1. Managing Cultural Differences

2. Content • Definition of Culture in Organizational Context • Types of Culture • The Impact of Personality and Language on Culture • Transmitting Information, Listening, and Displaying Patience • Workable Strategies for Dealing with Culture • Tips on Managing Culture

3. What is the Definition of Culture? The Answer is Too Broad!!

4. What is the Definition of Culture? • According to the two anthropologists, Kroeber and Kluckorn, there are 300 different definitions and sometimes conflicting definitions So… It depends on the Context

5. What is Culture in an Organizational Context? • Culture is “shared knowledge embodied in the values, beliefs, and norms used by members of the organization to carry out their day-to-day tasks”.

6. Why is Culture important? • It can explain the behavior of people. • Example: KrispyKreme (In Thailand)

7. Why is Culture important? • For alliance, people’s behavior is extremely important. • Because people’s behavior can somewhat indicate the culture of that organization. • When we ally with the new organization, we have to observe… • 1) What do the offices look like? • 2) How are people dressed? • 3) What are the jokes and taboos?

8. How can managers deal with Cultural Differences while maintaining their focus on accomplishing the goals of the Alliance? • There are two extreme approaches • Ignoring culture and hope for the best • Characterizing the partner firms’ culture and evaluate those characteristics for compatibility then manage it However, most firms use AD HOC Approach

9. Types of Culture • Three Types of Culture • National Culture • Culture of a Nation • Corporate Culture • Culture of an Organization • Subunit Culture • Culture of a department within the organization

10. Types of Culture (Example)

11. The Impact of Personality and Language on Culture

12. Personality and Stereotype TrapsAccording to Industrial Research Institute (IRI) • The behaviors of each national are different. • U.S.A. managers are directly to the points. • Japanese are consensus driven. • Germans are well organized.

13. The Personality and Stereotype • Can mislead when dealing with individuals

14. Language Traps

15. Language Traps • The first trap is that the use of a foreign language shapes a person’s behavior. • The second trap is subtle meanings.

16. Transmitting information, listening, and displaying patience • Common communication errors • Poor speaking, writing, and listening skills • Other communication errors • Language gaps • Cultural differences

17. Communication in the Negotiation • People who know each other well, they communicate and convey message through their… • Tone of voice • Body language • Facial expression • But, people who never know each other before, they may have trouble in communication, and the solution of this problem is the patience and the familiarity

18. Face to Face vs. E-mail • Using e-mail and other technology • Technology makes communication easier by sending an e-mail or having a meeting videoconference • Face to Face • Generally, meeting for the first few times, face to face meeting helps establish trust

19. Workable Strategies for Dealing with Culture • Knowledge • To identify the dominant behaviors people are likely to observe in their counterparts • Well-planned training program

20. Workable Strategies for Dealing with Culture • Pen-and-paper cultural inventory • By: • Members of both Implementation Teams • Parameters: • “attitude toward competitors” or “willingness to accept ideas from outside the firm” • Purpose: • To predict what alliance activities might cause inter partners conflict • To identify the role of cultural differences in the dispute

21. Workable Strategies for Dealing with Culture • Trust and Respect • Both firms must be conscious of the positive effects of bridging cultural gaps using activities design to encourage people to develop a closer personal understanding of each other • Technical visits • Joint presentations • Cooperative research, manufacturing and distribution “Cultural differences cannot stand up under a relentless assault of trust and respect”

22. Workable Strategies for Dealing with Culture • Team Building in Alliances • Elaborate ways to break down barriers that are fun, inexpensive, and achieve the critical results of allowing people to build interpersonal relationships • Example: Bowling “Communication in alliances is a dialogue of actions”

23. Workable Strategies for Dealing with Culture The Culturally Correct Dinner Secret Weapon People

24. Tips on Managing culture • Understand the dominant behaviors in each firm’s culture • Develop trust an respect between counterparts • Have fun together

25. Conclusion

26. Thank You for your Collaboration