Crisis Management

Swine Flu Stories

Profit from Flu

Tech Companies Suspend trips

Swine Flu Cancels Flights to Mexico

Cruise Lines Suspend Stops

Carnival Cruise Statement Regarding Swine Flu

As Swine Flu Spreads, What Should HR Do?

China Steps Up Fight Against Swine Flu

Negotiations

Negotiation

• universal practice (i.e. agendas, bargaining, power persuasion)
• how/technique – is related to culture (bargaining behavior, transaction evaluation, resolving conflict, making tradeoffs)

Bring our own experiences as negotiators to the process.
Have our own theories about success.
Becoming a better negotiator is about understanding where you come from and improve your performance.

• Self-assessment
• Identification of applicable skills
• Putting ideas into practice

Awareness needed

• Awareness of context and environment
• Awareness of process and structure
• Stages of development

• Agendas and creation
• Physical setting
• Time resources
• Roles

• Sub-activities
• Communication exchange and evaluation
• Argumentation and persuasion and relationship making
• Self-awareness of one’s own individual behavior

(Spich, 2003)

Cross Cultural negotiations - Relationships

Cross cultural negotiations

Japanese Story - Introduction

Cross Cultural Communication

Security Issues

Caterpillar

Compensation

Compensation
http://aoprals.state.gov/


Forces driving Global Pay (Gross & Wingerup)

Cultural Preferences

• Importance of status
• Role of individual vs. organization vs. government
• Equity vs. disparity
• Achievement vs. Relationships

Economic Conditions

• Size of economy
• Types of industries, natural resources, inflation, unemployment
• Protectionism vs. open market

Personal Preferences

• Attitudes toward risk
• Quality of life vs. work
• Short- vs. Long-term
• Competitiveness vs. solidarity

Social Constraints

• Income tax rates, social costs
• Laws and regulations
• Collective bargaining, worker participation
• Skills, education of workforce

COMPENSATION EXPECTATIONS

• Incentive to leave
• US standard of living
• Security
• Healthcare
• Foreign taxes
• Education of children
• Trips home other ways to connect with friends and family
• Reentry

Balanced- Sheet approach
1. Base pay (Gross income + bonus – (taxes + SS + pension)
2. COLA (usually only additions; includes housing allowance)
3. Incentive premiums (mobility + hardship + hazardous conditions)
4. Assistance programs (moving + storage + auto + education)

Events

April 2 - Red Cliff Movie - Lay Hall 6pm

April 9 - Guest Speaker Calla Wiemer "China's Place in the Global Economic Crisis and Recovery."
Calla Wiemer graduated from Drury College in 1977 with a major in economics. From her first principles course with Dr. Rohlf, she was hooked. She went on to get an economics Ph.D. at the University of Wisconsin, specializing in the Chinese economy just as relations with China were normalized. She then landed a plum job at the University of Hawaii where she got tenure and could easily have lived out a life in paradise. But worldly adventure beckoned and in 1994 she took up residence in Beijing as a freelance consultant. In 2003, the door to China closed for Calla due to a piece she wrote on the Xinjiang economy. But another door opened in Singapore where she spent four years at the National University. Last year Calla returned to the US taking up a position as a Visiting Scholar at UCLA. www.callawiemer.com.

April 21 - Classical Indian Dance - FSC Ballroom 1:30 -3pm

International HR

Resources for International Human Resources.

International Foundation of Employee Benefit http://www.ifebp.org

International Personnel Management Association http://www.ipma-hr.org

International Personnel Management Association http://www.ipmaac.org

International Association for Human Resource Information Management http://ihrim.org

Video clip




Staffing and Selection

Intercultural competence
Intercultural competence.
Inter cultural competence is defined in terms of the ability to use appropriate interpersonal, informational, analytical, action, and adaptive skills in intercultural situations (Yamazaki & Kayes, 2004).

Interpersonal. Cross cultural interpersonal skills would include having the ability to form and build relationships with people from other cultures. This occurs by understanding, respecting, and learning about the culture in which they live.

Informational. Cross cultural informational skills include observing the host culture and responding to new and unexpected experiences.

Action. Cross cultural action skills include the ability to act even in ambiguous situations. This would include the ability to prepare for engaging in business interactions in a foreign country.

Adaptive. Cross cultural adaptive skills include the ability to adapt to the changing circumstances experienced in foreign countries. Students will need to find their own method for coping with stresses of interacting in a foreign culture.

Analytical. Cross cultural analytical skills include the ability to take abstract and conceptual understanding of the values and practices of a foreign country and design appropriate response to cross cultural situations.

Yamazaki, Y. & Kayes, D. (2004). An experiential approach to cross-cultural learning: A review and integration of competencies for successful expatriate adaptation. Academy of Management Learning and Education. 3(4): 362-379.



Requirements – Luthans & Doh
Adaptability to cultural change
Physical and emotional health
Age, experience, education
Language training
Motivation
Family
http://www2.shrm.org/video/0207drummond.html
Leadership


Adjustments
Anticipatory and In-country

Talk about a custom BMW!

Organizational Culture

Questions to consider -
Why does the text suggest that organizations with strong cultures may have a harder time entering foreign markets? What examples does the text provide? Can you think of others? Maybe some from cases in other classes.

Prepare 3 points for discussion on the BMW's Dream Factory Case that introduces the chapter.
BMW

Brief Integrative case 2. Write up answers to case questions to turn in.


Organizational Culture (Luthans & Doh)
Behavioral regularities
Norms
Dominant shared values
Philosophy of customer and employee value
Rules for employee behavior
Organizational climate

Describe the interaction between organizational and national culture.

Dimensions of Corporate Culture
Motivation - Activities/Outputs
Relationship - Job/Person
Identity - Corporate/Professional
Communication - Open/Closed
Control - Tight/Loose
Conduct - Conventional/Pragmatic


Organizational Culture types - Trompenaars
Equity/Hierarchy
Person/Task emphasis

4 types

Transition Economies

Transition Economies – Beyond Culture

View more presentations from sroncer.

Orientation of MNC

Ethonocentric
Polycentric
Regiocentric
Geocentric

What role does technology play in the orientation of a MNC?

What is the relationship between orientation and strategy?

What are personnel practices you would expect to see under each of these orientations?

What type of marketing would you expect under these circumstances?

View Nike commercials
What do you believe these commercials say about the orientation of the firm?
What else do you know about Nike that would give you keys about the firm orientation?

Figure 5-1 shows how Trompenaar's Dimensions are reflected in advertising.
Do the Nike commercials fit this model? How? Why?

Cultural levels

Personal Culture -
individual traits, skills, personality set in ethnic, racial, familial, education, environment.

National Culture -
Common understanding expressed in beliefs, values, attitudes and behaviors.

Corporate Culture -
Institutional beliefs and values often expressed in vision, mission, and value statements.


Ougadou Paradox

Contrasting Commercials

Cultural Variations

Questions to ask:

What is the nature of people?
Good, Mix, Evil
What is the person's relationship to nature?
Dominant, In harmony with nature, Subjugation
What is the person's relationship to other people?
Lineal, Collateral, Individualist
What is the modality of human activity?
Doing, Being and becoming, Being
What is the temporal focus of human activity?
Future, Present, Past
What is the conception of space?
Private, Mixed, Public

Proverbs

One palm makes no applause.
A single tree makes no forest; one string makes no music.
Giving convenience to others is to give it to yourself.
A flying moth throws itself into a fire.
A friend made is a road paved; an enemy created is a wall built.
A chat with a friend is worth ten years of schooling.
Don’t hit one on the face; don’t grab one’s bowl at dinner.


A turnip cooked hastily may still have soil residue.
Honing the hatchet will not delay woodcutting.
More haste, less speed.
A deliberate inaction is better than a blind action
A man’s heart is indiscernible behind his chest.
A mantis stalking a cicada is unaware of an oriole behind it.
When drawing water from a well, never forget the well diggers.
A smile may conceal a dagger.
A flower deliberately grown may not bloom; but a sapling planted accidently may grow into a tree.

Yuan, Haiwang (2006) The Magic Lotus Lantern and Other Tales from the Han Chinese. Libraries Unlimted: Westport, Conn.

Hessler, P. (2006). Oracle Bones. Harper Collins Publishers: NY.

Dumplings

Culture

Luthans & Doh – culture is acquired knowledge that people use to interpret experience and generate social behavior.






How does your picture or proverb tell about the country's culture?



What are the characteristics of culture? - Luthans & Doh
1.
2.
3.
4.
5.
6.

Role of Culture in IM.

Luthans & Doh contend that learning about culture is important to the study of international management at the individual level. In other words understanding the culture will inform interactions you have with individuals in that culture. The story in the text about Chinese business problem would demonstrate this view.

Others suggest that culture is a group level descriptor and should not be used as a basis for prescribing how to deal with individuals. For example just because someone is from a collectivist culture we can’t assume they won’t be motivated by individual rewards. The contention of this view is we are promoting stereotypes based on culture.

Question: Are all Americans focused on individual over group goals?


Management approaches affected by culture Luthans & Doh

Can you come up with an example of how each of these approaches would be reflected in specific situations encountered by managers?

• Centralized vs. decentralized decision making
• Safety vs. risk
• Individual vs. group rewards
• Informal vs. formal procedures
• High vs. low organizational loyalty
• Cooperation vs competition
• Short-term vs. long-term horizons
• Stability vs. innovation

Ethics and Corporate Responsibility

Ethics - study of morality and standards of conduct

Ethical organization
Ethical Leaders
Ethical Individuals
Organizational Processes and Structures

Questions for you to consider
What is your ethical statement?
What is your line in the sand?
What are you not willing to accept?
How can you take time to stop and think about your actions?
Do you believe individuals can make a difference?



Do CEO’s need ethical statement?



Employment and Business Practices
Human Rights

• Child Labor

Corruption



Is ethical capitalism possible?




Institute for Global ethics

Carnegie Council

Business and Human Rights Resource Center - Use this site to check for Human Rights and other violations in the country you are studying.

Company Statement on Human Rights


Corruption

Classes in Indonesia

Transparency International


Corporate Social Responsibility - Actions to benefit society beyond the requirements of the law and direct interests of the firm.

Corporate Social Responsibility Wire


Davos Videos

Corporate Social Responsibility




Millennium goals

Political and Legal Environment

Domestic, international and political environment impacts MNC.

When we make the above statement what do we mean? What is being impacted? Where are the areas that we see change or differences?

US government supports companies by providing information.

Is that a good use of government them?

Company Trade Reports

Ideologies and Political systems

What do you think a country’s ideology tell us about the political system they adopt? ..about how that system is supported?

The text talks about the complexity of dealing with the EU because of the individualistic and collectivist ideals. Why does this increase complexity?

What is the difference between nationalization of businesses and nationalism?

What are the positive and negatives of nationalism? Do the benefits outweigh the costs?

Do you think there are different consequences for nationalism in the US and China?

Principles of International Law

Sovereignty and Sovereign Immunity

Countries have the right to rule

International Jurisdiction

Nationality Principle

Retain jurisdiction over own citizens

Territoriality Principle

Retains jurisdiction within territory

Protective Principle

Retain jurisdiction over behavior threatens security

Doctrine of Comity

Respect for laws, institutions, and governments in reference to own citizens

Act of State Doctrine

Accepts acts of other countries even when in conflict with US

Treatment and Rights of Aliens

Forum for Hearing and Settling Disputes

Legal and Regulatory Issues

Foreign Corrupt Practices Act

1977 – address bribes in international business

How did the critics think this act would impact business? Did that turn out to be the case? Why do you think these results happened?

Foreign Corrupt Practices Act

Law.com Law Blog with examples of FCTPA

Bureaucratization

Privatization

National Center for Policy Analysis

MNC and Economies

MNC – Multinational Corporations

Characteristics that classify a company as a MNC?
1.
2.
3.

What MNC's did you find operating in your countries?
Surprises in your research.

Discuss Quiz in the text pg. 19


Global Economies and Main Systems

Market Economy

Command Economy

Mixed Economy

What worries would a company having entering a mixed economy that may not be as promient in the other 2 types?


World Regions

Discuss impact of NAFTA on MNC’s.

Why do MNC’s want to expand into Asia? What are some of the risks? Is it worth it? What are the assumptions behind this expansion?


Outshoring by India

India and China

Das talks about the response of the world to the rising power of India and China and the contrasting ways in which they have grown. Does the information in this article change you responses to the questions in the case?

Do you think the present economic uncertainties will increase the pressure to choose between India and China?

What information would you want to know before you decided in which country to invest?

The text was revised when oil was at an all time high. What impact does the change in the price of oil have on the assumptions about the future of emerging and developing regions?

What interesting observations or questions did you come up with based on the readings?

Homework for 1/28

Read: Luthans and Doh pgs 36 -46

Find a current article (2007 – present) in the press that discusses the Foreign Corrupt Practices Act.



Homework for 1/30

Read: Luthans and Doh pgs. 46 – 54

Quiz over Chpt 2

Read: A Chinese Venture pg. 57.

Globalization

Every morning in Africa, a gazelle wakes up.

It knows it must run faster than the fastest lion or it will be killed.

Every morning a lion wakes up.

It knows it must outrun the slowest gazelle or it will starve to death.

It doesn't matter whether you are a lion or a gazelle.

When the sun comes up, you better start running.

(African proverb - from Friedman, 2007)

Luthans and Doh define globalization as "the process of social, political, economic, cultural, and technological integration of countries around the world (8)."

Examples of these include:

mig33 ; Chinese milk Scandal; Satyam scandal; Sony losses


What are the benefits and costs of globalization for different sectors of the society? (companies, workers, communities)

For years we have seen the benefits of globalization, what risks did we overlook?

What ramifications will the economic downturn have on the pace of globalization?

Historical foundations of globalization.

Silk Road

Trans-Saharan Crosss-Continental trade

Agreements

Trade agreements - link to information about trade agreements.

Why do countires form trade agreements?

NAFTA
FTAA
ASEAN
CAFTA
EU


Changing World

BRIC - what countries compose this group? What is the importance of the group?

B Brazil
R Russia
I India
C China

International management requires a working knowledge of the forces involved in global business operations.

MNC

What constitutes classifying a company as a MNC?

What MNC's did you find operating in your countries?

Fortune Global List

The World is Flat

In Chapter 1, Luthans and Doh mention Thomas Friedman's book The World is Flat. In the book Friedman identifies 10 "flatteners" he believes are contributing to the current stage of globalization. This slideshow presents a good overview of those points.

The World is Flat

View more presentations or upload your own. (tags: globalization world is flat)