Business Culture

The Business of International Business is Culture

Management is effectively getting things done through people. This is a concept that applies world wide and to all cultures. The key to getting things done is knowing what needs to be done and having a good understanding of the people. The different background that people have can be represented by a particular culture they belong to. The people could be categorized nation, region, ethnic group, organization, or social class.
Hofstede has identified five dimensions of national culture:
Power Distance - This is referenced to how the less powerful members of an organization accept and expect that power will be distributed equally. This represents high or low inequality of power. An example of low power distance would be in the USA the boss is looked upon for consultation and input but not to provide absolute direction. In contrast and example of high power distance would be a company where the boss provides autocratic direction and is not challenged.
Individualism versus Collectivism – This describes how much emphasis is put on working together to formulate a solution. In the USA the society is very individually driven. Creativity can be done alone and rewards are desired on an individual basis. People like to be praised and rewarded for their individual efforts. In the collective society such as in Japan people like to work together and get the groups input and consensus before making a decision. The also prefer to have the team praised for a good job and do not seek individual praise.
Masculine vs Feminine - In the Feminine society the focus is on relationships and conflicts are normally resolved by compromise. In the workplace a person would be less assertive and would put an emphasis on the quality of life. In a masculine society people would put more focus on achievements and thrive on competition. Conflicts would be resolved by argumentation. In the workplace assertiveness would be a key trait to have and people would be focused on their careers.
Uncertainty Avoidance – This revolves around a societies comfort or uncomfortable feelings toward unstructured situations. The society with weak uncertainty will be comfortable with unstructured objectives, no specific deadlines, lack of rules. The society that has a strong avoidance is aggressive and shows their emotions. People like structured learning, exact objectives, and more formalized rules.
Long Term vs Short Term Orientation - This component highlights a societies regard for viewing things in the long term or short term. Historically the western countries have focused more on short term goal setting and achievement where as in the Eastern countries they view things more based on a long term view.
The appraisal system - used in the western countries to provide objective feedback to employees may not be accepted well in eastern countries and may actually be detrimental to the long term employee behavior.
Management by objective - was developed in the USA which relies on subordinates negotiating on their objectives with their boss. This may not work in
A medium to low power distance and not to high uncertainty avoidance society.
Organizational culture can be very strong and is a very important component. This culture differs mostly at the superficial level. Members of the organization must adapt their personal values to the organization’s needs.
Process Orientated Culture– Dominated by technical and bureaucratic routines, based on degree of homogeneity,
Results Orientated Culture – Common concern for the outcomes, all perceived their practices in the same way, strong culture
Job Orientated culture – Assumes responsibility for the employees job performance only
Employer Orientated Culture – Assume broad responsibility for members well being
Professional Culture – Highly educated members, identify with their profession
Parochial Culture – Derive their identity from the organization
Open System Culture – Ease of internal external communications, open to outsiders
Closed System Culture – Difficulty with internal external communications, closed to outsiders
Tightly Controlled Culture – Highly formal and punctual – banks and companies
Loosely Controlled Culture – less formal, creative, ad-agencies
Pragmatic Culture – Flexible environment
Normative Culture – Rigid environment

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