Cultural impact on management efficiency

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Cultural impact on management efficiency

  1. 1. HYPERLINK "http://download-reports.blogspot.com/2011/05/cultural-impact-on-management.html" Cultural impact on management efficiency <br />No comments <br />Email This BlogThis! Share to Twitter Share to Facebook Share to Google Buzz <br />INTRODUCTION<br />The management is defined as the process of getting activities completed efficiently and effectively with through other people. <br />The number of external effects the management and internal factors such as...<br />Aesthetics<br />Attitude and belief<br />Religion<br />Material culture<br />Education<br />Language <br />Societal organization<br />These above-mentioned factors are discussed in this report that how these factors effect the management efficiency and how we overcome these problems.<br />WHAT IS CULTURE<br />We can define culture as, culture is some of total belief, rules, techniques, and artifacts that characterize human population.<br />Now we discuss about the different type of cultures, so that we are able to understand that what culture actually is?<br />TYPES OF CULTURE<br />There is two basic type of culture, that are<br />Strong Culture<br />Weak Culture<br />The differiansation between these above concepts are:<br />STRONG CULTURE<br />Strong cultural organization in which the key values are intensively held and widely shared. The more those employees accept organization's key values and greater there commitment to those values is called the strong culture.<br />For the further explanation we can say that the strong culture is that which is not changeable and the employees of that organization strongly followed the rules and regulations of the organization.<br />WEAK CULTURE<br />Weak culture is that which is easily change. Weak culture always looses the work efficiency in the organization. In the weak culture the employees are not strongly act upon the rules and polices of the organization which is going toward decrease the productivity of the overall organization.<br />RULES FOR DOING BUSINESS ACROSS THE CULTURE<br />BE PREPARED<br />When ever you travel to any other country for the business. You must know about the social and business history and the folklore, current affairs (including the current relation between your and that country), the cultural values, geography, sources of pride,( artists, musicians, sports), religion, political structure and the practical matters such as currency and hour of business of that country. Because it is necessary to know about these entire thing to become a good businessman.<br />IMPORTANCE OF TIME<br />As we know that time is money in the world of business. In many countries, we are seen to be rush, in other words, unfriendly, arrogant, and untrustworthy. Almost every where, we must learn to wait patiently.<br />ESTABLISH TRUST<br />In the business product quality, prices and clear contracts are not as important as the personal relationship and trust that are developed carefully and sincerely overtime. The marketer must be established as a simpatico, worthy of the business, and dependable in the long run.<br />UNDERSTAND IMPORTANCE OF LANGUAGE<br />Language is important factor that involves the success of any organization. Because in the multinational organization do business in the different countries. There for they must know the language of that country. So we can say that management efficiency depends upon the language.<br />RESPECT THE CULTURE<br />Manners are important. The traveling sales representatives is the guest in the country and must respect the host rules. As Saudi Arabian official state in one of going.<br />International firm, "Americans in the foreign countries have a tendency to treat the natives as foreigners and they forgot the actually it is they who they foreigners themselves".<br />CULTURE EFFECT ALL BUSINESS FUNCTIONS<br />Culture is important for any business organization. It effect the business performance. In marketing for example, the wide variation in the attitude and values prevent many firms from using the same marketing mix in all markets.<br />In Japan Procter & Gambler use an advertisement for the company soap in which a man meeting women for the first time compared her skin to that of fine poreiain doll.<br />This add was success in the America and Europe, it insulted Japanese. So it is badly failed in the Japan. This proves that cultures effect all business functions. If the management of the organization is good then it's prove the efficiency.<br />CULTURAL SUCCESS AND FAILURE IN DISNEYLAND (Article)<br />Why is Disneyland Paris is having problem with failing attendance and losses while Tokyo Disneyland has steadily increasing attendance and is the most profitable disney park? The many experts who predicted that Tokyo Disneyland attendance would peak in the first year and taper off were wrong; instead, it has increased unsteadily. Over 16 million people visited the park in the 1993 and spent an average of $85. Visitors to Disneyland in the Las Angeles and Disney World in the Florida spend between $60 and $70, while those going to Disneyland Paris spend only $45 average.<br />Unfortunately for the Disney, Tokyo Disneyland is wholly owned by Japanese firm, the oriental land co, which licenses Disney characters and the copyright material from the American firm the park owes some of its success to its location in a metropolitan area of 30 million people, but a cultural change is believed to the major reason for its success. Some says that Walt Disney production has written a new chapter in the Japanese history by popularizing the idea that family outing can be fun. Family now accounts for half of the park visitors. An executive of the park owners states, "Leisure was not always a part of the Japanese lifestyle. Father used to sea family outings as duty."<br />The staggering at a Disneyland Paris stem from the high interest cost and high over heads, many of which cause by cultural errors. To cover the projects $4 billion, Disney put up just $170 million for 49 percent of the operations and public shareholders paid $1 billion for the 51 percent they own. The $2.9 billion balance was borrowed at the interest rates up to 11 percent. Disney management expected to reduce the debt by selling the six big hotles it had built, but the $340 per night price it charge has kept about half ful, moreover, the guest has not been staying as longer or spending as much as Disney has calculated.<br />Disney executives believed, incorrectly, that they could change the french attitude of not wanting to take their children from school during the school year as American do or to take more short breaks during the year instead of one long vacation during the month of August. This would been Euro Disney steady, high attendance all year rather than just for one month.<br />One reason that visitors have not spent more extremely high prices. Almost two year past before Disney lowered them. Another reason that the guest have not spent more, even though in to his case they want to, is also due to cultural problem: the breakfast debacle.<br />Apparently, a decision involves in the million of dollors in the revenue was based not research but only on what some one told Disney. One executive said, we were told that European donot take breakfast and do not settle for just croissants and coffee; they wanted bacon and <br />eggs. Disney tried to serve 2,500 breakfasts in the hostel and restaurants seating 350 people. The Disney solution for the French public known world wise as connoisseurs of good eating: prepackaged breakfast delivered to the hotel rooms.<br />As French bank put it, Euro Disney is good theme park married to bankrupt real estate company-an two can not be divorced.<br />Since 1995, Disneyland and Paris has been working to correct the culture and financial error that have kept attendance down and losses up. Under new management, the park has cut admission prices by 22 percent and hotel rate by one third. In addition to origional expensive, sit restaurants that Disney mistakenly believed all European would demand, cheaper fast food is available in the self service restaurants. Instead of marketing the park to Europe as it were a single country, Disney land and Paris has offices in all main European capitals, and each office tailors tour packages to fit it own market. As a result of these changing and refinancing, for the first time, Euro Disney, the operator of the Disney land Paris, was able in 1997 to pay of some of principal of its $2.6 billion debt.<br />SOCIAL CULTURE<br />Q Asthetics<br />Q Attitude and beliefs <br />Q Religion<br />Q Material culture<br />Q Education<br />Q Language<br />Q Societal organization<br />Q Legal characteristics<br />Q Political structure<br />AESTHETICS<br />Aesthetics pertains to culture's sense of beauty good and good taste and is expressed in its art, drama, music folkore, and dance.<br />ART represent the culture. In art colors especially can be deceptive they mean different things to different culture. For exemply the color of morning is the black in united state and Mexico, black and white in the for east.<br />MUSIC AND FOLKORE<br />Musical commercials are generally popular worldwide, but the marketer must know that kind of music each market prefer because taste vary. Thus a commercial that use a ballad in America might be better received to the turn of a boero in Mexico or a samba in brazil. So those who wish to steep them selves in a culture find it useful to study its folklore, which can disclose much about a society ways of life, for example associated a protect with cow boy would not be obtain the same result in Chile or Argentina as it done in the united state because in these countries cowboy is less romantic-- its just a job. Where the nationalistic feelings are strong local firm have been able to compete successfully with foreign affiliate by making use of indigenous folklore in the form of the slogansand proverbs. Tables of folklore are valuable in maintaining a sense of group unity.<br />ATTITUEDE AND BELIEFS<br />Every culture has set of attitude and belief that influence nearly all aspects of human behavior and help bringing order to society and its induals. The more managers learn about the attitude and beliefs, the better prepared they will be understand why people behave as they do, when their reaction differ from those that that the managers have learned to expect the dealing with their own people. So we can say that the attitude and beliefs are great affect on the management efficiency, because if the behavior of the manager is good with the staff an the customer then the progress of work efficiency will low. So we can say that management efficiency depends upon the beliefs and attitudes of the organizational staff. These include attitude toward time, toward the achievement of work, and toward change.<br />ATTITUDE TOWARD TIME <br />As we know that time is important in the business. So we can say that management efficiency depends on the time. If the manager is not punctual in time. It shows that organization is not working properly. We know that time is money. <br />ATTITUDE TOWARD ACHIVEMENT AND WORK<br />Work is important for the success of the business. It say for the American that they live for the work, but it I say for Germans that they work to live. So we can say that manager swill encounter sharp difference in the attitude toward the work an achievement in the other culture compare to their own when they go overseas. However they must recruit the subordinate with the need to progress, whatever the underlying motive. One good source of such people is among relatively well educated member lower social class who work as a route to the prestige and social acceptance that have been denied them due to their birth.<br />HALL BUSINESS IN THE GLOBAL ECONOMY<br />CULTURAL DIFFERENCE IN SEX RULES-WOMEN'S CREDIBILITY IN MALE(Article)<br />Dorothy irvine saw a opportunity to double her import-export company's annual $50000 revenue when she learned that a small Japanese trading company was searching for an agent in the united state. She believed her firm, which was already trading with the japan, could handle the job. Irvine followed the Japanese customs of having a high level Japanese executive introduce her to owner of trading company.<br />She made four special trips to Japan to meet with the owner. These cost her thousand of dollars in thousand of dollar in travel expense three weeks of preparation time. However the man never took her seriously, Irvine claims, "It is almost as if they were leading me along because I had been introduced by some body they respected." To corroborate her opinion, she asked an America business man to accompany her to meeting. They both agreed because was a women, she was not making any progress. "I would have loved to have the business, " said Irvine. "It was very frustrating."<br />RELIGION<br />Religion is important component of culture is responsible for many of attitude and beliefs affecting human behavior. Management efficiency is affected by the religion. Now we discuss about some religions and how they affect the management efficiency.<br />ASIA RELIGION<br />People from the western world will encounter some vary different notions about God, people, and reality in Asia religion.<br />In Asia religion, especially in the religion of India, the ideas of the reality are different. There is notion that this world is an illusion because nothing is permanent. Time is cyclical, so living things including, human being are the constant process of birth, death, and reincarnation.<br />HINDUISM<br />This is the conglomeration religions, without a single founder or a central authority, that is practice by the more than eighty percent population of the India. Most Hindus believes that every thing in the world is subject to an eternal process of death and birth and that induals soul migrate from one body to another.<br />BUDDHISM<br />The religion began in India as a reform movement of Hinduism, at the age of 29, prince Ghutama rejected his wife, son, and wealth and set out to solve the mysteries of misery, old age, and death.<br />JAINISM<br />This religion was founded by contemporary of buddha. The jain doctrine teachers that there is no creator, no GOD,and not absolute principle. Through right faith, correct conduct, and the right knowledge of the soul, jains can purify themselves become free of the samsura, and achieve nirvana.<br />SIKHISM<br />This is the religion of India ethnic group, a military brotherhood, and a political movement that was founded by the Nanek, who sought a bright between Hinduism and Islam. Sikhs believes that there is only one god but they also accept the Hindu concept of samsura, karma, and spituil liberation. <br />ISLAM<br />About 1.1 billion followers make this youngest faith the second largest after the Christianity which has two billion adherent, Islam accept as God's external words the Koran's collection of Allah's (God's) revelations to Muhammad, the founder of Islam. Unlike the founder of the major religions, Muhammad was not only the prophet of God but also the head of state. Islam is divided in to two parts Sunnis and Shiites, but they both believed on God and Muhammad.<br />AFFECT THE RELIGION ON CULTURE<br />In any organization people belong to the different religions. Therefore their different beliefs affect on the management efficiency. <br />For example a person come from the abroad and purchases a plant here in the Pakistan. He assumes that daily consumption would be hundred units. When the work start after the some time machine stopped suddenly. He thinks that machinery is failed but come to know that it is time of prayer and the Muslims offer prayer. So he decrease his assumption from 100 to 90 units per day.<br />MATERIAL CULTURE<br />Material culture refers to all human made objects and is concerned that how people make things (technology) and who make what and why (economies).<br />TECHNOLOGY<br />The technology of the society mix of the useable knowledge that the society apply and directs toward the attainment of the culture and economic objective, it exist in some form in every cultural organization. It is not wrong that if we say that success of any company depends upon the technology. It is important for the companies because<br />Q It enables a firm to be competitive.<br />Q It can be embodied in the company's product.<br />Q It can give firm confidence to enter in the international market.<br />Q It can enable a company with only minority equity position to control a joint venture an preserve it as a captive market.<br />CULTURAL ASPECT OF TECHNOLOGY<br />Technology not only includes application of science to production but also skills in the market, finance and management. It s cultural aspects concerns govt. because their people may not accept the cultural changes a new technology may bring. Technology cultural aspects are certainly important to international managers because new production methods and new production often require people to change their beliefs and ways of living.<br />DO NOT TRAVEL ----USE CYBERSPACE(ARTICLE)<br />Silver hammer a California production firm that provides cable network and television show with graphics and promotional material get 30 percent of its business without leaving it office.<br />The companies found in 1996 were the Oprah Winfred show and the TV series dark skies. A new TV network attach by the firm's success in the United States, asked silver hammer to create promotional spots for its debut. However there were concern about the two new companies could work together, being so for apart.<br />Silver hammer's solution? It set up on its web site some thing it called a "cyberin" that was accessible by password only to a particular client. It posted storyboards, graphics scripts and correspondence those the client could see, comment on, and approved from computer anywhere in the world.<br />The cyberbin saved time by eliminating shipping delays of three days per package. The two companies took advantage of eight hour time difference between the California and the London in the same way of India software engineers and America software firms do. Work silver hammer posted on the internet at the end of the business dayin the <br />Loa Angles was ready to be checked the first hour of the business day in the London. <br />The client could spent the entire day evaluation the material and send it commentary to California before the office opened in the morning.<br />Silver Hammer now uses the cyberbin to win other Europeans jobs. Sid CEO Holly Diefenderfer, this has been so effective for us to open door to other areas of marketplaces.<br />EDUCATION<br />As we know that, management efficiency depends upon the education of employee. If they are educated they know that how to deal different people in different situations. If the managers are betterly trained then they give a good result. We can say that success of any organization depends upon the good, efficient, and effective management.<br />Brain drain facts:<br />Q Roughly 75 to 80 percent of foreign student remain in the united states after receiving their doctorates in science.<br />Q Five time more Japanese research scientists work in the united states than America work in Japan.<br />Q A US state department report stated that the value of expert labor power migrating to the United State in one year was equal to one billion dollar.<br />LANGUAGE<br />Probably the most apparent cultural distinction that the newcomer to international business perceives is in the mean of communication.<br />Spoken Language:<br />Language is key to culture, and without it people finds they locked out of all but a cultural perimeter. At the same time in <br />learning a language, people cannot understand the nuances, double meaning of the words, and the slang unless they also learn the other aspect of the culture as we know that language vary from country to country.<br />Foreign Language:<br />When many spoken languages exist in a single country (India and many African nation) one foreign language usually serve as the principle vehicle for the communication across the culture.<br />English the Link Language of the business:<br />We know that English is the international language for the communication in the world of business. For the success of the organization it is necessary that employess of that organization must familiar with English.<br />Must Speak The Local Language:<br />To success in the business it is necessary that you must know about the local language to survive in the local market. <br />Unspoken Language:<br />Non verbal communication or unspoken language can often tell business some thing that the spoken language does not-- if they understand it.<br />SOCIAL LANGUAGE<br />Every society has a structure or an organization that is patterned arrangement of the relationship defining and regulating the manner by which its member interface with one another. It is divided in to two classes of institution: those base on kinship( the family is basic unit of the institution based on kinship) and those based on free association of the individual.<br />POLITICAL STRUCTURE:<br />In the organization culture the political issues are very important. According to our view the politics has two kinds positive and negative. Positive is in the favour of organization but the negative is against. For the success of the organization in the world of the business, it is necessary that the employee should avoid politics. The political structure should not be in the organization culture's because it has negative effect on the employee work and the productivity of work going toward decrease.<br />EFFECT OF INVIRONMENT ON THE CULTURE<br />Out side institution or forces that potentially affect on the organizational performance is called the environment.<br />TYPES OF ENVIRONMENT<br />There are two types of environment that affect the organizational performance. <br />GENERAL ENVIRONMENT<br />Every thing in the organization that affects the organization performance is called the general environment.<br />The following elements affect on the organizational performance:<br />Q Political change <br />Q Economic polices <br />Q Social factors<br />SPECIFIC ENVIRONMENT<br />The part of environment that is directly relevant to achievement of the organizational is called the specific environment. It affects on the management efficiency. <br />Specific environment include:<br />Q Suppliers<br />Q Customers<br />Q Competitors<br />Q Government that can affect on the culture <br />CREATE A SUPORTIVE CULTURE FOR DIVERSITY(Article)<br />We know that managing a diverse workforce is a key challenge today's executive. As the composition of work force change managers must take a long hard look at their organizational culture to see if the shared values and meanings that were appropriate for a more homogeneous employees base will support diverse views. How can manager create a culture that advocates and encourages diversity.<br />The old approach to managing diversity was to expect people who were different to hide or adopt their cultural differences so they fit into the organization' s dominant culture. Now managers who accept diversity as a corporate asset recognize that its benefits the organization by bringing in the broad range of viewpoint problem solving skills. An organizational culture that nourishes and celebrate the diversity lets employees be themselves and encourage them to develop their own unique strength and present innovative ideas from their perspectives. No longer do diverse employee feel like they have to "play it safe" by hiding their differences.<br />Creating a culture that support and encourage the diversity is a major organizational effort. Manager throughout to organization at every level fundamentally accept that diversity is valued and reflect this by what they say and do. An organization that truly wants to promote diversity must shape its culture to allow diversity to flourish. One way to do this for managers to assimilate diverse perspectives while performing the managerial functions. For example at miller brewing company executive is firmly committed to diversity recruitment and have establish a workforce diversity department to aid human resources planning and organizing activities. At baster healthcare corporation a detail process of total corporate diversity management including assessment, implementation and evaluation serve to strengthen the company belief that its investment in human capital is its most important resource.<br />Beyond to day to day activities organizations should consider developing ways of reinforcing employee behavior that embrace diversity. Some suggestions include encouraging individuals values and defend diverse views creating traditions and ceremonies that celebrate diversity, rewarding appropriate "heroes and heroines" who accept and diversity, and communication through formal and informal networks reports about employees who champion diversity issues. For instance at Ortho biotech Johnson and Johnson subsidiay present Dennis Lonstreet has managing diversity a top priority numerous other have found ways to design polices and practice that allow diversity to the person and thrive. These organizations do not see cultural or environmental changes as constraints but opportunities which to profit.<br />UNDERSTANDING NATION CULTURE<br />According to Greet Hofstede, a Danish psychologist interviewed thousand of employees in 67 countries. He found that differences their answers to 32 statement could be based on the four dimensions:<br />INDIVIDUALISM VERSE COLLECTIVISM<br />According to hofstede people in collectivist culture belong to the group that are suppose to look after them in exchange for the loyalty, whereas people individualistic culture are only supposed to look after themselves and immediate family. Therefor organization operation in collectivist culture are more likely to relay on group decision making than are those in individualistic culture where the emphasis is on individual decision making.<br />LARGE VERSES SMALL POWER DISTNCE<br />Power distance is the extent to which members of society accept unequal distribution of power among induals. In large organizations employees believe their supervisors that they are right even when they are even when they are wrong, and the employees do not take and initiative in making non routine decisions. On the other hand participate management style of leadership is likely to be a productive for an organization in low power country.<br />STRONG VERSED WEAK UNCERTAINITY AVOIDANCE<br />This is the degree to which the members of society feel threatened by ambiguity and are reluctant take risk. Employees in high risk avoidance culture such as Japan Greece and the Portugal tend to stay with their organization for long time.<br />Those for low risk avoidance countries like United State, Singapore, however are more mobile.<br />MASCULINITY VERSUS FEMININITY<br />This is the degree to which dominant values in a society emphases assertiveness, acquisition of money and status, achievement of visible and symbolic organizations rewards (masculinity) compare to degree to which they emphasis people relationships, concern of others, and over all quality of life.<br />CONCLUSION<br />The conclusion or our report is that culture has great impact in the management efficiency. The management efficiency will decrease or increase due to culture influence. A strong culture has a great impact on the management efficiency. If there is positive strong culture then the productivity of work will increase. If negative then efficiency will decrease. Social culture has also great impact on the management efficiency. For example language is social culture, first we know that the English is the business and universal and we must be aware to the local language where the business is running because it is medium of exchange thought which have great impact.<br />Environment has also strongly effect on the management efficiency<br />

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