Wednesday, August 31, 2011

International Business Management

MAN430 – INT’NAL Business Management

PROFESSOR: Alfio Ferrea
STUDENT: Isaac Hepburn
Chapter: 3 Page 119: Discussion Question.

1. What is meant by the culture of a society, and why is it important that international managers understand it? The Culture of a society comprises the shared values, understandings, assumptions, and goals that are learned from earlier generations, imposed by present members of a society, and passed on to succeeding generations.   International managers must understand the importance, of Culture of a Society because culture results in a basis for living grounded in shared communication, standards, codes of conduct, and expectations.  Managers assigned to foreign subsidiary must expect to find large and small differences in the behavior of individuals and groups within that organization. Do you notice cultural differences among your classmates? Yes, I do notice the cultural differences among my classmates. How do those differences affect the class environment? Your group projects?  My classmate’s mannerism, attitude, and background are different. These cultural differences provide an opportunity to learn and grow.
3. Discuss the types of operational conflicts that could occur in an international context because of different attitudes toward time, change, material factors, and individualism. Give examples relative to specific counties.
Time: To Americans, time is a valuable and limited resource; it is to be saved, scheduled, and spent with precision, lest we waste it. The clock is always running – time is money. The word bukra in Arabic can mean “tomorrow” or “sometime in the future.” While Americans usually regard a deadline as a firm commitment, Arabs often regard a deadline imposed on them as an insult.
Change:  Based largely on long-standing religious beliefs, values regarding the acceptance of change and the pace of change can vary immensely among cultures. Western people believe that an individual can exert control over the future and can manipulate events, that is individuals feel they some internal control.
Non- Western societies, generally believe in destiny, or the will of their God. Control is considered external and therefore they adopt a passive attitude or even feel hostility toward those introducing change.
Material Factors: Americans attitude toward nature contends that it is for our benefit. Indians and Koreans worship of nature is part of their religious beliefs.
Individualism: Americans value individual achievement, accomplishments, promotions, and wealth above any group goals. In china much more of a “we” consciousness prevails, and the group is the basic building block of social life and work.
4. Give some example of counties in which the family and its extensions play an important role in the workplace. How are managerial functions affected, and what can a manager do about this influence?
Saudi Arabians culture is intertwined with the pervasive influence of Islam. Shared culture, religion, and language underlie behavioral similarities throughout the Arab world. Islam “permeates Saudi life - Allah is always present, controls everything, and is frequently referred to in conversation.”
Arab history and culture are based on tribalism, with its norms of reciprocity of favors, support, obligation, and identity passed on to the family unit, which is the primary structural model. Family life is based on closer personal ties than in the West. Arabs value personal relationships, horn, and saving face for all concerned; these values take precedence over the work at hand or verbal accuracy.
In the Chinese businesses, especially in small businesses, it is all – pervasive presence and use of Guanxi that provides the little red engine of business transaction in China. Guanxi means “connections” –the network of relationships the Chinese cultivate through friendship and affection. It entails the exchange of favors and gifts to provide an obligation to reciprocate favors. Guanxi Networks share an unwritten code.
The Philosophy and structure of Chinese businesses comprise paternalism, mutual obligation, responsibility, hierarchy, familialism, personalism, and connections. Autocratic leadership is the norm, with the owner using his or her power, with a caring about other people that may predominate over efficiency.
The Chinese human centered management style puts people ahead of a business relationship and focuses on friendship, loyalty, and trustworthiness. The family is extremely important in Chinese culture, and any small business tends to run like a family.
Chapter: 3 Page 120: Experiential Exercises.
2. How might you help Bill deal with his frustration?
Mr. Bill Nugent needs to engage in the small talk, and show enthusiasm. Mr. Bill Nugent friendly, positive attitude will ensure that he builds a personal relationship based on trust, and respect. Mr. Bill Nugent must understand that many activities can be taking place at the same time, with constant interruptions which is commonplace or the norm. The imposition of deadlines is considered rude, and business schedules take a backseat to the perspective that events will occur “sometime” when Allah wills (bukra insha Allah).  Arabs give primary importance to hospitality; they are cordial to business associates and lavish in their entertainment, constantly offering strong black coffee, which you should accept, and banquets before considering business transactions. Americans must realize the importance of personal contacts and networking, socializing and building close relationships and trust, practicing patience regarding schedules, and doing business in person.