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Cross cultural management – 10/10/16

Olivier THOYER

Bibliographie

  • LEMAIRE JP (2013) Stratégies d’internationalisation, Edition DUNOD

INTRODUCTION

  • Diversity both domestic and international, will be the engine that drives the corporation of the 21st century.

  • Successful global managers will be able to manage this diversity for the innovative and competitive edge of their corporations.
  • The global manager of today has to be :
  • Open-minded
  • Sensitive
  • Responsive to national differences

In order to leverage benefits of cultural diversity.

  • Cultural diversity is an asset

  1. THE WORLD IS FLAT
  1. 3 great eras of Globalization
  • Supported by major innovations (Transport par bateau, jusqu’au porte container)
  • Transport par chevaux…Jusqu’à l’avion
  • Création des petites épiceries, points de vente
  • Début de la communication de la presse – minitel -  jusqu’à Internet : Evp
  1. Why is globalization unavoidable ?

Globalisation of the economy is mainly due to :

  1. The decision to expend their business made by the Chinese MNC’s managers
  2. BRIC’s governments decision
  3. The addition of worldwide individual development decisions thanks to new communication technologies and decrease of market barriers

Integrated economic areas development

Mercosur, Nafta, EU, Asean, APEC, SAARC[pic 1]

  • Economic and business opening
  • Corporate and sector geography[pic 2]

Economic and political opening,

End of bipolar East/West

New accessible areas

[pic 3]

Acceleration of information processing and decisions, Goods are being transported more rapidly. Services are exchanged more efficiently.

[pic 4][pic 5]

New homogeneous economic areas

Protection of these markets

Wide markets affects

[pic 6]

Competitive reinforcement new comers

profit erosion on traditional markets

New market development (Short – Medium term growth perspectives)

Low manufacturing costs

[pic 7]

Unavoidable opening of business organisations

  1. Company’s Challenge  

The term globalization covers a wide range of distinct political, economic and cultural trends.

4 ETAPES :

  • Globalization through trade
  • Globalisation through investments
  • Globalisation through human resources
  • Globalisation through exchange of knowledge

  1. CULTURE ABOUT CULTURES
  1. Cultural dynamics

Fundamentals of culture

CULTURE IS :

SOCIALLY ACCEPTED

  • Based on interactions between people
  • Based on suggestions more than explanations

LEARNED

  • Not based on genetics
  • `Learning process

SUBJECTIVE

  • What is acceptable for one population is not for an other

CUMULATIVE

  • Accumulation of facts  and knowledge for centuries

DYNAMIC

  • Adaptable to changes

The term culture however is so vast and emcompasses various dimensions, so that it is hard to define.

« Let my house not be walled on four sides, let all the windows be open, let all the cultures blow in, but let no culture blow me off my feet »

  1. Definitions

Geert Hofstede’s definition :

« Culture consists of unwritten rules of the social game. It is the collective programming of the human mind that distinguishes the members of one human group from those another. Culture in this sense is a system of collectively held values. »

Frans Trompenaar’s definition :

« A shared system of meaning. It dictactes what we pay attention to, how we act and what we value »

Culture defines :

  • A social structure
  • Communication styles
  • Behaviour
  • Decision making

It covers the relationship between various dimensions, including external adaptation and internal integration.

MANAGING SOLUTIONS TO PROBLEMS OF EXTERNAL ADAPTATION INCLUDES :

  • Assumptions concerning control and uncertainty
  • The nature of human activity

And

  • The nature of truth and reality

Or

  • The way we know the environment

MANAGING SOLUTIONS TO PROBLEMS OF INTERNAL INTEGRATION INCLUDES :

  • Assumptions regarding the importance of relationship over task achievement
  • Relationships with superiors and subordinates
  • Individualism and collectivism

  1. The Iceberg Model

  • Culture can best be compared to an iceberg : with a visible section above the waterline and a larger invisible section below the waterline.
  • Culture has some aspects that are observable and other that can only be suspected , imagined or intuited

10 % visible

90 % Invisible

KNOWLEDGE = This is global knowledge, techniques learned

KNOW HOW = Expérience, capacities, skills, memory

SOCIAL SKILLS = Behaviour, attitudes, interpersonnal skills, emotional intelligence

VISIONARY SKILLS = Insights, methods, sagacity, capacity to anticipate events intuition

...

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