ppInternational PM ambiguity brings with it anxiety and different cultures

Week 1: have learnt to deal with this anxiety in different ways. The
• Defined as the art and science of getting things accomplished extent to which the members of a culture feel threatened
through others by ambiguous or unknown situations and have created
• Different roles of management beliefs and institutions that try to avoid these is reflected
• First level – Mobilization in the score on Uncertainty Avoidance.
• Second (middle) – Coordination • Individualism – Collectivism: The fundamental issue
• Third level – Strategic addressed by this dimension is the degree of
Week 2: interdependence a society maintains among its
National Culture and Management: Perspectives members. It has to do with whether people´s self-image
Management is independent of national culture: consists of is defined in terms of “I” or “We”. In Individualist societies
objective practices and autonomous actors. PROBLEM: Cannot people are supposed to look after themselves and their
distinguish between universal and dominant or preferred forms of direct family only. In Collectivist societies people belong
management. to ‘in groups’ that take care of them in exchange for
A culture is characterized by its uniqueness and consequently, loyalty.
there are no common dimensions and no possible direct • Masculinity (Achievement) – Femininity (Nurturing): A
comparisons between cultures. PROBLEM: Untested and provides high score (Masculine) on this dimension indicates that
no course of action. the society will be driven by competition, achievement
Cross Cultural Studies (psychology) National cultures are and success, with success being defined by the “winner”
comparable… the dimensions reflect actors’ attitudes and not their or “best-in-the-field.” This value system starts in school
contexts. PROBLEM: Biased and disregards contexts. and continues throughout one’s life – both in work and
What is Culture? “Software of the mind” leisure pursuits. A low score (Feminine) on the dimension
• Pervasive and shared beliefs, behaviors, norms, values, means that the dominant values in society are caring for
and symbols that guide everyday life others and quality of life. A Feminine society is one where
• Cultural norms: both prescribe and proscribe behaviors quality of life is the sign of success and standing out from
• Cultural values: what is good/beautiful/holy, and what the crowd is not admirable. The fundamental issue here
are legitimate goals for life is what motivates people, wanting to be the best
Behaviour (Masculine) or liking what you do (Feminine).
1. Behaviour is a function of our Personality and our • Long-term – Short term orientation: This dimension
Environment: B = f (P, E) describes how every society has to maintain some links
2. What we believe and what we value inform our attitudes with its own past while dealing with the challenges of the
and ultimately our behaviours: Be + V A B present and future, and societies prioritise these two
Levels of Culture existential goals differently. Normative societies. which
1. National culture: the dominant culture within the score low on this dimension, for example, prefer to
political boundaries of the nation-state (sub-cultures) maintain time-honoured traditions and norms while
2. Business culture: norms, values, and beliefs that pertain viewing societal change with suspicion. Those with a
to business in a culture. Tells people the correct, culture which scores high, on the other hand, take a more
acceptable ways to conduct business in a society pragmatic approach: they encourage thrift and efforts in
3. Occupational culture: the norms, values, beliefs, and modern education as a way to prepare for the future.
expected ways of behaving for people in the same • Indulgence – Restraint: One challenge that confronts
occupational group humanity, now and in the past, is the degree to which
4. Organizational culture: the set of important small children are socialized. Without socialization we do
understandings that members of an organization share not become “human”. This dimension is defined as the
5. Personal culture: personality and communication style of extent to which people try to control their desires and
the individual impulses, based on the way they were raised. Relatively
Cultural Value Frameworks weak control is called “Indulgence” and relatively strong
1. Hofstede’s Model of National Culture control is called “Restraint”. Cultures can, therefore, be
2. Trompenaar’s 7 cultural dimensions model described as Indulgent or Restrained.
3. Kluckhohn & Strodtbeck World Views Trompenaars 7d Cultural Dimensions
4. Hall’s Notion of Cultural Contexts • Builds on traditional anthropological approaches to
Hofstede’s Model of National Culture understanding culture (borrows from Kluckhohn &
Dimensions of basic values: Strodtbeck)
• Power Distance: This dimension deals with the fact that • Culture exists because people need to solve basic
all individuals in societies are not equal – it expresses the problems of survival
attitude of the culture towards these inequalities • Challenges include
amongst us. Power Distance is defined as the extent to • How people relate to others
which the less powerful members of institutions and • How people relate to time
organisations within a country expect and accept that • How people relate to their environment
power is distributed unequally. It has to do with the fact Dimensions that deal with relating to others include:
that a society’s inequality is endorsed by the followers as 1. Universalism vs. Particularism: People place a high
much as by the leaders. importance on laws, rules, values, and obligations. They
• Uncertainty Avoidance: The dimension Uncertainty try to deal fairly with people based on these rules, but
Avoidance has to do with the way that a society deals rules come before relationships. Vs. People believe that
with the fact that the future can never be known: should each circumstance, and each relationship, dictates the
we try to control the future or just let it happen? This rules that they live by. Their response to a situation may
 change, based on what's happening in the moment, and Hall’s Notion of Cultural Contexts
who's involved. • High-context cultures: Including much of the Middle East,
2. Individualism versus Communitarianism: People believe Asia, Africa, and Latin America and Latin Europe
in personal freedom and achievement. They believe that • Low-context cultures: Including North America and much
you make your own decisions, and that you must take of Western Europe
care of yourself. Vs. People believe that the group is more NEXT: Diagnostic Approach (Koster, 2010: p. 26)
important than the individual. The group provides help • What is/are the issue(s) being observed?
and safety, in exchange for loyalty. The group always • In which phase(s)/activity(ies) of the project is/are the
comes before the individual. issue(s) occurring?
3. Neutral vs. Affective (Emotion): People make a great • What do the cultural frameworks predict about the
effort to control their emotions. Reason influences their cultural dimensions of the issue(s) occurring in the
actions far more than their feelings. People don't reveal project/phase(s) activity(ies)
what they're thinking or how they're feeling. Vs. People Week 3
want to find ways to express their emotions, even Social Cognition
spontaneously, at work. In these cultures, it's welcome • A mental categorization process
and accepted to show emotion. • Several components influencing how we process info
4. Diffuse vs. Specific: People see an overlap between their about individuals & events and as a result, how we are
work and personal life. They believe that good likely to behave
relationships are vital to meeting business objectives, and • Type 1 (automatic/’unconscious’)
that their relationships with others will be the same, • Type 2 (more effortful/tiring)
whether they are at work or meeting socially. People Social Cognition Bias
spend time outside work hours with colleagues and • Perceived similarity => attraction
clients. Vs. People keep work and personal lives separate. • Ethnocentrism: A universal tendency toward in-group
As a result, they believe that relationships don't have bias
much of an impact on work objectives, and, although • Preferential treatment reserved for those considered to
good relationships are important, they believe that be part of the in-group
people can work together without having a good • Our own cultural group is our central reference point
relationship. Social Cognition and Stereotypes
5. Achievement vs. Ascription: People believe that you are • Social Categorization Theory: Categorizing others based
what you do, and they base your worth accordingly. on a few salient dimensions
These cultures value performance, no matter who you • Social categorization processes:
are. Vs People believe that you should be valued for who • Stereotypes
you are. Power, title, and position matter in these • Simplification of the characteristics of the
cultures, and these roles define behavior. “other”
6. Sequential versus Synchronous time: People like events • Stereotypes + In-group bias => Prejudice
to happen in order. They place a high value on Social Dominance and National Stereotypes
punctuality, planning (and sticking to your plans), and • Social Dominance Theory: Within societies, certain
staying on schedule. In this culture, "time is money," and groups are dominant over others & enjoy a
people don't appreciate it when their schedule is thrown disproportionate amount of (sometimes unconscious)
off. Vs People see the past, present, and future as “privilege”
interwoven periods. They often work on several projects • National Stereotypes: Globally as well, a generally
at once, and view plans and commitments as flexible. accepted hierarchy of nationalities may exist based on
7. Internal vs. External control (Internal direction versus status (e.g., economic or other desirable characteristics)
External direction): People believe that they can control Attribution
nature or their environment to achieve goals. This • Situational cues (context; time; and situations involving
includes how they work with teams and within others)
organizations. Vs People believe that nature, or their • If inconclusive we rely on prior into to make judgements
environment, controls them; they must work with their and decisions
environment to achieve goals. At work or in relationships, • Implications: Canadian law and Human Rights
they focus their actions on others, and they avoid conflict Cultural Value Frameworks
where possible. People often need reassurance that Hofstede’s Model of National Culture
they're doing a good job. Trompenaar’s 7 cultural dimensions model
Kluchohn & Strodbeck Kluckhohn & Strodtbeck World Views
Every culture faces: Hall’s Notion of Cultural Contexts
• basic survival needs Understanding National Culture
• must answer universal questions • Formal rules and procedures
It is out of this need that cultural values arise. These questions • Unwritten rules (organizational norms)
faced by people into five categories and reflect concerns about: • Widespread beliefs (societal norms)
1) human nature • Specialists (experts, internal consultants)
2) the relationship between human beings and • Subordinates
the natural world • Colleagues
3) Time • Superiors
4) human activity • Own experience and training
5) social relations National Culture Frameworks
Kluchohn & Strodbeck – See slide 13 w2 • Use Cautiously! Be mindful of their limitations
 • Describe norms of a group better than values of a Environment Uncertainty
particular person • Environmental uncertainty: a lack of complete information
• Gives you simply a “first best guess” regarding what exists and what developments may occur in the
• Needs to be modified with experience external environment.
• Avoid judgment • Two dimensions of environmental uncertainty:
• Helps to remember EMIC differences, but also ETIC • Degree of complexity
commonalities • Rate of change
Caveats and Cautions
• Stereotyping: assumes that all people within one culture Globalization
behave, believe, feel, and act the same The trend away from distinct national economies towards an
• Ethnocentrism: occurs when people from one culture Integrated and interdependent world economy in terms of
believe that theirs are the only correct norms, values, and markets, production, and consumers
beliefs
• Cultural relativism: all cultures, no matter how different, Globalization: 4 Points of View
are correct and moral for the people of those cultures
• Best alternative in intercultural management is Cultural
Pragmatism: A practical, matter-of-fact way of
approaching or assessing cross-cultural situations or of
solving cross-cultural problems (adaptation)
Contextual Intelligence
• Ethnocentricity
• Best Practices do not often Travel
• Adapt or Rebuild Successful Operations Model
• Assume Nothing
• Contact Theory The Business-Government - Society Nexus
Improving Intercultural Competence The modified “Boulding Triangle” depicts the three segments of the
• Develop knowledge: strategies to understand others domestic macroenvironment -- Business (B), Government (G) and
who are different from us Civil Society (S)
• Develop motivation: strategies to accept others who are At the apex appears B,G and S in its purest form
• Pure reciprocity, gift, trust, solidarity (civil society)
different from us
• Develop skill: strategies to adapt to others who are • Pure exchange “quid pro quo” (business)
different from us • Pure coercion and resource allocation (government)
Diagnostic Tool (Koster, 2010) All inner territory represents organizations embodying different
• What is/are the issue(s) being observed? mixes of the three -- a variety of socioeconomic AND governance
relationships
• In which phase(s)/activity(ies) of the project is/are the
issue(s) occurring? What’s Your Global Perspective?
• What do the cultural frameworks predict about the Parochialism: Viewing the world solely through your own
cultural dimensions of the issue(s) occurring in the perspective,
project/phase(s) activity(ies) leading to an inability to recognize differences among people.
Ethnocentrism: The belief that the best work approaches and
The Culture Gap Analysis Tool (Koster, 2010) – Slide 16 week 3
Week 4 practices are those of the home country.
Polycentricism: View that managers in the host country know the
Open systems view best
approaches and practices for running their businesses.
Organization Creates
Environment supplies Environment consumes Geocentricism: A world-oriented view that focuses on using the
Resource inputs
best
Product outputs
People
Finished approaches and people from around the globe.
Money
Materials
Technology
goods
and Global Environment and Trade
Information Transformation process
services
• Regional Trading Alliances: Several years ago, global
Work activities turn
resources int outputs competition was best descried in terms of country
Consumer Feedback
against country....this is not longer the case!

The Task of International Project Management

Foreign Environment
uncontrollable
Domestic Political/legal forces
Environment Competitive structure
uncontrollable Economic climate

marketing, communication, ORGANIZATION

strategies, etc controllable
Economic forces
Competitive forces
Level of technology
Structure of distribution
Geography and Infrastructure
Cultural forces
Political/legal forces

Economic Integration
 • Economic integration typically leads to a reduction in the • Risk Management: Plan, Identify, Analyze, Response plan
cost of trade, improved availability of goods and services and Implement, and Monitor
and a wider selection of them, and gains in efficiency that • “Drifting environments” (Kreiner, 1995)
lead to greater purchasing power • e.g., customers change preferences,
• Can reduce the costs of trade, improve the availability of competitors their strategies or corporate
goods and services, and increase consumer purchasing management their commitments
power in member nations • Stakeholders of international projects get a better
• Employment opportunities tend to improve understanding of their actual needs
• Original requirements misunderstood or misinterpreted
(e.g. due to cross-cultural misunderstandings)

How Organizations Go International

• Exporting: Making products at home and selling them abroad.
• Importing: Acquiring products made abroad and selling them
at home.
• Licensing: Giving another organization the right to use its brand
name, technology, or product specifications. Risk Management Process**
• Franchising: A service organization gives a person or group the • Need to plan
right to sell a product using specific business methods and practices • Risk planning (management) activities:
that are standardized. • Identification of risk and triggers in every
• Strategic Alliance: Partnership between a domestic and a foreign project segment
company in which both share resources and knowledge in • Analysis of risk impact (Qualitative and
developing new products or building new production facilities. Quantitative Approaches)
• Joint Venture: A specific type of strategic alliance in which the • Prioritize
partners agree to form a separate, independent organization for • Plan responses to risk; and
some business purpose. • Monitor and control the project for risks that
• Foreign Subsidiary(ies): An approach that involves a direct may occur.
investment in a foreign country by setting up a separate and • (Recall) PESTLE/PESTEL: Political-Economic-Social-
independent production facility(ies) or office(s). Technical-Legal-Evironmental
Week 5 • TECOP: Technical-Environmental-Commerical-
Risk Operational-Political
An uncertain event or condition that, if it occurs, has a positive or a • VUCA: Volatility-Uncerrtainty-Complexity-Ambiguity
negative effect on at least one project objective, such as time, cost, PESTEL
scope, or quality’ (PMI, 2004: 238). • Tool that structures the political, economic,
• Risk is an uncertain event that, if it occurs, can have sociocultural, technological, environmental
positive (opportunities) or negative (threats) impacts on and legal environment of a project for ONE
projects geographical market, typically a country
• Trigger Conditions indicate the occurrence of a risk event • The cultural gap analysis tool helps with the
• Well known (known–known) – Fully studied and analysis of the sociocultural environment
understood
• Anticipated (known-unknown) – Understood but not
available Identifiable and probability of occurrence and
impact can be calculated
• Risk related to the management of the
international project
• Risk residing in the wider external project
environment
• Risk management is influenced by local
cultures
• Not Anticipated (unknown-known) – Available but not
realized
• Emerge (unknown-unknown - high uncertainty) - During
the project (i.e., future events cannot be foreseen, nor
can they be factored into the overall project planning
process
Examples of industry specific tools:
• Hazard and Operability Study (HAZOP):
Systematic analysis of process systems,
equipment and procedures to identify
potential hazards to people/project
stakeholders and the environment
• Fire Safety Study (FSS): Examines specific
causes and impacts of fire in the context of the
project
• Construction Safety Study (CSS): Identifies
major hazards in the construction plan
Probability and impact matrix.
• Low-tech tool for risk prioritization
• Combines the likelihood of risk occurrence with
the effect the risk will have on the project
objectives
• Provides stakeholders with overview of risk
propensity
• Categorization of risks in terms of project
impact can be three stage (low, medium, high)
or five stage (insignificant, minor, moderate,
major, horrible)
For ease of control and communication, it is recommended to use
colour coding:
• RED for risks that are likely to occur and have a
big impact on the project
• AMBER for risks with medium impact on
project results and/or medium to low
likelihood of occurrence
• Green for risks with low probability of
occurrence and low impact on the project’s
objectives
• Risk avoidance or exploit
• Risk mitigation or enhance
• Risk acceptance
• Risk transfer or share (Risk Absorption/Pooling)
• Risk absorption (pooling)
Risk Response
• Assign
• Develop options and prioritize
• Resource and activity plans (budget, schedule and
management plans)
• Determine specific responses
• Develop contingency or “fall back” plans
• Review secondary risks