local and international business environment in organization and management.pptx

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1. THE LOCAL AND INTERNATIONAL BUSINESS ENVIRONMENT OF THE FIRM

2. Activity 1.a: WORD CHALLENGE TABLE In this activity you will give your well thought idea about the word or words by providing the definition or an explanation. Then in the last column, rank your answer by writing 1 if you are very sure of your idea, 2 if you are sure of your idea and 3 if you are not sure of your idea. You are given 20 minutes to answer. WORD/S DEFINITION OR EXPLANATION RANK Cultural intelligence             Local Business Environment            

3. Activity 1.a: WORD CHALLENGE TABLE International Business Environment               Power Distance             Uncertainty Avoidance            

4. Activity 1.a: WORD CHALLENGE TABLE Individualism-Collectivism             Masculinity-Femininity             Time Orientation              

5. Activity 1.a: WORD CHALLENGE TABLE Manana habit               Globalization              

6. Activity 1.a: WORD CHALLENGE TABLE Currency Exchange Product                 Inflation rate              

7. What is your Reflection?                       Activity 1.b.: READiscover This is the time for you to read about the Local and International Business Environment of the Firm on page 17 – 19 of your text book. Compare your answer if you got the idea or the thoughts about the word or words in your reading correctly or has connections.

8. Cultural Intelligence Is an individual’s ability to favorably receive and adjust to an unfamiliar way of doing things. This will enable managers to develop their ability to accept and adapt to different cultures , both local and international, that may affect the organization to which they belong. Monochronic cultures refer to cultures emphasize punctuality and sticking to set rules. Polychronic cultures are more flexible as regards time; accomplishing many different things at once is also common for these cultures. Dilemma scenario:

9. THE LOCAL AND INTERNATIONAL BUSINESS ENVIRONMENT OF THE FIRM

10. Geert Hofstede’s Cultural Dimensions POWER DISTANCE (Power Distance Index / PDI) the degree to which a society accepts or rejects the unequal distribution of power among people in organizations and the institutions of society. This refers to the degree of inequality that exists – and is accepted – between people with and without power.

11. Power Distance – the degree to which a society accepts or rejects the unequal distribution of power among people in organizations and the institutions of society. Western Countries Philippines India and the Philippines have high power distance, while the US and Australia have low power distance. The use of the terms “Sir and Madam” to refer to the boss/superior by subordinate employees in the Philippines shows respect for authority figures, or high power distance. In the US, subordinates just use the name or nickname of the boss when addressing him or her, indicating lower power distance. Activity 3: What ’ s the Difference? In this activity, you will use your creative expressions to express an in depth understanding about the five (5) Geert Hofstede cultural dimensions using cut-out pictures/visuals. Make your point of view by showing the difference between western countries and the Philippines.

12. PDI Characteristics Tips High PDI Centralized organizations More complex hierarchies Large gaps in compensations, authority and respect. Acknowledge a leader’s status. As an outsider, you may try to circumvent his or her power, but don’t push back explicitly. Be aware that you may need to go to the top for answers. Low PDI Flatter organizations. Supervisors and employees are considered almost as equals. Delegate as much as possible. Ideally, involve all those in decision making who will be directly affected by the decision.

13. Geert Hofstede’s Cultural Dimensions Uncertainty Avoidance the degree to which society is uncomfortable with risk , change, and situational uncertainty This dimension describes how well people can cope with anxiety. In societies that score highly for uncertainty avoidance, people attempt to make life as predictable and controllable as possible. If they find that they can’t control their own lives, they may be tempted to stop trying. These people may refer to “ maňana ,” or put their fate “in the hands of God.”

14. UAI Characteristics Tips High UAI Conservative, rigid and structured, unless the danger of failure requires a more flexible attitude. Many societal conventions. People are expressive, and are allowed to show anger or emotions, if necessary. A high energy society, if people feel that they are in control of their life instead of feeling overwhelmed by life’s vagaries Be clear and concise about expectations and goals, and set clearly defined parameters. But encourage creative thinking and dialogue where you can. Recognize that there may be unspoken “rules” or cultural expectations you need to learn. Recognize that emotion, anger and vigorous hand gestures may simply be part of the conversation.

15. UAI Characteristics Tips Low UAI Openness to change or innovation, and generally inclusive. More inclined to open-minded learning or decision making Less sense of urgency. Ensure that people remain focused, but don’t create too much structure. Titles are less important, so avoid “showing off” your knowledge or experience. Respect is given to those who can cope under all circumstances.

16. Uncertainty Avoidance – the degree to which society is uncomfortable with risk, change, and situational uncertainty Western Countries Philippines   Managers in the US are risk takers. Filipinos are seguristas that are afraid of taking risks within business endeavors in the market.

17. Geert Hofstede’s Cultural Dimensions Individualism – Collectivism the degree to which a society emphasizes individual accomplishments versus collective accomplishments . this refers to the strength of the ties that people have to others within their community. A high IDV score indicates weak interpersonal connection among those who are not part of a core “family.” Here, people take less responsibility for others’ actions and outcomes.

18. Geert Hofstede’s Cultural Dimensions Individualism – Collectivism In a collectivist society, however, people supposed to be loyal to the group to which they belong, and, in exchange, the group will defend their interests. The group itself is normally larger, and people take responsibility for one another’s well-being.

19. IDV Characteristics Tips High IDV High value placed on people’s time and their need for privacy and freedom. An enjoyment of challenges, and an expectation of individual rewards for hard work. Respect for privacy. Acknowledge individual accomplishments. Don’t mix work life with social life too much. Encourage debate and expression of people’s own ideas. Low IDV Emphasis on building skills and becoming master of something. People work for intrinsic rewards. Maintaining harmony among group members overrides other normal issues. Wisdom is important. Suppress feelings and emotions that may endanger harmony. Avoid giving negative feedback in public. Saying “No” can cause loss of face, unless it’s intended to be polite. For example, declining an invitation several times is expected

20. Individualism – Collectivism – the degree to which a society emphasizes individual accomplishments versus collective accomplishments. Western Countries Philippines Individualistic cultures like those of the US and Australia are characterized as “I” and “Me” cultures where employees prefer to work alone without help from others. Mexico, Thailand, and the Philippines exhibit collectivism or preference for group or team work.

21. Geert Hofstede’s Cultural Dimensions Masculinity-Femininity the degree to which a society values assertiveness and feelings of material success versus concern for relationships. This refers to the distribution of roles between men and women. In masculine societies, the roles of men and women overlap less, and men are expected to behave assertively. Demonstrating your success, and being strong and fast, are seen as positive characteristics.

22. Geert Hofstede’s Cultural Dimensions Masculinity-Femininity In feminine societies, however, there is a great deal of overlap between male and female roles, and modesty is perceived as a virtue. Greater importance is placed on good relationships with your direct supervisors, or working with people who cooperate well with one another.

23. MAS Characteristics Tips High MAS Strong egos – feelings of pride and importance are attributed to status. Money and achievement are important Be aware of the possibility of differentiated gender roles. A long-hours culture may be the norm, so recognize its opportunities and risks. People are motivated by precise targets, and by being able to show that they achieved them either as a group or as individuals. Low MAS Relationship oriented / consensual More focus on quality of life Success is more likely to be achieved through negotiation, collaboration and input from all levels. Avoid an “old boys’ club” mentality, although this may still exist. Workplace flexibility and work-life balance may be important, both in terms of job design, organizational environment and culture, and the way that performance management can be best realized.

24. Masculinity-Femininity – the degree to which a society values assertiveness and feelings of material success versus concern for relationships. Western Countries Philippines The Japanese and Mexicans do not hesitate to push or express what they want, unmindful of hurting other’s feelings, thus showing masculinity. Filipinos, Thais, and Swedes would rather keep quiet and accept defeat if what they want is not acceptable to others, thus, exhibiting femininity.  

25. Geert Hofstede’s Cultural Dimensions Time Orientation The degree to which a society emphasizes short term thinking versus greater concern for the future or long-term thinking. This dimension was originally described as “Pragmatic Versus Normative (PRA). It refers to the time horizon people in a society display. Countries with a long-term orientation tend to be pragmatic, modest, and more thrifty. In short-term oriented countries, people tend to place more emphasis on principles, consistency and truth, and are typically religious and nationalistic.

26. Time Orientation – the degree to which a society emphasizes short term thinking versus greater concern for the future or long term thinking. Western Countries Philippines The Americans, who are risk-takers, prefer short term thinking. On the other hand, Filipinos and the Japanese, who are not risk-takers, are long term thinkers.