Chapter 15
Chapter 15
International
Projects
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International Projects
• Types of Projects
–Domestic
–Overseas
–Foreign
–Global
• Issues in Managing International Projects
–Environmental factors affecting projects
–Global expansion considerations
–Challenges of working in foreign cultures
–Selection and training of overseas managers
International Assignments
• Positives • Negatives
– Increased income – Absence from home and
friends, and family
– Increased responsibilities
– Personal security risks
– Career opportunities
– Missed career opportunities
– Foreign travel
– Difficulties with foreign
– New lifetime friends
language, culture, and laws
2
Environmental Factors Affecting
International Projects
FIGURE 15.1
Environmental Factors
• Legal/Political
–Political stability
–National and local laws and regulations
–Government, state and local bureaucracies
–Government interference or support
–Government corruption
• Security
–International terrorism
–National and local security
–Local crime and kidnapping
–Risk management
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Environmental Factors (cont’d)
• Geography
–Climate and seasonal differences
–Natural obstacles
• Economic
–Gross domestic product (GDP)
–Protectionist strategies and policies
–Balance of payments
–Currency convertibility and exchange rates
–Inflation rates
–Local labor force: supply, educational and skill levels
4
Assessment Matrix Project Site Selection
FIGURE 15.2
FIGURE 15.3
5
Cross-Cultural Considerations:
A Closer Look
• Culture
–A system of shared norms, beliefs, values, and
customs that bind people together, creating shared
meaning and a unique identity.
• Cultural Differences:
–Geographic regions
–Ethnic or religious groups
–Language
–Economic
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Cross-Cultural Considerations (cont’d)
Working in
France
Working in the Working in
United States China
Working in
Mexico
Working in
Saudi Arabia
Cross-Cultural Orientations
• Relation to Nature
– How people relate to the natural world around them
and to the supernatural.
• Time Orientation
– The culture focus on the past, present, or future.
• Activity Orientation
– How to live: “being” or living in the moment, doing, or controlling.
• Basic Nature of People
– Whether people viewed as good, evil, or some mix of these two.
• Relationships Among People
– The degree of responsibility one has for others.
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Kluckhohn-Strodtbeck’s Cross-Cultural Framework
Note: The line indicates where the United States tends to fall along these issues.
FIGURE 15.4
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Sample Country Clusters on Hofstede’s Dimensions
of Individualism-Collectivism and Power Distance
FIGURE 15.5
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Culture Shock Cycle
FIGURE 15.6
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Selection and Training for
International Projects
• Selection Factors
–Work experience with cultures other than one’s own
–Previous overseas travel
–Good physical and emotional health
–Knowledge of a host nation’s language
–Recent immigration background or heritage
–Ability to adapt and function in the new culture
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Selection and Training for
International Projects (cont’d)
FIGURE 15.7
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Key Terms
Cross-cultural orientations
Culture
Culture shock
Infrastructure
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