action plans for working with global organizations
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

Basic forms of organizations:
steep pyramids, flat networks, flexible clusters, cloudy plots
Psychological Contracts
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
Interactions between Team Roles
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

Weber’s sources of legitimate power
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

Giorgio Agamben (1995) Homo Sacer, sovereign power and bare life
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
The logic of the exception
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)
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.

Homo Sacer
“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
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
There is a remarkable historical similarity across cultures regarding the separation of power and authority
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
Recently Agamben shifted his attention to the enigma of how sovereignty, authority and power are actually exercised
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!’)
Apophantic Statement
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!’)
Speech Acts
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
Types of illocutionary acts
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.

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

National Culture – Critiques (Hofstede Effect)
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)

Socially situated use of concepts
Constructed: Concept as shifting constructs
Strategic: Specific interests involved in their employment (n.b. power asymmetries)
Situated: In certain moment/certain settings
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

Critical Discourse Analysis
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

Audit Culture
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)
The paradoxical effects of documentation
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)

Rebranding and its effects
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)

Concept of Creatvity
Another seemingly commonsensical, positive concept
Part of inspirational discourse of third spirit of capitalism

The appreciation of creative, loose thought has a history too…

The power of concepts
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


Real Cosmopolitanism
Referring to the dramatic split in the age of “real socialism” between socialist ideology and the dismal reality of socialist life
Is Cosmopolitanism going in the same direction?
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
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:
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
Science of Ideas
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).
Commodity Fetishism
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 …”
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

Ideological Fantasy
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”)
The open society and its enemies (popper, 1943)
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)
Piecemeal Social Engineering
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!)
Two faces of the Open Society
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:

Anti-bureaucratic thinking
In politics: neo-conservatism, aggressive normative control (Bush)
In business: culture management, glorification of charismatic leadership and entrepreneurship (Tom Peters)
Neo-Institional Control
In politics: institutional controls to protect democratic capitalism and pluralism
In business: corporate governance to counter the excesses and scandals of Capitalism (Armbrüster)
The Forced Choice
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

The Curtailment of Imagination
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
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

Public vs. Private Sector
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
Truism: Innovation = Good
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?
The Knowledge Economy
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.’
The fast-changing international environment
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:
Urban sanitation
Chemicals and pharmaceuticals
The internal combustion engine
Modern communication
Trickle-down economics
The flexible labor market
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
Technological solutionism
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
Overton Window of Political Opportunites
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

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

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