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Culture, Management Style, and Business Systems
Transcript of Culture, Management Style, and Business Systems
American Executive's trip to Japan was a disaster for several reasons:
-Japanese are going out of their way just to avoid speaking direct to them,
-No one would like to address question and remarks to them,
-Never acknowledge their presence;
-and the most disconcerting of all, they appeared to be laughing at them.
The Impact of American Culture on Management Style
Those that occur most frequently in discussion of cross-cultural evaluations are represented by the following:
-"Master of destiny" viewpoint.
-Independent enterprise as the instrument of social action.
-Personal selection and reward based on merit.
-Decision based on objectives analysis.
-Wide sharing in decision making.
-Never-ending quest for improvement.
-Competition producing efficiency.
Culture, including all its elements, profoundly affects management style and overall business systems.
German sociologist, Max Weber, made the first strong case back in 1930.
Knowledge of management style -existing in a country and a willingness to accommodate the differences are important to success in an international market.
Do Blondes have more Fun in Japan?
Adaptation- key concept in international marketing and willingness to adapt is crucial attitude.
10 Basic Criteria as a Guide to Adaptation
1. Open tolerance
5. Ability to adjust to varying tempos
7. Knowledge of the country
8. Liking for others
9. Ability to command respect
10. Ability to integrate oneself into the environment
Degree of Adaptation
-Adaptation does not require business executives to forsake their ways and change to local customs; rather, executives must be aware of local customs and be willing to accommodate those differences that can cause misunderstanding.
-The key to adaptation is to remain American but to develop an understanding of willingness to accommodate the differences that exist.
-Once a marketer is aware of cultural differences and the probable consequences of failure to adapt or accommodate, the seemingly endless variety of customs must be assessed.
-The business customs and expectations that must be met and conformed to or avoided if relationships are to be successful.
-Successful business people known the Chinese word guanxi, the Japanese ningen kankei or Latin American compadre.
-Establishing friendship is an imperative in many cultures.
-The significance of establishing friendship can't be overemphasized, especially in those countries where family relationship are close.
In some cultures, a person's demeanor is more critical than in other cultures.
In some cultures, such behavior would only cast you as boorish, but in others, it could end a business ideal.
A complicating factor in cultural awareness is that what may be an imperative to avoid in one culture is an imperative to do in another.
-Are of behavior or to customs that cultural Aliens may wish to conform to or participate in but that are not required.
-A cultural elective in one country may be an imperative in another.
Are those customs or behavior patterns reserved exclusively for locals and from which the foreigner is bared and must not participate.
Management Styles around the World
-No matter how thoroughly prepared a marketer may be when approaching a foreign market encountered cultural shock occurs when.
-Differences in contact level.
-Formality of foreign businesses.
Authority and Decision Making
Three typical pattern
1. Top Level Management decision making
2. Decentralization decision making
3. Committee decision making
CROSSING BORDERS 5.1
Don't Beat Your Mother-in-Law!
-Confucius's teaching were the foundation of Chinese ducation for 2000 years until 1911.
-He defined the five cardinal relationships .
-Oct. 1985, Cheng Han-cheng's wife had the insolence to beat her mother-in-law.
-Cheng and his wife were both skinned alive.
Management Objectives and Aspirations
-Society as a whole establishes the social rank or status of management and cultural background dictates patterns of aspiration and objectives among business people.
-One study report that higher CEO compensation is found in Scandinavian firms.
Security and Mobility
-The word security is somewhat ambiguous and this is very ambiguity provides some clues to managerial variation.
-A big paycheck and training and ability required for moving from company to company within the business hierarchy.
-David McClelland discovered that hte culture of some countries stressed the vitue of good personal life as far more important that profit and achievement.
-Max Weber-according to him,least part of the standard of living that we enjoy in the U.S. today can be attributed to the hardworking protestant ethic which we derive much of our heritage.
-To the Japanese- personal life is company life.
CROSSING BORDERS 5.2
The American Tourist and the Mexican Fisherman
Crossing Borders 52 is about the story of American Tourist who approaches a Mexican fisherman and told him to catch more yellowfin tuna to become very rich.
Affiliation and Social Acceptance
In some countries, acceptance by neighbors and fellow workers appears to be a predominant goal within business.
Asian outlook is reflected in the group decision making so important in Japan and Japanese place high importance on fitting with their group.
Power and Achievement
Power seems te a more important motivating force in South American countries.
Many business leaders are not only profit oriented but also use th business positions to become social and political leaders.
One way to measure achievement is by money in the bank, another is high rank- both aspirations particularly in thr U.S..
Edward T. Hall
Tells us that communication involves much more than just words.
His article "The Silent language of overseas Business" remains a most worthwhile read. In it he describes:
Time, space, things, friendships, agreements, and how they are vary across cultures.
No language readily translates into another.
Although language is the basic communication tool of marketers trading in foreign lands, managers, particularly from U.S., often fail to develop even a basic understanding of just one other language.
Hall places 11 culture along a high-context/low-context continuum.
The message on a business-to-business website is an extension of the company and should be as sensitive to business customs as any other company representative would be.
Language should be at the top of the list when examining the viability of company's website.
European don't believe that middle managers can use English well enough to transact business on the internet.
Formality and Tempo
The breezy informality and haste that seem to characterize American business relationships appear to be American exclusives that business people from other countries not only fail to share but also fail to appreciate.
Edward T. Hall defines two time system in the world:
Monochronic time (M-time)
-concentrate on one thing at a time.
Polychronic time (P-time)
-simultaneous occurrence of many things and by a great involvement with people.
-gives rise to looser time schedule, deeper involvement with individuals and a wait-and-see-what develops attitude.
P-Time versus M-Time
Japanese see US. business people as too time bound and driven by schedules and deadline.
Business Negotiations- the most fundamental commercial rituals.
"Negotiating Process is Complicated".
Attitude brought to the negotiating table by each individual are affected by many cultural factor and customs often unknown to other participants.
Standard rule in negotiating- "know thyself" first, "know your counterpart" second.
Marketing orientation- the extent of a company's marketing orientation has been shown to profits.
Gender Bias in International Business
Gender bias against female managers that exist in some countries, coupled with myths harbored by male managers, creates hesitancy among U.S. multinational companies to offer women international assignments.
Crossing Borders 5.3
Cultures Change, Albeit Slowly
Seoul- a manager was sued because he forced his subordinate to drink alcohol.
Tokyo- the experience of Kayoka Mura illustrates a big shift in attitudes of Japanese companies toward female workers.
Oslo- all public companies in Norway were mandated to have at least 40% women among their board members.
Business ethics is infinitely more complex in the international marketplace because value judgements differ widely among culturally diverse groups.
Profit can be seen as kind of corruption.
American managers view as essential other view as sign of exploitation.
Individualism to American can also be seen as a kind of corruption.
Southeast Asia decried currency speculation as worst kind of corruption.
The Western Focus on Bribery
-Corruption meant bribery.
-High profile foreign cases of bribery, such as those involving the German, giant siemens and the execution of China's top food and drug official for accepting bribes, underscore the ethical and legal complexities of international business.
-Higher level of bribery have been found in collectivistic (IDV) and high power distance (PDI) countries.
Bribery: Variations on a Theme
Bribery is a legal issue. It is the first step in understanding the culture of bribery is to appreciate the limitless variations that are often grouped under the word bribery.
Bribery and Extortion
Distinction between bribery and extortion depends on whether the activity resulted from an offer or from demand for payment.
Lubrication and Subornation
Lubrication involves a relatively small sum of cash, a gift, or service given to a law ranking official in a country where such offering are not prohibited by law while subordination generally involves giving large sums of money.
Agent's fee is used to pay bribes. The intermediary's fees are being used unlawfully.
Ethical and Socially Responsible Decision
Behaving in an ethically and socially responsible should be the hallmark of every business person's behavior domestic and international.
Culture Influence on Strategic Thinking
Description of how culture influences managers thinking about business strategy.
Culture's Influence on Strategic Planning
Synthesis: Relationship-Oriented vs Information-Oriented Cultures
With increasing frequency, studies note a strong relationship between Hall's high/low-context and Hofstede's Individualism/Collective and Power Distance indices.
Not every culture fits every dimension of culture in precise way. However, the synthesis is useful in many ways.