Title of the Report

A Report on “Managing Across Cultures”

Contents
Abstract ………………………………………………………………………. i
I. Introduction ……………………………………….…………. 1
II. Cross Cultural Communication ……………………………… 2
III. Need for Cross Cultural Communication ……………………..
2
IV. Managing Across Cultures …………………………………… 3
V. Approaches followed in some countries ……………………
4|
References …………………………………………………………… x

Abstract
This report aims to identify the importance of Culture, its influence on busines
s and business activities. Problems that arise when people from different cultur
es work together. Approaches to overcome such problems.
i
Introduction
Culture includes every aspect of a human being, the way people speak, communicat
e with each other, dress, behave and respond, their beliefs and values. It creat
es a comfort zone, provides safety, inclusion and acceptances within a group. (S
tella Ting, 1999, pg.13).It helps to determine how people encode messages and in
terpret them. Communication practices vary when culture varies
Culture has been defined in a number of ways, but most simply, as the learned an
d shared behavior of a community of interacting human beings. (Useem & Useem, 19
63, pg.169)
A culture of a particular group of people which is followed by them is developed
and transmitted by people, consciously or unconsciously over years to the pres
ent generations which depends on many factors like region, religion, profession,
climate...etc., and it continuously keeps changing with time.
Cross Cultural Communication
Cross Cultural Communication as the name suggests is all about studying people f
rom different cultures, the way they communicate with each other, the similariti
es and differences between them. Hofstede suggests that cultures vary across fiv
e major dimensions power distance, masculinity, individualism, long-term orienta
tion and uncertainty avoidance.1
Need for Cross Cultural Communication
Today the world has become a global village, a person born at some place may stu
dy at some place, live and work somewhere and settle somewhere else. Business ha
s become global. Effective globalization is the key factor for a successful busi
ness. Students from different parts of the world are flying to developed countr
ies to study in a global environment.
1
In broad view, a group of managers do the same work to manage people and control
everything at any part of the world, but the way they do it can be different in
different countries, their accounting practices, economic policies, management
approaches may differ though the ultimate result is the same. An expression or a
gesture, a value or belief which is considered to be sacred in one culture may
be irrelevant or profane to some other culture. When we work with people from ot
her cultures, we tend to draw some prejudices and misconceptions about them, the
se differences can lead to misunderstanding and misinterpretations which makes c
ommunication between us difficult. And when we start having difficulties, we foc
us on largely on those differences and start to support our view somehow. Most o
f us think of language as the only or prime cause of all these misunderstandings
but language is the least, for that matter language is only 35% of communicatio
n while nonverbal communication counts up to 75%. Even within the same language
we have several dialects and accents. To make people work with each other effici
ently and effectively resulting to a successful achievement of a goal or mutual
benefit for people coming from different cultural backgrounds, to make strategic
alliances, to set up operations abroad and expand business activities, a study
of Cross Cultural Communication is essential.
Making people from different backgrounds to work on single platform is not an ea
sy task and may not always be possible to achieve. After reviewing opinions of 1
1,678 managers from 25 countries, it has been concluded that ‘the idea of corpor
ate where a common culture of management unifies the practices of business aroun
d the world is more dream than reality’ by a survey conducted by Harvard Busines
s Review.2 Another Survey by International Herald Tribune found that 35% of seni
or executives ranked culture differences as the prime problem in foreign acquisi
tions.3
Managing Across Cultures
Firstly, we should identify the potential problems ,analyze them carefully ,find
the cause for the problem and try to make conscious efforts to overcome those r
ather than drawing some conclusions directly.
3
Create trust; develop mutual bonding through regular socializing and friendly co
ntact. Respect, tolerance, openness and flexibility among the groups can help to
resolve some problems. Products should be developed according to the consumer t
astes of the targeted region. An MNC should have Ethnocentric, Polycentric, Regi
ocentric or Geocentric Orientations towards business to prosper in the respectiv
e domain4. Strategies followed at some place cannot be applied everywhere.
Approaches followed in some regions: 6
China:
• Chinese value principles and beliefs than profitability and prudence.
• Official meeting generally start with friendly conversations and pleasan
tries
• They stick to decisions.
• Negotiations are carried out through Intermediaries.
• They expect some if they offer concessions.
Russia:
• Must be patient enough to wait to get things done as some may take month
s.
• They negotiate firmly.
• They share financial data only after they believe in somebody.
India:
• Address people according to their titles.
• Use right hand when accepting things.
• Bargaining is common.
To manage employees adapt some techniques, understand and motivate them with dif
ferent values and attitudes. Have a global perspective.
4
Take help of Intermediaries who have firm and thorough knowledge of general cros
s cultural difficulties and develop programs that suits for the company or organ
ization.
A Cross-Cultural Program4 should look at:
• Diversity of Difference
• Terms of Reference and Language
• Assumptions
• Projection and Perception
• Beliefs and Traditions
• Avoiding Avoidance
• Finding Common Ground
• Spheres of Influence
• Conflict Resolution and Negotiation (Creating Win/Win solutions)
• Dealing with Misunderstandings

5
References:
1. Cultural variables [online]
Available at: http://www.geert-hofstede.com/ [Accessed 15 March 2010].
2. Kanter, R.M. (1991), ‘Transcending business boundaries: 12000 world mana
gers view change’, Harvard Business Review, May/June, pp.151-164.
3. Buchanan, S. (1989),’Cultural gaps can sink cross-border acquisitions’,
International Herald Tribune, January 12.
4. Impact Factory Cross Cultural Issues [Online]
Available at: http://www.impactfactory.com/gate/registered/cross_cultural_skills
_training_development/registeredgate_1629-5105-72723.html [Accessed 20 March 201
0].
5. Balaji, S. & Hovard, V. ’Strategic Planning for global Business’, Columb
ia Journal of world Business, summer 1985.
6. Countries[online]
Available at: http://www.worldbusinessculture.com/ [Accessed 21 March 2010].