Chap5-Cateora

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Culture, Management Style, and Business Systems

Chapter 5

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights resere!.



Chapter Learning Objectives

1. The necessity for adapting to culturaldifferences

1. The necessity for adapting to culturaldifferences

2. How and why management styles vary around

the world

2. How and why management styles vary around

the world

3. The extent and implications of gender bias inother countries

3. The extent and implications of gender bias inother countries

4. The importance of cultural differences in business ethics

4. The importance of cultural differences in business ethics

5. The differences between relationshiporiented and informationoriented cultures

5. The differences between relationshiporiented and informationoriented cultures



Introduction

!ecogni"e business culture# management values# and business

methods and behaviors as important for success in internationalmar$et

!ecogni"e business culture# management values# and business

methods and behaviors as important for success in internationalmar$et

Thus# management style has to be adapted in

international mar$eting

Thus# management style has to be adapted in

international mar$eting

%mportance of developing friendship# humanrelations# and attaining a level of trust before

beginning business negotiations

%mportance of developing friendship# humanrelations# and attaining a level of trust before

beginning business negotiations

&nowledge of foreign business practices andsuccessful business relations

&nowledge of foreign business practices andsuccessful business relations

'eed to recogni"e that patterns of thin$ing# local business tempo#religious practices# political structure# and family loyalty# aredifferent and impact business transactions

'eed to recogni"e that patterns of thin$ing# local business tempo#religious practices# political structure# and family loyalty# aredifferent and impact business transactions



Reuired !daptation

( )daptation is a $ey concept in international mar$eting

( To successfully deal with individuals# firms# or authorities inforeign countries# managers should exhibit*

( )daptation is a $ey concept in international mar$eting

( To successfully deal with individuals# firms# or authorities inforeign countries# managers should exhibit*

"# open tolerance,

$# %le&ibility,

'# humility,(# justice)%airness,

5# ability to adjust to varying tempos,

*# curiosity)interest,

+# no-ledge o% the country,

.# liing %or others,/# ability to command respect, and

"0# ability to integrate onesel% into the environment



Cultural Imperatives, 1lectives

and 1&clusives

( +ultural imperatives are the business customs and expectations

that must be met# conformed# recogni"ed and accommodated ifrelationships are to be successful

( +ultural imperatives are the business customs and expectations

that must be met# conformed# recogni"ed and accommodated ifrelationships are to be successful

( +ultural electives relate to areas of

behavior or to customs that culturalaliens may wish to conform to or participate in but that are notre,uired

( +ultural electives relate to areas of

behavior or to customs that culturalaliens may wish to conform to or participate in but that are notre,uired

( +ultural exclusives are those customs or behavior patternsreserved exclusively for the locals and from which the foreigneris barred and must not participate

( +ultural exclusives are those customs or behavior patternsreserved exclusively for the locals and from which the foreigneris barred and must not participate



2he Impact o% !merican Culture

( -ays in which ./. culture has influenced management style

include# but are not limited to# the following*

( -ays in which ./. culture has influenced management style

include# but are not limited to# the following*

1. 0aster of destiny viewpoint

2. %ndependent enterprise as the instrument of

social action3. ersonnel selection and reward based on

merit

4. ecisions based on obective analysis

5. -ide sharing in decision ma$ing6. 'everending ,uest for improvement

7. +ompetition yielding efficiency



Management Styles !round the 3orld

( anagement values# and behaviors vary around the world.( anagement values# and behaviors vary around the world.

( ifferences in the contact level#communications emphasis# tempo#and formality of foreign businessesare encountered from culture toculture.

( ifferences in the contact level#communications emphasis# tempo#

and formality of foreign businessesare encountered from culture toculture.

( 8thical standards and sales interactions and negotiation stylesdiffer substantially.

( 8thical standards and sales interactions and negotiation stylesdiffer substantially.



Management Styles !round the 3orld

( +rosscultural differences influence management styles in the

following areas*

( +rosscultural differences influence management styles in the

following areas*

1. )uthority and ecision a$ing

2. anagement 9bectives and

)spirations

3. +ommunication /tyles

4. :ormality and Tempo

5. Time versus Time

6. 'egotiations 8mphasis



4i%%erences in Management Styles

!round the 3orld

1. ifferences in )uthority and ecision a$ing

( %n high% countries subordinates are not li$ely to contradict bosses# but inlow% countries they often do

1. ifferences in )uthority and ecision a$ing

( %n high% countries subordinates are not li$ely to contradict bosses# but inlow% countries they often do

2. ifferences in anagement 9bectives and )spirations towards*2. ifferences in anagement 9bectives and )spirations towards*

Three typical patterns exist*

( toplevel management decisions#

( decentrali"ed decisions# and

( committee or group decisions

(Security especially of lifetime employment( !%%iliation and Social !cceptance by neighbors and fellowwor$ers

( o-er and !chievement Orientation sought by managers

( %mportance of personal)%amily life over wor$ and profit




!round the 3orld

3. ifferences in +ommunication /tyles3. ifferences in +ommunication /tyles

( )ccording to 8dward T. Hall# the symbolic meanings of time#space# things# friendships# and agreements# vary across cultures

( 0%n some cultures# messages are explicit; the words carry most of

the information. %n other cultures ... less information is containedin the verbal part of the message since more is in the context

( +ommunication in a highcontext culture depends heavily on thecontextual <who says it# when it is said# how it is said= ornonverbal aspects of communication

( +ommunication in a lowcontext culture depends more onexplicit# verbally expressed communications

( Hall places eleven cultures along a highcontext>lowcontextcontinuum






!round the 3orld

4. ifferences in +ommunication /tyles4. ifferences in +ommunication /tyles

( ?evel of formality in addressing business clients by first name

( ?evel of formality in addressing your boss by first name

( Tempo or speed in getting 0down to business

( erception of time varies in many cultures

5. ifferences in 'egotiations 8mphasis5. ifferences in 'egotiations 8mphasis

( ifferences with respect to the product# its price and terms#

services associated with the product# and finally# friendship between vendors and customers

( ifferences with respect to the product# its price and terms#

services associated with the product# and finally# friendship between vendors and customers




!round the 3orld

6. Time versus Time6. Time versus Time

( time# or monochronic time# typifies most 'orth )mericans#/wiss# @ermans# and /candinavians

( ost lowcontext cultures operate on time concentrating onone thing at a time

( time# or polychronic time# is more dominant in highcontextcultures

( time is characteri"ed by multitas$ing and by 0a greatinvolvement with people





6ender Bias in International Business

( The gender bias against women managers exists in somecountries

(The gender bias against women managers exists in somecountries

( @ender bias poses significant challenges in crossculturalnegotiations

( @ender bias poses significant challenges in crossculturalnegotiations

( -omen are not accepted in upper levelmanagement roles in )sian# iddle 8astern#and ?atin )merican

( -omen are not accepted in upper levelmanagement roles in )sian# iddle 8astern#and ?atin )merican



Business 1thics

Ausiness ethics is complex in the international mar$etplace

because value udgments differ widely among culturally diversegroups

Ausiness ethics is complex in the international mar$etplace

because value udgments differ widely among culturally diversegroups

The :oreign +orrupt ractices )ct 1BB7*%mprisonment for briberyThe :oreign +orrupt ractices )ct 1BB7*%mprisonment for bribery

8xistence of different levels of corruption# bribery# and fraud

8xistence of different levels of corruption# bribery# and fraud

+orruption varyingly defined from culture toculture

+orruption varyingly defined from culture toculture

Aribery creates a maor conflict between ethics and profitabilityAribery creates a maor conflict between ethics and profitability







Bribery7 8ariations on a 2heme

Aribery*Aribery*

( Coluntarily offered payment by someone see$ingunlawful advantage

8xtortion*8xtortion*

( ayments are extracted under duress by someone inauthority from a person see$ing only what they are

lawfully entitled



Bribery7 8ariations on a 2heme

?ubrication*?ubrication*

( %nvolves a relatively small sum of cash# a gift# or a service given to alowran$ing official in a country where such offerings are not prohibited by law

/ubornation*/ubornation*

( %nvolves giving large sums of moneyDfre,uently not properlyaccounted forDdesigned to entice an official to commit an

illegal act on behalf of the one offering the bribe; involves brea$ing the law



1thical and Socially Responsible 4ecisions

( )reas of decision ma$ing where ethical issues arise*( )reas of decision ma$ing where ethical issues arise*

1. employment practices and policies#

2. consumer protection#

3. environmental protection#

4. political payments and involvementin political affairs of the country#and

5. basic human rights and fundamentalfreedoms



! 9rame-or %or 1thical recepts

( Three ethical principles that provide a framewor$ for

distinguishing between right and wrong*

( Three ethical principles that provide a framewor$ fordistinguishing between right and wrong*

<1= tilitarian ethics<1= tilitarian ethics

<2= !ights of the parties<2= !ights of the parties

<3= Eustice or fairness<3= Eustice or fairness

oes the action optimi"e the 0common goodor benefits of all constituencies: )nd# who arethe pertinent constituencies:

oes the action optimi"e the 0common goodor benefits of all constituencies: )nd# who arethe pertinent constituencies:

oes the action respect the rights of theindividuals involved:

oes the action respect the rights of theindividuals involved:

oes the action respect the canons of ustice orfairness to all parties involved:

oes the action respect the canons of ustice orfairness to all parties involved:



Culture;s In%luence on Strategic 2hining

( +ulture influences managersF thin$ing about business strategy( +ulture influences managersF thin$ing about business strategy

( The Aritish)merican 0individualistic view of capitalismtypifies adversarial relationships among labor# management#and government

( The Aritish)merican 0individualistic view of capitalismtypifies adversarial relationships among labor# management#and government

( The 0communitarian form of capitalism in Eapan and @ermanyare typified by cooperation among government# management#and labor# particularly in Eapan

( The 0communitarian form of capitalism in Eapan and @ermanyare typified by cooperation among government# management#and labor# particularly in Eapan

( The +hinese emphasis on guanxi <oneFs networ$ of personalconnections= is a $ind of capitalism manifested by culture

( The +hinese emphasis on guanxi <oneFs networ$ of personalconnections= is a $ind of capitalism manifested by culture



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