Course:

BA (Hons) International Business

Management

Module:
BLC6004
International Business and Cultural Diversity
Lesson Plan
Lesson Plan
Lesson 1: 20 Sep 2023 12:30-3:30pm
Introduction to the module
Introduction to Culture
Lesson 2: 22 Sep 2023 12:30-3:30pm F2F
Culture, national culture and its relevance to
cross-cultural management
Lesson 3: 25 Sep 2023 12:30-3:30pm
Globalisation of culture and cultural diversity
WRIT 1 briefing
Lesson 4: 29 Sep 2023 12:30-3:30pm F2F
Cultural groups and levels / types of culture in
organisations
Lesson 5: 4 Oct 2023 12:30-3:30pm F2F
Cultural theories and how they apply (1)
Lesson 6: 11 Oct 2023 12:30-3:30pm F2F
Cultural theories and how they apply (2)
Lesson 7: 13 Oct 2023 12:30-3:30pm
Managing Cultural Differences at Work
Lesson 13: 10 Nov 2023 12:30-3:30pm
Lesson 8: 18 Oct 2023 12:30-3:30pm F2F The impact of culture on cross-cultural
WRIT 1 review conflict resolution
Lesson 9: 27 Oct 2023 12:30-3:30pm F2F Lesson 14: 15 Nov 2023 12:30-3:30pm F2F
Business activities affected and the impact Managing Strategic Alliance
Lesson 10: 1 Nov 2023 12:30-3:30pm F2F Lesson 15: 22 Nov 2023 12:30-3:30pm
Guest Lecture Governance
WRIT 2 briefing
Lesson 16: 24 Nov 2023 12:30-3:30pm F2F
Lesson 11 3 Nov 2023 12:30-3:30pm F2F WRIT 2 Review
Cross-cultural management and the
emerging need for cultural
agility and empathy
Lesson 12: 8 Nov 2023 12:30-3:30pm F2F
The impact of culture on cross-cultural
business negotiation: communication
breakdowns and barriers
L13 The impact of culture on
cross-cultural conflict resolution
What is a Participating Leadership Style? (Kurt Lewin)
A participating leadership style is a low task behavior, high relationship
behavior approach to leadership that helps followers solve problems. The
style is anchored by the leader’s ability to actively listen and collaboratively
engage.
A leader who employs this style of leadership helps an individual to
determine the next steps and is sharing the decision-making process.
In general terms, a participating leadership style helps followers who have
demonstrated the skill to effectively complete a task but who are struggling
with either confidence or commitment/motivation to perform at a sustained
and acceptable standard.
What is a Participating Leadership Style?
What a participating leadership style looks like:
The leader:
•Encourages input
•Actively listens
•Supports risk-taking
•Recognizes the individual’s skills
•Praises the individual’s effort
Democratic Leadership Style (Participative Leadership) - Pros, Cons, Examples, Elements, Tips!
https://www.youtube.com/watch?v=XypNpT-XXCk
What is a Participating Leadership Style?
Key Indicators of when to use a participating leadership style:
The individual:
•Is able to complete the task but remains apprehensive about doing so
(developing)
•Is in need of feedback and encouragement (developing or regressing)
•Is slipping in their performance (regressing)
•Is losing commitment or motivation (regressing)
•Is attempting to complete the task on their own for the first time
(developing)
The Situational Leadership Model is a timeless, repeatable framework
®

for leaders to match their behaviors with the performance needs of

the individual or group that they are attempting to influence.

Situational Leadership is the most practical on-the-job tool. The

®

application from the course to the real work environment can begin
immediately.
– Lead Organizational Development Specialist, Vidant Health
The Situational Leadership® methodology is
based on the relationship between leaders and
followers and provides a framework to analyse
each situation based on the Performance
Readiness® Level that a follower exhibits in
performing a specific task, function, or
objective. Then, based on the leader’s
diagnosis, the necessary amounts of
relationship behavior and task behavior are
applied and communicated to the follower in
order to support their needs and advance
development
Situational Leadership Model Explained
https://www.youtube.com/watch?v=pykuvuA-QFU
Situational Leadership® and a participating leadership style:
Situational Leadership® refers to a participating style as S3 (or Style 3). At The Center
for Leadership Studies, we believe that a leader needs to adapt their approach
based on the current performance of the person they are trying to influence.
Situational Leaders are routinely shifting between one of the four styles with each
person they influence on a task-by-task basis.

Based on the above indicators for the individual, we would identify them as R3 (or
Readiness Level 3). This means the individual is able but either insecure or unwilling
to complete the task at a sustained and acceptable level. Once a Situational Leader
has assessed an individual to be R3 for a specific task, the leader should engage the
follower in a two-way discussion (focused on the task) and what the follower is
going to do to either gain confidence or reestablish the motivation to perform it
(providing S3 leadership).
An example of using S3 or a participating leadership style correctly:
A manager approaches a tenured employee who has successfully organized the
company picnic in the past and initiates a discussion regarding recent indicators that
suggest this year’s event is well behind schedule.

An example of using S3 or a participating leadership style incorrectly:

A manager seeks the input of a recently promoted individual contributor who has
never even attended the company picnic regarding potential process improvements
intended to improve organizational efficiency.
Understanding the benefits of participation is relatively straightforward. Knowing
both how and when to participate is significantly more difficult! In that context, the
real job of any leader is to identify what style of leadership a follower needs for a
given situation. Consider Situational Leadership® as a timing mechanism that helps
leaders determine when … to do what in that regard!
Conflict resolutions
• Conflict is a process that involves people disagreeing.
• Types of conflict:
❑ Intrapersonal - arises within a person
❑Interpersonal - among individuals such as co-workers, a manager and
an employee, or CEOs and their staff.
❑ Intergroup - among different groups
Conflict resolutions

• Traditional view: conflict must it avoided

• Human relations view: conflict is a natural and inevitable outcome in
any group
• Interactionist view: conflict can be a positive force and is absolutely
necessary for effective group performance
Causes of conflict
Outcomes of conflict
Positive outcomes:
• Consideration of a broader range of ideas, resulting in a better, stronger idea
• Surfacing of assumptions that may be inaccurate
• Increased participation and creativity
• Clarification of individual views that build learning

Negative outcomes:
• Increased stress and anxiety which decreases productivity and satisfaction
• Feelings of being defeated and demeaned, which lowers individuals’ morale and may
increase turnover
• A climate of mistrust, which hinders the teamwork and cooperation necessary to get
work done
Conflict Resolution Techniques
How to Resolve Cultural Conflict:
Overcoming Cultural Barriers at the Negotiation Table
BY HARVARD LAW SCHOOL — ON OCTOBER 11TH, 2022

After losing an important deal in India, a business negotiator learned that

her counterpart felt as if she had been rushing through the talks. The
business negotiator thought she was being efficient with their time. Their
cultures have different views on how to conduct negotiations, and in this
case, the barrier prevented a successful outcome. In this useful cross
cultural conflict negotiation example, we explore what this negotiator could
have done differently to improve her negotiation skills.
How to Resolve Cultural Conflict:
Overcoming Cultural Barriers at the Negotiation Table
BY HARVARD LAW SCHOOL — ON OCTOBER 11TH, 2022

Research shows that dealmaking across cultures tends to lead to worse

outcomes as compared with negotiations conducted within the same
culture. The reason is primarily that cultures are characterized by different
behaviors, communication styles, and norms. As a result, when negotiating
across cultures, we bring different perspectives to the bargaining table,
which in turn may result in potential misunderstandings. Misunderstandings
can lead to a lower likelihood of exploring and discovering integrative, or
value-creating, solutions. Let’s talk about the main causes of cross-cultural
negotiation failure.
Avoid cultural conflict by avoiding stereotypes
when negotiating across cultures

Cultural conflict in negotiations tends to occur for two main reasons. First,
it’s very common when confronting cultural differences, for people to rely
on stereotypes. Stereotypes （刻板固有印象）are often pejorative 有贬义
(for example Italians always run late), and they can lead to distorted
expectations about your counterpart’s behavior as well as potentially costly
misinterpretations. You should never assume cultural stereotypes going
into a negotiation.
Instead of relying on stereotypes, you should try to focus on prototypes—
cultural averages on dimensions of behavior or values. There is a big
difference between stereotypes and prototypes.
Avoid cultural conflict by avoiding stereotypes
when negotiating across cultures

For example, it is commonly understood that Japanese negotiators tend to

have more silent periods during their talks than, say, Brazilians. That said,
there is still a great deal of variability within each culture—meaning that
some Brazilians speak less than some Japanese do.

Thus, it would be a mistake to expect a Japanese negotiator you have never

met to be reserved. But if it turns out that a negotiator is especially quiet,
you might better understand her behavior and change your negotiating
approach in light of the prototype. In addition, awareness of your own
cultural prototypes can help you anticipate how your counterpart might
interpret your bargaining behavior. It’s not just about being aware of their
culture, but also how yours might be viewed.
Avoid cultural conflict by avoiding stereotypes
when negotiating across cultures

A second common reason for cross-cultural misunderstandings is

that we tend to interpret others’ behaviors, values, and beliefs
through the lens of our own culture. To overcome this tendency, it is
important to learn as much as you can about the other party’s
culture. This means not only researching the customs and
behaviors of different cultures but also by understanding why
people follow these customs and exhibit these behaviors in the first
place.
Avoid cultural conflict by avoiding stereotypes
when negotiating across cultures

Just as important, not only do countries have unique cultures, but

teams and organizations do, too. Before partaking in any
negotiation, you should take the time to study the context and the
person on the other side of the bargaining table, including the
various cultures to which he belongs—whether the culture of
France, the culture of engineering, or his particular company’s
corporate culture. The more you know about the client, the better
off you will do in any negotiation.
Avoid cultural conflict by avoiding stereotypes
when negotiating across cultures
As this business negotiator has observed, cultural differences can
represent barriers to reaching an agreement in negotiation. But
remember that differences also can be opportunities to create
valuable agreements. This suggests that cross-cultural conflict
negotiations may be particularly rife with opportunities for
counterparts to capitalize on different preferences, priorities, beliefs,
and values.
Avoid cultural conflict by avoiding stereotypes
when negotiating across cultures another example;
Cross-cultural negotiations are very difficult. For example, in the case where an American
negotiator is conscious of the difference of culture between him and his Chinese counterpart,
and thinks that he should adopt the Chinese method of negotiation, while his Chinese partner
also thinks that to avoid misunderstandings he should adopt the American culture of
negotiation. That could tangle up the negotiators, and could be perceived by each negotiator as
a refusal to negotiate from the other part, don’t understanding that his counterpart wants to
behave like him to facilitate the negotiations.

To avoid this scenario, the solution could be simple. One party could at the beginning of the
negotiation tell to the other that he/she will wishes that the negotiation to be made in his
counterpart’s culture, to avoid misunderstandings. I really think it could greatly avoid
misunderstandings, and where it appears, the counterpart will not first interpret the other’s
gesture as hostile, but will first try to understand, knowing that his counterpart has expressed a
real will to negotiate, and the misunderstanding is probably due to the cultural difference.By so
doing, cross cultural negotiations could be eased.
Resolving Conflict in a Multicultural Environment
Defining culture.
Culture is a group which shapes a person's values and identity. A single term used to define a
particular culture is often exclusive. For example, the term "Hispanic" does not take into
account cultural differences between Cuban-Americans and Mexican-Americans. Cultural
identities can stem from the following differences: race, ethnicity, gender, class, religion,
country of origin, and geographic region.

Cultural assumptions.
Cultural conflicts arise because of the differences in values and norms of behavior of people
from different cultures. A person acts according to the values and norms of his or her culture;
another person holding a different worldview might interpret his or her behavior from an
opposite standpoint. This situation creates misunderstanding and can lead to conflict. Often
people of the mainstream America, the Anglo culture, perceive their behavior and beliefs as an
ultimate norm, forgetting that Anglo culture is just one of the multiple cultures existing in the
USA. They are often unable to perceive their own cultural distinctiveness.
Resolving Conflict in a Multicultural Environment
For example, a group of women wrote an excellent and detailed proposal, but did badly during
the interview part of the evaluation. It happened because those women came from a culture
where establishing personal relationships precedes business relationships. These women felt
uncomfortable when government officials did not allow time for casual conversation and
immediately moved toward firing questions at them.
The following case exemplifies how unintentionally one cultural group can hurt the feelings of
the other. The city of Kenai, Alaska was planning a celebration of 200 years since the first
Russian fur traders came to the region. A Native Indian tribe which lived in Alaska for a
thousand years was offended by the implication that before the Russians came to the region
there was no civilization there. As a result the celebration turned to a year-long event and
Native Indian culture became its basis. By the end of the celebration, the Kenai Bicentennial
Visitors and Cultural Center was completed. Thus, accommodation of different cultural interests
helped the region to recognize its historical past.
Resolving Conflict in a Multicultural Environment
Identifying cultural conflicts.
The cultural conflict has three dimensions. To the two dimensions that every
conflict has (content and relational), cultural conflict adds the third one--"a
clash of cultural values." This third dimension constitutes the foundation of the
conflict since it determines personal identity.
Cultural conflict can be identified by the following signs: (1) it usually has
complicated dynamics. Cultural differences mentioned above tend to create
complex combinations of expectations about one's own and other’s behavior.
(2) If addressing content and relational issues do not resolve the conflict, it can
be rooted in cultural differences. (3) Conflict reoccurs or arises strong emotions
even though the issue of disagreement is insignificant.
Resolving cultural conflicts.
The resolution of cross-cultural conflict begins with identifying whether cultural
issues are involved. There are three ways of cross-cultural conflict resolution.
1. Probing for the cultural dimension.
The resolution process should start from the parties' acknowledgment that their
conflict contains a cultural dimension. Next, there should be willingness on all
sides to deal with all conflict dimensions including the cultural one. Third,
systematic phased work on the conflict is needed.
Four phases: (1) the parties describe what they find offensive in each other's
behavior; (2) they get an understanding of the other party's cultural perceptions;
(3) they learn how the problem would be handled in the culture of the opponent;
(4) they develop conflict solutions. Resolution of the conflict is particularly
complicated if the conflict arose not just out of misunderstanding of the other's
behavior, but because of incompatible values.
Resolving cultural conflicts.
2. Learning about other cultures.
People can prevent cross-cultural conflicts by learning about cultures that they
come in contact with. This knowledge can be obtained through training
programs, general reading, talking to people from different cultures, and
learning from past experiences. Important aspects of cultural education are
understanding your own culture and developing cultural awareness by
acquiring a broad knowledge of values and beliefs of other cultures, rather than
looking at them through the prism of cultural stereotypes.
3. Altering organizational practices and procedures.
Often the organizational structure reflects the norms of just one culture and
inherits the cultural conflict. In such cases, structural change becomes
necessary to make the system more sensitive to cultural norms of other people.
Conclusion.

Conflict, depending on the outcome, can be a positive or negative

experience for an organization. With changing demographics,
cultural differences become an acute issue. Many groups resist
assimilation and wish to preserve their cultural distinctiveness,
which makes cultural conflict education an essential tool for
maintaining healthy relations in organizations and society in
general.
Negotiation across culture
Read the following cross-cultural scenarios. Try to identify the source of the conflict and suggest
how it could be avoided or minimised.

Case 3

Harold Josephson, an electronics engineer for an American satellite manufacturer had spent weeks
negotiating with a Japanese parts distributor in Yokohama. The Japanese executive, Mr. Kushiro, was
tough in the negotiations, so progress had been slow. Eventually, Harold felt they had found common
ground and an equitable deal could be worked out to the advantage of both companies. On the final day
of negotiations, Harold was pleased to announce to Kushiro that their thinking was parallel and he was
ready to draw up the contract. Kushiro pleasantly thanked Harold for his time and left the meeting without
further discussion.

What happened?

Source: Ferraro, G. and Briody, E. K. (2012) The Cultural Dimension of International Business.
Routledge
Negotiation across culture
Read the following cross-cultural scenarios. Try to identify the source of the conflict and suggest how it
could be avoided or minimised.

Case 4

Steve Lee, an executive with a Hartford insurance company, was sent to Kuwait immediately after the 1990
Gulf War to investigate damage claims to several hotels his company had insured. Back in the States, Steve
had the reputation of being extremely affable and sociable. The day after Steve arrived in Kuwait City, he met
with Mr. Said, the manager of one of the insured tourist hotels. His previous telephone conversations with
Said were upbeat and had led him to expect that Said was interested in getting the claims settled quickly and
efficiently. His initial meeting with Said went extremely well, with both men agreeing on most of the issues
discussed. At the end of that first meeting they shook hands, and to emphasize the depth and sincerity of his
goodwill, Steve grasped Said’s hand with two hands and shook vigorously. For reasons that Steve never
understood, the subsequent meetings with Said were never as cordial and friendly as that first meeting.

What explanation might you give to Steve?

Source: Ferraro, G. and Briody, E. K. (2012) The Cultural Dimension of International Business.
Routledge
Negotiation across culture
Read the following cross-cultural scenarios. Try to identify the source of the conflict and suggest how it could be avoided or
minimised.

Case 5

Tom Young, an up-and-coming executive for a U.S. electronics company, was sent to Japan to work out the details of a joint venture with
a Japanese electronics firm. During the first several weeks, Tom felt that the negotiations were proceeding better than he had expected.
He found that he had very cordial working relationships with the team of Japanese executives, and they had in fact agreed on the major
policies and strategies governing the new joint venture. During the third week of negotiations, Tom was present at a meeting held to
review their progress. The meeting was chaired by the president of the Japanese firm, Mr. Hayakawa, a man in his mid-forties, who had
recently taken over the presidency from his 82-year-old grandfather. The new president, who had been involved in most of the
negotiations during the preceding weeks, seemed to Tom to be one of the strongest advocates of the plan that had been developed to
date. Also attending the meeting was Hayakawa’s grandfather, the recently retired president. After the plans had been discussed in
some detail, the octogenarian past president proceeded to give a long soliloquy about how some of the features of this plan violated the
traditional practices on which the company had been founded. Much to Tom’s amazement, Hayakawa did nothing to explain or defend
the policies and strategies that they had taken weeks to develop. Feeling extremely frustrated, Tom then gave a strongly argued defense
of the plan. To Tom’s further amazement, no one else in the meeting spoke up. The tension in the air was quite heavy, and the meeting
adjourned shortly thereafter. Within days the Japanese firm completely terminated the negotiations on the joint venture.

How could you help Tom understand this bewildering situation?

Source: Ferraro, G. and Briody, E. K. (2012) The Cultural Dimension of International Business. Routledge
Next lesson

L14 Managing Strategic Alliance