Culture, Management style, and Business system Chapter 5

Agenda/Topics To Be Covered Required adaptation The impact of American culture on management style Management styles around the world Gender bias in International Business Business ethics Culture’s influence on strategic thinking A synthesis, relationship-oriented versus information-oriented cultures

Required adaptation

The impact of American culture on management style

Management styles around the world

Gender bias in International Business

Business ethics

Culture’s influence on strategic thinking

A synthesis, relationship-oriented versus information-oriented cultures

Culture? What is it? How does it affects you?

Required adaptation Cultural exclusives Customs or behavior patterns exclusively for the locals and from which the foreigner is barred. Cultural electives Relates to areas of behavior or to customs that cultural aliens may wish to conform to or to participate in but that are not required. Cultural imperatives Customs and expectations that must be met and conformed or be avoided if relationship are to be successful. Degree of adaptation -A need to understand a counterparts custom

Required adaptation

Customs or behavior patterns exclusively for the locals and from which the foreigner is barred.

Relates to areas of behavior or to customs that cultural aliens may wish to conform to or to participate in but that are not required.

Customs and expectations that must be met and conformed or be avoided if relationship are to be successful.

-A need to understand a counterparts custom

2. The impact of American culture on management style Independent enterprise as the instrument of social action Wide sharing in decision making Decision based on objective analysis “ master of destiny” viewpoint Personnel selection and reward based on merit

3. Management styles around the world

Authority and decision making Authority and decision making Management objectives and aspirations Security and mobility Personal life Affiliation and social acceptance Power and achievement

Authority and decision making

Authority and decision making

Management objectives and aspirations

Security and mobility

Personal life

Affiliation and social acceptance

Power and achievement

Communication styles Face-to-face communication Internet communications

Communication styles

Face-to-face communication

Internet communications

Formality and tempo P-time versus M-time -polychronic time and monochronic time Negotiations emphasis

Formality and tempo

P-time versus M-time

-polychronic time and

monochronic time

Negotiations emphasis

It is true that in many cultures – Asian, Middle Eastern, and Latin America – women are not typically found in upper levels of management and men and women are treated very differently. 4. Gender bias in International Business

It is true that in many cultures – Asian, Middle Eastern, and Latin America – women are not typically found in upper levels of management and men and women are treated very differently.

5. Business ethics The western focus on bribery Bribery: variations on a theme Bribery and extortion Subornation and lubrication Agent’s fees Corruption

The western focus on bribery

Bribery: variations on a theme

Bribery and extortion

Subornation and lubrication

Agent’s fees

5. Business ethics: ethically and socially responsible decisions Utilitarian ethics Rights of parties Justice or fairness

6. Culture’s influence on strategic thinking How culture influences manager’s thinking about business strategy?

How culture influences manager’s thinking about business strategy?

7. A synthesis, relationship-oriented versus information-oriented culture What is "Culture"? Culture is the acquired knowledge people use to interpret experience and generate behavior.

What is "Culture"?

Culture is the acquired knowledge people use to interpret experience and generate behavior.

High and Low Context "high context" and "low context" (popularized by Edward Hall) are used to describe broad-brush cultural differences between societies.

"high context" and "low context" (popularized by Edward Hall) are used to describe broad-brush cultural differences between societies.

Low context refers to: societies where people tend to have many connections but of shorter duration or for some specific reason Example: large US airports, a chain supermarket, a cafeteria, a convenience store, sports where rules are clearly laid out, a motel.

societies where people tend to

have many connections but of

shorter duration or for some specific

reason

Example: large US airports, a chain

supermarket, a cafeteria, a convenience store,

sports where rules are clearly laid out, a motel.

Low context Rule oriented, people play by external rules More knowledge is codified, public, external, and accessible. Sequencing, separation--of time, of space, of activities, of relationships More interpersonal connections of shorter duration Knowledge is more often transferable Task-centered. Decisions and activities focus around what needs to be done, division of responsibilities.

Rule oriented, people play by external rules

More knowledge is codified, public, external, and accessible.

Sequencing, separation--of time, of space, of activities, of relationships

More interpersonal connections of shorter duration

Knowledge is more often transferable

Task-centered. Decisions and activities focus around what needs to be done, division of responsibilities.

High context refers to: societies or groups where people have close connections over a long period of time Examples: Small religious congregations, a party with friends, family gatherings, expensive gourmet restaurants and neighborhood restaurants with a regular clientele, undergraduate on-campus friendships, regular pick-up games, hosting a friend in your home overnight.

societies or groups where people have close connections over a long period of time

Examples:

Small religious congregations, a party with friends, family gatherings, expensive gourmet restaurants and neighborhood restaurants with a regular clientele, undergraduate on-campus friendships, regular pick-up games, hosting a friend in your home overnight.

High context Less verbally explicit communication, less written/formal information More internalized understandings of what is communicated Multiple cross-cutting ties and intersections with others Long term relationships Strong boundaries- who is accepted as belonging vs. who is considered an "outsider" Knowledge is situational, relational. Decisions and activities focus around personal face-to-face relationships, often around a central person who has authority.

Less verbally explicit communication, less written/formal information

More internalized understandings of what is communicated

Multiple cross-cutting ties and intersections with others

Long term relationships

Strong boundaries- who is accepted as belonging vs. who is considered an "outsider"

Knowledge is situational, relational.

Decisions and activities focus around personal face-to-face relationships, often around a central person who has authority.

Entering High and Low Context Situations?

THANK YOU..