Chapter Management Styles

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Culture, Management Style,

and Business Systems

Chapter 5



Adaptation to customs

Adaptation

The willingness to adapt to other customs isessential in international marketing

Degree of Adaptation:

This does not mean that businesses discard their

methods of conducting business, rather that executivesneed to be aware of differences and willing to adapt tothe differing customs



T ypes of Customs

3 Types of Customs1. Cultural Imperatives

Business customs and expectations that MUST be met inorder to conduct successful business transactions inother countries/cultures

2. Cultural Electives Business customs and expectations that are OPTION AL,

in which business executives may participate/conform in,but is not required.

May help to establish rapport and respect whenparticipation occurs

Majority of customs fall into this category



T ypes of Customs

3. Cultural Exclusives

Customs that are reserved exclusively for thelocals, where foreign participation is EXCLUDED Example: Foreign business people criticizing local

politicians, business practices where it is acceptablefor the local to do so



The Impact of

American Cultureon Management Style

Most widely accepted views regarding U.S.culture:

Master of destiny viewpoint Independent enterprise as the instrument of social action

Personnel selection and reward based on merit

Decisions based on objective analysisWide sharing in decision making

Never-ending quest for improvement



Management Styles around t heWorld

Types of Decision Making A pproaches1. The authoritative approach

Top level management decision making is usually found in smaller businesses where centralized decision-makingis possible

2. The delegated approach Decentralized decision making is usually found in large

size businesses with highly developed management systems (U.S.)

A llows executives at different levels to exercise authorityover their own functions

3. The committee approach

Decisions are made by consensus or in a group (Japan)



Management Objectives & A spirations

Understanding how managers

objectives and

aspirations affect theirbusiness outlook is critical

4 Important areas to understand:

1. Security and mobility

Importance of security and definition differ inmany countries (can mean good wages and training; maybe lifetime employment)



Management Objectives and A spirations

2. Personal life

Personal life takes precedent over othermotivators (wages, status)

3. A ffiliation and Social acceptance

A ccepted by peers

Important element of the group decision makingprocess

4. Power & A chievement



Communication Styles

Edward T. Hall ideas on CommunicationStyles:

Crossing Borders 5.2 pg. 133 A Classic Edward T. Halls Language (Symbolism) of Space

Exhibit 5.2 pg. 135 Contextual Background of Various Countries

Face-to-face communications Low Context: depends heavily on verbal communication

(Swiss, Germany, U.S.)

High Context: depends heavily on nonverbalcommunications

See Crossing Borders 5.3 pg. 136 When Yes MeansNo



Importance of Communication wh

enadapting to business customsCommunication

Translation and interpretation (See Crossing Borders 5.4 pg. 137 You Say You Speak

English)

Formality and tempo

P-time vs. M-time

M-time (monochronic) concentrate on one thing at atime

P-time (polychronic) completion of a transaction ismore important than sticking to a schedule



Gender Bias in International Business

Is there a gender bias against womenmanagers when operating in International

arenas?Most evidence indicates that when women aretrained and backed by their corporation,resistance from other cultures is either minimized or negated completely

Comparative statistics of women in managerialpositions worldwide (approximations):

U.S. 43%

Britain 33%

Switzerland

28%

Germany 9.2%



Business Et hics

Bribery & ExtortionBribery

Voluntary payment offered by individual(s) seeking anunlawful advantage

SEC regulates U.S. Companies domestically and internationally

Transparency International organization dedicated tocurbing corruptions worldwide

See Exhibits 5.4 and 5.5 pg. 145

Extortion Payments are extracted under duress by someone in an

authoritative position (host country) See Crossing Borders 5.6 pg. 146 Bangladesh at the

bottom



Business Et hics

Subordination & Lubrication

Subordination Involves giving large sums of money

Lubrication Involves giving small amounts of money, or gifts

Foreign Corrupt Practices A ct (FCP A ) Important act that prohibits U.S. businesses from paying

bribes openly or using middlemen or agents to bribe onbehalf of the U.S. business

Chapter Management Styles

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