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Cultural Differences and Relationships in Business: Understanding, Respect, and Collaboration

Explore how cultural differences influence relationships in businesses, focusing on the importance of understanding, respect, and finding ways to work together. Discuss the structure of a company and whether cultural differences are diminishing due to globalization. Analyze the impact of reward systems, ethical dilemmas, and the role of rules versus relationships in various scenarios. Reflect on job evaluation, rewards, and the overall impact of rules versus relationships in business.

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Cultural Differences and Relationships in Business: Understanding, Respect, and Collaboration

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  1. Culture Trompenaars F. & Hampden-Turner C. (2012). Riding on the Waves of Culture. (3rd ed.) New York, NY: McGraw-Hill. p. 39-172 Hofstede G., Hofstede G.J. & Minkov M. (2010) Cultures and Organizations (3rd Ed.). NYC, NY: McGraw Hill.

  2. Culture • Relationships – employees, customers and bosses • Different cultures (hospitality) • Culture has a big effect on how we deal with problems/people • Understand and respect • Find a way to work together • Different perspectives give a better view

  3. MCC – Case Study • What is the structure of the company? • Is it true that cultural differences are diminishing because of worldwide media and globalization?

  4. MCC - Reward System • Which new reward system do they want to apply world wide? • What were the results of this system in the US? • What do you think about this system? • What would people in your country think?

  5. Dilemma Friend hits a pedestrian • What would you do? • What would people in your country do? • What would a rules – person do? • What would a relationships – person do?

  6. A1 - Would you lie for a friend?

  7. A2 - Would you lie for a friend?

  8. A1 - % of people that would follow ‘the rules’

  9. A2 - % of people that would follow ‘the rules’

  10. Rules vs. Relationships

  11. Relationships • The more serious the injury, the more a relationships-person is going to defend a friend.  Relationships are more important • A rules-person will see this behavior as corruption; the rules are the same for everyone  society will fail without them

  12. Rules • The more serious the injury, the more a rules–person will not testify for a friend.  rules are the most important • Rules – person need a lot of rules (and lawyers). • Contracts are usually much longer; every little detail has to be agreed on.

  13. Question? • How would you feel if one of your family members gets hurt in an accident and the person that did it drove away and can’t be found. Would you understand that his family is trying to protect him?

  14. Dilemmas -Restaurant Review • What would you do? • What would people in your country do? • What would a rules – person do? • What would a relationships – person do? • Would you ask your friend to write a good review for you if the situation was reversed?

  15. A1 - Would you lie for a friend?

  16. A2 - Would you lie for a friend?

  17. A1 - % of people that would follow ‘the rules’

  18. A2 - % of people that would follow ‘the rules’

  19. Rules American researchers • part of complex and developed societies • best way to do business Correct? Trompenaars and Hampden-Turner disagree → use the advantages of each culture to create a good environment for businesses

  20. International Business The contract • Rules – detailed contracts • Relationships – relationships create trust and need time to develop. This extra time is worth it to avoid problems and loss of time in the future.

  21. International Business The role of the head office • Rules – marketing, production and HR should follow head office • Relationships– pretend to follow directions from head office but have their own way of working.

  22. International Business The roll of the boss • Rules – boss gives a job • Relationships – boss is a leader that takes care of you through: security, money, social standing, goodwill and socio-emotional support. Commitment to leader is high and turnover low.

  23. International Business Job evaluation and rewards • Rules – Pay and reward system that is followed for promotions and bonuses • Relationships – decided by management on a personal level instead of based on criteria

  24. Discuss and write • Do I give more importance to rules or to relationships? • What about people in my country? • How does it work in business? (contract, role of head office, role of boss, job evaluations and rewards) • Is the current situation good for business or not? • What type of society would I like to work in: ‘rules’ or ‘relationships’?

  25. Format • Compare the answers of the group • Times New Roman – 12 – double spaced • One topic for each paragraph • Leave a blanc space between paragraphs • No Q&A but full text • Add examples to make it clearer (if applicable and helpful) • Check your spelling (use spell check) • Read it again to see if the text is coherent

  26. Discuss and write • Deadline – Monday 18 May at midnight • Be brief but informative and complete

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