Propensity for participative decision making in Latin America: Mexico and Peru

Increased subordinate participation in management decisions has been a recognized trend in developed Western organizations in recent decades. This study examines a manager's propensity for engaging in participative decision making (PPDM)in two emerging Latin American nations, Mexico and Peru. Although these two nations possess some degree of cultural similarity, two key differences were identified. First, Mexican managers who believed that PDM reduces a manager's power base were also likely than others to see a positive link between PDM and organizational effectiveness. In contrast, Peruvian managers who believed that PDM reduces a manager's power base were less likely than others to see a positive link between PDM and organizational effectiveness. Second, Mexican managers operating in participative organizational cultures were less committed than other managers to participation as a management philosophy and to their organizations. In contrast, Peruvian managers operating in participative organizational cultures were more committed than other managers to participation and to their organizations. Conclusions and directions for future research are also presented.     

The competitive advantage of nations: the role of HRM and its socio-cultural context

This study focuses on the links between human resource management practices and the socio-cultural characteristics of nations, on the one hand, and their competitive advantage in the international market, on the other. The particularly important conclusion is that some nations' cultures offer their managers a higher repertoire of modes of management practices than some others. In high repertoire nations, organizations appear to be better equipped to compete internationally than their counterparts in low repertoire nations.     

What motivates employees? A comparison of US and Chinese responses

Differences in culture, history, economy, and political and management systems may lead to differences in employee job attribute preferences across countries. To the extent that this is true, managers and designers of motivation systems must understand the preferences of local employees. This study provides information on the job attribute preferences of Chinese employees at a major international hotel in Shanghai. Employee preference data were compared to published results from other nations. The pattern of preferences in China was unique compared to Russia, Taiwan and the United States. Chinese employees felt that good wages were most important, followed by good working conditions and personal loyalty from the boss and organization. Interesting work was relatively unimportant, especially to older employees, and 'being in on things' was not at all important. Supervisors at the hotel also provided information on the preferences which they believed characterized their subordinates. Unlike US managers who often badly misperceive the preferences of their US subordinates, Chinese supervisors accurately reported their subordinates' preferences. Expatriates in the hotel were much less accurate in ranking local subordinate preferences. Implications for motivating and managing Chinese employees are discussed.     

Human Resource Management in Africa: Alice's Adventures in Wonderland

Africa is not a dream but in many ways, human resource management (HRM) in Africa could be a dreamlike experience. This appearance of managing in Africa as being surreal is particularly evident with many Western human resource managers. The sheer complexity and diversity found there can make the HRM process one of the more vexing decisions that management may have to undertake when doing business in Africa. In an effort to dramatize the complex nature of HRM decisions in African context, Alice's Adventures in Wonderland will be used as a metaphor throughout the paper. Just as Wonderland held many surprises for Alice during her adventure, Africa holds many surprises for Western HRM, not only in the form of the alien nature of the 'rules, regulations and laws' of many African nations but also in the extent to which many African organizations/employees ignore or bend the rules It is the intent of this paper to demonstrate a means to develop a classification scheme from which categories of African countries can evolve into more or less homogeneous groupings. These categories can then be used to develop customized HRM policies, strategies and tactics. The classification schema is based upon the European colonization of Africa, the history of leadership in African nations since decolonization, the economic/infrastructure development differences among African economies and the cultural differences among these same countries. It is envisioned that the African HRM decision matrix could provide the basis for making 'informed' HRM decisions by Western managers in an African context, although these Western managers must always be ever mindful of the Alice's Adventures in Wonderland nature of the HRM in Africa.     

Managerial style and the strategic choice of executive incentives

This paper analyzes a two-stage duopoly model where owners provide incentives to managers who then select output levels. Unlike the previous Cournot models on the strategic use of incentives (e.g. Fershtman and Judd, 1987; Sklivas, 1987), managers hold different beliefs about their rivals. Managers and executives are classified by ‘management style’ based on the aggressiveness of their beliefs. It is shown that many of the standard results of the strategic managerial incentive literature no longer hold when executives have differing managerial styles. For example, owners may ‘penalize’ their managers for sales, or they may optimally instruct their managers to maximize profits, in contrast to the standard Cournot findings. Indeed, the model yields a necessary and sufficient condition for compensation contracts to specify pure profit-maximizing behavior when managers have differing managerial styles. Thus, the analysis suggests that when ownership and control are separated, owners must carefully assess the belief structure (management style) of their executives before designing the compensation package.     

Sex Differences in Responsiveness to Organizational Career Management

This is a study of differences between women and men in their responsiveness to formal organizational career management. Questionnaire data from 272 men and 101 women were analyzed. It was found that women's individual career variables were mostly similar to men's, but their responsiveness to organizational career management was higher than men's. Women's career effectiveness (performance, attitudes, identity, and adaptability) and career planning increased when the level of perceived organizational career management was high. The sex difference remained even when the effects of two other responsiveness-reducing factors, managerial position and tenure, were controlled. The results are interpreted in terms of women's cognitive construction of organizational reality. It is suggested that human resource managers have to distinguish between two different objectives: enhancing women's effectiveness vs. enhancing their career progress. To attain the first objective, formal career management systems should be developed. To attain the second, it is argued that women need to relate differently to the informal organizational system.     

ANALYZING CULTURAL STEREOTYPES IN MULTINATIONAL BUSINESS: UNITED STATES AND AUSTRALIA

As U.S. business becomes more international, so does U.S. management education. Executive development programmes offer courses in the U.S. and abroad to managers from many nations. As part of the transfer of U.S. management methods, the concepts, techniques and beliefs taught in these programmes may not be easily accepted, especially by foreign managers. Careful examination of cultural differences in attitudes and opinions is a necessary step in the successful transfer of management technology. This paper compares U.S. and Australian managers' values, attitudes, beliefs and opinions on a wide range of topics using a modified version of Schein's Public Opinion Questionnaire. Our findings suggest that there are common business management views as well as national differences among managers in the U.S. and Australia.     

Localizing management in foreign-invested enterprises in China: practical,cultural, and strategic perspectives

The business case for the rapid localization of management has often been argued. This paper takes a critical look at the assumptions underlying such arguments. This exploration utilizes data gathered from a variety of Japanese, Korean, Hong Kong, and European ventures in China. Evidence from these case studies is incorporated within a broader exploration of Chinese cultural values and attitudes derived from ethnographic research and approaches to the strategic management of multinational enterprises. It is suggested that localization is likely to proceed at a much slower pace than its main advocates may wish or anticipate, and that there are practical, cultural, and strategic factors which may, and perhaps should, inhibit rapid localization. Such factors range from the lack of suitably qualified local managers, to control and surveillance functions and expatriates' roles as trainers, co-ordinators, and relatively neutral 'outsiders'. It is proposed that the development of a core of culturally literate expatriates can become a valuable resource for MNEs and that their selection, support, and compensation packages should be considered as an investment in firms' long-term strategic development.     

Variation in the average leadership behaviour of managers across countries: Finnish expatriates’ experiences from Germany,Sweden, France and Great Britain

This paper presents the experiences of Finnish expatriates (n=36) from four European countries representing proposed cultural clusters in Western Europe. The focus is on variation in manager–subordinate interaction, i.e. on leadership behaviours of managers across countries. Based on cultural theory and existing comparative research, the national origin of managers is expected to influence their leadership behaviour. By reviewing various earlier comparative studies, working hypotheses are formed about expected variation across countries. The results indicate that variation could be identified in the average styles of managers across countries, although in most cases differences also emerged between expatriates’ reports. This variation in expatriates’ experiences indicates that variation within countries should also be kept in mind when discussing variation across countries. However, it was regarded as possible to form a model of typical characteristics of leadership styles of managers across countries from the perspective of Finnish expatriates based on the identified variation. The implications of variation identified across countries for expatriates and multinational companies are also discussed.     

Senior female international managers: empirical evidence from Western Europe

Abstract This paper is an assessment of the international career transitions made by senior female managers in Western Europe. The perspective explored is that of currently employed senior female managers in a wide range of companies, who have made at least one international career move. The article is based on data collected from interviews with fifty senior female international managers. The voices of the female managers illustrate difficulties they encounter in a 'man's world', and confirm that there is still much improvement to be made in order to accommodate and entice more women to senior management assignments. The study, for the first time, assesses an exclusively senior sample of female international managers in Western Europe. Previous studies have established that, throughout Europe, women's promotion into senior domestic management positions has been very slow, despite legislative changes, including the European Union's social protocol, to enforce issues related to equal opportunity such as equal pay and measures against sex discrimination (Davidson and Cooper, 1993). This article examines a number of explanations from the relevant literature and analyses the empirical data collected from the fifty interviewees in order to develop an understanding of senior female international career progressions in Europe. From the data, a model of the typical senior female international path was developed (Linehan, 2000). This research is particularly relevant, as existing European studies have not specifically addressed issues pertaining to senior female international managers.     

Understanding Public and Nonprofit Managers' Motivation Through the Lens of Self-Determination Theory

Abstract

Contemporary public and nonprofit management research has disproportionally emphasized the importance of intrinsic motivation (especially service motivation) but has given comparatively little attention to non-intrinsic motivation. According to self-determination theory (SDT), non-intrinsic motivation moves from identified motivation, introjected motivation, external motivation, to amotivation, depending on their disparate levels of self-determination. The authors examine empirically whether public managers differ from nonprofit managers on these intrinsic and non-intrinsic motivational styles. The findings show that public managers exhibit stronger service motivation, identified motivation, external motivation, and amotivation when compared to their nonprofit peers. In addition, public managers' strong external motivation and amotivation compromise their overall level of self-determination, suggesting that they may be less motivated by their work requirements than are nonprofit counterparts.     

Quality management effectiveness in Asia: The influence of culture

Globalization forces managers to utilize manufacturing capabilities from countries with different cultures than their own, particularly from Asia. Yet quality problems in China have raised concerns among managers and researchers as to how to assure product quality from Asian facilities. Implementing quality management practices may accomplish this, but such practices assume specific cultural values exist in certain Asian cultures. Using global manufacturing and cultural data, this study examines if cultural values in Asian and non-Asian countries moderate how effective quality management practices are at improving quality performance. Through the use of multilevel modeling, differences in quality management effectiveness are found among the East Asian cultures of China, South Korea, and Taiwan. Moreover, this study finds that specific cultural dimensions are statistically related to quality management effectiveness. The results of this study will assist managers in devising plans to assure higher quality from East Asian facilities and in predicting where problems may occur in other countries around the world.     

Career commitment in collectivist and individualist cultures: a comparative study

A comparative study of Malaysian and Australian managers used the Carson and Bedeian multidimensional career commitment measure and the individualism-collectivism scale developed by Singelis et al . (1995) in a survey to test the hypothesis that career commitment is likely to be higher in individualistic than in collectivistic cultures. Malaysian managers were more collectivistic but also more vertically individualistic than Australian managers, and the two groups differed only in their levels of career resilience commitment and were not significantly different in career identity and career planning commitment. These results may reflect a shift from collectivism towards individualism with Malaysia's economic development, but collectivism may also be adapting to economic development and social change and the findings add weight to recent criticism of accepted conceptualizations of cultures.     

The Effect of Culture on Management Style

Abstract

U.S. and Indonesian managers were surveyed to evaluate cross-cultural differences in managerial style. Four variables were compared and analyzed: autocratic and participative management, and individualism and collectivism. Indonesian managers endorsed a more autocratic style than U.S. managers and valued collectivism more than U.S. managers, while U.S. managers valued individualism more than the Indonesian managers. Additionally, a positive relationship was found between participative management style and individualism. There were no significant differences in the value both groups placed on participative management; both endorsed this concept positively. Results suggest that while there are differences between the preferred management styles of Indonesian and U.S. managers, both groups endorse similar management ideas. This paper concludes that culture affects the ideologies that managers are willing to endorse, and further study is needed to see if it similarly affects the management styles they actually exercise.     

Western MBA Education and Effective Leadership Values in Developing Countries

Abstract

The study seeks to develop a leadership portrait of MBA graduates from developing countries. It examines the congruence between the effective leadership values as perceived by MBA graduates from developing countries and expected, accepted and effective leadership styles in their cultures. One-Way ANOVA and Duncan Multiple Comparison analysis revealed that MBA graduates from developing countries have the tendency to embrace western leadership values without forsaking traditional indigenous values. The research provides evidence to suggest that western MBA education is contributing to the conformity to the latest leadership paradigms across cultures and thus the formation of a shared knowledge structure which reduce the variability of future managers' perceptions towards leadership styles.

The study seeks to develop a leadership portrait of MBA graduates from developing countries. It examines the congruence between the effective leadership values as perceived by MBA graduates from developing countries and expected, accepted and effective leadership styles in their cultures. One-Way ANOVA and Duncan Multiple Comparison analysis revealed that MBA graduates from developing countries have the tendency to embrace western leadership values without forsaking traditional indigenous values. The research provides evidence to suggest that western MBA education is contributing to the conformity to the latest leadership paradigms across cultures and thus the formation of a shared knowledge structure which reduce the variability of future managers' perceptions towards leadership styles.     

Are employers assessing the right traits in hiring? Evidence from Hong Kong companies

Employers constantly function as information processors. The personnel selection process requires employers to decide among candidates characterized by multiple attributes. The purpose of this study (N = 300) was to develop an understanding of the selection decision process of recruiters, and to identify inconsistencies, if any, between recruiters' perception on the ideal qualities for effective performance and qualities actually assessed during interviews. Moreover, the paper compares the direct and indirect approaches in attribute importance estimation. Conscientiousness was the ideal quality for effective performance and Extraversion was most assessed during interviews, unveiling the possibility that managers may not be assessing the right traits and hiring the right candidate. This paper is of significance because it provides useful feedback for HR professionals and hiring managers in understanding their cognitive and actual behaviour and heightens the need for better selection strategies.     

Determinants of variable pay for top managers of foreign subsidiaries in Finland

There is a large body of research dealing with top management compensation from an agency theory perspective. Difficulties in monitoring top management (the agent) are exacerbated in the multinational corporation, where there are significant information asymmetries between headquarters and foreign subsidiaries. Headquarters may use variable pay for subsidiary top managers to reduce the agency problems. By studying 110 foreign-owned subsidiaries located in Finland, this paper attempts to identify determinants of variable pay to the subsidiary general manager. In line with agency theory, the results suggest that the roles played by the subsidiary influence the compensation strategy used for the subsidiary general manager. However, while agency theory predicts that the cultural distance beween the home country of the multinational corporation and the location of the foreign subsidiary would have an effect on the compensation system, no such effect was found. Instead, in accordance with the institutionalization perspective, we found a significant 'nationality effect' on the use of variable pay.     

Perspectives on line managers in human resource management: Hilton International's UK hotels

Although contextual factors act to encourage the devolvement of human resource management to line managers, recent research indicates that there is substantial potential for human resource specialists and line managers to share more effectively responsibility for their organization's human resource activities in business partnerships. The foundation for this is arguably commonality in opinions on the principles and practices of human resource activities. However, line managers and human resource specialists often have dissonant opinions on human resource management.

This paper explores line manager and human resource specialists' perspectives on line manager involvement in human resource management, theoretically and empirically. The primary work comprises a survey of the views of line managers and human resource specialists on devolving a range of human resource activities to line managers in a case organization, Hilton International's UK hotels. Differences between line managers' and human resource specialists' perspectives are found in five aspects: understanding and ownership of the company's service and HR strategy; line manager involvement in and rankings of HR activities; HR specialists' support of line managers; barriers to line managers' involvement in HR activities; and the competence of line managers in HR activities. Importantly, it is found that where there are divergent views across line managers and their HR specialist in their hotel there is poor hotel business performance and, conversely, convergent views are evident in the effectively performing hotels. These findings may have resonance for other organizations in devolving human resource management to the line and developing human resource business partnerships for business performance. It is proposed that three types of line manager buy-in are central to their active involvement in HR, namely: conceptual understanding of the rationale for their involvement; implementation effectiveness through HR role clarity and capability; and affective commitment in believing in the value of their involvement in HR.     

The management of labour in Japanese manufacturing plants in China

While there is now considerable scholarship concerning Japanese management practices in their overseas production operations in Europe and North America, little is known about Japanese investment in other parts of the world, especially in Asia. This paper draws on on-going research into the nature and operations of Japanese manufacturing investments in China. The paper focuses on interviews primarily with Chinese managers in twenty plants in three locations within China, to examine their personnel polices and practices, and draw from this their overall industrial relations strategies. The main findings were, first, that, despite claims of cultural similarity between China and Japan, personnel management practices were generally not transferred from Japan to the plants in China. Second, practices that may appear as Japanese inspired were often informed by local practices. Third, there was diversity in the forms of practices used, indicating neither sophistication nor a singular recipe of management methods. Thus, the paper seeks to challenge proponents of Japanization who claim, essentially, that Japanese management techniques are predicated on the construction of particular forms of social relations around work that allow sophisticated, and integrated, production-management systems to function. Instead, depending on a complex interrelation between location industry and the history of each plant, managers sought to use various local and 'universal' (generic to capitalism) strategies and practices to control and utilize labour.