The firm’s newest large outlet in Japan is located in Tokyo, Japan.

Although the store has enormous potential, the salespeople
(comprised of both Americans and Japanese) are not working together well and the negative attitudes of some team members
are bringing others down and hindering team performance. Develop an employee motivation plan for this group, taking into
consideration both American and Japanese motivation approaches, leadership, as well as group dynamics and communication.
Consider both individual and team rewards. Also consider what the Japanese think of the Americans, and the Americans of the
Japanese. Provide an introduction that explains the source of some of the issues and be sure to state the intended outcome of
the plan including business results.
APA format is mandatory (in text and in the reference section).
As a graduate student, you must steer away from inferior Web sites with anonymous writers, articles found on consultant Web
sites, materials on sites like QuickMBA.com, MarketingProfs.com, etc. Dictionaries and Encyclopedias most often repeat the
information from your text. Acceptable Internet resources include among others government sites (especially for statistics). You
are not permitted to use any open-source Web site in this course.
http://www.accel-team.com/human_relations/hrels_05_herzberg.html
The site provides special articles on Herzberg theory of motivation and a host of articles and information on
employee motivation, rewards, job design, and so forth.
http://www.mexconnect.com/articles/3194-comparing-cultural-differences-mexico-with-canada-and-theunited-
states
An example of cultural differences are outlined here, the United States and Mexico are compared in a simple
table.
http://geert-hofstede.com/
This site describes Hofstede¡¦s research and cultural dimensions.
http://www.inc.com/
A collection of links to descriptions of motivation techniques that are being successfully used in businesses.
The links are sorted by category, such as “Motivation by Compensation,” “Morale Boosters,” and
“Recognition.” To access this site, type motivating employees into the search box near the top center of the
page and click Go. The link to this resource will be first in the set of results.
http://www.referenceforbusiness.com/management/Gr-Int/International-Cultural-Differences.html
This Web site provides an overview of understanding and analyzing international cultural differences.
Culture, Values, and Business
1
Culture
Culture can be defined as the acquired knowledge that people use to interpret
experience and behave in society. Culture is not inherited or biologically based; it is
acquired and learned by individuals and groups through experience. Culture is not
specific to any single individual; people share culture as members of social groups.
Culture is transgenerational in nature; it is passed on from one generation to the
other. Culture is structured and integrated. As humans, we are adaptable, and
culture is based on human capacity to adapt and change.
Values
Values are a major dimension in the study of culture. Values can be defined as the
basic convictions people have regarding right and wrong, good and bad, and
important and unimportant. Values can be learned by individuals through being part
of the culture. An individual¡¦s behavior is directed by the values learned and
embraced. Differences in values across cultures affect work and management. For
example, Japanese managers are hesitant to use aggressiveness and control. They
place high importance or value on respect to superiors and commitment to the
company. On the other hand, Korean managers place low value on recognition and
high value on aggressiveness and forcefulness.
Values also change over time due to cultural and technological changes. For
example, employees in Japan are rewarded based on seniority, not merit. However,
this value is supported mostly by the Japanese managers who have lived and worked
in Japan. Japanese managers who have worked and lived in the United States for a
longer period of time show lower support for this value.
Cultural Dimensions
Hofstede¡¦s culture model explains why we exhibit differences in our work culture and
managerial behavior. The culture model has the following dimensions: power
distance, uncertainty avoidance, individualism/collectivism, and
masculinity/femininity. Power distance refers to the ¡§extent to which less powerful
members of institutions and organizations accept that power is distributed unequally¡¨
(Hofstede & Bond, 1984). Uncertainty avoidance is ¡§the extent to which people feel
threatened by ambiguous situations, and have created beliefs and institutions that
try to avoid these¡¨ (Hofstede, 1980). Individualism is the ¡§tendency of the people to
look after themselves and their immediate family only¡¨ (Hofstede & Bond, 1984).
Masculinity is defined by Hofstede as ¡§a situation in which the dominate values in
society are success, money, and things¡¨ (Hofstede & Bond, 1984).
Culture, Values, and Business
2
It is critical to the implementation of international projects to understand that
procedures and strategies that work well in the home country environment may not
be readily applied in another country. Similarly, differences in wage, pay,
compensation, motivation issues, and employee evaluation are quite different from
country to country. Hence, special attention is required to understand these
differences and to formulate strategies unique to the host country where the
business of the MNC is located.
Theory of Motivation
Maslow¡¦s theory of motivation, more commonly known as the hierarchy of needs
theory, has been studied and applied in a number of different countries. Managers,
regardless of their different cultures, are concerned with the satisfaction of Maslow¡¦s
hierarchy of needs for their human capital. Like Maslow¡¦s theory, the two-factor
theory developed by Herzberg has received considerable attention in international
business. His original findings from the United States have also been applied and
replicated in other countries. The application of motivational theories on job design,
quality of life, value of work, and job satisfaction has received renewed attention in
international business.
References
Hofstede, G. (1980). Culture¡¦s consequences: International differences in workrelated
values. Beverly Hills, CA: Sage.
Hofstede, G., & Bond, M. (1984). The need for the synergy among cross-cultural
studies. Journal of Cross-Cultural Psychology, 15(4), 419¡V420.
FAQ: Management and Leadership
1
Question 1: What is the Hofstede cultural dimension of power distance?
Answer 1:
Hofstede¡¦s culture model explains differences in our work culture and managerial
behaviors based on a culture model of four dimensions: power distance, uncertainty
avoidance, individualism/collectivism, and masculinity/femininity. Power distance
refers to the ¢wextent to which less powerful members of institutions and
organizations accept that power is distributed unequally¡ü (Hofstede & Bond, 1984).
In high power distance cultures, people blindly obey the orders of their superiors. In
these countries, lower level employees follow directives as a matter of procedure.
Strict obedience to order is also found among upper level employees in some
societies such as Mexico, India, and South Korea. In low power distance countries,
employees do not obey directives blindly and often question or challenge the ideas
and thoughts expressed by superiors. The United States, Canada, Norway, New
Zealand, and Australia are among the countries that have relatively low power
distance.
The power distance dimension affects the international management of human
resources in several ways. Organizations in high power distance countries tend to be
centralized and pyramid-like. These structures have a high degree of bureaucracy,
and all decisions are centralized at the top. In countries with low power distance,
organizational structures tend to be decentralized and flatter. These organizations
also have a thin layer of supervisory employees, and lower level employees tend to
be highly qualified. In contrast, organizations in countries with high power distance
tend to have a thick layer of supervisory employees, and lower level employees are
often semiskilled or unskilled workers. This kind of structure promotes inequality
among people in different levels of the organization.
Question 2: What is the Hofstede cultural dimension of uncertainty avoidance?
Answer 2:
Uncertainty avoidance is defined as ¢wthe extent to which people feel threatened by
ambiguous situations, and have created beliefs and institutions that try to avoid
these¡ü (Hofstede, 1980). Uncertainty avoidance refers to cultures where people tend
to not be risk takers and, instead, prefer security: Risk taking is discouraged in the
society. These countries also have a strong belief in experts and expert knowledge.
Examples include Japan, Spain, and Germany. These countries have a great deal of
structure in organizational activities, rules are clearly defined, and written rules are
prevalent. Managers are also less risk taking, and the labor turnover is low as
FAQ: Management and Leadership
2
security is very important to these cultures. The employees in general tend to be less
ambitious. On the other hand, the populations of countries with low uncertainty
avoidance are more willing to accept risks associated with the unknown. They seek
new opportunities, roles, and responsibilities. People change careers several times
during their work life, and there is less structure in the organizational activities.
There are also fewer written rules, and people are encouraged to take greater selfinitiative
and responsibility in getting the job done rather than being handed
instructions. Managers are more likely to take risks and often seek business
opportunities with known calculated risks. In these countries, organizations tend to
have higher employee turnover as the employees are more ambitious and are
constantly trying to achieve higher goals and fulfill higher needs.
For example, in Japan there is a strong uncertainty avoidance, and Japanese
businesses like to structure tasks so there is no doubt regarding what is to be done
and how it is to be done. In Sweden, however, the uncertainty avoidance is low.
Therefore, job descriptions, policy manuals, and similar work-related materials are
open-ended or general as opposed to the detailed procedural manuals of the
Japanese.
Question 3: What is the Hofstede cultural dimension of individual/collectivism?
Answer 3:
Individualism is the ¢wtendency of the people to look after themselves and their
immediate family only¡ü (Hofstede, 1980). Hofstede measures this cultural dimension
with individualism at one end of the continuum and collectivism on the other end.
The idea of collectivism is that people tend to support groups and look after each
other in exchange for loyalty to the group.
Countries can be high in collectivism or individualism or somewhere in the middle.
Countries that are high in individualism tend to be wealthier. Examples include the
United States, Canada, Australia, Sweden, and Denmark, among others. These
countries have high gross domestic product (GDP) growth. In addition, these
countries tend to support a protestant work ethic and promote greater individual
initiatives. Employees are rewarded for taking initiatives at their job level.
Promotions are based on market values rather than seniority.
Countries with low individualism (high collectivism) tend to have less support for the
protestant work ethic. These countries also tend to be poorer. Examples include
Pakistan and a number of South American countries (with lower GDP). The countries
that do not promote individual initiative cultivate employees who simply do what is
being asked by the management and expect promotions based on seniority rather
FAQ: Management and Leadership
3
than merit in return. For example, the Swedish show a moderately high degree of
individualism reflected in their emphasis on individual decision making as opposed to
group or collective decision making.
Question 4: What is the Hofstede cultural dimension of masculinity/femininity?
Answer 4:
Masculinity is defined by Hofstede as ¢wa situation in which the dominant values in
society are success, money, and things¡ü (Hofstede & Bond, 1984). On the other
hand, the femininity dimension is defined as those values in the society that pay
more attention to the care of others and promote quality of life.
Countries with high masculinity, such as Japan, place great importance on earnings
and wealth, titles, recognition in the job and personal life, advancement in the
career, and challenge. Individuals are encouraged to be independent decision
makers, and achievement is defined in terms of recognition and wealth. Due to the
importance of these factors, there tends to be higher stress on the job. In fact, many
mangers believe that their subordinates do not like their work and must be kept
under some degree of control. For example, a great deal of importance is given to
money and material symbols of success such as expensive cars, living in an
expensive place, and more because of the high masculinity index in Japan. These
countries also tend to favor large companies, and economic growth is given more
importance. Industrial conflict is common in these countries as well. The education
system is modeled toward encouraging high performance. Young men are expected
to have careers, and those who do not have careers view themselves as failures.
Women in these countries do not often hold higher level jobs, but they find it
necessary to be assertive in the workplace.
On the other hand, countries with low masculinity index (high in femininity) tend to
place great importance on cooperation. People are encouraged to work together in
teams and share greater responsibilities together. The atmosphere in the workplace
is friendly, and organizations provide employment security to the employees. Group
decision making is a norm, and achievement is fulfilled and defined in terms of
human contacts and the living environment. The workplace tends to be characterized
as a low-stress environment because there is little industrial conflict. Managers view
their employees as responsible for their work and allow them more freedom. These
countries also tend to favor small companies, and the education system is modeled
toward social adaptation. Some men and women in these countries want careers and
others do not. Women generally do not find it necessary to be assertive in the
workplace.
FAQ: Management and Leadership
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For example, Swedes score low on the masculinity scale, which means interpersonal
relations and the ability to interact with other workers and discuss job-related
matters are very important for the people of this country.
Question 5: What are some of the issues and challenges involved in doing business
in countries like China and India?
Answer 5:
China and India hold great opportunity for growth and other opportunities. However,
many European and U.S. multinationals have found that doing business in China can
be a challenging, grueling process that can often lead to failure. Although many firms
are trying to grab a piece of the Chinese economy, they are yet to make serious
profits. However, there have been lots of benefits resulting from cheap
manufacturing and mass production of the manufacturing work from China.
The challenges and issues faced by multinational corporations mostly result from the
reason that many of the multinational corporations (MNCs) do not completely
appreciate the role of Chinese culture and its impact on doing business in India. For
example, to experienced Chinese businesspeople, technical competency is considered
very critical to doing business.
The Chinese place great importance on value and principles above money and
convenience. Chinese do not like to get to the business right away on meeting the
other party. Business meetings typically start with pleasantries such as tea and
general conversation about the other party’s trip to the country, inquiries about the
local accommodations, and questions about family. The Chinese also like to give an
indication to the other party as to the appropriate time to start the discussion of
business in the meeting. The proper time to conclude is indicated to the guest as
well.
The Chinese are slow in formulating a plan of action; however, once they get started,
they make fairly good progress in moving things ahead with the project. Once a
decision has been made about who the best partner is among different possible
business partners and what the best way in which to implement the project or any
activity, the Chinese tend to stick with these decisions. In negotiations, Chinese
follow the policy of give and take. In other words, reciprocity is very important in
negotiations. If the Chinese provide some discounts or concessions, then they expect
the same from the other party in the negotiation as well. Chinese do not like to lose
face in any business meetings. They are aware that oftentimes in business
negotiations one party has the upper hand to the other and a win-win situation does
not necessarily take place in every deal. Hence, they like to conduct the whole
FAQ: Management and Leadership
5
process of negotiations through intermediaries. Chinese do not like to express
excessive emotion of any kind. Expression of anger, frustration, or impatience can be
viewed as disruptive and rude. Of course, just as in every negotiation, ones with the
Chinese should be viewed with a long-term perspective. The MNCs that realize they
are investing in a long-term relationship are often successful in doing business with
the Chinese.
Doing business with and in India is different due to the different dynamics of that
culture. Foreign trade is critical to India’s economy, and its growth is critical to the
world economy. Since the liberalization policies introduced in the early 1990s, India
has been particularly interested in promoting exports and creating import
substitutions. In India, the government plays an important role in this process in
approval for investments. It is also highly protective and selective and typically
granting businesses and contracts only on a case-by-case basis.
There are also some cultural issues to keep in mind while doing business in India.
Contrary to the popular belief that Indians are not time conscious, it is very
important to be on time for meetings in India. Even if the Indian counterparts do not
actually start the meeting on schedule, it is critical that the guest be on time. It is
advisable not to ask any personal questions unless the other individual is a friend,
family, or close associate. Status quo is very important to Indian people, so titles are
a very important factor when addressing someone in India. For example, lawyers,
doctors, and professors should be addressed accordingly. In most cases, it is
expected that junior management address the senior management as ¢wSir¡ü or
¢wMadam.¡ü
In India, social norms are very clear and well defined. For example, public displays of
affection are considered inappropriate. Behaviors like touching others while talking or
casually backslapping is not considered appropriate business behavior. The distance
between the male and female genders is well defined and maintained in the
workplace.
Public gestures of beckoning are done with the palm turned down in India. Indians
do not consider pointing at a person appropriate, so pointing is often done with the
chin. The usage of the left and right hand is also well defined. The left hand is
considered unclean, and the right hand is used for eating, offering, and accepting
things. People greet each other in a formal environment with a gesture of joining the
palms together (called namaste).
Bargaining is considered a birth right of consumers in India. Hence, bargaining for
goods and services is common. This contrasts with Western traditions where
bargaining might be considered rude or abrasive.
FAQ: Management and Leadership
6
Question 6: What are some of the issues involved in doing business in the cultural
environments of France and Russia?
Answer 6:
After the crumble of the Soviet Union in the late 1980s, the newly born Russian
economy has experienced severe problems. However, Russia has huge potential for
multinational corporations, and if MNCs follow certain guidelines in relating to the
Russian culture, then they can reap potential opportunities.
Contracts in Russia are not easy to enforce legally. When there are contract disputes
between partners, there is little or no protection for an MNC because of the time and
effort needed to legally enforce the agreement. Building good personal relationships
with a Russian partner is a good strategy to follow for better protection in case any
issues and challenges with Russian partner(s) arise. The Russian economy has gone
through so much change, so the rules of business have changed in recent years.
There is also the issue of business ethics in doing business in Russia. In the United
States, exchanging gifts with the person who wants to transact business is
considered unethical and illegal. In Russia, it is tradition to give gifts to those with
whom one wants to transact business. An experienced businessperson would say to
always be patient; it takes a lot of patience to get something done in Russia. It often
takes months of waiting in Russia before the business moves forward. Russians
prefer exclusive arrangements, and often negotiate with just one firm at a time. This
preference also adds to the time and the slow process. Russians prefer face-to-face
meetings or deals rather than letters, phone, or faxes. They usually do not respond
to negotiations that are not face-to-face.
If a business is trying to work on a merger deal with a Russian firm, it should keep in
mind that Russians prefer to keep financial information to themselves. Russians wait
until they know their partner well enough and feel comfortable before sharing
financial data. The Western idea of a win-win deal in negotiations also works well in
Russia, and good negotiators will place emphasis on mutual gain. Language is also a
big barrier in Russia. Most of the work has to be translated into Russian, so it is
better to keep the terminology of the contract simple. The business leader should
check and make sure that the other party clearly understands the proposal, knows
what is expected and when, and is agreeable to the deal. Russians see compromise
as a sign of weakness, so one should not agree to or settle things too quickly in
business deals.
Many people in the United States believe that it is more difficult to get along with the
French than with other Europeans. The French culture is markedly different from that
FAQ: Management and Leadership
7
of the United States. One simple example is the handshake. Americans like to shake
hands firmly and often hold the shake until names are exchanged. The French prefer
a quick hand shake with some pressure in the grip. Being on time is also very
important for both business and social meetings. On business visits, people should
try very hard to be cultured and sophisticated. During lunch or any meal, personal
questions and the subject of money should never be discussed. It is acceptable to
engage in pleasant conversation about whether and other light topics.
The French do not like to discuss personal or family details in the first few meetings.
They tend to be suspicious of early friendliness, dislike using first names, and usually
dress more casual (e.g., not wearing one’s suit jacket in business). The French try to
find out the aims and demands of the other party at the beginning of negotiations,
but they reveal their own hand only late in the negotiations. They like to make
decisions in their own familiar setting and do not like being rushed into making a
decision. In fact, they rarely make important decisions inside the meeting. Their
approach is very logical and precise, and they will not make or offer concessions in
negotiations unless they feel that their logic in not providing the promotions or
concessions has been defeated.
Question 7: How can cultural differences across countries affect the final marketing
message received by a global customer?
Answer 7:
Cultural differences can affect the final message received by the global customer in
several ways along the communication path. For example, a problem can arise at the
information source because the global manager does not truly understand the needs
and wants of the target foreign market. This is especially true if the global manager
relies on the self-reference and makes the naive assumption that if it sells in one
country, it would sell in another. For instance, the bicycles designed and sold in the
United States to consumers to fulfill recreational and exercise needs cannot be
successfully sold for the same reasons in a country where the primary use of the
bicycle is transportation (such as villages and towns in China). The encoding step of
the communication process can also cause problems because such factors as colors,
values, beliefs, tastes, and other symbols utilized by the global manager do not
correctly symbolize the message intended.
The message channel may create problems because of the difficulty of effectively
reaching target foreign markets in many countries. Problems such as illiteracy and
the availability and types of media create problems at this level. Decoding problems
are generally created by improper encoding. The decoding process is one in which
the receiver interprets the message in terms of his own culture thereby receiving an
FAQ: Management and Leadership
8
incorrect message. For example, one product’s slogan, ¢wCome Alive,¡ü was decoded
by many as ¢wCome out of the grave.¡ü Sometimes decoding can create problems even
when the encoder purposely attempts to develop a message with no symbolism.
Another example is a brand that uses a ram as its symbol. The term “ram” decodes
into a popular Hindu god worshiped by millions of Hindus in India. If the company
tried to market their product in India without changing the name, it could lead to a
huge boycott across India. Finally, the feedback step can create problems in the
sense that companies do not use feedback to effectively measure their
communication efforts and attempt to correct any problems that may have been
created by the other steps.
The major problem is that the encoder is in one culture using his or her own self
reference, and the message is decoded in another culture where the decoder is using
his or her own self- reference. The encoder must be certain that the message is
being encoded in such a manner that it will be decoded in the other culture in the
manner in which it is intended.
Question 8: How does Maslow¡¦s motivation theory apply to international
management of human resources?
Answer 8:
Motivation is an important topic of interest in international management and human
resource management. Many multinational corporation managers assume that they
can motivate their offshore employees with the same plans and approaches that are
used to motivate home country employees.
While there are similarities across cultures, there are many differences that affect
motivation. For example, in the United States, personal achievement is an important
need, and individual success and more money may be an important goal. In China,
group affiliation is an important need, and harmony is an important goal. The
motivation process is the same, but the needs and goals may be different because of
the differences in the two cultures.
Abraham Maslow, a well-known American psychologist, developed a theory of
motivation and postulated that everyone has five basic needs constituting a need
hierarchy: physiological, safety, social, esteem, and self-actualization.
Psychological needs are food, clothing, shelter, and other basic, physical
needs.
Safety needs are the desire for security, stability, and the absence of pain.
FAQ: Management and Leadership
9
Social needs are the need to interact and affiliate with others, and to feel
wanted by them.
Esteem needs are the need for power and status.
Self-actualization needs are the desire to reach one’s full potential by
becoming everything one is capable of becoming.
There are a number of basic assumptions with this theory of motivation. The first
assumption is that lower level needs must be satisfied before higher level needs
become motivators. A second assumption is that once a need is satisfied, it no longer
serves as a motivator. A third assumption is that there are more ways to satisfy
higher level than lower level needs. These assumptions have driven much of the
international research on Maslow¡¦s theory.
Do people throughout the world have needs that are similar to those described in
Maslow’s need hierarchy? International research in this area shows that they do.
Research has been mostly focused on managers and shows that all needs are
important to the respondents across different cultures. In countries like Latin Europe,
the United States, the United Kingdom, and Nordic Europe, the upper level needs of
self-actualization were considered the most important. Research also shows that
while self-actualization and esteem needs are more important for professionals and
managers, security, earning benefits, and physical conditions are more important to
the unskilled and lower level employees. When it comes to employee motivation, one
can notice greater differences among job categories than among countries.
In terms of motivating the employees in different countries, it is recommended that
multinational corporations focus heavily on giving personal rewards to unskilled and
lower level personnel, and developing and creating an environment of challenge for
professional managers that can satisfy their self-actualization and esteem needs.
This fosters cooperation between middle- and senior- level managers. However, it
would be wrong to assume that high compensation packages are not motivating to
the senior professionals.
Question 9: Discuss the two-factor motivation theory of Herzberg in its application
on international management.
Answer 9:
The research has shown that the need hierarchy theory is useful in helping identify
motivational behaviors and factors for international human resource management.
However, this theory itself is not enough to explain the motivational factor of
international human resources management.
FAQ: Management and Leadership
10
Frederick Herzberg and his colleagues formulated the two-factor theory of
motivation. The two-factor theory is closely linked to the need hierarchy of Maslow.
Herzberg¡¦s theory holds that there are two sets of factors that influence job
satisfaction: hygiene factors and motivators.
Motivators: These include the job content factors such as achievement,
recognition, responsibility, advancement, and the work itself. In relation to
Maslow¡¦s theory, these can be considered the self-actualization and esteem
needs.
Hygiene factors: These include the job context variables such as salary,
interpersonal relations, technical supervision, working conditions, and
company policies and administration. In relation to Maslow¡¦s theory, these are
the social, safety, and physiological needs.
According to the two-factor theory, if hygiene factors are not taken care of and wellprovided
for, there will be dissatisfaction among managers. However, if hygiene
factors are taken care of, there may be no dissatisfaction as long as motivators are
also provided. In short, this theory postulates that hygiene factors help to prevent
dissatisfaction, but only motivators lead to satisfaction for the managers. According
to this theory, motivation of human resources must include recognition, a chance to
achieve and grow in the organization, advancement opportunity in the career, and
constant interesting and challenging work.
How does this theory fare in application to the international management of human
resources? Research has been conducted on the application of Herzberg¡¦s theory,
and in many cases, Herzberg¡¦s findings are supported. For example, George Hines
surveyed 218 middle managers and 196 salaried employees in New Zealand using
ratings of 12 job factors and overall job satisfaction. Based on the findings, he
concluded that, ¢wthe Herzberg model appears to have validity across occupational
levels¡ü (Hines, 1973).
A number of cross-cultural studies related to job satisfaction measures developed by
Herzberg have also been conducted in recent years. This research and comparison
shows that Herzberg’s motivators tend to be of more importance to job satisfaction
than are hygiene factors. Hygiene factors are factors that are controlled by the
organization. Such factors include working conditions, working hours, salary, job
security, benefits, and promotions. On the other hand, the motivators are those
factors that are internally controlled by the employee. Such factors include
responsibility of the work assigned, personal achievement, and the work itself.
FAQ: Management and Leadership
11
Question 10: How do motivational theories of job design, value of work, and job
satisfaction apply in different cultures?
Answer 10:
Job design: Assembly line employees in Japan will work at a rapid pace for hours
and have very little control over their work activities. In Sweden, assembly line
employees work at a more relaxed pace and have a great deal of control over their
work activities. United States assembly line employees are somewhere in between
Japan and Sweden¡Xless demanding than Japanese but more structured than
Sweden. Why is job design so different in these countries?
Job design is typically a function of the work done by an individual or a group and
the way in which the management wants the job to be carried performed. Job design
describes the job contents and the way in which the job relates to the others in the
organization. Job design factors help explain why the same type of work may have a
different impact on the motivation of human capital in different cultures, and it also
results in different quality of life.
All job designs tend to reflect the cultural values of the country. The biggest
challenge for multinational corporations (MNCs) is to adjust the job based on each of
the host country¡¦s cultural values. For example, when Japanese companies enter the
United States, they are often surprised to find that people in the United States resent
control. Japanese firms operating in Sweden find that the quality of life is the main
concern of the employees there and that less structure and a more participative
management style is needed to succeed in Sweden. Each country has a different
cultural profile (as discussed in the Hofstede culture model) that helps explain why
similar jobs may be designed differently from country to country. For example, in
Japan, there is a strong uncertainty avoidance and desire to structure tasks, so there
is no doubt regarding what is to be done and how it is to be done. The individualism
is low, so there is a strong emphasis on job security, and risk taking is discouraged.
The masculinity index is high, which puts a great deal of importance on money and
material symbols of success. Japanese structure tasks so that the work is performed
within these cultural boundaries.
Value of work: Although work is an important part of the lifestyle of most people,
there are still a large number of misconceptions held about other countries. For
example, one reason that the Japanese work such long hours does not relate
particularly to an extremely high value of work in the culture. Rather, it is a very
pragmatic reason: The cost of living is very high and hourly employees cannot afford
to pass up the opportunity for extra money. In addition, salaried employees, such as
FAQ: Management and Leadership
12
managers who are not paid extra for working overtime, expect their subordinates to
work long hours. Over the years, this culture has become a requirement of the job.
Job satisfaction: In addition to the implications that value of work has for
motivating human resources across cultures, another interesting contrast is job
satisfaction. For example, recent evidence revealed that Japanese office workers may
be less satisfied with their jobs than their U.S., Canadian, and European Union
counterparts. Recent studies have also revealed that work has become a greater part
of the average U.S. employee’s life when compared to the Japanese worker¡¦s life.
It is critical to keep in mind that effective motivation is also grounded in a sound
understanding of culture. The way in which a manager motivates employees in one
culture is often different from that which will be used in another culture. These
findings suggest that MNCs should develop motivational packages that address the
specific needs of a country¡¦s culture.
References
Hines, H. G. (1973, December). Cross-cultural differences in two-factor motivation
theory. Journal of Applied Psychology, 376.
Hofstede, G., & Bond, M. (1984, December). The need for the synergy among crosscultural
studies. Journal of Cross-Cultural Psychology, 419¡V420.
Hofstede, G. (1980). Culture¡¦s consequences: International differences in workrelated
values. Beverly Hills: Sage.
Managing Cultural Differences
Question 1: What are some key business reasons for emphasizing the effective
management of a diverse workforce?
Answer 1:
The tangible business reasons for managing diversity effectively include better service
of customer needs and penetration of new markets, as well as diverse teams that have
greater creativity, flexibility, and rapid response to change. Also, recent research
suggests there may be productivity, quality of work life, and stock valuation benefits
that accrue from effective diversity programs.
Question 2: How do cultural differences impact a workforce?
Answer 2:
Cultural differences can lead to divisions among and between racial or ethnic groups as
well as different generations. There is a strong ethnocentricity present in most cultures
which frequently precludes a fair and accurate perception of other culture groups.
Cultural differences are also likely to remain even in second or third generation
Americans.
Question 3: What would a company policy include if its objective was to emphasize
the management of diversity?
Answer 3:
A company policy would include a statement of top management¡¦s commitment to
diversity and a compelling business rationale for attracting, retaining, and motivating a
highly diverse workforce. The policy might also relate diversity to the corporate
strategy to enable others to identify specific steps to take, which both achieve business
objectives and build diversity. The policy might also outline training and development
opportunities available to employees.
Question 4: How should managers measure the outcomes of diversity programs?
Answer 4:
Many traditional employee relations measures are possible: turnover, absenteeism, job
satisfaction survey results, percentage minority recruits, and so on. Perhaps business
results measures should also be included, such as customer satisfaction, new product
introduction, productivity, and others.
Question 5: What is the argument against making special efforts to seek workforce
diversity?
Answer 5:
The argument against seeking workforce diversity could be based on the fact that no
research to date conclusively proves that workforce diversity enhances organizational
performance. There are, in fact, costs; for example, a heterogeneous workforce is likely
to have more conflicts and more difficulty working together. Also, additional training
is required to turn these conflicts into creativity.
Question 6: What should a company do to maximize the use and value of its benefits
choices to employees?
Answer 6:
It is not immediately clear why an employer would want to maximize the use of the
company’s benefits (for example, health insurance, life insurance, and family leave).
An employer, however, would clearly want to maximize their value, especially from a
¡§cost-benefit¡¨ perspective. In the short run, better communication of the breadth, value,
and cost of benefits to employees will help. In the long run, organizations should
carefully monitor the benefits needs of their employees (possibly borrowing consumer
research techniques from the field of marketing), and adapt quickly to changing needs.
Question 7: Should employees have more or less control over how their companysponsored
retirement funds are invested?
Answer 7:
The trend is to allow more employee control. This makes sense in an era of employee
involvement and employee empowerment¡Xit treats employees like responsible adults.
Question 8: What can firms do to control health-care costs?
Answer 8:
Consider one or more of the following steps:
Raise deductibles and co-payments by employees
Remove the irrational incentives in plans that favor hospitalization over
outpatient care
Induce employees to voluntarily choose reduced medical benefits through
cafeteria-style benefit options
Require a second opinion for elective surgery
Set some rules for hospital visits (for example, do not enter on the weekend
when the treatment starts Monday, audit large hospital bills, require
preadmission certificate). Of course, the rapid growth of managed care plans
(HMOs, PPOs, POS plans) reflects these kinds of controls
Reference
Greer, C. R. (2001). Strategic human resource management: A general managerial
approach (2nd ed.). Upper Saddle River, NJ: Prentice Hall.
Cultural Diversity and International Business
Understanding and appreciating the cultural, linguistic, and historical traditions of a
host nation plays an essential part in the ability of a foreign national to successfully
conduct business in that country. Whether a person will have just a short exposure to a
foreign environment or is placed in a long-term foreign posting, without a good
understanding of these variables, the interpersonal aspects of business may be more
difficult than need be, which can result in significant negative consequences to the
firm.
Aspects of this understanding and appreciation that must be considered include the
following:
„h The host nation¡¦s history and political relations with its neighbors and with the
home country that is trying to do business within the host country
„h Differences in behavior and thinking based on the host country¡¦s dominant
cultural variables
„h The influence of religion on how business is conducted in the host country, and
how religion plays a role in the cultural variables
„h Differences in nonverbal communications
„h How greetings, gift giving, meanings of colors, styles of dress, and business
meeting etiquette can vary between home and host country; and how these
differences can affect business success
Gaining an understanding of these variables, and how they might differ from one¡¦s
home country, is the first step of a larger process. First, a firm must develop a cultural
profile that helps its employees understand and contrast these differences and
similarities and allows employees to build knowledge as they gain experience.
The next step is for the company to develop a plan to train the people that may be
impacted by the differing histories, values, and practices. While employees are often
made aware of the importance of these differences, firms make too small of an effort to
help these employees gain a sufficient amount of required knowledge before placing
them in difficult situations. Additionally, even when a training plan is offered, often
overlooked is how the cultural and historical differences will affect the spouse and
family of the employee. A body of research exists on why expatriate assignments fail,
and one of the most frequently cited reasons is the failure of family members to adjust
to the new culture.
One important and widely used set of cultural variable measurements was produced by
Geert Hofstede. Beginning in the 1960s, Hofstede¡¦s large team of international
researchers measured and then ranked 56 countries on five criteria, which include the
following: power distance, individualism, masculinity, uncertainty avoidance, and
long-term orientation. The definition of these variables, and the rankings of the 56
countries, can be found on the Web site of ITIM: www.geert-hofstede.com.
Another set of informative variables were produced by Alfons Trompenaar. He
considered variables such as the following:
„h obligation (universalism vs. particularism)
„h legitimization of power and status (achievement vs. ascription)
„h involvement in relationships (specific vs. diffuse)
„h emotional orientation (neutral vs. affective)
Variations in these relationships between a home country national and a host country
national can result in misunderstanding, frustration, and conflict.
Equally important to cultural variables is simply having a knowledge of and
appreciation for the host country¡¦s history. Many emerging nations have a history of
foreign domination by neighbors or colonial powers. Both recent and more distant
history may have left legacies of either appreciation or enmity toward the country of
foreign firm, which can affect the expectations and behavior of all parties. Specific
business practices may also stem from that history and appear in both subtle and
pronounced ways.
Finally, day-to-day business practices may be affected by simple gestures or actions
that take on unanticipated meaning. The giving of gifts, for example, can convey a
different meaning in a host country than it might in a home country¡Xan appropriate
gift in one country can easily be taken as inappropriate in another. In addition to gift
giving, similar topics that a business person should be familiar with include business
introductions, exchanging business cards, meanings of specific colors, the role of
socialization and small talk, and shaking hands.
Lastly, the role of religion must be taken into consideration. Looking at the list of
emerging countries, one finds nations where Buddhism, Hinduism, Confucianism,
Islam, and Christianity are commonly practiced. Differences in cultural variables,
business practices, and historical context are all intertwined with the religious practices
found in host countries. Learning the fundamentals of these religions and
understanding how religious precepts might impact the conduct of business are critical
to success.
Cultural Differences
Potential cultural differences can have a profound impact on international dealing. U.S.
managers, for example, are typically impatient, possibly because of the quarterly
earning pressures of Wall Street and because of a societal norm of impatience. Far
Eastern cultures are the opposite. They do not look at this quarter or the next quarter
but rather 10¡V20 years from now. For example, a Japanese manager would not be
worrying about a 1 or 2-year payback on a project but rather if the investment made
sense for the company.
Japan was one of the first countries to be accused of dumping, now an illegal activity
in world trade. It did this expressly to gain market share. Even though it incurred losses
in the early years of many of its industries, the end goal of dominant market share
drove Japan. Compare this to the typical U.S. senior manager with a far shorter
orientation.
Most companies in the United States will not approve a project with longer than a 2-
year payback.
Uncertainty avoidance deals with how comfortable an individual is with risk. Some
people and cultures seek to avoid risk, while others may seek it out. The perception of
the U.S. manager as a high-risk taker has some relative truth to it. While senior
managers are always concerned about risking shareholder value on high-risk
endeavors, their risk tolerance is far higher compared to some other societies.
Masculinity refers to the degree of assertiveness an individual displays as opposed to
femininity, which is characterized more by modesty and caring values. Again, the
typical Western manager, whether from the United States, Germany, Canada, or the
U.K., is far more assertive than their counterparts from some South American,
Scandinavian, and far Eastern cultures.
For the employee or manager interacting with different cultures, a good understanding
of these almost innate forces will allow better business interactions.
For example, raising one’s voice (common in the U.S. business world) could literally
frighten employees from far Eastern cultures who are less masculine and more
feminine.
Imagine a meeting involving marketing people from a Japanese division with their U.S.
counterpart. The U.S. manager may opt for the marketing program that yields nearterm
results, while the Japanese counterpart rejects this and instead prefers the option
that may take 5 years to generate a payback. Each individual has the orientation or
perspective that represents the way the individual was brought up. It would be up to the
senior manager to lay out the guidelines upon which decisions like this will be based.
This does not mean the decision will be easily accepted by all parties.
So what should an employee, who is not used to dealing internationally, do to prepare
him- or herself for such an assignment? What should the employee’s manager do to
help prepare the employee?
The primary form of coaching should be that of displaying a higher sensitivity to any
and all customs or practices and even idioms that may be used. Being aware of the
differences is a challenge in and of itself for some xenophobic employees or managers,
let alone responding in an appropriate fashion. U.S. managers frequently feel that
their way is the best way when, in fact, few foreigners may share this.
A second form of coaching is to provide specific examples to the employee of
what one should expect to run into in terms of customs and practices.
Dealing with bribes is as an example of the kind of different value systems an
employee doing business overseas for the first time may encounter.
The practice of using bribes, a common acceptable way of doing business in many
other countries, is expressly illegal in the United States and for U.S. employees doing
business overseas. The overseas U.S. sales manager may find him- or herself bidding
against a foreign home country salesperson who has already bribed the decision maker
into giving him or her the order.
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