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Ccm 1 culture and intr. bis

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chapter 1 culture and international bussiness

chapter 1 culture and international bussiness

Published in: Business, Education

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  • 1. Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009Slide 1.1 Topic 1: Culture and Intl. Business The concept of culture. What culture is?/is not? • Culture is a code of attitudes, norms and values, the way of thinking... • The culture determines: – How we see ourselves – How we see the world • Culture is not right or wrong, inherited, about individual behaviour ...
  • 2. Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009Slide 1.2 Three layers The concept of culture has three layers: • Artifacts and attitudes – Behavioural or explicit level, what can be seen; i.e. Dress codes, language, eating etc. • Norms (rules) and values – Every culture has its own system of how things should be; i.e. principles, beliefs etc. • Basic assumptions – Difficult to describe or explain, have to make assumptions based on previous layers.
  • 3. Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009Slide 1.3 Figure 1.1 Navigating the seas of international business Source: Adapted from Schneider and Barsoux (2003: 21) How can we explore culture?
  • 4. Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009Slide 1.4 Cultural assumptions in management Edgar Schein defines culture as: ‘a set of basic assumptions – shared solutions to universal problems of external adaptation (how to survive) and internal integration (how to stay together) - which have evolved over time and are handed down from one generation to the next’ (Schein, 2004: 14)
  • 5. Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009Slide 1.5 Comparison value systems of societies Four categories (Ruano-Borbalan, 2002: 339) • Traditional society (Arab countries) – religion plays an important role • Rational society (Germany) – interests of the individual come first • Society where materialism is predominant (ex-communist countries) • Post-modern society (Scandinavia) – tolerant and democratic
  • 6. Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009Slide 1.6 Levels of cultures in a business context Cultures can develop at different levels: • Culture and nation • National culture • Organizational culture • Corporate culture • Professional culture • Culture and management
  • 7. Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009Slide 1.7 Culture and nation Influence of culture on organizations • Macro level – laws and economic institutions – the nation must be considered by organizations going about their business. • Micro level – the organization is influenced through a number of cultural elements relating to: – employer-employee relationships – behaviour among employees
  • 8. Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009Slide 1.8 National culture • Elements that contribute to the creation of a national culture: - Physical environment eg. The weather. - History of the nation eg. ‘The Japanese invasion’ • Institutions that contribute to the establishment of a national culture - Family/Religion/Education - Mass communication media - The multinational company (Tayeb, 2003: 13)
  • 9. Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009Slide 1.9 Organizational culture • In organization, culture affects the way: - strategy is determined - goals are established - how the organization operates • The personnel of the organization: - influenced by their cultural backgrounds - shared their own values and perceptions (Schein, 1999)
  • 10. Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009Slide 1.10 Corporate culture • Corporate culture is a combination of: - Organizational culture - National/regional culture • Two meanings on the influence of corporate culture: Key to success if: 1) Clearly defined corporate culture 2) Flexible culture • Role of the company culture - internal cultural factors
  • 11. Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009Slide 1.11 Professional culture • Three professional cultures in management: • Operators - involved in production (goods/services) • Engineers - design and monitor the technology • Executives - senior managers (Schein, 1996) • The question remains: how these professional cultures co-exist?
  • 12. Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009Slide 1.12 Culture and management Cross-cultural management • explains the behaviour of people in organizations around the world • describes and compares organizational behaviour across countries and cultures • seeks to understand and improve the interaction of : – co-workers, managers, executives, clients, suppliers, and alliance partners (Adler, 2002: 11)
  • 13. Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009Slide 1.13 Conclusion Topic 1 • Shows how difficult it is to give a definition of the word ‘culture’. • Chapter also shows that the individuals in a group form a culture that can be national, organizational or professional.
  • 14. Browaeys and Price, Understanding Cross-cultural Management, 1st Edition, © Pearson Education Limited 2009Slide 1.14 Class Exercise • In groups, pick a member of the group, decide and present: 1) What are the artifacts/attitudes than can be observed? 2) What are the norms and values? 3) What are the cultural assumptions?