BUS 300 International Business Culture

1. Dr. Balbir B. Bhasin BUS 300 International Business Culture

2. What is Management? “Management is a form of work that involves coordinating an organization’s resources - human and capital – to accomplish organizational goals.”

3. Levels of Management • 1. Top management • 2. Middle management • 3. Supervisory management

4. Functions of Management • Planning • Organizing • Staffing • Leading • Controlling

5. Roles of a Manager Interpersonal - leader, figurehead, liaison Informational - monitor, disseminate, represent Decisional - allocate resources, negotiate, problem solving

6. Management Skills Conceptual skills - decision making, planning, organizing Human relations skills - understand people, motivating, collaborating Technical skills - able to get a particular job done

7. What is International Management? “Process of developing strategies, designing and operating systems, and working with people around the world to ensure sustained competitive advantage”

8. What is International Business? • “Profit related activities • conducted around national • boundaries, ever changing”.

9. What are the variables affecting the management function? • National variables - economic system, • legal system, political system • Socio-cultural variables - religion, education, • language • Cultural variables - values, norms, beliefs • Attitudes - work, time, individualism, • materialism • Response - motivation, productivity, ethics, • commitment

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11. Chapter 2 Culture & International Business

12. What is Culture? • Set of commonly held values • A way of life of a group of people • Includes knowledge, belief, art, morals, • law, customs and habits • Everything that people have, think and do • as members of their society • An integrated system of learned • behavior patterns that are characteristic • of the members of any given society

13. Cross Cultural Myths • Myth One:We really are all the same • Myth Two: I just need to be myself and • everything will be okay • Myth Three: I have to adopt the practices • Of the other culture to succeed • (Adapt rather than adopt)

14. US Values & Possible Alternatives • Beliefs - control vs. destiny • Change - action vs. accept • Attitude - practical vs. dreams aspirations • Approach/work ethic - hard work vs. luck • Promises - keep vs. perhaps • Time - depends on priorities • Obligation -company or family • Employment - short term vs. lifelong • Meritocracy - best person vs. • Other considerations

15. Stereotypical American (as seen by people of other countries) • Inconsiderate of other people’s cultures • Racially prejudices • Ignorant of other countries • Shallow, immature, naïve • Violent, aggressive • Generous, forgiving • Always in a hurry • Outgoing, friendly • Informal • Loud, rude, boastful • Hard working • Arrogant, proud, insensitive • Innovative • Extravagant, wasteful, • Confident they have all the answers

16. Culture is Learned • “Culture is transmitted through • the process of learning and • interacting with one’s environment • rather than through the generic • process” • Primary Socialization • Cultures and Subcultures • Secondary Socialization

17. Culture Universals • Common problems and common features • Economic systems • Marriage and family systems • Educational systems • Social control systems

18. Cultural Change • All cultures experience continued change • Cultural change is a selective process • Cultural change through borrowing • Cultural change through innovations • Cultural diffusion

19. Ethnocentrism Ethnocentrism • Tendency for people to • behavior by their own standards • The belief that own culture is superior • All people in all societies are ethnocentric • to some degree • Ethnocentrism can contribute to prejudice

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21. Chapter 3 Communicating across Cultures Languages

22. What is Communication? • Process of sharing meaning by transmitting • messages - words and behavior” • Critical factor in cross cultural management • Need for effective communication to: give • information, share ideas, give orders, and to • motivate • Interpersonal issues: leadership, motivation, • group interaction, negotiation

23. Barriers to Effective Communications • Semantics - different words have different • meaning to different people: fix, fag, shag • Jargon - technical terms • Acronyms and Abbreviations - culture, • military • Perception - interpreting information, • distortion • Emotions - breakdown in communication

24. The Need to Understand Language • There is a close relationship between • language and culture • 2. Language is a precondition to success • in international business • Languages helps in understanding • culture • 4. Second language is first step to learning • third and fourth language • 5. Learning other languages helps us • appreciate our own language (and culture)

25. What is Language? • Language is “a symbolic code of • Communications • Meanings attached to any word are • totally arbitrary • Major languages of the world are: • Mandarin, Spanish, English, Bengali, • Hindi, Portuguese, Russian, Japanese, • German, Wu

26. The Influence of Culture on Language • The vocabulary of a language depicts • what is considered important in that • culture • Industrialized societies have more • Technological terms • Example: 7 words for bamboo in South • India but none for snow

27. The Influence of Language on Culture • Language influences perception, • categorization and worldview • Language reflects values of the group • Example “individualism” in the US – so • many words pertaining to “self” • In Japan. “we” always comes before the • “I” indicating the “collectivist” approach

28. Language Key Points for Business • The US is the only country where business • people don’t think its necessary to learn a • foreign language • Is it easier to speak or understand a foreign • language? • Comprehension is a function of speed • Is it easier to speak or write a foreign • language? • Is there an international language of • business?

29. Avoiding Misunderstandings Across Language Barriers • Recognizing the symptoms: blank stares, • unnatural stopping points in conversation, • feeling of “not connecting” • What to do: explain the message in several • different ways, use visual aids, slow down, • avoid slang and idiomatic expressions, listen • to the other person’s entire message…don’t • assume anything, keep good notes, follow up

30. High Context vs. Low Context Cultures Low context cultures: task oriented, communication is specific, elaborate, direct and unambiguous. Swiss, German, American, French, British High context cultures: based on relationships, rely on communication that is: indirect, ambiguous, nonverbal, and the context. Japanese, Chinese, Arab In between: Italian, Spanish, Greek

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32. Chapter 4 Communicating across Cultures The Nonverbal Dimension

33. Function of Nonverbal Communication • Helps convey feelings and emotional states • Elaborates on verbal messages • Governs the timing and turn taking • between communicators • Concerns: • 1, Same nonverbal cue carries different • meanings in different cultures • Different nonverbal cues carry the same • meaning in different cultures

34. Nonverbal Cues • Facial expressions (smiles, frowns) • Hand gestures • Posture • Touching • Scents or smells (perfume) • Color symbolism • Clothing, hairstyles, cosmetics • Artifacts (jewelry, fly whisks) • Graphic symbols • Silence

35. Non- verbal Language • Touching – U.S. vs. Latin America • Space – U.S. vs. Japan • Queues: U.S. vs. China vs. Britain vs. Japan • Dress – U.S. vs. Europe vs. Japan • Silence – U.S.: a gap that must be filled • - Japan – preferable to conversation

36. Nonverbal Language • Eye Contact: intermittent in U.S., Intense, • Unbroken in Arab countries, Very little in • Japan • Para Language: um, er, ah, hai • Smiling, • Head movements: Bulgaria, India • Arm Movements: Italy vs. Japan • Posture: U.S. vs. China • Handshakes

37. Cultural Variables • Stereotyping - assuming that all have same • attributes • Language - literal or poor understanding • Kinesic behavior - posture, gesture, facial • expression, eye contact • Oculesics - behavior of the eye during • communication • Proxemics - effect of proximity and space • Paralanguage - how something is said • Time – mono-chronic or poly-chronic • Context - in which the communication • takes place

38. Proxemics • Distance preferred by middle class US: • Intimate distance - body contact to 18” • Personal distance -18” to 4 feet • Social distance - 4 feet to 12 feet • Public distance- 12 to 20 feet

39. How to Manage Communication Effectively • Develop cultural sensitivity - be aware of self • and the other! • Careful encoding - use proper words, gestures • Selective transmission - use proper medium • Careful decoding of feedback - careful • interpretation of message • Seek feedback - ask, verify, follow-up

40. Greetings • “When you shake hands, look them straight • In the eye and give ‘em a good firm grip” • Asia Mid East: gentle handshake • Mexico/Latin America: palm slip/grasp thumb • Never shake hands with a woman in the • Middle East and parts of India • Staring at someone is intimidating and • disrespectful in many areas of the world, • especially Japan • Slight bows are appreciated in Asia • Presenting business cards?

41. Touching • Touch: Middle East, Latin America, Italy, • Greece, Spain/Portugal, Russia • Don’t Touch: Japan, U.S., England, • Scandinavia, Northern Europe, Australia • Middle Ground: France, China, India

42. Hands/Eyes/Arms/Feet • Where to place hands when eating? • US: Beneath table • Europe: On top of table • Eyes: “Closed” in Japan indicates concentration • Eyelid pull in France and England • Arms: Folded arms – universal defensive • posture • Hands on hip – aggressiveness in Asia, • along with finger pointing • Feet: Remove shoes in Japan, India, Asia • Do not show the soles of shoes in the • Middle East

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44. Chapter 5 Contrasting Cultural Values

45. Hofstede’s Value Dimensions (IBM data collected on 100,000 individuals in 40 countries) Power distance - extent to which subordinates accept authority Uncertainty avoidance - threatened by ambiguous situations, prefer formal structure, feel safe and secure Individualism vs collectivism Masculinity - assertiveness, materialism Femininity - concern for society, others

46. Trompenaar’s Findings Obligation - universalism, pluralism Emotional in relationship - neutral, affective Involvement in relationship - specific, diffuse Legitimization of power and status – based on achievement and competency or based on position, age or education

47. Five Universal Problems • Human nature orientation: innately good • or bad? • 2. Man-nature orientations: mastery or • harmony? • 3. Time orientation: past, present or future> • 4. Activity orientation: individual’s • accomplishment or personal traits? • 5. Relational orientation: individualism or • collectivism?

48. Cultural Dimensions • Individual-Collective dimension: the self • first or the community? • 2. Equality-Hierarchy dimension: differences • in power or status or equality? • Tough-Tender dimension: what is success- • material comforts or relationships? • Uncertainty-Avoidance dimension: the • need for un-ambiguity and predictability • of the future? • 5. Time dimension: tight or loose?

49. Time Dimension Single Focus (American Western Europe, Industrialized Asia): one task at a time; meet deadlines, “Let’s get to work”, “Time is money” Multi Focus (Southern Europe, Latin America, Middle East): Simultaneous tasks, completion \ of task based on strength of relationship, delays are expected, commitments are not Written in stone

50. Environment Dimension Control Cultures (Western Societies): “Go for it”, “Life is what you make it”, “The future can be planned for” Harmony Cultures (Asian Cultures): “Don’t rock the boat”, “Go with the flow” Constraint Culture (Latin America, Middle East): “It’s a matter of fate”, “You take what life gives you”