CAB7: ICB
TABLE OF CONTENTS
1. NANCY ADLER: INTERNATIONAL DIMENSIONS OF ORGANIZATIONAL BEHAVIOR 2
1.1 Chapter 1: Culture and Management 2
1.2 Chapter 2: How Cultural Differences Affect Organizations 6
1.3 Chapter 4: Creating Cultural Synergy 8
1.4 Chapter 5: Managing Multicultural Teams 11
1.5 Chapter 6: Leading Globally 16
1.6 Chapter 7: Motivation People From Around The World: Inspiring People to Contribute 21
1.7 Chapter 8: Multinational Decision-Making 27
1.8 Chapter 9: Negotiating Globally 29
2. ROBBINS: ORGANIZATIONAL CULTURAL 36
3. TROMPENAARS: NATIONAL CULTURES AND CORPORATE CULTURE 40
4. GESTELAND: RELATIONSHIP-FOCUS VS. DEAL-FOCUS 41
5. GLOBE PROJECT 43
6. THE COSMOPOLITAN CORPORATION 44
,1. NANCY ADLER: INTERNATIONAL DIMENSIONS OF ORGANIZATIONAL
BEHAVIOR
1.1 CHAPTER 1: CULTURE AND MANAGEMENT
Culture profoundly shapes how people think, feel, and behave—and, therefore, directly impacts how
managers lead, communicate, make decisions, and organize work across global contexts.
What Is Culture?
Culture is the shared values, assumptions, understandings, and behaviors learned and passed down within
a group. It influences perception, cognition, and behavior—shaping how people view authority, time,
risk, relationships, etc.
Why Culture Matters in Management
Culture determines what people consider:
- A problem or a success.
- Good leadership.
- Ethical behavior.
- Appropriate communication.
Managers must understand that what works at home may not work abroad—strategies, motivational
techniques, and decision processes must be adapted.
Cultural Assumptions in Organizations
Cultural assumptions shape even the most basic organizational practices (e.g., meetings, goal-setting,
and conflict resolution).
Examples:
- In some cultures, direct feedback is expected; in others, it is seen as rude.
- Some cultures value speed and efficiency, while others prioritize relationship-building and
process.
What may seem "common sense" in one culture could be ineffective or offensive in another.
Managerial Effectiveness Is Culturally Relative
Effective managers must move beyond ethnocentrism (judging other cultures by one's own standards).
The goal is to become culturally competent—able to:
- Recognize cultural patterns.
- Respect and adapt to them appropriately.
- Leverage diversity for more substantial outcomes.
Global management is not just about transferring practices across borders—it’s about understanding,
respecting, and integrating cultural differences.
As companies expand internationally, they must align their global strategies with cultural realities—
understanding that culture affects every aspect of organizational behavior and effectiveness.
Cultural Adaptation = Strategic Advantage
, Companies that integrate cultural awareness into strategy gain:
- Better market entry.
- Improved talent management.
- Smoother negotiations.
- Stronger customer relationships.
Organizations evolve through four phases of international development—each requiring different levels
of cultural awareness and adaptation.
Four phases of global corporate evolution:
1. Domestic Phase – Ethnocentric perspective; companies focus only on their home market with
little concern for cultural differences. International clients are expected to adapt to domestic
standards.
2. Multidomestic Phase – Polycentric or regiocentric view; companies begin operating in multiple
countries, tailoring products and management practices to local markets and recognizing cultural
differences.
3. Multinational Phase – The market becomes global and price-driven. Standardization becomes
key. Although companies operate globally, they minimize the importance of cultural differences.
4. Global (or Transnational) Phase: Success is defined by strategic thinking, cultural sensitivity,
and mass customization. Competitive advantage comes from understanding and leveraging
cultural diversity.
Global Corporate Evaluation
Domestic Multidomestic Multinational Global
Competitive Strategy Domestic Multidomestic Multinational Global
Importance of World Business Marginal Important Extremely Important Dominant
Primary Orientation Product/Service Market Price/Cost Strategy
Product/service New/Unique More standardized Completely Mass-customized
standardized
(commodity)
Type of Development Emphasized Product Engineering Process Engineering Engineering not Product and process
emphasized engineering
Technology Proprietary Limited sharing Widely shared Almost instantly and
extensively shared
R&D/Sales High Decreasing Very Low Very high
Profit Margin High Decreasing Very Low Initially high, yet
immediately
decreasing
Competitors None Few Many Significant (Few or
Many)
Market Small and Domestic Large and Larger and Largest and global
multidomestic multinational
Production Location Domestic Domestic and primary Multinational, based Global, least cost and
foreign markets on least cost best quality
Exports None Growing, high Large, saturated Imports, exports and
potential “transports”
Structure Functional Divisions Functional with Multinational lines of Global alliances
Centralized International division business flattened
Decentralized Centralized “heterarchy”.
Coordinated and
decentralized
, Corporate Cross-Cultural Evolution
Domestic Multidomestic Multinational Global
Strategy Domestic Multidomestic Multinational Global
Primary Orientation Product/Service Market Price/Cost Strategy
Perspective Ethnocentric Polycentric or Multinational Global/Multicentric
Regiocentric
Cultural Sensibility Marginally Important Very Important Somewhat Important Critically Important
With Whom No one Clients Employees Employees and clients
Level No one Employees and clients Managers Executive, managers,
employees and clients
Strategic Assumption “One way” or “One “Many good ways” “One least cost way” “Many good ways”
best way” Equifinality Simultaneously
Strategies for Managing Cultural Differences
Cross-cultural management is the practice of leading, coordinating, and motivating people across
different cultural contexts. It requires global managers to recognize, respect, and leverage cultural
differences rather than eliminate them.
Three Core Challenges in Cross-Cultural Management:
- Recognize that people from different cultures interpret the world differently.
- Respect those differences rather than judging or rejecting them.
- Reconcile and leverage those differences to achieve synergy.
Avoiding Ethnocentrism
- Ethnocentrism = judging other cultures by your own standards.
- It leads to miscommunication, mistrust, and failed international ventures.
- Cross-cultural managers must instead adopt a relativistic, empathetic perspective.
Three approaches to cultural differences:
Type of Organization Perception Strategy Most Likely Consequences Frequency
What is the perceived impact How should the impact of What consequences can managers How common are these
of cultural diversity on cultural diversity on expect when using perception and perceptions and
organizations? organizations be managed? strategy? strategies?
Parochial No impact: Ignore differences: Problems: Very common
Our way is the only way. Cultural diversity has no Ignore the impact of cultural Problems occur but they are not
impact on organizations. diversity on organizations. attributed to cultural diversity.
Ethnocentric Negative impact: Minimize differences: Some problems and few Common
Our way is best. Cultural diversity causes Minimize the sources and advantages:
problems for organizations. impact of cultural diversity Managers reduce problems by
on organizations. If possible, reducing diversity; they ignore or
select a monocultural eliminate potential advantages.
workforce.
Synergistic Potential negative Manage differences: Some problems and many Less Common
Leveraging our ways and and positive impacts: Train managers to advantages:
their ways may work best. Cultural diversity leads to recognize and use cultural Managers recognize and benefit
both problems and differences to create from cultural diversity. Some
advantages for advantages for the problems continue to occur and
organizations. organization. need to be managed.
What is Culture
Culture is the shared set of values, beliefs, and norms learned by individuals as members of a society. It
influences how people perceive the world, interact, and make decisions. Core dimensions include
perceptions of self, nature, relationships, time, activity, and space.
TABLE OF CONTENTS
1. NANCY ADLER: INTERNATIONAL DIMENSIONS OF ORGANIZATIONAL BEHAVIOR 2
1.1 Chapter 1: Culture and Management 2
1.2 Chapter 2: How Cultural Differences Affect Organizations 6
1.3 Chapter 4: Creating Cultural Synergy 8
1.4 Chapter 5: Managing Multicultural Teams 11
1.5 Chapter 6: Leading Globally 16
1.6 Chapter 7: Motivation People From Around The World: Inspiring People to Contribute 21
1.7 Chapter 8: Multinational Decision-Making 27
1.8 Chapter 9: Negotiating Globally 29
2. ROBBINS: ORGANIZATIONAL CULTURAL 36
3. TROMPENAARS: NATIONAL CULTURES AND CORPORATE CULTURE 40
4. GESTELAND: RELATIONSHIP-FOCUS VS. DEAL-FOCUS 41
5. GLOBE PROJECT 43
6. THE COSMOPOLITAN CORPORATION 44
,1. NANCY ADLER: INTERNATIONAL DIMENSIONS OF ORGANIZATIONAL
BEHAVIOR
1.1 CHAPTER 1: CULTURE AND MANAGEMENT
Culture profoundly shapes how people think, feel, and behave—and, therefore, directly impacts how
managers lead, communicate, make decisions, and organize work across global contexts.
What Is Culture?
Culture is the shared values, assumptions, understandings, and behaviors learned and passed down within
a group. It influences perception, cognition, and behavior—shaping how people view authority, time,
risk, relationships, etc.
Why Culture Matters in Management
Culture determines what people consider:
- A problem or a success.
- Good leadership.
- Ethical behavior.
- Appropriate communication.
Managers must understand that what works at home may not work abroad—strategies, motivational
techniques, and decision processes must be adapted.
Cultural Assumptions in Organizations
Cultural assumptions shape even the most basic organizational practices (e.g., meetings, goal-setting,
and conflict resolution).
Examples:
- In some cultures, direct feedback is expected; in others, it is seen as rude.
- Some cultures value speed and efficiency, while others prioritize relationship-building and
process.
What may seem "common sense" in one culture could be ineffective or offensive in another.
Managerial Effectiveness Is Culturally Relative
Effective managers must move beyond ethnocentrism (judging other cultures by one's own standards).
The goal is to become culturally competent—able to:
- Recognize cultural patterns.
- Respect and adapt to them appropriately.
- Leverage diversity for more substantial outcomes.
Global management is not just about transferring practices across borders—it’s about understanding,
respecting, and integrating cultural differences.
As companies expand internationally, they must align their global strategies with cultural realities—
understanding that culture affects every aspect of organizational behavior and effectiveness.
Cultural Adaptation = Strategic Advantage
, Companies that integrate cultural awareness into strategy gain:
- Better market entry.
- Improved talent management.
- Smoother negotiations.
- Stronger customer relationships.
Organizations evolve through four phases of international development—each requiring different levels
of cultural awareness and adaptation.
Four phases of global corporate evolution:
1. Domestic Phase – Ethnocentric perspective; companies focus only on their home market with
little concern for cultural differences. International clients are expected to adapt to domestic
standards.
2. Multidomestic Phase – Polycentric or regiocentric view; companies begin operating in multiple
countries, tailoring products and management practices to local markets and recognizing cultural
differences.
3. Multinational Phase – The market becomes global and price-driven. Standardization becomes
key. Although companies operate globally, they minimize the importance of cultural differences.
4. Global (or Transnational) Phase: Success is defined by strategic thinking, cultural sensitivity,
and mass customization. Competitive advantage comes from understanding and leveraging
cultural diversity.
Global Corporate Evaluation
Domestic Multidomestic Multinational Global
Competitive Strategy Domestic Multidomestic Multinational Global
Importance of World Business Marginal Important Extremely Important Dominant
Primary Orientation Product/Service Market Price/Cost Strategy
Product/service New/Unique More standardized Completely Mass-customized
standardized
(commodity)
Type of Development Emphasized Product Engineering Process Engineering Engineering not Product and process
emphasized engineering
Technology Proprietary Limited sharing Widely shared Almost instantly and
extensively shared
R&D/Sales High Decreasing Very Low Very high
Profit Margin High Decreasing Very Low Initially high, yet
immediately
decreasing
Competitors None Few Many Significant (Few or
Many)
Market Small and Domestic Large and Larger and Largest and global
multidomestic multinational
Production Location Domestic Domestic and primary Multinational, based Global, least cost and
foreign markets on least cost best quality
Exports None Growing, high Large, saturated Imports, exports and
potential “transports”
Structure Functional Divisions Functional with Multinational lines of Global alliances
Centralized International division business flattened
Decentralized Centralized “heterarchy”.
Coordinated and
decentralized
, Corporate Cross-Cultural Evolution
Domestic Multidomestic Multinational Global
Strategy Domestic Multidomestic Multinational Global
Primary Orientation Product/Service Market Price/Cost Strategy
Perspective Ethnocentric Polycentric or Multinational Global/Multicentric
Regiocentric
Cultural Sensibility Marginally Important Very Important Somewhat Important Critically Important
With Whom No one Clients Employees Employees and clients
Level No one Employees and clients Managers Executive, managers,
employees and clients
Strategic Assumption “One way” or “One “Many good ways” “One least cost way” “Many good ways”
best way” Equifinality Simultaneously
Strategies for Managing Cultural Differences
Cross-cultural management is the practice of leading, coordinating, and motivating people across
different cultural contexts. It requires global managers to recognize, respect, and leverage cultural
differences rather than eliminate them.
Three Core Challenges in Cross-Cultural Management:
- Recognize that people from different cultures interpret the world differently.
- Respect those differences rather than judging or rejecting them.
- Reconcile and leverage those differences to achieve synergy.
Avoiding Ethnocentrism
- Ethnocentrism = judging other cultures by your own standards.
- It leads to miscommunication, mistrust, and failed international ventures.
- Cross-cultural managers must instead adopt a relativistic, empathetic perspective.
Three approaches to cultural differences:
Type of Organization Perception Strategy Most Likely Consequences Frequency
What is the perceived impact How should the impact of What consequences can managers How common are these
of cultural diversity on cultural diversity on expect when using perception and perceptions and
organizations? organizations be managed? strategy? strategies?
Parochial No impact: Ignore differences: Problems: Very common
Our way is the only way. Cultural diversity has no Ignore the impact of cultural Problems occur but they are not
impact on organizations. diversity on organizations. attributed to cultural diversity.
Ethnocentric Negative impact: Minimize differences: Some problems and few Common
Our way is best. Cultural diversity causes Minimize the sources and advantages:
problems for organizations. impact of cultural diversity Managers reduce problems by
on organizations. If possible, reducing diversity; they ignore or
select a monocultural eliminate potential advantages.
workforce.
Synergistic Potential negative Manage differences: Some problems and many Less Common
Leveraging our ways and and positive impacts: Train managers to advantages:
their ways may work best. Cultural diversity leads to recognize and use cultural Managers recognize and benefit
both problems and differences to create from cultural diversity. Some
advantages for advantages for the problems continue to occur and
organizations. organization. need to be managed.
What is Culture
Culture is the shared set of values, beliefs, and norms learned by individuals as members of a society. It
influences how people perceive the world, interact, and make decisions. Core dimensions include
perceptions of self, nature, relationships, time, activity, and space.
