Cultural
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  • 1. Culture in Global Business
  • 2. Culture
    Culture refers to learned norms based on the values, attitudes and beliefs of a group of people.
    Or the acquired knowledge that people use to interpret experience and to generate social behavior. Culture is learned through education & experience and is passed from one generation to another generation.
  • 3. Why managers need to study culture?
    To be successful in IB, managers must understand the cultures of other countries and learn how to adapt to them.
    To meet the challenge, managers need to broaden their perspective and make decision that reflect the needs & desire of those cultures.
  • 4. MANAGERS Vs ETHNOCENTRISM :
    The belief that one’s way of doing business or things is superior to that of others is Ethnocentrism & the managers need to fight against that. E.gNOKIA & TOYOTA.
    Not adapting a product to a particular market’s special needs.
    Filling the key positions in overseas with national managers.
  • 5. Cultural factors:
    Cultural awareness.
    Identification & dynamics of Cultures.
    Behavioral practices affecting business.
    Strategies for dealing with cultural differences.
  • 6. Culture Awareness :
    Since culture cannot be isolated from such factors as economic & political condition, we have to accept that every national culture differ from country to country.
    Every society has its own routines & rules, and even within given cultures towards the professional & organizational cultures.
  • 7. Problem hinder Manager:
    Subconscious reactions to circumstances.
    Assumption that all societal subgroups are similar.
    Solution: Can improve awareness & sensitivity of foreign soil by research on another culture & direct interaction with the people.
  • 8. Identification & dynamics :
    The Nation as a point of reference.
    The nation is a useful definition because similarity among people is a cause & effect of national boundaries. Law also apply primarily along national line.
    Manager find country-by-country analysis difficult because of subcultures and similarities link groups from different countries.
  • 9. Culture Value system are set early in life but may change through
    • Choice or imposition- Eg. Rural people choose for factory jobs and accordingly change some basic customs like regular working hours don’t allow the sort of social interaction.
    Change by imposition or cultural imperialism involves the imposed introduction like forced change in law by an occupying country.
    • Contact with other cultures
    • Language as both a diffuser or stabilizer of culture
    A common language within countries is a unifying force. The people of the world speak thousand of different languages, but only a few of them remain important in the dissemination of cultures. A significant portion of the world eg. speak English, French & Spanish. In those countries labeled ‘Regional’ the predominant language is not dominant where Japanese is dominant only in Japan. But China is the only place where people speak Mandarin because its important in IB since China comprises a lot of people.
  • 10.
    • Religion as a cultural stabilizer
    Most countries are home to people of various religious beliefs, but a nation’s culture is typically influenced most heavily by a dominant religion 7 shape customary practices in legal & business affairs. Eg. Southern Buddhism (Lamaism), Chinese (Confucianism, Taoism & Buddhism), Islam (Sunni & Shiah), Hinduism, Judaism, Christianity (Roman Catholic, Eastern Churches & Protestantism), Tribal & Traditional Religions.
  • 11. Regional has two classification-
    Countries in which the dominant language is not dominant anywhere e.g. Japan.
    2. Countries in which several different languages are spoken e.g. India.
  • 12. Behavioral practices affecting business :
    Issues in Social Stratification (Ranking factor)
    The business practice entail valuing member of managerial groups more highly than member of production groups. Eg. Promotion, Compensation & Staff Reduction, Individual characteristics (education & social connections) affects employment practices.
  • 13. Group affiliation
    Ascribed or Acquired
    A reflection of class & status
    Performance orientation
    Gender- Based Groups
    Age-Based Groups
    Family-Based Groups
    Occupation
  • 14. Work Motivation
    Not surprisingly, motivated employees are more productive than those who are not. Eg. Latin America of strong work ethic. How & why people motivated to work
    The desire for material wealth.
    The productivity/ Leisure Trade off (Japan)
    Success & Reward across Border
    Assertiveness (Masculinity-femininity) Index
    Hierarchies of needs.
  • 15. Relationship References
    There are national variations in the preference for autocratic or consultative management. The work & ways of motivation are influenced by different cultural norms. E.g
    Power distance (Superior & Subordinate)
    Individualism Vs Collectivism
    Situational Difference- The family (China & Mexico, vertically and horizontally family)
  • 16. Risk Taking Behavior
    people in various cultures differ in their willingness to accept things the way they are & in their feelings about their control over their destinies. Behavior like
  • Communication
    Cross-Border communications do not always translate as intended. Like
    Spoken & Written language
    Silent language
    Distance
    Time & Punctuality
    Body Language
  • 20. Dealing with cultural differences
    Host cultures do not always expect foreigners to adjust to them. For that the degree of successful adjustments like
    Extent of acceptability
    Key cultural differences are small or great
    Individual ability to adjust
    Business general management orientation.