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Management Across Cultures
The second edition of this popular textbook explores the latest approaches to cross-
cultural management, as well a s presenting s trategies and tactics for managing
international assignments and global teams. With a clear emphasis on learning and
development, the text encourages students to acquire skills in multicultural compe-
tence that will be highly valued by their future employers. This has never been as
important as now, in a world where, increasingly, all managers are global managers and
where management practices and processes can differ significantly across national and
regional boundaries. This new edition has been updated after extensive market feed-
back to include new features: a new chapter on working and living abroad; applications
boxes showing how theories and key concepts can be applied to solve real-life manage-
ment problems; student questions to encourage critical thinking; and updated exam-
ples and references.
Supplementary teaching and learning materials are available on a companion
website at www.cambridge.org/steers.
richard m. steers is Professor Emeritus of Organization and Management in the
Lundquist College of Business, University of Oregon, United States.
luciara nardon is Assistant Professor of International Business at the Sprott
School of Business, Carleton University, Ottawa, Canada.
carlos j. sanchez-runde is Professor and Director in the Department of
Managing People in Organizations at IESE Business School, Barcelona, Spain.
www.cambridge.org© in this web service Cambridge University Press
Cambridge University Press
978-1-107-03012-1 - Management Across Cultures: Developing Global Competencies: Second Edition
Richard M. Steers, Luciara Nardon and Carlos J. Sanchez-Runde
Frontmatter
More information
www.cambridge.org© in this web service Cambridge University Press
Cambridge University Press
978-1-107-03012-1 - Management Across Cultures: Developing Global Competencies: Second Edition
Richard M. Steers, Luciara Nardon and Carlos J. Sanchez-Runde
Frontmatter
More information
Management Across Cultures
Developing Global Competencies
SECOND EDITION
RICHARD M. STEERS
LUCIARA NARDON
CARLOS J. SANCHEZ-RUNDE
www.cambridge.org© in this web service Cambridge University Press
Cambridge University Press
978-1-107-03012-1 - Management Across Cultures: Developing Global Competencies: Second Edition
Richard M. Steers, Luciara Nardon and Carlos J. Sanchez-Runde
Frontmatter
More information
www.cambridge.org
Information on this title: www.cambridge.org/9781107645912
© Richard M. Steers, Luciara Nardon and Carlos J. Sanchez-Runde 2013
This publication is in copyright. Subject to statutory exception
and to the provisions of relevant collective licensing agreements,
no reproduction of any part may take place without the written
permission of Cambridge University Press.
First published 2013
Printed in the United Kingdom by Clays,
St Ives plc.
A catalog record for this publication is available from the British Library
Library of Congress Cataloging in Publication data
Steers, Richard M.
Management across cultures : developing global competencies / Richard M. Steers,
Carlos J. Sanchez-Runde, Luciara Nardon. – 2nd ed.
p. cm.
ISBN 978-1-107-64591-2 (pbk.)
1. Management – Cross-cultural studies. 2. International business enterprises – Management.
I. Sanchez – Runde, Carlos. II. Nardon, Luciara, 1972– III. Title.
HD62.4.S735 2013
658
0
.049–dc23 2012015417
ISBN 978-1-107-03012-1 Hardback
ISBN 978-1-107-64591-2 Paperback
Cambridge University Press has no responsibility for the persistence or
accuracy of URLs for external or third-party internet websites referred to
in this publication, and does not guarantee that any content on such
websites is, or will remain, accurate or appropriate.
University Printing House, Cambridge CB2 8BS, United Kingdom
Cambridge University Press is part of the University of Cambridge.
It furthers the University’s mission by disseminating knowledge in the pursuit of
education, learning and research at the highest international levels of excellence.
5th printing 2015
www.cambridge.org© in this web service Cambridge University Press
Cambridge University Press
978-1-107-03012-1 - Management Across Cultures: Developing Global Competencies: Second Edition
Richard M. Steers, Luciara Nardon and Carlos J. Sanchez-Runde
Frontmatter
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Contents
List of exhibits page ix
Guided tour xiii
Introduction 1
PART I CHALLENGES FOR GLOBAL MANAGERS 9
1 The new global realities 11
Management challenge 11
Globalization, change, and competitiveness 13
The emerging global landscape 19
Management and multicultural competence 25
Summary points 28
2 The new global managers 30
Management challenge 30
Traditional views of management 32
Rethinking managerial roles 34
Culture and the managerial role 36
Types of global assignments 43
Developing global management skills 52
manager’ s notebook: Learning strategies for global managers 57
Summary points 61
v
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978-1-107-03012-1 - Management Across Cultures: Developing Global Competencies: Second Edition
Richard M. Steers, Luciara Nardon and Carlos J. Sanchez-Runde
Frontmatter
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PART II DEVELOPING GLOBAL UNDERSTANDING 65
3 The cultural environment 67
Management challenge 67
Cultures and subcultures 71
Describing cultures 78
Cultural complexities and contradictions 86
Culture and institutional environments 94
manager’ s notebook: The cultural environment 97
Summary points 102
4 The organizational environment 107
Management challenge 107
Global strategy and structure 110
Regional models of organization 119
Control, participation, and decision making 132
Organizational culture 136
manager’ s notebook: The organizational environment 141
Summary points 145
5 The situational environment 150
Management challenge 150
People, cognition, and behavior 153
Goals and plans 168
Individual roles and responsibilities 170
Location, location, location 174
manager’ s notebook: The situational environment 177
Choices for the manager: putting it all together 180
Summary points 182
PART III DEVELOPING GLOBAL MANAGEMENT SKILLS 187
6 Communicating across cultures 189
Management challenge 189
Interpersonal communication 191
Cultural screens on interpersonal communication 195
vi CONTENTS
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978-1-107-03012-1 - Management Across Cultures: Developing Global Competencies: Second Edition
Richard M. Steers, Luciara Nardon and Carlos J. Sanchez-Runde
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Cognition and communication 196
Communication protocols 206
manager’ s notebook: Communicating across cultures 215
Summary points 221
7 Negotiating global agreements 223
Management challenge 223
Preparing for global negotiations 225
The negotiation process 232
Bargaining tactics 236
Ethics in global negotiations 240
Conflict resolution strategies 243
Agreements, contracts, and mutual trust 248
manager’ s notebook: Negotiating global agreements 252
Summary points 255
8 Leading global organizations 259
Management challenge 259
Management and leadership 261
Leadership in a global context 263
Limitations on contemporary leadership models 269
GLOBE leadership study 273
Patterns of global leadership 281
manager’ s notebook: Leading global organizations 287
Summary points 290
9 Managing a global workforce 294
Management challenge 294
The world of work 297
Culture and the psychology of work 303
Managing employee performance 308
Managing incentives and rewards 312
Expatriate and local managers 321
manager’ s notebook: Managing a global workforce 324
Summary points 327
CONTENTS vii
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978-1-107-03012-1 - Management Across Cultures: Developing Global Competencies: Second Edition
Richard M. Steers, Luciara Nardon and Carlos J. Sanchez-Runde
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10 Working with global teams 331
Management challenge 331
Global teams 334
Virtual global teams 339
Managing tasks and team processes 345
Key success factors in global teams 348
Team-building strategies 350
manager’ s notebook: Working with global teams 356
Summary points 360
11 Living and working globally 363
Management challenge 363
Global assignments 366
Challenges of living and working globally 373
Adapting to local cultures 379
Managing repatriation 394
manager’ s notebook: Living and working globally 396
Summary points 401
12 Epilogue: the journe y continues 405
Management challenge 405
What have we learned? 406
Where do we go from here? 411
Appendix: Models of national cultures 417
Name and company index 430
Subject index 433
viii CONTENTS
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978-1-107-03012-1 - Management Across Cultures: Developing Global Competencies: Second Edition
Richard M. Steers, Luciara Nardon and Carlos J. Sanchez-Runde
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Exhibits
A Global management model page 6
1.1 Globalization drivers 16
1.2 The changing global economy 21
2.1 Traditional “logic” of organization and management 33
2.2 Managerial roles 35
2.3 Perceptions of managerial roles 37
2.4 Perceptions of managerial practices 38
2.5 Cultural influences on managerial roles 40
2.6 Types of global assignments 44
2.7 Challenges of global assignments 44
2.8 Building global management skills 52
2.9 The experiential learning cycle 58
2.10 Action plans for cross-cultural learning 60
3.1 Cultural, organizational, and situational environments of global
management: a model 69
3.2 Cultural, organizational, and situational environments of global
management (example) 70
3.3 Hofstede’s cultural dimensions for Bahrain and Sweden 74
3.4 Selected models of cultural dimensions 79
3.5 Core cultural dimensions 81
3.6 Characteristics of core cultural dimensions 82
3.7 Central tendencies of core cultural dimensions 84
3.8 Cultural complexities and contradictions 91
3.9 Institutional environment 95
3.10 Action plans for working across cultures 98
4.1 The organizational environment 109
4.2 Context of organizational environments 110
4.3 AAA strategic triangle 112
ix
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978-1-107-03012-1 - Management Across Cultures: Developing Global Competencies: Second Edition
Richard M. Steers, Luciara Nardon and Carlos J. Sanchez-Runde
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4.4 Global organization designs 118
4.5 Regional models of organization 120
4.6 Investor model of a US corporation (example) 121
4.7 Family model of a Chinese gong-si (example) 126
4.8 Network model of a Japanese keiretsu (Kirin Holdings kaisha,
Mitsubishi keiretsu) 128
4.9 Mutual benefit model of a German Konzern (example) 131
4.10 Employee involvement in managerial decision making 133
4.11 Decision analysis and implementation speed 134
4.12 Action plans for working with global organizations 141
4.13 Learning from different organizational models 144
5.1 The situational environment 153
5.2 Work environment for Jes Allersted and co-workers
at Microsoft, Denmark 154
5.3 Basic model of cognition 159
5.4 Cognitive schemas for “supervisor” 164
5.5 Constraints on information processing 165
5.6 Examples of individual roles and responsibilities 171
5.7 Action plans for understanding situational differences 178
5.8 Choices for the manager: a model 181
6.1 Developing global management skills 190
6.2 Key relationships in multicultural communication (example) 192
6.3 AIM model of interpersonal communication 194
6.4 Cultural screens on interpersonal communication 196
6.5 Culturally mediated cognitions in communication 197
6.6 Communicating with non-native speakers (English-language example) 200
6.7 Culturally mediated communication protocols 207
6.8 Communication in low- and high-context cultures 209
6.9 Assessing the multicultural communication environment (examples) 216
6.10 Action plans for multicultural communication 217
7.1 Key relationships in global negotiations (example) 225
7.2 Preparing for global negotiations 226
7.3 Competitive and problem-solving negotiation strategies 233
7.4 Competitive and problem-solving negotiation strategies (example) 234
7.5 Information exchange and initial offers by culture 235
7.6 Sequential and holistic bargaining strategies 236
x LIST OF EXHIBITS
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978-1-107-03012-1 - Management Across Cultures: Developing Global Competencies: Second Edition
Richard M. Steers, Luciara Nardon and Carlos J. Sanchez-Runde
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7.7 Bargaining tactics (Brazil, Japan, United States) 236
7.8 Foundations of bargaining tactics (Brazil, Japan, United States) 237
7.9 Global corruption index 241
7.10 Conflict resolution strategies 244
7.11 Contracts and the doctrine of changed circumstances 250
7.12 Assessing the global negotiation environment (examples) 253
7.13 Action plans for global negotiation 253
8.1 Key relationships in global leadership (example) 262
8.2 Contemporary approaches to global leadership 263
8.3 Global mindset of effective leaders 265
8.4 Cultural perspectives on leadership effectiveness 274
8.5 GLOBE leadership dimensions 276
8.6 Cultural beliefs about leadership styles 277
8.7 Cultural foundations of leadership in China and the West 282
8.8 Assessing the global leadership environment (examples) 288
8.9 Action plans for global leadership 289
9.1 Key relationships in global management and motivation (example) 296
9.2 Culture, work values, and behavior 298
9.3 Vacation policies in selected countries 301
9.4 Culture and the psychological contract 304
9.5 Culture, motivational strategies, and employee responses (examples
from the United Kingdom and India) 310
9.6 Culture and work motivation strategies 311
9.7 Wage gaps between men and women across nations 317
9.8 Benefits of hiring local and expatriate managers 323
9.9 Problems with local and expatriate managers 323
9.10 Assessing the global management and motivation
environment (examples) 325
9.11 Action plans for global management and motivation 326
10.1 Key relationships in global teams (example: IBM) 333
10.2 Types of teams 335
10.3 Characteristics of on-site and virtual global teams 336
10.4 Advantages and drawbacks of global teams 338
10.5 Strategies for managing virtual global teams 344
10.6 Key success factors of global teams 349
10.7 Leadership and team-building strategies 351
LIST OF EXHIBITS xi
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978-1-107-03012-1 - Management Across Cultures: Developing Global Competencies: Second Edition
Richard M. Steers, Luciara Nardon and Carlos J. Sanchez-Runde
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10.8 Can people be trusted? 353
10.9 Developing mutual trust 355
10.10 Assessing the global team environment (examples) 357
10.11 Action plans for managing global teams 357
11.1 Key relationships in living and working globally (example) 365
11.2 Implications of employer-initiated and self-initiated assignments 367
11.3 Long- and short-term global assignments 368
11.4 Long-term global assignments 369
11.5 Short-term global assignments 372
11.6 Challenges of living and working globally 373
11.7 Family considerations in global assignments 377
11.8 Career considerations in global assignments 377
11.9 Stages in psychological adaptation to a new culture 383
11.10 Strategies for coping with culture shock 386
11.11 Acculturation strategies to local cultures 389
11.12 Assessing the living/working environment (examples) 397
11.13 Action plans for living and working globally 398
12.1 Global managers and cultural embeddedness 407
12.2 Cultural, organizational, and situational environments 408
12.3 Core cultural dimensions 408
12.4 Choices for the manager 410
12.5 Learning from the past, looking to the future 414
A.1 Kluckhohn and Strodtbecks’ cultural dimensions 418
A.2 Hofstede’s cultural dimensions 419
A.3 Hall’s cultural dimensions 419
A.4 Trompenaars’ cultural dimensions 420
A.5 Schwartz’s cultural dimensions 420
A.6 GLOBE project’s cultural dimensions 422
A.7 Core cultural dimensions 423
xii LIST OF EXHIBITS
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Cambridge University Press
978-1-107-03012-1 - Management Across Cultures: Developing Global Competencies: Second Edition
Richard M. Steers, Luciara Nardon and Carlos J. Sanchez-Runde
Frontmatter
More information
Guided tour
www.cambridge.org© in this web service Cambridge University Press
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978-1-107-03012-1 - Management Across Cultures: Developing Global Competencies: Second Edition
Richard M. Steers, Luciara Nardon and Carlos J. Sanchez-Runde
Frontmatter
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Guided tour
Learning strategy for the book
Learning strategy for the
chapters
This book is divided into three parts
GLOBAL CHALLENGES
Part I sets the stage for
our analysis by discussing
both the challenges facing
managers and how various
global management roles
can differ across organiza-
tional boundaries
and cultural settings.
Each chapter likewise follows a
learning strategy aimed at
building bridges between
theory and practice using
a range of interesting
real-world applications
and examples.
GLOBAL UNDERSTANDING
Part II focuses on
developing a deeper
awareness and
understanding of
the global environment
in which managers
will increasingly
find themselves.
GLOBAL MANAGEMENT
Part III builds on this
foundation to focus on
developing specific skills
managers will need to
survive and succeed
in the future.
Part II DEVELOPING GLOBAL
UNDERSTANDING
Part III DEVELOPING GLOBAL
MANAGEMENT SKILLS
Part I CHALLENGES FOR
GLOBAL MANAGERS
1 The new global realities
2 The new global managers
3 The cultural environment
4 The organizational
environment
5 The situational
environment
6 Communicating across
cultures
7 Negotiating global
agreements
8 Leading global
organizations
Global challenges . . .
Global understanding . . .
Global management . . .
9 Managing a global
workforce
10 Working with global
teams
11 Living and working
globally
12 Epilogue
Management challenge
What are the challenges facing
managers?
Chapter outline
What will we study? How is the
chapter organized?
Chapter summary
How can we tie things together?
What have we learned?
Text and illustrations
What can we learn from current
theories and research to improve
our management skills?
Manager’s notebook
How can managers use this
information in the field?
Applications and critical
analysis
How can we apply this material
to actual case examples?
www.cambridge.org© in this web service Cambridge University Press
Cambridge University Press
978-1-107-03012-1 - Management Across Cultures: Developing Global Competencies: Second Edition
Richard M. Steers, Luciara Nardon and Carlos J. Sanchez-Runde
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Learning strategy online
An instructor’s guide is available at
www.cambridge.org/steers that demonstrates how best
to use the book and PowerPoint slides in the classroom.
Instructors will find a comprehensive package of
PowerPoint slides for every chapter, clearly structured
to introduce the topic, summarize key concepts, the
applications and manager’s notebooks and encourage
discussion and reflection.
A range of exercises to test student learning is also provided.
In addition recommended in-depth cases for each chapter
are available at www.iveycases.com/CaseMateBrowse.aspx
GLOBAL CHALLENGES
Each chapter begins by discussing the management challenges
that serve as the basis for the chapter. Chapter outlines organize
the text.
The text brings together what we currently know – and, in some
cases, what we don’t know – about the problems global managers
may face in the field and the global skills they will need to survive
and succeed. These materials are based on current theory and
research.
GLOBAL UNDERSTANDING
Applications are interspersed throughout each
chapter to illustrate how the concepts under
study apply in practice. Discussion questions
encourage students to develop an understanding
of what managers did in particular situations
and how they might have done it better.
GLOBAL MANAGEMENT SKILLS
Manager’s notebooks summarize the key
implications and lessons for managers.
A summary points section concludes each
chapter to complete the learning cycle.
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978-1-107-03012-1 - Management Across Cultures: Developing Global Competencies: Second Edition
Richard M. Steers, Luciara Nardon and Carlos J. Sanchez-Runde
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