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International Business Management - Lecture No 04

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IBM L04 as per syllabus of HEC Pakistan

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International Business Management - Lecture No 04

  1. 1. 1© Khurshid Alam Swati
  2. 2. Lecture No: 04 Course Facilitator: Khurshid Alam Swati Email your query to: Khurshidalamswati@yahoo.com Cultural Influences on International Business - Importance of culture
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  11. 11. Culture Shared values, traditions, belief and general ways of doing things is called culture – Broader perspective It influence the actions of organization members – Organizational perspective “that complex whole which includes knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by man as a member of society” The commonly held standards of what is acceptable or unacceptable, important or unimportant, right or wrong, workable or unworkable, etc., in a community or society refers to values 11© Khurshid Alam Swati
  12. 12. Diverse Definitions Topical: Culture consists of everything on a list of topics, or categories, such as social organization, religion, or economy Historical: Culture is social heritage, or tradition, that is passed on to future generations Behavioral: Culture is shared, learned human behavior, a way of life Normative: Culture is ideals, values, or rules for living Functional: Culture is the way humans solve problems of adapting to the environment or living together Mental: Culture is a complex of ideas, or learned habits, that inhibit impulses and distinguish people from animals Structural: Culture consists of patterned and interrelated ideas, symbols, or behaviors Symbolic: Culture is based on arbitrarily assigned meanings that are shared by a society 12© Khurshid Alam Swati
  13. 13. Cross-cultural Values Freedom Independence Self-reliance & Social loafing Equality Individualism Competition Efficiency Time Belonging Group harmony Collectiveness Age/seniority Group consciousness Cooperation Quality Patience Pakistan/ Americans Japanese Elashmawi & Harris 1993 13© Khurshid Alam Swati
  14. 14. Pakistani culture - Overview Pakistani culture is very distinct due to its Islamic nature and rich historical background. it has the following characteristics:  Islamic values and traditions - Religious Uniformity  National and regional languages  Mixed culture – Pashtoon, Balooch, Sindhi Culture  Rich literature  Male dominated society  Variety of Dresses  Fairs and Festivals  Sports  Handicrafts 14© Khurshid Alam Swati
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  16. 16. Organizational Culture Personality of the organization Organizational culture is the behavior of humans who are part of an organization and the meanings that the people attach to their actions  E.g. Organization values, visions, norms, working language, systems, symbols, beliefs and habits The way we see and do things around here is culture 16© Khurshid Alam Swati
  17. 17. How employees learn organization Culture..??? Socialization - the process of adopting culture of an organization, 1st step in orientation Codes of ethics and decision rules Top Management leadership and commitment Shared stories – Ex-Employees Material Symbols –T-shirts, boxes, walls, stores, bumper stickers Language - Jargons Rituals – Routine work of an organization Organization current mission , customs, traditions and general ways of doing things Cultural audit 17© Khurshid Alam Swati
  18. 18. Culture Types Strong Culture  Values are widely shared to all people Weak Culture  Values are limited to few people 18© Khurshid Alam Swati
  19. 19. © Khurshid Alam Swati Forces Shaping Individual Culture Personal Culture Values World-views Beliefs Behaviours Urbanization - City Migration Minority Experience Cross- cultural Adjustments Profession Gender Language Education Industrialization Social background Ethnic background Religion Nationalism Rural 19
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