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ETHNIC CULTURAL DIFFERENCES

ETHNIC CULTURAL DIFFERENCES. REASONS FOR BUSINESS FOCUS. GLOBALIZATION OF BUSINESS. US FIRMS ARE MORE INVOLVED IN WORLD MARKETS EXPORTING LICENSING STRATEGIC ALLIANCES EQUITY ALLIANCES, JOINT VENTURES NON-EQUITY ALLIANCES: OUTSOURCING, LONG TERM CONTRACTS FOREIGN DIRECT INVESTMENT

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ETHNIC CULTURAL DIFFERENCES

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  1. ETHNIC CULTURAL DIFFERENCES REASONS FOR BUSINESS FOCUS

  2. GLOBALIZATION OF BUSINESS • US FIRMS ARE MORE INVOLVED IN WORLD MARKETS • EXPORTING • LICENSING • STRATEGIC ALLIANCES • EQUITY ALLIANCES, JOINT VENTURES • NON-EQUITY ALLIANCES: OUTSOURCING, LONG TERM CONTRACTS • FOREIGN DIRECT INVESTMENT • ALL REQUIRING DEALING WITH BUSINESS PEOPLE FROM OTHER CULTURES

  3. FOREIGN FIRMS ARE INCREASING THEIR PRESENCE IN US • SAME METHODS OF GLOBAL BUSINES EXPANSION • ATTRACTIVE MARKETS IN US • MORE OPEN ENTREPRENURIAL ENVIRONMENT • LOWER TAXES • LESS REGULATIONS • FOREIGN OWNED FIRMS BRING IN MORE DIVERSE CULTURE CONTACTS • REQUIRING MORE CULTURAL COMPETENCE

  4. HUGE WAVE OF IMMIGRATION • RAPID CHANGE IN THE LABOR POOL • RAPID CHANGE IN THE CUSTOMER BASE • NO TIME FOR SLOW ASSIMILATION PROCESS • LESS DESIRE OF NEW IMMIGRANTS TO BE ASSIMILATED COMPLETELY • LESS DESIRE FOR ESTABLISHED CULTURE GROUPS TO BE ASSIMILATED COMPLETELY • HUGE ISSUE OF ILLEGAL IMMIGRATION

  5. IMPLICATIONS OFNEW WAVE OF IMMIGRATION • MULTI ETHNIC WORKFORCE • MULTI ETHINC CLIENT/ CUSTOMER BASE • MULTIPLICITY OF EE EXPECTATIONS • MANAGEMENT ORIENTATION • CONTROL SYSTEMS • COMMUNICATION SYSTEM • REWARD SYSTEM • COMMITMENT AND ATTACHMENT

  6. IMPLICATIONS OF ETHNIC CULTURAL DIFFERENCES • REQUIRES INCREASED CULTURAL COMPETENCY • CULTURALLY COMPETENT MGRs CAN MAKE THEIR FIRMS GAIN COMPETETIVE ADVANTAGE • US FIRMS HAVE A LEG UP ON FIRMS IN SOME OTHER COMPANIES • IF THE US FIRMS CAN LEARN TO IMPROVE MGT OF ETHNICALLY DIVERSE WORKFORCE

  7. MEANING OF CULTURE • SHARED DEFINITIONS OF SITUATIONS BY A GROUP • DETERMINES MUTUAL EXPECTATIONS IN BUSINESS INTERACTIONS -OUR EXPECTATIONS DEFINE US, -IF MET WITH SIMILAR EXPECTATIONS, CREATES MUTUALITY OF MEANING

  8. LAYERS OF CULTURE • EXPLICIT ELEMENTS • OBSERVABLE ELEMENTS • BEHAVIOR • LANGUAGE • CEREMONIES • MONUMENTS (FERTILE SOURCES OF PREJUDICES)

  9. LAYERS OF CULTURE • NORMS • WHAT IS RIGHT • WHAT IS WRONG • HOW I SHOULD BEHAVE • VALUES • WHAT IS GOOD • WHAT IS BAD • HOW I DESIRE TO BEHAVE

  10. STABLE CULTURES • NORMS REFLECT THE VALUES • OTHERWISE, THE CLASH WILL DESTABILIZE THE CULTURE

  11. ENDURING CULTURES HAVE • SHARED MEANINGS OF VALUES AND NORMS • IMPORTANT FOR THE GROUP • DEVELOPED THRU TIME • ELABORATED BY THE GROUP MEMBERS

  12. CORE ASSUMPTION • VALUES AND NORMS IMPROVES SURVIVAL CHANCES • HAS HELPED THE GROUP SOLVE BASIC PROBLEMS • THRU TIME, HAVE BECOME UNTESTED ASSUMPTIONS • SOURCES OF IRRITATION WHEN QUESTIONED • CHANGE ONLY WHEN CONSISTENTLY FAILS TO RESOLVE PROBLEMS

  13. CULTURE AND ACTION • CULTURE DIRECTS ACTION • ACTION REINFORCES CULTURE THRU SOCIALIZATION PROCESS • CULTURE IS MAN-MADE • IT SHAPES OUR INTERACTIONS

  14. CULTURE AS A NORMAL DISTRIBUTION • WIDE SPREAD OF NORMS, VALUES AND ASSUMPTIONS IN EVERY CULTURE • HAS A MEANINGFUL AVERAGE • HAS OUTLIERS (TAILS) • HAS OVERLAPS (SIMILARITIES) WITH OTHER CULTURES • THE AVERAGES MAY BE COMPARED W/ OTHER CULTURES • FOCUSING ON THE EXTREMES (OUTLIERS) LEADS TO STREOTYPING AND CARICATURE DESCRIPTIONS • DIFFERENCES ARE JUST THAT.

  15. DIFFERENT CULTURES ADDRESS COMMON DILEMMAS • HOW DO WE RELATE TO THE OTHERS • HOW DO WE RELATE TO TIME • HOW DO WE RELATE TO NATURE • HOW DO WE RELATE TO ACTIVITIES • MANAGERS: • HOW DO WE INTEGRATE, RECONCILE CULTURES • HOW DO WE MANAGE DIFFERENT CULTURES AT WORK

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