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Understanding American
Business Management
Carrine Kezia Aulia
Why leaderships and management style
differs from country to country?
Local culture plays an important role in management
around the world
OUTLINE
• Cultural Aspect
• Management Aspect
– Business Values
– Setting up Meetings
– Communications
– Business Etiquette
– Business Communication Style : Non-Verbal
– Written Communications
– Conversation
• “Gung Ho” Movie Report
Cultural Aspect
Hofstede’s
Cultural Dimension Research
• Study based on 116,000
people in 50 countries
• He proposed following 4
value dimension
POWER
DISTANCE
INDIVIDUALISM MASCULINITY
UNCERTAINTY
AVOIDANCE
POWER DISTANCE
• The extent to which the less powerful members of institutions and
organizations within a country expect and accept that power is
distributed unequally.
• People in low power distance cultures are much more comfortable with
a less status differential
• Superiors are always accessible and managers rely
on individual employees and teams for their
expertise
• Both managers and employees expect to be
consulted and information is shared frequently
• At the same time, communication is informal, direct
and participative
INDIVIDUALSM
• Whether people´s self-image is defined in terms of “I” or “We”
• People are supposed to look after themselves and their direct family
only
• Employees are expected to be self-reliant and display initiative
• Americans are not shy about approaching their
prospective counterparts in order to obtain or seek
information
• Hiring and promotion decisions are based on merit
or evidence of what one has done or can do
MASCULINITY
• A high score (masculine) on this dimension indicates that the society will
be driven by competition, achievement and success, with success being
defined by the “winner” or “best-in-the-field.”
• Behavior in school, work, and play are based on the shared values that
people should “strive to be the best they can be” and that “the winner
takes all”
• Americans will tend to display and talk freely about
their “successes” and achievements in life, here
again, another basis for hiring and promotion
decisions in the workplace
• Typically, Americans “live to work” so that they can
earn monetary rewards and attain higher status
based on how good one can be
UNCERTAINTY AVOIDANCE
• Uncertainty Avoidance is the extent to which the members of a culture
feel threatened by ambiguous or unknown situations and have created
beliefs and institutions that try to avoid these
• There is a larger degree of acceptance for new ideas, innovative
products and a willingness to try something new or different, whether it
pertains to technology, business practices, or foodstuffs
• Americans tend to be more tolerant of ideas or
opinions from anyone and allow the freedom of
expression
• Americans do not require a lot of rules than higher-
scoring cultures
Management Aspect
Business Values
Management Aspect
Business Values
Management Aspect
Business Values
Management Aspect
Business Values
Management Aspect
Setting up Meetings
Management Aspect
Communications
Management Aspect
Communications
Management Aspect
Business Etiquette
Management Aspect
Business Communication Style: Non-Verbal
Management Aspect
Written Communications
Management Aspect
Making conversation
SAFE TOPICS AVOID TOPICS
• Where are you from?
• Weather
• Traffic
• Entertainment: Movies,
music, ….
• Hobbies
• Food, restaurants
• Sports (especially men)
• Work
• Religion, political view
• Family – until the person
brings it up
• Salary
• Woman’s age
• Never ask how much one
paid for his/ her house/
apartment!
Gung Ho Movie Report
TRAINING AND DEVELOPMENT
Japan : Considering a long-term investment
US : Undertaken with hesitation (employee may go to
another firm
Gung Ho Movie Report
MEETING
• Informal and relaxed in manner
• Participation is expected | Silence = No
Gung Ho Movie Report
CONTRACT
US
Contract is a deal
Japan
Contract is a processI already assumed that (the company does open)
No, we did not
Gung Ho Movie Report
BUSINESS CARDS
Japan : Important, exchanging business card = ritual
US : Not so important, not a ritual
Gung Ho Movie Report
NAME SPELLING
US
Often use first name, even
in business
(Low power distance = 40)
Japan
More formal, use formal
title and last name in
business
(Medium tend to high
Power distance = 54)
Hello Mr. Stevenson
No, we did not
Hey, please Hunt, okay?
Gung Ho Movie Report
INDIVIDUALISM/ COLLECTIVISM
Japan (46) : Collectivist, “family companies” are normal
US (90) : Individualist, “family companies” are rare
Boss : Uncle Subordinate : Boss’ cousin
American Management Style

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American Management Style

  • 2. Why leaderships and management style differs from country to country? Local culture plays an important role in management around the world
  • 3. OUTLINE • Cultural Aspect • Management Aspect – Business Values – Setting up Meetings – Communications – Business Etiquette – Business Communication Style : Non-Verbal – Written Communications – Conversation • “Gung Ho” Movie Report
  • 4. Cultural Aspect Hofstede’s Cultural Dimension Research • Study based on 116,000 people in 50 countries • He proposed following 4 value dimension POWER DISTANCE INDIVIDUALISM MASCULINITY UNCERTAINTY AVOIDANCE
  • 5. POWER DISTANCE • The extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally. • People in low power distance cultures are much more comfortable with a less status differential • Superiors are always accessible and managers rely on individual employees and teams for their expertise • Both managers and employees expect to be consulted and information is shared frequently • At the same time, communication is informal, direct and participative
  • 6. INDIVIDUALSM • Whether people´s self-image is defined in terms of “I” or “We” • People are supposed to look after themselves and their direct family only • Employees are expected to be self-reliant and display initiative • Americans are not shy about approaching their prospective counterparts in order to obtain or seek information • Hiring and promotion decisions are based on merit or evidence of what one has done or can do
  • 7. MASCULINITY • A high score (masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the “winner” or “best-in-the-field.” • Behavior in school, work, and play are based on the shared values that people should “strive to be the best they can be” and that “the winner takes all” • Americans will tend to display and talk freely about their “successes” and achievements in life, here again, another basis for hiring and promotion decisions in the workplace • Typically, Americans “live to work” so that they can earn monetary rewards and attain higher status based on how good one can be
  • 8. UNCERTAINTY AVOIDANCE • Uncertainty Avoidance is the extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these • There is a larger degree of acceptance for new ideas, innovative products and a willingness to try something new or different, whether it pertains to technology, business practices, or foodstuffs • Americans tend to be more tolerant of ideas or opinions from anyone and allow the freedom of expression • Americans do not require a lot of rules than higher- scoring cultures
  • 19. Management Aspect Making conversation SAFE TOPICS AVOID TOPICS • Where are you from? • Weather • Traffic • Entertainment: Movies, music, …. • Hobbies • Food, restaurants • Sports (especially men) • Work • Religion, political view • Family – until the person brings it up • Salary • Woman’s age • Never ask how much one paid for his/ her house/ apartment!
  • 20. Gung Ho Movie Report TRAINING AND DEVELOPMENT Japan : Considering a long-term investment US : Undertaken with hesitation (employee may go to another firm
  • 21. Gung Ho Movie Report MEETING • Informal and relaxed in manner • Participation is expected | Silence = No
  • 22. Gung Ho Movie Report CONTRACT US Contract is a deal Japan Contract is a processI already assumed that (the company does open) No, we did not
  • 23. Gung Ho Movie Report BUSINESS CARDS Japan : Important, exchanging business card = ritual US : Not so important, not a ritual
  • 24. Gung Ho Movie Report NAME SPELLING US Often use first name, even in business (Low power distance = 40) Japan More formal, use formal title and last name in business (Medium tend to high Power distance = 54) Hello Mr. Stevenson No, we did not Hey, please Hunt, okay?
  • 25. Gung Ho Movie Report INDIVIDUALISM/ COLLECTIVISM Japan (46) : Collectivist, “family companies” are normal US (90) : Individualist, “family companies” are rare Boss : Uncle Subordinate : Boss’ cousin

Editor's Notes

  1. America is action-oriented culture where time dominates life If you tell americans you will have a report to them at certains date, they will take you at your word. People who miss deadlines are viewed as irresponsible and independable. They don’t allow excuse for deadline
  2. 3. The goal of most negotiations is to arrive at the signed contract. Long-term relationship and benefits may not be the main objective, they may not think building relationship is necessary. Meaning that negative consequences from a business decision are not meant to be personally hurtful or insulting Americans put a great deal of value on the written word. 4.