Culture and Globalisation
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The document discusses how organizational culture and national culture impact global business. It defines organizational culture as the values, beliefs, behaviors, and attitudes that guide an organization. National culture includes elements like social structure, religion, language, and economic and political philosophies. Culture influences consumer behavior, management styles, negotiations, and can act as a hidden barrier to business across borders, though cultural sensitivity can help overcome these barriers. The document also notes countries can be multi-cultural or mono-cultural and that cross-cultural training methods are important for international business.
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This document discusses concepts related to cross-cultural management including culture, elements of culture, determinants of culture, levels of culture, cross-cultural theories, cross-cultural communication, and culture shock. It outlines several cross-cultural theories including Hofstede's cultural dimensions, Kluckhohn and Strodtbeck's theory of cultural orientations, Hall and Hall's concept of high and low context cultures, and Trompenaars' model of cultural dimensions. It also describes characteristics of organizational culture and the importance of cultural sensitivity for international managers. Finally, it defines culture shock and outlines typical phases and signs experienced when adapting to a new culture.
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Culture and Globalisation
- 2. Organizational Culture • The set of values, beliefs, behaviors, customs, and attitudes that helps the members of the organization understand what it stands for, how it does things, and what it considers important. • Organizational culture is important for it determines the “feel” of the organization. • Its starting point is often the founder.
- 3. Culture Definition • “A system of values and norms that are shared among a group of people and that when taken together constitute a design for living.”
- 4. Elements of culture • Social structure • Religion • Language • Education • Economic philosophy • Political philosophy
- 5. Impact of Culture • Culture affects – Consumer behaviour – Local demand – Buying decisions – Brand Image • Culture influences managerial styles and management decisions • Culture affects the nature of business negotiations
- 6. Importance of Culture • Knowledge of Native culture is useful when dealing with home markets but it has little value when dealing in foreign markets • Culture acts as a hidden entry barrier, but it can be overcome with cultural sensitivity, hard work & quality • Managerial behaviour is driven by his/her cultural knowledge
- 7. Culture Across Countries • Some countries are multicultural:- India, China, US, Russia. These countries have several sub-cultures. • While many are monoculture. UK, France, Germany, Columbia, Peru etc. • Culture is the “Silent Language” in International business.
- 8. Cultural Dilemmas • Business Environment face cultural dilemmas due to differences in cultures – Modenization versus westernization – Individualism Vs. Collectivism in decision making – Specific Vs. General – Attitudes towards Time – Attitudes towards Environment
- 9. Cross-Culture Training Methods • Area Briefing • Books • Sensitivity Training • Field Trips • Field Experience