DIFFERENCE IN CULTURE

WEEK 6

INTERNATIONAL BUSINESS & CULTURE

In the business world, communication is
imperative for the successful execution of daily
operations. Understanding cultural differences
and overcoming language barriers are some of
the considerations people should have when
dealing with business with people of various
cultures.
Often business deals are lost because the parties
involved did not take the time to learn about their
each others' cultures prior to interacting.

WHAT IS CULTURE
Culture is a fuzzy set of basic assumptions and values, orientations
to life, beliefs, policies, procedures and behavioural conventions that
are shared by a group of people, and that influence (but do not
determine) each members behaviour and his/her interpretations of
the meaning of other peoples behaviour.
An important feature of culture is that it is learnt and not inherited.
Culture lies somewhere between individual personality and human
nature because these two traits are unique for every individual, the
behaviour in-between these two extremes is identical to groups as it
is learned and acquired through others.
A culture is also shared i.e. it exists in groups and societies,
beliefs of an individuals can be classified as ideas but do not
necessarily form part of the overall culture. Collection of ideas
however, if similar in nature, become constituents of a developing
culture.

CULTURAL NORMS AND VALUES

SYSTEMS
Religion
A set of beliefs concerning the cause, nature and purpose of the
universe, especially when considered as the creation of a
superhuman agency or agencies, usually involving devotional and
ritual observances and often containing a moral code governing
the conduct of human affairs.
Major religion today are
a) Christianity
b) Judaism
c) Hinduism
d) Buddhism
e) Islam

CULTURAL NORMS AND VALUES

SYSTEMS
Politics
Political influences, both past and present, can potentially
affect the way a person or company does business. Some
cultures have a very strong sense of nationalism and
government pride, and therefore, are more comfortable and
willing to purchase from companies with some sort of
government backing.
Conducting business with those of differing cultures can
also impact negotiations if there are on-going political
disputes between the involved parties' countries of origin.
To avoid conflict, it is best to avoid discussing any political
matter that does not directly pertain to the business at
hand. This is also true for inter-office interactions.

CULTURAL NORMS AND VALUES

SYSTEMS
Economic
Over the last twenty years, economists such as
Guiso, Sapienza, and Zingales have been
exploring the relationship between culture,
values, individual preferences and the economy,
focusing on the unidirectional impact of culture
on the economy.
They have demonstrated empirically, for example,
that the level of trust that people have in their
countrys institutions and fellow citizens

CULTURAL NORMS AND VALUES

SYSTEMS
Education
The expansion of any business to international
destinations comes with additional roles and
responsibilities. They have to acknowledge the
significance of global cultures in their international
business activities.
Organizations success in cross-border business
endeavours depends on their sensitivity toward other
national and regional cultures.
This is why education about other cultures remains critical
to the successful implementation of any international
business strategies.

CULTURAL NORMS AND VALUES

SYSTEMS
Language
In some countries, like the United States and Germany, it is
common for people to speak loudly and be more assertive
or aggressive when sharing ideas or giving direction.
In countries like Japan, people typically speak softly and are
more passive about sharing ideas or making suggestions.
When interacting with people from different cultures,
speaking in a neutral tone and making a conscious effort to
be considerate of others' input, even if it is given in a
manner to which you are not accustomed, can help foster
effective business communication.

CULTURAL NORMS AND VALUES

SYSTEMS
Social Structure
Social structure is the organized set of social
institutions and patterns of institutionalized
relationships that together compose society.
Social structure is both a product of social
interaction, and directly determines it. Social
structures are not immediately visible to the
untrained observer, however they are always
present and affect all dimensions of human
experience in society.

BUSINESS CULTURE
Model or style of business operations within a
company. The business culture determines how
different levels of staff communicate with one
another as well as how employees deal with
clients and customers.

FACTORS WHICH HELP CREATE A

GREAT COMPANY CULTURE
1. Hiring People Who Fit Your Culture
2. Having Employees Know the Values and the

Mission of the Company

3. Knowing That Good Decisions Can Come from

Anywhere
4. Realizing they are a Team and Not a Bunch of

Individuals

FACTORS WHICH HELP CREATE A

GREAT COMPANY CULTURE
Hiring People Who Fit Your Culture
Tech Journalist Robert Scoble meets with a lot of CEOs. And when talking
about hiring decisions, they always try to make sure theydont hire jerks.
Its for this reason that companies have such a rigorous hiring process.
Some companies like tobring job candidates in to work with their
employees for a week. They give the candidates a project and see how they
work and how they work with others.
In a post on Harvard Business Review, Eric Sinowaybreaks down types of
employees and how they impact company culture. The high performing
employees who dont fit into your culture are known as vampires. These
vampires must be terminated because, while performance is solid, theyre
attitude is detrimental to company culture, which is detrimental to
business.

FACTORS WHICH HELP CREATE A

GREAT COMPANY CULTURE
Having Employees Know the Values and the Mission of the Company
Theres a question that often gets asked in job interviews:
Why do you want to work here?
The purpose of the question is to provide the interviewer with a sense of what
the interviewee knows about the company. If the interviewee can provide a
specific, pointed reason for why they want to jointhatcompany, it shows the
interviewer theyve done research on the company and may be a fit for the
position.
Of course, an interview will show only so much. A person can be whoever they
want to be for 30-60 minutes. The only real way to know if someone is on board
with the values and mission of a company is to watch them work for an extended
period of time. Do they follow the same values in their personal life? This is why
you need to really get to know the serious candidates.

FACTORS WHICH HELP CREATE A

GREAT COMPANY CULTURE
Knowing That Good Decisions Can Come from Anywhere
No one has all the answers. A company where only management makes
decisions is a sure-fire way to sendA and B playersaway to other companies.
As some companies get bigger, they tend to limit employee freedom. The
employees are less and less involved in key decisions and their impact on the
business is drowned out. It becomes a part of the culture. Employees go to
work, do what theyre told, and just help someone else achieve their dream. The
workers impact on the business is minimal and they become just another
employee at just another company. And for some people, its all they want: go
into work, take orders, do the job, and wait for the clock to hit 5:00 P.M.
But this is not what the best employees want.
They want to have a voice and a meaningful impact on the company and its
direction. They know that anyone can win a debate with the most senior person
at a company. They also know they can create tools for the company without the
need for management approval.

FACTORS WHICH HELP CREATE A

GREAT COMPANY CULTURE
Realizing they are a Team and Not a Bunch of Individuals
The difference between being a team and just a bunch of
individuals is that the individuals see themselves as
separate from each other. Helping others is forced
because you normally operate on your own projects, or
your own part in a larger project.
Teams work together on all work related projects and
help where necessary. It doesnt matter who gets credit
for what because you accomplish everything together.
Youre knit together, not separated.