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  • 1. CULTURE, MANAGEMENT STYLE, ANDBUSINESS SYSTEMSSubmitted by: Hira AbbasSubmitted t0 : Nudrat Ishaque
  • 2. 5-2Topics To Be Covered1. Required adaptation2. The impact of American culture on management style3. Management Style around the world4. Communication Styles5. P-Time versus M-Time6. Culture’s Influence on Strategic Thinking7. A Synthesis, Relation-ship Oriented vs. Informationoriented Cultures
  • 3. 5-3•Culture, including all its elements, profoundly affectsmanagement style and overall business systems–Max Weber (1930)•Americans–Individualists•Japanese–Consensus oriented & committed to the group•Central & Southern Europeans–Elitists and rank consciousGLOBAL PERSPECTIVE
  • 4. 5-4•Knowledge of the management style existing in acountry and a willingness to accommodate thedifferences are important to success in aninternational market–Business culture–Management values–Business methods–Behaviors
  • 5. 5-5•Culture not only establishes the criteria for day-to-daybusiness behavior but also forms general patterns ofvalues and motivations•A lack of empathy for and knowledge of foreign businesspractices can create insurmountable barriers tosuccessful business relations
  • 6. 5-6REQUIRED ADAPTATIONAdaptation is a key concept in international marketing.Ten basic criteria for adaptation.1) open tolerance2) flexibility3) humility4) justice/fairness5) ability to adjust to varying tempos6) curiosity/interest7) knowledge of the country8) liking for others9) ability to command respect10) ability to integrate oneself into the environment
  • 7. 5-7•Essential to effective adaptation―Awareness of one’s own culture and the―Recognition that differences in others can cause anxiety,frustration, and misunderstanding of the host’s intentions.•The SELF-REFERENCE CRITERION (SRC) is especially operativein business customs.•The key to adaptation is to remain American but to develop anunderstanding of and willingness to accommodate the differencesthat exist.
  • 8. 5-8• “Master of destiny” viewpoint• Independent enterprise as the instrument of social action• Personnel selection and reward based on merit• Decisions based on objective analysis• Wide sharing in decision making• Never-ending quest for improvement• Competition producing efficiencyTHE IMPACT OF AMERICAN CULTUREON MANAGEMENT STYLE
  • 9. 5-9MANAGEMENT STYLES AROUNDTHE WORLD•Authority and decision making•Management objectives and aspirations•Communication styles•Formality and tempo•P-time versus M-time•Negotiation emphasis•Marketing orientation
  • 10. 5-10•Influencers of the authority structure of business:–High PDI Countries (power Distance Index)Mexico, Malaysia–Low PDI CountriesDenmark, Israel•Three typical authority patterns:–Top-level management decisions–Decentralized decisions–Committee or group decisionsAuthority and decision making
  • 11. 5-11Communication stylesFace-to-face communication–Managers often fail to develop even a basic understanding ofjust one other language–Much business communication depends on implicit messagesthat are not verbalizedInternet communications–Nothing about the Web will change the extent to which peopleidentify with their own language and cultures•78% of today’s Web site content is written in English•An English e-mail message cannot be understood by 35% of all Internetusers–Country-specific Web sites–Web site should be examined for any symbols, icons, and othernonverbal impressions that could convey and unwanted message
  • 12. 5-12HIGH CONTEXT CULTURE:•Middle East, Asia, Africa, and South America•emphasize interpersonal relationships and trust.Context over words: speaker’s tone of voice, facial expression,gestures, posture—and even the person’s family history andstatus.•High-context communication tends to be more indirect andmore formal.•Flowery language, humility, and elaborate apologies are typical.
  • 13. 5-13•(North America and much of Western Europe)•logical, linear, individualistic, and action-oriented.•Decisions are based on fact and Discussions end with actions.•communicators are expected to be straightforward, concise, andefficient in telling what action is expected.LOW CONTEXT CULTURE:
  • 14. 5-14Monochronic time–Tend to concentrate on one thing at a time–Divide time into small units and are concerned withpromptness–Most low-context cultures operate on M-TimePolychronic time–Dominant in high-context cultures–Characterized by the simultaneous occurrence of manythings–Allows for relationships to build and context to beabsorbed as parts of high-context culturesMost cultures offer a mix of P-time and M-time behaviorHave a tendency to be either more P-time or M-time inregard to the role time playsAs global markets expand more businesspeople fromP-time cultures are adapting to M-time.P-Time versus M-Time
  • 15. 5-15• British-American– Individualistic• Japan & Germany– Communitarian• In the less individualistic cultures labor and managementcooperate• A competitive, individualistic approach works well in thecontext of an economic boom• Fourth kind of capitalism –– Common in Chinese cultures– Predicted by cultureCULTURE’S INFLUENCE ON STRATEGICTHINKING
  • 16. 5-16A SYNTHESIS – RELATIONSHIP-ORIENTED VS.INFORMATION ORIENTED CULTURES•Studies are noting a strong relationship between Hall’s high/lowcontext and Hofstede’s Individualism/Collective and Power Distanceindexes•Not every culture fits every dimension of culture in a precise way•Information-oriented culture–United States•Relationship culture–Japan•Synthesis of cultural differences allows us to make predictionsabout unfamiliar cultures
  • 17. 5-17DIMENSIONS OF CULTURE, A SYNTHESIS
  • 18. 5-18•Understanding the culture you are entering is the only sound basisfor planning.•Some cultures appear to emphasize the importance of informationand competition while others focus more on relationships andtransaction cost reductions.•No matter how long in a country, the outsider is not a local – inmany countries that person may always be treated as an outsider•Assuming that knowledge of one culture will provide acceptabilityin another is a critical mistake.SUMMARY