BAIM 580 Cross Cultural Management Period 3, 2005 Class Hours/Room: Tuesday & Thursday 2:00 p.m. 4:00 p.m., HA412 Instructor: Ilan Vertinsky Office: David Lam 522 Phone: 604 822-9406 E-Mail: ilan.vertinsky@sauder.ubc.ca Office hours: Tuesday 1:00 2:00 p.m., Thursday 4:00 5:00 p.m. or by appointment Course Description This course examines organizational and individual behaviors, structures and management practices in multinationals and in business situations involving cross cultural interactions. The objective of the course is to equip students with both analytical and practical skills to help them manage effectively in multinational firms. The focus is on the management of cultural differences. This challenge is not unique to multinationals as many domestic firms also face multicultural environments (e.g., ethnically diverse employees and/or customers). We cover a variety of theories that relate culture to behavior in general and management in particular. We develop an analytical framework that facilitates adaptation of managerial practices and organizational structures to cultural differences. We focus on the practical application of the framework to shaping individual and organizational behaviors. We pay special attention to the following areas: organizational design, negotiation processes, and communications. Through simulations and exercises students will develop their skills of communicating and managing in diverse cultural environments and in cross cultural situations.. Evaluation Evaluation in this course is based on Class participation 30% Case analyses and presentation 25% Final Exam 25% Report on current issues 20%
Class Participation You are expected to be present and prepared and willing to share your views in the classroom discussion in every class, both voluntarily and when called upon to do so. You may be asked to identify key points in the assigned reading for the day (so reading the assigned papers for each class is essential). Class participation also includes class exercises and debates, and participation in role-plays. The most valuable contributions provide insightful viewpoints and analyses that build upon the readings and prior class discussion and move our thinking forward. The quality, quantity, and consistency of your contribution will be evaluated each week. Should you have specific or immediate concerns on how to improve your class presence, please feel free to consult with me at any point during the term. In addition to your individual input into the case study discussions, you will have the opportunity to participate in several in-class exercises and simulations (role plays in class assignments and mini debates). Most of these exercises will be group-based. For example, to explore cross-cultural interactions hands-on, we will use role plays. Each group may be assigned a pair of national cultures (e.g., Germany-China; Japan-Italy; Brazil-Thailand) and a specific business issue (e.g., making a sales pitch to someone from the selected cultures to buy a chosen product, negotiating a new business venture, dealing with a conflict between an employee and his/her manager). Each group will have about 20 minutes to explore behavioral patterns in the assigned cultures and to prepare a brief play that demonstrates the essential characteristics of these behavioral patterns for the class. Following the play, each group should be ready to explain what was done, why it was done, and what were the differences between the assigned cultures. Different members of the group may take on different roles (e.g., leadership of the group discussion, enactment in front of the class, explanation of key points, etc.) Case Analyses Presentations In the first class groups of 3 to 4 students each will be formed. Each group will be given front stage on at least one case (depending on the number of groups). They will have 10 to 15 minutes at the beginning of the class to debrief the salient facts of the case and propose a solution. The group will submit in the beginning of the class a case report not to exceed 5 pages. This assignment will earn 15% of the final grade. For all other cases individuals not in the presenting groups will submit brief case analyses (2 pages) identifying key issues. Individual contributions to case discussions and in class case related assignments will earn 10% of the grade. Case Assignments: There will be four different cases covered in this class. In the first session, each group will draw from a hat the name of the case on which they will lead the class discussion. Case assignments will reflect group effort. Thus, each group member will receive the grade earned by their group, unless group members agree amongst themselves on a different 2
grade allocation and obtain approval from the instructor at least one week prior to the end of classes. Report on relevant current issues In addition to the assigned readings students are expected to read at least one management periodical (e.g. Fortune, Business week, The Economist, etc). For all classes except the ones in which a debate is conducted or cases are assigned, students should prepare a one page typewritten summary of a current article of relevance. The summary (can be presented in point form) should identify the main theme of the article and describe the insights that is contains for international management. At each meeting one or more of the articles will be selected for discussion in the class. All outlines must be submitted at the end of the class. Debate Each student will prepare and submit at the beginning of class a one page summary of arguments for and against the motion. The assigned readings may provide a good start. Final Exam The first part of the final will focus on applications of frameworks of analysis studied to a management problem. The second part will consist of a brief essay on a current issue in cross cultural management (bringing insights from the readings and class discussions will be highly desirable). Schedule The schedule below identifies the topics to be discussed during each session and the readings and case studies assigned. These need to be prepared prior to each session. April 19 and 21 April 26 Introduction to the course; Globalization and Culture Samuel Huntington: The West: Unique not Universal Stanbury and Vertinsky: Economics, Demography and cultural implications of Globalization Debate: Let it be Resolved that Asian Values are Distinct and Foster Economic Growth s Kim Dae Jung: Is Culture Destiny? The Myth of Asia s Anti-Democratic Values 3
April 28 May 3 May 5 May 10 May 12 May 17 May 19 F. Zakaria: Culture is Destiny: A Conversation with Lee Kwan Yew Krugman: The Myth of Asia s Miracle Management and culture, describing cultures Hodgetts and Luthans: The Meanings and dimensions of culture, pp 95-121. Osland and Bird: Beyond Sophisticated stereotyping. Analyzing and comparing Cultures S. El Kahal: Culture and Business in Asia Pacific, pp. 125-145 Analyzing and comparing cultures (continued); Role plays Case: Alpha Gearing; discussion of Chinese management Negotiations and Communications Case:Nora-Sakari-a cross cultural negotiation Thomas: The Manager as Negotiator: communication and negotiating across cultures, pp 115-146. Organizational Design Motivation and Leadership Across Cultures Elankov: Can American Management Concepts Work in Russia Case: Ellen Moore (A): Living and Working in Korea Puffer: Understanding the bear: A portrait of Russian business leaders, pp 41-54. Case: NES China: Business Ethics (A) Donaldson: Values in Tension: Ethics away from Home Ernest Gundling: Ethics and Working with the Japanese Su and Littlefield: entering Guanxi: A business ethical dilemma in mainland China? 4
BAIM 580 Course Materials Donaldson, T. (1996). Values in Tension: Ethics away from Home. Harvard Business Review, 74(5): 48-62. El Kahal, S. (2001). Business in Asia Pacific. Oxford University Press, pg 125-145. Elenkov, D.S. (1998). Can American Management Concepts Work in Russia? A Cross-Cultural Comparative Study. California Management Review, 40(4): 133-156. Gundling, E. (1991). Ethics of Working with the Japanese: The Entrepreneur and the Elite Course. California Management Review, 33(3): 25-39. Hodgetts, R.M., Luthans, F. (1997). International Management: Culture, Strategy and Behavior. 3 rd edition. New York: McGrawhill, pp 95-121. Huntington, S.P. (1996). The West Unique, Not Universal. Foreign Affairs, 75(6): 28-46. Jung, K.D. (1994). Is Culture Destiny? The Myth of Asia s Anti-Democratic Values. Foreign Affairs, 73(6): 189-194. Krugman, P. (1994). The Myth of Asia s Miracle. Foreign Affairs, 73(6): 62-78. Osland, J.O., Bird, A. (2000). Beyond Sophisticated Stereotyping: Cultural Sensemaking in Context. The Academy of Management Executive, 14(1): 65-79. Puffer, S.M. (1994). Understanding the Bear: A Portrait of Russian Business Leaders. Academy of Management Executive, 8(1): 41-54. Stanbury, W.T. and Vertinsky, I.B. (2004). Economics, Demography and Cultural Implications of Globalization: The Canadian Paradox. Management International Review, 2: 131-156. Su, C., and Littlefield, J.E. (2001). Entering Guanxi: A Business Ethical Dilemma in Mainland China? Journal of Business Ethics, 33(3); 199-210. Thomas, D.C. (2002). Essentials of International Management. Thousand Islands, California: Sage Publications, pp 115-146. Zakaria, F. (1994). Culture is Destiny: A Conversation with Lee Kuan Yew. Foreign Affairs, 73(2): 109-126. 5