LATIN AMERICA

LATIN AMERICAN WORKING AND MANAGEMENT CULTURE

Simpatia, personal dignity, and classism

A large part of what keeps drawing people back to Latin America is the warmth of personal relationships. There is great emphasis on respecting human dignity. Latin Americans resent affronts to personal dignity, such as criticism, insults, or loss of face. The warmth of relationships also engenders a strong sense of connection.

People always take time to greet one another with a show of genuine pleasure, asking after their health and family. The intrinsic value of good relations runs high. One of the few exceptions to simpatia and personal dignity is an exhibition of rudeness on the part of people in positions of power.

The other face of simpatia in Latin America is a tendency to avoid open conflict and unpleasantness. Expatriates must therefore develop good relationships and speak privately with individual Latinos to determine what they really think. One can seldom assume that the public persona accurately reflects a person’s private reality.

Personalism

In Latin America, people seem to produce work for others primarily because of a personal relationship with them. You can rely on employees and colleagues to do a task because they have a sense of personal loyalty to you. The formal organizational structure or their job descriptions are not enough to guarantee compliance or service. Personalism, a desire for personalized, individualized attention, is a strong theme in Latin American culture.

Particularism

The common practice of making personal exceptions in Latin America can play havoc with bureaucratic rules in organizations, as well as Government-industry regulations. Close beneath the surface of every Latin American bureaucracy is an efficient, effective informal network that operates in a fashion Max Weber, with his equal treatment rules, would never approve. Here’s where the real power and influence are wielded and things get done.

Trust

According to the literature, as well as personal experiences, Latin American cultures generally have a fairly low level of trust in people who are not family or close friends. When you are in serious trouble, Latin Americans say that you can only trust your family, which they define as the extended family. The strong family unit is what earns Latin American cultures the collectivist label; families watch out for their members in return for loyalty. In many cases, the dynamic tension within families is this delicate balance between trust and control.

Humour and joy

Another cultural characteristic we miss when living outside Latin America is the sense of humour and fun that lies so close to the surface. Humour also plays a major role in the work setting. In addition to greasing the wheels of organizational life, humour has two other functions in Latin America. It is sometimes used to keep people in line.

Fatalism

The fatalistic nature of Latin American cultures is well documented. As we would expect, one generally finds more evidence in Latin America of external control (one’s fate lies in the hands of destiny) than internal control (people determine their own fate and are accountable for their own successes and failures).

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http://www.iceg.pucminas.br/espaco/revista/organizational%20implications%20of%20latin.pdf



http://www.as.miami.edu/clas/images/Latin%20America%20Map.jpg

QUESTION

What is Hofstede’s analysis view on Colombian culture ?.



http://www.geert-hofstede.com/hofstede_colombia.shtml

Colombia's highest Hofstede Dimension is Uncertainty Avoidance (UAI) at 80, indicating the society’s low level of tolerance for uncertainty. In an effort to minimize or reduce this level of uncertainty, strict rules, laws, policies, and regulations are adopted and implemented. The ultimate goal of this population is to control everything in order to eliminate or avoid the unexpected. As a result of this high Uncertainty Avoidance characteristic, the society does not readily accept change and is very risk adverse.

Colombia has a low Individualism (IDV) rank (13), as do most Latin countries (average 21). The score on this Dimension indicates the society is Collectivist as compared to Individualist. This is manifest in a close long-term commitment to the member 'group', be that a family, extended family, or extended relationships. Loyalty in a collectivist culture is paramount, and over-rides most other societal rules and regulations. The society fosters strong relationships where everyone takes responsibility for fellow members of their group.

The Power Distance (PDI) ranking of 67 indicates a level of inequality of power and wealth within the society.

Colombia has one of the higher masculinity rankings in Latin America (64). This indicates the country experiences a higher degree of gender differentiation of roles. The male dominates a significant portion of the society and power structure.

NORTH AMERICA

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http://open-site.org/img/chirone/amernord-map.jpg

USA

At 3.79 million square miles (9.83 million km2) and with over 309 million people, the United States is the 3rd or 4th largest country by total area, and the third largest both by land area and population. It is one of the world`s most ethnically diverse and multicultural nations, the product of large-scale immigration from many countries. The U.S. economy is the world`s largest national economy, with an estimated 2009 GDP of $14.3 trillion (a quarter of nominal global GDP and a fifth of global GDP at purchasing power parity).

In the 19th century, the United States acquired land from France, Spain, the United Kingdom, Mexico, and Russia, and annexed the Republic of Texas and the Republic of Hawaii. Disputes between the agrarian South and industrial North over states` rights and the expansion of the institution of slavery provoked the American Civil War of the 1860s. The North´s victory prevented a permanent split of the country and led to the end of legal slavery in the United States.

By the 1870s, the national economy was the world´s largest. The Spanish–American War and World War I confirmed the country´s status as a military power. It emerged from World War II as the first country with nuclear weapons and a permanent member of the United Nations Security Council. The end of the Cold War and the dissolution of the Soviet Union left the United States as the sole superpower. The country accounts for two-fifths of global military spending and is a leading economic, political, and cultural force in the world.

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https://www.cia.gov/library/publications/the-world-factbook/geos/us.html

CANADA

It is the world´s second largest country by total area. Canada´s common border with the United States to the south and northwest is the longest in the world.

A federation consisting of ten provinces and three territories, Canada is governed as a parliamentary democracy and a constitutional monarchy with Queen Elizabeth II as its head of state. It is a bilingual nation with both English and French as official languages at the federal level. One of the world´s highly developed countries, Canada has a diversified economy that is reliant upon its abundant natural resources and upon trade; particularly with the United States, with which Canada has had a long and complex relationship. It is a member of the G-8, G-20, NATO, OECD, WTO, Commonwealth, Francophonie, OAS, APEC, and UN.

Canadian culture has been greatly influenced by immigration from all over the world. Many Canadians value multiculturalism and see Canada as being inherently multicultural. However, the country´s culture has been heavily influenced by American culture because of its proximity and the high rate of migration between the two countries. The great majority of English-speaking immigrants to Canada between 1755 and 1815 were Americans from the Thirteen Colonies; during and immediately after the War of Independence, 46,000 Americans loyal to the British crown came to Canada. Between 1785 and 1812, more Americans emigrated to Canada in response to promises of land.

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https://www.cia.gov/library/publications/the-world-factbook/geos/ca.html

COMPARISON USA vs. CANADIAN CULTURE

AMERICANS
Self-centered
Aggressive
Arrogant
Jump to conclusions
Nationalistic
Don’t respect cultural differences
Distrustful
Superiority complex

CANADIANS
World awareness
Low key
Modest
Methodical approach
Moderate, even apathetic
Multicultural
Trusting
Some inferiority complex

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Class presentation North America, http://interactiva.eafit.edu.co/ei/

This chart says it all, Canadians are much more pleasent persons to be around with than americans.

Plus the country is safer, cleaner, quieter and more beutiful.

Could I say more ?.

QUESTION

"The HP Way"*

The proposed case study for this module illustrates the importance of organisational culture in the context of the USA It also enables the reader to understand the strong relationship between national and organisational culture.

Based on the class presentations and the assigned case study, please answer the following questions:

1. List and explain 3 strategies used by HP in order to develop and sustain a strong organisational culture - "The HP Way".

- Open door: This policy allows employees to contact their managers and provide excellent feed back about the companies movements.

- Close relations: By adressing friendly to every employee the company has improve productivity, because it gives employees many advantages when working at HP.

- Telling Stories: By telling their employees about the organisation features and aspects, HP motivates them to work better and harder.

2. By 2001, Carly Fiorina was facing a huge dillemma in terms of organisational culture. "Should Fiorina try to revitalize the HP way or attempt to replace it with a “better” culture than the one established by Dave Packard and Bill Hewlett in the 1940’s ?". Explain your answer.

Not replacing the organisational culture, but Carly should revitalise the HP way especially on the company practices, for better and more efficient ones.

"Time had stood still for the people of HP; they did not know how to move forward without their founders. They were afraid of change; what if changing anything meant destroying everything". One of Fiorina´s big themes is that in the end business isn’t just about numbers; it’s about people.

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1. http://www.carlyfiorina.com/about.html
2. *Forster, Nick. 2002. “Managing excellence through corporate culture: the HP way” The Management Case Study Journal 2(1): 13-25.

AUSTRALIA

The eastern half of Australia was claimed by the British in 1770 and initially settled through penal transportation to the colony of New South Wales, founded on January 26th 1788. The population grew steadily in the following years; the continent was explored, and another five largely self-governing Crown Colonies were established during the 19th century.

On January 1st 1901, the six colonies became a federation and the Commonwealth of Australia was formed. Since Federation, Australia has maintained a stable liberal democratic political system and remains a Commonwealth realm. The population is 22 million, with approximately 60% concentrated in and around the mainland state capitals of Sydney, Melbourne, Brisbane, Perth and Adelaide. The nation's capital city is Canberra, in the Australian Capital Territory.

Australia is a prosperous developed country with a multicultural society. It ranks highly in many international comparisons of national performance such as human development, quality of life, health care, life expectancy, public education, economic freedom and the protection of civil liberties and political rights. Australian cities rank among the world´s highest in terms of cultural offerings and quality of life. It is a member of the United Nations, G-20, Commonwealth of Nations, OECD, APEC, Pacific Islands Forum and the World Trade Organization.

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https://www.cia.gov/library/publications/the-world-factbook/geos/as.html



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https://www.cia.gov/library/publications/the-world-factbook/maps/maptemplate_as.html

ORGANISATIONAL CULTURE

In the acceptance of a shared framework of values for all Australians, new members are able to retain their ethnic identity provided that it fits within the over-arching framework of shared Australian values.

Management style:

Managers are not expected to see themselves as in any way superior to their colleagues; people just have different jobs. Therefore an authoritarian style of management will be received very badly by most Australians and such an approach may provoke outright hostility.

It is much better to adopt a consultative style of management which is inclusive of every person´s opinions and which encourages an open debate of ideas. Indeed, challenging the ideas of the boss in open meetings is not seen as rude or disrespectful but the sign of a fully committed, professional approach. Pragmatism is seen as a key attribute; getting the job completed quickly is more important than the niceties of protocol or hierarchy.

In keeping with the Australian direct style of communication, debates between senior and junior executives may appear from the outside as confrontational and occasionally acrimonious; they rarely are. This style of interaction is merely viewed as the most effective way of attaining the end goal.

QUESTION

Based on the film “Rabbit Proof Fence” (2002), and the information provided in class, please answer one of the following questions:

1. When removed from their families, the children were prepared for “a better life”, how is that true or false when considering different perspectives ?.

This is the true story of Molly Craig, a young black Australian girl who leads her younger sister and cousin in an escape from an official government camp, set up as part of an official government policy to train them as domestic workers and integrate them into white society. With grit and determination Molly guides the girls on an epic journey, one step ahead of the authorities, over 1,500 miles of Australia´s outback in search of the rabbit-proof fence that bisects the continent and will lead them home. These three girls are part of what is referred to today as the “Stolen Generations”.

Therefore the statement of a “better life” is false, they were just being trained in white ways to be servants. Australia claims for a system of fairness and justice in which everybody has equal rights. But the truth is that Australia has lost generations trying to integrate the aboriginal population to the way of life. On the contrary to New Zealand, where Maori culture is fully integrated and respected among its inhabitants, in the case of Australia, aboriginals have still a long way to go before adquiring fully equal treatment.



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http://mikaidt.dk/2004/images/DSC02080danny-eastwood.jpg

EUROPE

Europe, in particular Ancient Greece, is the birthplace of Western culture. It played a predominant role in global affairs from the 16th century onwards, especially after the beginning of colonialism. Between the 16th and 20th centuries, European nations controlled at various times the Americas, most of Africa, Oceania, and large portions of Asia. Both World Wars were largely focused upon Europe, greatly contributing to a decline in Western European dominance in world affairs by the mid-20th century as the United States and Soviet Union took prominence.

During the Cold War, Europe was divided along the Iron Curtain between NATO in the west and the Warsaw Pact in the east. European integration led to the formation of the Council of Europe and the European Union in Western Europe, both of which have been expanding eastward since the fall of the Soviet Union in 1991.

The culture of Europe can be described as a series of overlapping cultures; cultural mixes exist across the continent. There are cultural innovations and movements, sometimes at odds with each other. Thus the question of "common culture" or "common values" is complex.

EUROPEAN UNION

It is an economic and political union between 27 member countries, located primarily in Europe. Committed to regional integration, the EU was established by the Treaty of Maastricht on November 1st 1993 upon the foundations of the European Communities. With over 500 million citizens, the EU combined generates an estimated 28% share (US$ 16.45 trillion in 2009) of the nominal gross world product and about 21.3% (US$14.8 trillion in 2009) of the PPP gross world product.

The EU has developed a single market through a standardised system of laws which apply in all member states, ensuring the free movement of people, goods, services, and capital. It maintains common policies on trade, agriculture, fisheries and regional development. Sixteen member states have adopted a common currency, the Euro, constituting the Eurozone. The EU has developed a limited role in foreign policy, having representation at the World Trade Organization, G-8, G-20 major economies and at the United Nations. It enacts legislation in justice and home affairs, including the abolition of passport controls by the Schengen Agreement between 22 EU and 3 non-EU states.

As an international organisation, the EU operates through a hybrid system of supranationalism and intergovernmentalism. In certain areas, decisions are made through negotiation between member states, while in others; independent supranational institutions are responsible without a requirement for unanimity between member states. Important institutions of the EU include the European Commission, the Council of the European Union, the European Council, the Court of Justice of the European Union, and the European Central Bank. The European Parliament is elected every five years by member states´ citizens, to whom the citizenship of the European Union is guaranteed.

The EU traces its origins from the European Coal and Steel Community formed among six countries in 1951 and the Treaty of Rome formed in 1957 by the same states. Since then, the EU has grown in size through enlargement, and in power through the addition of policy areas to its remit.



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http://mystockvoice.files.wordpress.com/2009/10/eu_img.jpg

We will focus, mainly, on Germany.

GERMANY

Germany is a federal parliamentary republic of sixteen states (Länder). The capital and largest city is Berlin. Germany is a member of the United Nations, NATO, G-8, G-20, OECD, and the WTO. It is a major power with the world´s 4th largest economy by nominal GDP and the 5th largest in purchasing power parity.

It is the 2nd largest exporter and 3rd largest importer of goods. In absolute terms, Germany allocates the second biggest annual budget of development aid in the world, while its military expenditure ranked 6th. The country has developed a high standard of living and established a comprehensive system of social security. It holds a key position in European affairs and maintains a multitude of close partnerships on a global level. Germany is recognised as a scientific and technological leader in several fields.

ORGANISATIONAL CULTURE

During the last decade of the 20th century Germany has transformed its attitude towards immigrants considerably. Until the mid-nineties the opinion was widespread that Germany is not a country of immigration, even though about 10% of the population was of non-German origin.

After the end of the influx of so-called Gastarbeiter (blue-collar guest-workers), refugees were a tolerated exception to this point of view. Many guest workers were of Turkish origins and brought an interesting influence into the country. Today the government and German society are acknowledging the opinion that controlled immigration should be allowed based on the qualification of immigrants.



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http://www.bostoncares.org/AboutUs/index.php/special_events/oktoberfest/oktoberfest-2008.jpg

GERMAN MANAGEMENT STYLE

They are rigorous but not ruinous. Their companies fight for market share not for market domination; and they are committed managers. Managers can be forced to share decision-making power with trade unionists.

The immigrants´ influence in Germany can be seen not only in the economic terms but also in all the social, political, religious and cultural issues that involve a cross - cultural encounter.

Co-determination

It is a practice whereby the employees have a role in management of a company. The word is a literal translation from the German word Mitbestimmung. Co-determination rights are different in different legal environments. In some countries, like the USA, the workers have virtually no role in management of companies, and in some, like Germany, their role is more important. The first serious co-determination laws began in Germany.

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http://goeurope.about.com/cs/germany/l/bl_germany.html

QUESTION

There is a current discussion around the existence of the Co - determinism principle in Germany. Select, define and explain 3 arguments in favour and 3 against such principle.

Co - determinism

In favour:

- It gives the employee a sense of being part of the decision making in the enterprise and boosts his productivity.

- Thanks to the years during which a co-operative culture has been in place, management requests from workers for proposals to improve operations or increase productivity, for example, are no longer considered mere legal formalities.

- Gives the employees access to the company´s wealth fare plans and options in a greater way.

Against:

- It gives to much weight to unions and makes managerial decision taking very difficult.

- Scares away the possible investment of foreign companies in the German ones by fear of its bureaucratic rigidness.

- Makes shareholders think differently about the enterprise´s union workforce and it affects their investments.

MIDDLE EAST

The Middle East has always been a centre for world affairs throughout history and also nowadays. It is the historical origin of the three big Monotheistic religions, Judaism, Islamism and Christianism. In modern times the Middle East remains a strategically, economically, politically, culturally and religiously sensitive region.

It has many ethnic groups, such as, Arabs, Turks, Persians, Jews, Kurds, Assyrian/Chaldean/Syriacs, Armenians, Azeris, Circassians, Greeks and Georgians. It is predominately Muslim, but Christian in Lebanon and Jewish in Israel. About its economy we can say that the Middle Eastern´s economies range from being very poor (such as Gaza and Yemen) to extremely wealthy nations (such as Qatar, UAE and Saudi Arabia).

We will focus, mainly, on Israel.



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http://mediayork.org/pedia/commons/5/54/Middle_east_graphic_2003.jpg

ISRAEL

Israel is the world´s only predominantly Jewish state with a population of about 7.5 million people, of whom approximately 5.7 million are Jewish. The modern state of Israel has its historical and religious roots in the Biblical Land of Israel, also known as Zion.

In November 1947, the UN voted in favour of the partition of Palestine, proposing the creation of a Jewish state. Partition was accepted by Zionist leaders but rejected by Arab leaders. Israel declared independence on May 14th 1948 and neighbouring Arab states attacked the very next day.

Israel is a developed country and a representative democracy with a parliamentary system and universal suffrage. Israel is considered one of the most advanced countries in Southwest Asia in economic and industrial development. Jerusalem is the country´s capital, although it is not recognized internationally as such, while Israel´s main financial centre is Tel Aviv.

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http://www.infoplease.com/ipa/A0107652.html



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http://www.newsrealblog.com/wp-content/uploads/2010/03/IsraelFlag.jpg

ORGANISATIONAL CULTURE

The Kibbutz:

Is a society based on mutual aid and social justice and a socioeconomic system in which people share work and property. The social organization of work is unique in Kibbutz society. It is based on democratic foundations, with equal say for all members on work planning and the division of labour within their agricultural or industrial branch.

The kibbutz is an original and unique Israeli creation, a multi - generation, rural settlement, characterized by its collective and community lifestyle, democratic, management, responsibility for the welfare of each adult member and child, and shared ownership of its means of production and consumption.

The mutual sharing of wealth, all working to a common purpose; also Group commitment in which everyone is a valuable piece in the organisations, could be the Quaint essential value of something shared by a group of people. Here, everybody must coexist in a peaceful and harmonious environment.

The Kibbutz have gone through a big deal of transformation, many Israeli kibbutzim have developed into partially privatized, profit-seeking, professionally managed entities that act in capital, product, and factor markets just like private firms. The image of the bronzed and brawny kibbutz field worker was once the trademark of a young Israel, but the iconic agricultural communes are becoming a thing of the past.



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http://www.israelity.com/wp-content/uploads/2008/02/kibbutz.jpg

E - Commerce from an Islamic perspective

Islam encourages E-Commerce as a new way or technology of doing business. However, Muslim businessmen must ensure that he strictly followed the Islamic principles of conducting business. The transactions should be conducted in the truthful manner, there should be clarity in communication, avoid interest (Riba´) and ensured all the pillars of Islamic contract are met.

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Zainul, Osman and Mazlan, 2004.

These are, in order,

- Offer and Acceptance: Clear and confirmed by both parties.

- Two Contracting Parties: Majority of age is required.

- Subject Matter: The object of the sale must be beneficial, lawful in Islam, valuable, under possession, in existence and deliverable.

- Mode of Expression: Could be through words or written but it should be clear for both parties.

QUESTION

The financial industry in the Middle East has been traditionally influenced by religion. Today, Islamic banking appears as a growing and successful industry, not only in the Middle East but also in some western countries.

1. Explain what Islamic Banking is and its background.

Islamic banking has been defined as banking in consonance with the ethos and value system of Islam and governed, in addition to the conventional good governance and risk management rules, by the principles laid down by Islamic Shariah.

2. What are the key principles of Islamic banking ?.

Interest free banking is a narrow concept denoting a number of banking instruments or operations, which avoid interest. Islamic banking, the more general term is expected not only to avoid interest-based transactions, prohibited in the Islamic Shariah, but also to avoid unethical practices and participate actively in achieving the goals and objectives of an Islamic economy.

Islamic Shariah prohibits “interest” but it does not prohibit all gains on capital. It is only the increase stipulated or sought over the principal of a loan or debt that is prohibited. Islamic principles simply require that performance of capital should also be considered while rewarding the capital. The prohibition of a risk free return and permission of trading, as enshrined in the Verse 2:275 of the Holy Quran, makes the financial activities in an Islamic set-up real asset-backed with ability to cause “value addition”.

3. Islamic law forbids institutions from charging interests on loans. How do they make profits when lending money ?.

Islamic banking system is based on risk-sharing, owning and handling of physical goods, involvement in the process of trading, leasing and construction contracts using various Islamic modes of finance. As such, Islamic banks deal with asset management for the purpose of income generation. They will have to prudently handle the unique risks involved in management of assets by adherence to best practices of corporate governance. Once the banks have stable stream of Halal income, depositors will also receive stable and Halal income.

The Islamic economic system is concerned with social justice to ensure that none of the parties is being exploited without inhibiting individual enterprise. Extended to the Islamic financial system, this means that the funds individuals and / or companies put at risk share the profits or losses resulting from the enterprise. This concept of sharing the delights or pain of the outcome of business is a progressive one. Islamic banking encourages better resources management, in particular as outright speculation is not permitted by Shariah in Islamic law.

4. Explain the concept of ethical investments under Islamic law. Who is to determine whether an activity is allowed or not ?.

The participants are keeping pace with sophisticated techniques and have developed products that not only are ethically motivated but also profitable.

At their core, most Islamic financial products are essentially the same as their conventional equivalents. The main difference is the absence of interest and often complicated procedures to ensure compliance with Shariah.

5. How does Islamic banking influence the economy in the Middle East ?.

Over the last three decades Islamic banking and finance has developed into a full-fledged system and discipline reportedly growing at the rate of 15 % per annum. Today, Islamic financial institutions, in one form or the other, are working in about 75 countries of the world. Besides individual financial institutions operating in many countries, efforts have been underway to implement Islamic banking on a country wide and comprehensive basis in a number of countries.

The instruments used by them, both on assets and liabilities sides, have developed significantly and therefore, they are also participating in the money and capital market transactions. In Malaysia, Bahrain and a few other countries of the Gulf, Islamic banks and financial institutions are working parallel with the conventional system.

6. Based on your research and knowledge about this topic, what is the future of Islamic Banking in terms of global expansion and growth ?.

I don´t think it will grow big enough to threat the regular way of doing banking, because Jewish interest way to make money in regular banking rule the world and will never be overtaken by the Arab foe.

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1.http://www.kantakji.com/fiqh/Files/Banks/b084.pdf
2.http://www.thestandard.com.hk/news_detail.asp?we_cat=16&art_id=78556&sid=22829228&con_type=1&d_str=20090223&fc=1

AFRICA

It is the world´s second-largest and second most-populous continent, after Asia. At about 30.2 million km² (11.7 million sq mi) including adjacent islands, it covers 6% of the Earth´s total surface area and 20.4% of the total land area. With a billion people (as of 2009), in 61 territories, it accounts for about 14.72% of the World´s human population.

In the late 19th century, the European imperial powers engaged in a major territorial scramble and occupied most of the continent, creating many colonial territories.



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http://upload.org/commons/b/b1/Colonial-Africa.png

Today, Africa contains 54 sovereign countries, most of which still have the borders drawn during the era of European colonialism. Since colonialism, African states have frequently been hampered by instability, corruption, violence, and authoritarianism. The vast majority of African states are republics that operate under some form of the presidential system of rule. However, few of them have been able to sustain democratic governments on a permanent basis, and many have instead cycled through a series of coups, producing military dictatorships.

Although it has abundant natural resources, Africa remains the world´s poorest and most underdeveloped continent, due to a variety of causes that may include the spread of deadly diseases and viruses (notably HIV/AIDS and malaria), corrupt governments that have often committed serious human rights violations, failed central planning, high levels of illiteracy, lack of access to foreign capital, and frequent tribal and military conflict (ranging from guerrilla warfare to genocide).

By most estimates, well over a thousand languages (UNESCO has estimated around two thousand) are spoken in Africa. Most are of African origin, though some are of European or Asian origin. Africa is the most multilingual continent in the world, and it is not rare for individuals to fluently speak not only multiple African languages, but one or more European ones as well.

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http://esa.un.org/unpp/africa.html

ORGANISATIONAL CULTURE

Ubuntu:

It is the principle of caring for each other´s well-being… and a spirit of mutual support… Each individual´s humanity is ideally expressed through his or her relationship with others and theirs in turn through a recognition of the individual´s humanity. Ubuntu means that the people are people through other people. “Umuntu ngumuntu ngabantu”. It also acknowledged both the rights and responsibilities of every citizen in promoting individual and social well-being.



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http://www.capetown.travel/images/uploads/ubuntu_festival.jpg

QUESTION

Based on the case study: African Bank Miners Credit.

What is Ubuntu ?. How was it applied to support the merging process of the two companies ?. Give 3 examples.

Ubuntu is a philosophy that can be used in the management process. When the merging process took place, a series of Ubuntu related tales were handed to the employees to explain and implement the changes in management style.

- The tale of the bird and the badger was used to explain the concept of growth. Employees were told like the bird and the badger, we must strive to work together.

- The concept of social responsibility was communicated using the tale of the bird that learned to fly. Employees were told it was the bank’s responsibility to enhance the lives of the community from which its clients were drawn.

- And the tale of why a duck learned to swim was used to communicate safety in the workplace.

SOUTH ASIA

We will focus mainly on India.

INDIA

It is a country in South Asia. It is the 7th largest country by geographical area, the 2nd most populous country with over 1.18 billion people, and the most populous democracy in the world. It is bordered by Pakistan to the west; China, Nepal, and Bhutan to the north; and Bangladesh and Burma to the east. India is in the vicinity of Sri Lanka, and the Maldives in the Indian Ocean.

It is a region of historic trade routes and vast empires, the Indian subcontinent was identified with its commercial and cultural wealth for much of its long history. Four major religions, Hinduism, Buddhism, Jainism and Sikhism originated here, while Zoroastrianism, Judaism, Christianity and Islam arrived in the first millennium and shaped the region´s diverse culture. Gradually annexed by the British East India Company from the early eighteenth century and colonised by the United Kingdom from the mid-nineteenth century, India became an independent nation in 1947 after a struggle for independence that was marked by widespread non-violent resistance.

India is a republic consisting of 28 states and seven union territories with a parliamentary system of democracy. The Indian economy is the world´s eleventh largest economy by nominal GDP and the 4th largest by purchasing power parity. Economic reforms since 1991 have transformed it into one of the fastest growing economies in the world; however, it still suffers from poverty, illiteracy, corruption, disease, and malnutrition. India is a nuclear weapon state and has the 2nd largest standing army in the world. A pluralistic, multilingual and multiethnic society, India is also home to a diversity of wildlife in a variety of protected habitats.

In the 20th century, a nationwide struggle for independence was launched by the Indian National Congress and other political organisations. Indian leader Mahatma Gandhi led millions of people in several national campaigns of non-violent civil disobedience.

On August 15th 1947, India gained independence from British rule, but at the same time the Muslim-majority areas were partitioned to form a separate state of Pakistan. On January 26th 1950, India became a republic and a new constitution came into effect. Since independence, India has faced challenges from religious violence, casteism, naxalism, terrorism and regional separatist insurgencies, especially in Jammu and Kashmir and Northeast India.

India's culture is marked by a high degree of syncretism and cultural pluralism. It has managed to preserve established traditions while absorbing new customs, traditions, and ideas from invaders and immigrants and spreading its cultural influence to other parts of Asia, mainly South East and East Asia. Traditional Indian society is defined by relatively strict social hierarchy. The Indian caste system describes the social stratification and social restrictions in the Indian subcontinent, in which social classes are defined by thousands of endogamous hereditary groups, often termed as jātis or castes.

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https://www.cia.gov/library/publications/the-world-factbook/geos/in.html



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https://www.cia.gov/library/publications/the-world factbook/maps/maptemplate_in.html

ORGANISATIONAL CULTURE

Diversity: The motor moving India´s development

Diverse culture is a major strength; it makes it easier to the development and opening of new economies and new markets. And we have here a vast Middle class as the largest one boosting the economy. This the key factor of why India is advancing so much.

Thanks to India’s economic expansion, industries are paying less attention in castes, and are looking beyond their traditional sources of employees. And Managing Diversity is a very important to enterprises dealing with India´s social requirements.



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http://truereligiondebate.files.wordpress.com/2008/04/caste3.jpg

HR CHALLENGES AT COMPUTER AGE MANAGEMENT SERVICES (P) LTD

India has become, perhaps, the most important player in the industry of global outsourcing, and specifically on software development.

This article talks about a specific software developer in a province in India and how in a short period of time it has grown greatly. And it focuses on the leadership style of the organisation and how Human resource management recruits workers, as well as the challenges that the organisation faces in time.

CAMS (Computer Age Management Services) a software developer has grown and spread throughout India. It works towards achieving a “Knowledge enterprise”, or in other words, an exchange of information among employees to try to create a more knowledgeable work force.

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Dr. T.G. Vijaya, Dr. Brian D´Netto, Dr. Juan España, 2007.

QUESTION

What do you think are the reasons behind the fast-growth outsourcing industry in India ?.

Being the world´s second highly populated country, human resources are a boom by itself. India is proud of the abundance and easy availability of its highly qualified and technically skilled English speaking computer professionals; who are key players to success in the field of outsourcing to India. Also, significant cost saving can be achieved by outsourcing to India, owing to the wide gap between the personal costs in India and that of the developed countries.



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http://www.webketu.com/wp-content/uploads/2009/10/india_outsourcing_time_magazine.jpg

CHINA

It is a country in East Asia. It is the most populous state in the world with over 1.4 billion people. China is ruled by the Communist Party of China under a single-party system, and has jurisdiction over 22 provinces, 5 autonomous regions, 4 directly administered municipalities (Beijing, Tianjin, Shanghai, and Chongqing), and 2 highly autonomous special administrative regions (SARs) (Hong Kong and Macau). The PRC´s capital is Beijing. At about 9.6 million square kilometres, the PRC is the world´s third- or fourth-largest country by total area, and the second largest by land area.

Since the introduction of Market based economic reforms in 1978, China has become the world´s fastest growing major economy, the world´s largest exporter and 3rd largest importer of goods. Rapid industrialization has reduced its poverty rate from 53% in 1981 to 8% in 2001. However, the PRC is now faced with a number of other problems including a rapidly aging population due to the one-child policy, a widening rural-urban income gap, and environmental degradation. Moreover, China has been criticized for its human rights violations by governments and NGO´s, and for having a problematic record of interfering with press freedom.

China is a permanent member of the United Nations Security Council, as well as being a member of multilateral organizations including the WTO, G-20 and the Shanghai Cooperation Organization.

Major combat in the Chinese Civil War ended in 1949 with the Communist Party of China in control of mainland China, and the Kuomintang (KMT) retreating to Taiwan. On 1st October 1949, Mao Zedong proclaimed the People´s Republic of China. “Communist China” or “Red China” were two of the names of the PRC.
The PRC is regarded by several political scientists as one of the last five Communist states (along with Vietnam, North Korea, Laos, and Cuba), but simple characterizations of PRC´s political structure since the 1980s are no longer possible. The PRC government has been variously described as communist and socialist, but also as authoritarian, with heavy restrictions remaining in many areas, most notably on the Internet, the press, freedom of assembly, reproductive rights, and freedom of religion.

Since economic liberalization began in 1978, the PRC´s investment and export-led economy has grown 70 times bigger and is the fastest growing major economy in the world.

Its government is officially atheist, which viewed religion as emblematic of feudalism and foreign colonialism. Religious belief or practice was banned because it was regarded as backward and superstitious by some of the communist leaders, from Vladimir Lenin to Mao Zedong, who had been critical of religious institutions. But China´s traditional religions are Buddhism, Taoism.

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https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html



https://www.cia.gov/library/publications/the-world-factbook/maps/maptemplate_ch.html

ORGANISATIONAL CULTURE

A blend of Maoist bureaucrat in learning, Confucian gentleman, and Sun Tzu-like strategist is used in organizations across China.

Guanxi: It describes the basic dynamic in personalized networks of influence, and is a central idea in Chinese society. At its most basic, Guanxi describes a personal connection between two people in which one is able to prevail upon another to perform a favour or service, or be prevailed upon. The two people need not be of equal social status.

Government´s plans are crucial for doing business; people give first priority to China´s national interests and always mix business along with politics.

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1. http://guanxi.pbworks.com/
2. China, Class presentation, http://interactiva.eafit.edu.co/ei/

IS GUANXI STILL WORKING, WHILE CHINESE MNC´S GO GLOBAL ?. THE CASE OF TAIWANESE MNC´S IN THE UK.

Guanxi and HRM go hand by hand in Chinese communities. However, Guanxi may not be completely important anymore, this due to the fact that Chinese MNC´s are global executives that have started to cope with the Western MNC´s. But anyway, National culture prevails, being an important way to do business inside and abroad for the Chinese business men.

Recently, “a Chinese company bought IBM Personal Computers lock, stock and barrel. Chinese corporations have bought Thomson and RCA televisions, Dirt Devil etc”. The article goes over on Taiwanese MNC´s looking for a strategy of Internationalization, and also tells about how third world MNC´s deals with their international workers.

The article concludes that National culture is anyway a key factor that influences the international strategy in MNC´s in the developing world.

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James Dyson, 2005

QUESTION

Discuss in your blog the relevance of Guanxi and the existence of Chinese business networks as supporting factors to the internationalization process of Chinese companies:

Guanxi is still important ad alive. “Today Guanxi has become essential business enabler in Chinese market economy. It occupies the core of Chinese business culture. Products compete with features and prices, and then Guanxi directs the selection.”

The internationalization process of Chinese companies is very much like the Internationalization process of Colombian companies, where national culture still weights a lot in the way things are done and oriented. I say this because it should be as hard to a Chinese business man to abandon its Guanxi principles, as to a Colombian business man to abandon procrastination and leaving everything to the last minute.

Culture is culture and is inherent to the individual, it is not something we can take off with soap, and it is in our core of behaviour and will almost never abandon us.

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http://beijingman.blogspot.com/2009/01/guanxi.html

USEFUL SIMPLE ANALYSIS OF GUANXI



http://www.randomwire.com/wp-content/uploads/guanxi-diagram-500x318.png

In this picture we can understand how Guanxi human relations work and how difficult for strangers it is to access the trusted circle.

EAST ASIA

From the countries in East Asia, we will focus mainly on South Korea and Japan.

South Korea:

It is a State in East Asia, located on the southern half of the Korean Peninsula. It is neighboured by China to the west, Japan to the east, and North Korea to the north. Its capital is Seoul, the second largest metropolitan city in the world and a major global city.

In 1910, Korea was annexed by Japan. After liberation and occupation by Soviet and U.S. forces at the end of World War II, the nation was divided into North and South Korea. The latter was established in 1948 as a democracy. A war between the two Koreas ended in an uneasy cease-fire. After the war and a period of military rule, the South Korean economy grew significantly and the country was transformed into a major economy and a full democracy.

South Korea is a developed country and had one of the world´s fastest growing economies from the early 1960s to the late 1990s. Its rapid transformation into a wealthy and industrialized economy in this short time was termed the “Miracle on the Han River”.

They are mainly Buddhist. But as of 2005, just under half of the South Korean population expressed no religious preference.

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https://www.cia.gov/library/publications/the-world-factbook/geos/ks.html



https://www.cia.gov/library/publications/the-world-factbook/maps/maptemplate_ks.html

Organisational aspects:

Jeong: The concept of jeong exists in Korean, Japanese, and Chinese cultures, and the same Chinese character is used in these countries. However, it is very interesting for us to see that the meaning of the same character is subtly different for each of these countries. The Chinese emphasize the aspects of loyalty and reciprocity in relationships when using their jeong character. The Japanese equivalent, pronounced “jyo,” means sentimental feelings with the addition of another word, “nin jyo.” Jeong in Korean culture has much broader meanings and ambiguous nuances in the expression of emotions, and encompasses the Chinese and Japanese concepts.

http://www.prcp.org/publications/sig.pdf

Japan:

It is an island country in East Asia. Located in the Pacific ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south.
Tokyo and several surrounding prefectures, is the largest metropolitan area in the world, with over 30 million residents.

A major power, Japan has the world´s second-largest economy by nominal GDP and the third largest in purchasing power parity. It is also the world´s fourth largest exporter and fifth largest importer. It is also the only Asian country in the G-8 and is currently serving as a non-permanent member of the UN Security Council. Although Japan has officially renounced its right to declare war, it maintains a modern and extensive military force which is employed in self-defense and peacekeeping roles. It is a developed country with very high living standards.

In 1947, Japan adopted a new pacifist constitution emphasizing Liberal democratic practices. The Allied occupation ended by the Treaty of San Francisco in 1952 and Japan was granted membership in the United Nations in 1956. Japan later achieved spectacular growth to become the second largest economy in the world, with an annual growth rate averaging 10% for four decades. This ended in the mid-1990s when Japan suffered a major recession. Positive growth in the early 21st century has signalled a gradual recovery.

Japan is a constitutional monarchy where the power of the Emperor is very limited. As a ceremonial figurehead, he is defined by the constitution as "the symbol of the state and of the unity of the people". Power is held chiefly by the Prime Minister of Japan and other elected members of the Diet, while sovereignty is vested in the Japanese people.

From 1868, the Meiji period launched economic expansion. Meiji rulers embraced the concept of a free market economy and adopted British and North American forms of free enterprise capitalism. Japanese went to study overseas and Western scholars were hired to teach in Japan. Many of today´s enterprises were founded at the time. Japan emerged as the most developed nation in Asia.

Many religions are practiced in Japan but most Japanese follow Shinto or Buddhism. Generally they do not associate themselves exclusively with one of these, but incorporate features of both into their daily lives in a process known as Syncretism.

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https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html



https://www.cia.gov/library/publications/the-world-factbook/maps/maptemplate_ja.html

ORGANIZATIONAL CULTURE

Korea – Chaebols: a South Korean form of business conglomerate. They are powerful global multinationals owning numerous international enterprises. The Korean word means "business family" or "monopoly" and is often used the way "conglomerate" is used in English. 財閥.

Example: Samsung Group, Hyundai Kia Automotive Group, LG Group, Hyundai Heavy Industries, Daewoo and Ssang Yong Group, among others.

Japan – Keiretsu: is a set of companies with interlocking business relationships and shareholdings. It is a type of business group. They evolved from the old pre-World War II Zaibatsus. 系列.

Example: Midori Kai, Mizuho Group, Mitsubishi, Mitsui, Sumitomo.

Chaebol, are often compared to Keiretsu, but the Chaebol conglomerations are much more similar to a Western conglomerate.

There are at least three major differences:

- First, the Chaebol were family dominated. In 1990, for example, in most cases the family that founded the major business in the Chaebol remained in control, while in Japan the Keiretsu were controlled by professional corporate management.

- Second, individual Chaebol were prevented from buying controlling shares of banks, and in 1990 government regulations made it difficult for a Chaebol to develop an exclusive banking relationship. The Keiretsu usually worked with an affiliated bank and had almost unlimited access to credit.

- Third, the Chaebol often formed subsidiaries to produce components for exports, while large Japanese corporations often employed outside contractors.
All of this created huge economic conglomerates that had to deal with the 1990´s big crisis. Some of whom declared bankruptcy and some of whom were able to succeed.

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1. http://www.sjsu.edu/faculty/watkins/chaebol.htm
2. http://www.sjsu.edu/faculty/watkins/keiretsu.htm
3. http://t.web.umkc.edu/tjh9b/wp/%5BCoR%5Denterprise.ppt

QUESTION

Choosing one of the questions mentioned on EAFIT Interactiva to be included in your blog:

In the case of Korean and Japanese management styles, do you think they tend to converge or diverge ?. Are they likely to converge to each other or to other management styles (Western, Asian, etc).

They tend to converge but they will never homogenize by means of divergence, it prevents the two lines from ever merging one into the other.

Japan is the dominant managerial style in the region and Korea has adopted many of its patterns and methods to be successful, but the Koreans will never be like the Japanese, centuries of history that could join them, actually, separates them and prevent it from happening.

We have seen the main differences between the two management styles and we know for sure they will never become one.

Western and Asian models fight each other to be the dominant pace in the world, but as concluded in class, we are too different from the world to become homogeneous at its fullest.

EXPATRIATE ASSIGNMENTS AND OVERSEAS EXPERIENCES

“A suitable individual is assigned on a temporary basis, and subsequently returns to another position in the same company in the original country”. Basically when a position or a new branch is to be fulfilled or opened abroad, Expatriate assignments are required to be done.

There are three levels involved in this matter, which are: Individual, mostly for career development purposes; Company, to develop competencies to bring home; and Industrial, for the transference of cross-cultural skills.

In the organisational level, and expatriate is a person who has been appointed by his company to work abroad. In this case we have to consider the economic benefits of transplanting one person and his family from his homeland to another.

In preparation to the assignment, mainly language, practical affairs and legal advice must be taken to minimize the risk of failure.

Considerations, such as, health insurance and coverage, children´s education, renting flats (apartments) and everything else a person should think when moving abroad should be calculated and negotiated in the salary and compensations. It is not the same to have a good salary in Nigeria but going and trying to live with the same salary in Paris, for example.

Also, a big problem arises for the company, when the term is over and they have to repatriate the migrant worker. What to do with his experience ?, what to do with his level ?, the president of a company sent to Hong Kong, can´t come back to Colombia to do just advising or lower job. Therefore a Succession plan must be ready to profit or take advantage of his assignment abroad.

Finally the Overseas experience is one, more on the field of personal initiative rather than on the company´s behalf. It basically creates a Broadening of perspectives process and major awareness of cultural differences. And it is funded mainly on the person´s own pocket.

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1. Inkson et al, 2003.
2. Expatriate assignments and overseas experiences, Class presentation, http://interactiva.eafit.edu.co/ei/



http://www.harleyhula.com/cmtimages/Girl%20and%20Jet.jpg

When everything is paid by the company, you can get several benefits.



http://www.cbc.ca/testthenation/episodes/trivia/assets/images/backpackers.jpg

When you have to pay for your own, it is better to stay at the hostel.

EXPATRIATE ASSIGNMENT VERSUS OVERSEAS EXPERIENCE: CONTRASTING MODELS OF INTERNATIONAL HUMAN RESOURCE DEVELOPMENT

In this article Expatriate assignment and overseas experience are compared. The analysis of recent data stipulates that Overseas experiences bring more advantages to people´s development than Expatriate assignments.

It is definitely more cultivating to go through an Overseas experience rather than through an Expatriate assignment, it is more which the individual profits from in the field of human aspects, than a technical assignment in another country.

The knowledge-centred approach is important when analyzing the Overseas experience because the person, learns and brings back home new ideas for entrepreneurism.

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Expatriate assignment versus Overseas experience: Contrasting models of International human resource development, Inkson, Kerr.

QUESTION

Explain one of the causes for expatriate assignment failure and provide 3 recommendations to address it.

Inability of spouse to adjust: When your partner goes to the new country with you, but sadly, she has troubles to adjust, while you are at work, her or him, doesn´t find anything to do or becomes depressed setting back the whole process.

There are three recommendations I could think of:

- Your spouse must find a group of friends, while learning the language will help to minimize the impact of restabilising in a new home.

- Make her part of the assignment, giving her a non influential or crucial task in the company, such as social relation stuff.

- Go through therapy with a psychologist to adjust to the new environment and to make her realise that the assignment is not forever.

USEFUL LINKS

http://www.ef.com/Default.aspx?bhcp=1

In this link you go to the web page of a company that specializes in studying abroad.

http://www.itapintl.com/facultyandresources/articlelibrarymain/negotiating-expatriate-packages.html

In this link, you can find information on how to negotiate your Expatriate assignment more easily.