Managing Across the Culture
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Managing Across the Culture

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Managing Across the Culture Managing Across the Culture Presentation Transcript

  • Culture can be define as the system of values and norms which a society shares; it includes beliefs, laws, knowledge, art, and customs (Hill, 2010). Values are a set of beliefs Values are a set of beliefs about, or attitudes towards, about, or attitudes towards, concepts concerning a society, concepts concerning a society, while norms are unwritten, but while norms are unwritten, but accepted, rules and laws about accepted, rules and laws about society members’ behaviors. society members’ behaviors.
  • Values and norms are influenced Values and norms are influenced by aanumber of factors within by number of factors within society such as “social structure, society such as “social structure, religion, language, education, religion, language, education, economic philosophy, and political economic philosophy, and political philosophy” (Hill, 2010). philosophy” (Hill, 2010). The differences in these factors The differences in these factors across the globe provide the across the globe provide the diverse societies, which must be diverse societies, which must be viewed individually so as to viewed individually so as to comprehend the implications they comprehend the implications they have for international business. have for international business.
  • One of the most important rules to remember when working within a multi-national organization is that there is not necessarily one right way of doing things
  • An important aspect of any business is to be able to analyze and evaluate the environment, both internally and externally, in which the business is to operate (Plunkett, Attner, & Allen, 2008). The cost of doing business overseas is a concept that is related to evaluating the external environment, where a manager or business owner must consider such elements as “the strengths and weaknesses of suppliers and partners, the availability of additional labor and technology, and the needs of external customers” (Plunkett, Attner, & Allen, 2008). The globalisation of business and commerce has become an increasingly significant reality worldwide: in 2000, the global trade in goods and services reached 25% of world GDP (Govidarajan & Gupta 2000), while in terms of manufactured goods, international trade has multiplied by more than 100 times since 1955 (Schifferes 2007).
  • Each nationality has its own characteristics, which combine Each nationality has its own characteristics, which combine to contribute to the strength of the organization. to contribute to the strength of the organization. For example, in countries such as Britain and the US with aa For example, in countries such as Britain and the US with culture of small power distance between top management culture of small power distance between top management and general staff, organizations benefit from an and general staff, organizations benefit from an environment of empowerment and acceptance of environment of empowerment and acceptance of responsibility responsibility In countries where management maintains aalarge power In countries where management maintains large power distance, staff will follow aamuch tighter regime of discipline. distance, staff will follow much tighter regime of discipline. +) Hong Kong, Malaysia, Taiwan -) Denmark, Germany
  • +) France, Spain -)Malaysia, Netherlands
  • Individualism vs. collectivism is an important aspect that influences the costs of business. For instance, Husted (1999) has found an important correlation between software piracy and individualism criterion. Collectivism has been associated with unethical behavior and corruption (Hooper 1995). With the significant expense to a company of sending a person abroad and the cost of a failed assignment, simple investments can be made to avoid such situations. The respondents in the survey indicated that a company should not make any promises it cannot meet and provide a realistic picture of the job and living conditions. +) Belgium, Italy -)Malaysia, Japan
  • Masculinity vs. femininity also tends to influence business costs. For instance, high masculine cultures have been associated with unethical practices (Vitell et al 1993). Feminine cultures could result in higher secrecy and conservatism in accounting and finance (Salter & Niswander 1995). +)Singapore, US -)South Korea, Portugal
  • Cultural Differences in Selected Countries and Regions: China • Doing Business in China 1. The Chinese place values and principles above money and expediency. 2. Business meetings typically start with pleasantries such as tea and general conversation about the guest’s trip to the country, local accommodations, and family. 3. The Chinese host will give the appropriate indication for when a meeting is to begin and when the meeting is over. 4. Once the Chinese decide who and what is best, they tend to stick with these decisions. Although slow in formulating a plan of action, once they get started, they make fairly good progress.
  • Cultural Differences in Selected Countries and Regions: China 5. 6. 7. 8. In negotiations, reciprocity is important. If the Chinese give concessions, they expect some in return. Because negotiating can involve a loss of face, it is common to find Chinese carrying out the whole process through intermediaries. During negotiations, it is important not to show excessive emotion of any kind. Anger or frustration is viewed as antisocial and unseemly. Negotiations should be viewed with a long-term perspective. Those who will do best are the ones who realize they are investing in a long-term relationship.
  • Cultural Differences in Selected Countries and Regions: Russia Doing Business in Russia • 1. 2. 3. 4. Build personal relationships with partners. When there are contract disputes, there is little protection for the aggrieved party because of the time and effort needed to legally enforce the agreement. Use local consultants. Because the rules of business have changed so much in recent years, it pays to have a local Russian consultant working with the company. Ethical behavior in the United States is not always the same as in Russia. For example, it is traditional in Russia to give gifts to those with whom one wants to transact business. Be patient. In order to get something done in Russia, it often takes months of waiting.
  • Cultural Differences in Selected Countries and Regions: Russia 5. 6. 7. 8. Russians like exclusive arrangements and often negotiate with just one firm at a time. Russians like to do business face-to-face. So when they receive letters or faxes, they often put them on their desk but do not respond to them. Keep financial information personal. Russians wait until they know their partner well enough to feel comfortable before sharing financial data. Research the company. In dealing effectively with Russian partners, it is helpful to get information about this company, its management hierarchy, and how it typically does business.
  • Cultural Differences in Selected Countries and Regions: Russia 9. 10. 11. 12. Stress mutual gain. The Western idea of “win–win” in negotiations also works well in Russia. Clarify terminology. The language of business is just getting transplanted in Russia so double-check and make sure that the other party clearly understands the proposal, knows what is expected and when, and is agreeable to the deal. Be careful about compromising or settling things too quickly because this is often seen as a sign of weakness. Russians view contracts as binding only if they continue to be mutually beneficial, so continually show them the benefits associated with sticking to the deal.
  • Cultural Differences in Selected Countries and Regions: India • Doing business in India 1. It is important to be on time for meetings. 2. Personal questions should not be asked unless the other individual is a friend or close associate. 3. Titles are important, so people who are doctors or professors should be addressed accordingly. 4. Public displays of affection are considered to be inappropriate, so one should refrain from backslapping or touching others.
  • Cultural Differences in Selected Countries and Regions: India 5. 6. 7. 8. Beckoning is done with the palm turned down; pointing often is done with the chin. When eating or accepting things, use the right hand because the left is considered to be unclean. The namaste gesture can be used to greet people; it also is used to convey other messages, including a signal that one has had enough food. Bargaining for goods and services is common; this contrasts with Western traditions, where bargaining might be considered rude or abrasive.
  • Cultural Differences in Selected Countries and Regions: France • Doing business in France 1. When shaking hands with a French person, use a quick shake with some pressure in the grip. 2. It is extremely important to be on time for meetings and social occasions. Being “fashionably late” is frowned on. 3. During a meal, it is acceptable to engage in pleasant conversation, but personal questions and the subject of money are never brought up. 4. Great importance is placed on neatness and taste. Visiting businesspeople should try very hard to be cultured and sophisticated. 5. The French tend to be suspicious of early friendliness in the discussion and dislike first names, taking off jackets, or disclosure of personal or family details. 6. In negotiations the French try to find out what all of the other side’s aims and demands are at the beginning, but they reveal their own hand only late in the negotiations. 7. The French do not like being rushed into making a decision, and they rarely make important decisions inside the meeting. 8. The French tend to be very precise and logical in their approach to things, and will often not make concessions in negotiations unless their logic has been defeated.
  • Cultural Differences in Selected Countries and Regions: Brazil • Doing business in Brazil 1. Physical contact is an acceptable form of communication. Brazilians stand close to others when having a conversation and may touch the person’s back, arm, or elbow as a greeting or sign of respect. 2. Face-to-face interaction is preferred, so avoid email or telephone calls. Meetings may start 10 to 30 minutes late. Greet with a pleasant demeanor and accept refreshments. 3. Trust is not a given in Brazil, so be sure to form a strong relationship before bringing up business issues. Close relationships are very important because Brazilians will do anything for friends. 4. Appearance is very important. It reflects you and your company. Men should polish their shoes and wear conservative dark suits. Women should dress nicely, but avoid being too conservative or formal. Think fashion. 5. Patience is key. Many processes are long and drawn out, including negotiations. Expressing frustration or impatience and attempting to speed up processes may lose the deal. Brazilians will be very loyal and committed once the agreement is reached. 6. It is not acceptable to be ill-prepared. Presentations should be informative and expressive. Consistency is important.
  • Cultural Differences in Selected Countries and Regions: Arab Countries • Doing business in Arab countries 1. It is important never to display feelings of superiority, because this makes the other party feel inferior. Let one’s action speak for itself and do not brag or put on a show of self-importance. 2. One should not take credit for joint efforts. A great deal of what is accomplished is a result of group work, and to indicate that one accomplished something alone is a mistake. 3. Much of what gets done is a result of going through administrative channels in the country. 4. Connections are extremely important in conducting business. 5. Patience is critical to the success of business transactions. This time consideration should be built into all negotiations. 6. Important decisions usually are made in person, not by correspondence or telephone. This is why an MNC’s manager’s personal presence often is a prerequisite for success in the Arab world.
  • The complexity of playing at the global level presents companies with different conundrums and choices, many of which are not straightforward. However, the way forward implies a careful strategic analysis and a strong cultural sensitivity in order to take advantage of global opportunities.