MIB Master of International Business: Cross Culture Management 4 — Questions and Answers
Question 1: GLOBE (Global Leadership and Organizational Behavior Effectiveness) research expanded on Hofstede by adding which dimension not in Hofstede's original framework?
- Long-term orientation
- Humane orientation (Correct answer)
- Indulgence vs. restraint
- Monochronic vs. polychronic time
Correct answer: Humane orientation
The GLOBE project added 'humane orientation' — the degree to which a society rewards being fair, altruistic, and caring toward others — which was not in Hofstede's model.
Question 2: When designing a performance appraisal system for a global company, a manager should be most aware that:
- All employees universally value individual recognition
- Feedback mechanisms must account for cultural attitudes toward direct criticism (Correct answer)
- Annual reviews are standard practice in all cultures
- Quantitative metrics are culturally neutral
Correct answer: Feedback mechanisms must account for cultural attitudes toward direct criticism
Direct negative feedback is welcomed in low-context, low power-distance cultures but can cause serious offense or loss of face in high-context or high power-distance cultures.
Question 3: The term 'ethnocentrism' in cross-cultural management refers to:
- The belief that one's own culture is superior and the standard for judging others (Correct answer)
- The practice of adapting to foreign cultures quickly
- A strategy of hiring locals in each country of operation
- The study of ethnic minority groups within organizations
Correct answer: The belief that one's own culture is superior and the standard for judging others
Ethnocentrism is the tendency to view one's own culture as the reference point and measure other cultures by its standards, often leading to misunderstandings in international business.
Question 4: A company adopts a 'polycentric' staffing approach for international operations. This means:
- Staffing all key positions with home-country nationals
- Hiring host-country nationals to manage subsidiaries (Correct answer)
- Using third-country nationals exclusively
- Rotating staff across all global offices
Correct answer: Hiring host-country nationals to manage subsidiaries
Polycentric staffing relies on host-country nationals to run local operations, leveraging their cultural knowledge and reducing the cost and disruption of expatriate assignments.
Question 5: Which of the following best illustrates 'cultural synergy' in an international business context?
- Imposing one dominant culture's practices on all subsidiaries
- Avoiding cultural differences by hiring a homogeneous workforce
- Combining strengths from different cultures to create superior solutions (Correct answer)
- Segregating teams by cultural background to minimize conflict
Correct answer: Combining strengths from different cultures to create superior solutions
Cultural synergy leverages diverse cultural perspectives to produce outcomes superior to what any single culture's approach would generate alone.
Question 6: In cross-cultural negotiations, 'non-task sounding' refers to:
- Technical product demonstrations before price discussion
- Relationship-building small talk before formal business begins (Correct answer)
- Silent pauses used as tactical pressure in negotiation
- Evaluating the counterpart's legal team qualifications
Correct answer: Relationship-building small talk before formal business begins
Non-task sounding is the preliminary, relationship-oriented interaction that builds trust before formal negotiation begins, especially important in relationship-oriented cultures.
Question 7: According to cross-cultural management theory, which leadership style is most effective in high uncertainty-avoidance cultures?
- Laissez-faire, hands-off leadership
- Charismatic, visionary leadership with ambiguous goals
- Directive leadership with clear rules, procedures, and structure (Correct answer)
- Empowering leadership that delegates autonomy to individuals
Correct answer: Directive leadership with clear rules, procedures, and structure
High uncertainty-avoidance cultures prefer predictability and structure, so directive leaders who provide clear rules and procedures reduce anxiety and increase performance.
MIB Master of International Business: Cross Culture Management 4
GLOBE (Global Leadership and Organizational Behavior Effectiveness) research expanded on Hofstede by adding which dimension not in Hofstede's original framework?