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Understand ing Cu lture: Values, World Views and Socio-Cu ltural

Systems
Cult ure is t he characteristic of a part icula r group of people , defi ned by la ngua ge , re ligio n, cuisine , social habit s, m usic, art s,
etc. Orga nizat ional culture is t he behavior of humans, who a re pa rt of an organ ization , and the meanings t hat t he peo ple
attach to their act ions. Cult ure includes t he organization's va lues, visio ns, norm s, working language, systems, symbols,
bel ie fs, a nd habits. It is a lso t he pattern of such collective behavio rs t ha t a re taug ht to new orga nizational mem bers as a
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way of perce iving, eve n t hinking and feeling. Organi zat io na l cu lt ure affe cts the way people interact wit h one a nother and
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with clients and stakeho lders. Each ne w e nvironment has its own uni que cha ract eristics a nd, if understood, co uld AT MAHE MANIPAL
acce lera t e the new entrant's time and effectiveness in integrating into the new culture .
Com pa nies such as IBM, GE, Microsoft , De ll, a nd Amgen e m body t he ir own unique cul tu res and cha racteristics. Ind ivid ua ls
w ho quickly adjust to the new culture have a better c hance of success than t hose who choose to push aga inst it . Tho ug h
cultures define com panies and en hance their ability to recruit t op candidates, t hose same cultu res will become obso lete if 'hunlock
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they don't bend a nd flex wit h the changing tide of the wo rkplace . As workplaces a re becom ing more g lo ba l, culture
becomes shifting sand and re quires employees w ho are flexible and adapt q uickly to ambiguity and significa nt c hange .
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In o rder t o u nd erstand what cult ure is within a ny organization, its definitio n has had to be interpreted in many ways. So me
scho la rs define cu lt ure as the cu m ulative deposit of knowledge , experience, be liefs , values, attit udes, hie rarchies, re ligion,
notions of t ime, spatia l relat ions, concept s of t he unive rse , a nd materia l o bjects and posse ss io ns acquired by a g ro up of
people in t he course of generat ions t hro ugh individual a nd gro up st riving. That 's a mo ut hful, but it is w hat it is . What a
compan y res pects in its e m ployees becomes its cult ure . Most compa nies have a set o f va lues and a ttributes that d rive
expected behavior.
So t his word, 11 CU1ture," is a ll e ncompassing a nd so metimes can be d ifficult to un ravel. Ma ny co m panies create cultural
norms such as specia li zed d ress codes, flex wo rk schedul es, core ho urs, job poo ling, forma lized socia l networks, etc. These
cult ura l norms wil l become icons and will estab lish no rms for ot hers to be measured aga inst . Cultu ral no rms a lso can be
effect ive recruiting t ools because the enviro nme nt is a key cons ide ratio n for individ uals seeking the right cult ure for new o r
continued e m ployment.
Cult ural norms often are so stro ngly ingra ined in a com pa ny's culture t hat new employees may be u nawa re of certain
expected behaviors. Un til t he se behaviors are seen in the conte xt of having som e fo rm of flexibilit y, they will preve nt
certain reso urces from becoming integra ted. Ofte n, t he company may have d ifficulty recognizing t he need for cha nge a nd
eventually creates te nsion and para lysis to a point of d isengage ment a nd job d issat isfactio n. Leaders who do n't va lue
learning the cult ura l norms of an organizatio n can make it more d ifficult for individuals to assimilat e the mse lves in to the
new en vironm ent. What mot ivate s and e nerg ize so meone from a n Asia n backg rou nd may be t ota lly differe nt from
someo ne of African or European descent . Learning and unde rst a nd ing these d ifference s can be th e cata lyst fo r a mo re
product ive a nd innovative work enviro nm ent. Cult ura l d iversity will pe rmeate t he wo rld's workpla ces, a nd t hose who
ha rness its capabilities a lso will va lue the dynamics of a n increasing ly d ive rse human resources pool.
Many co m panies send expatria tes into new cult ures based on a specific tech nical com pe tence t hey may have but fa il t o
pre pare entrants for the ne w cult ure and office/company rules of e ng agement. Accord ing to Wikiped ia, an expat riat e
(so met i mes shorte ne d to expat ) is a person tem pora rily or pe rmane ntly resid ing in a cou ntry other t ha n t hat of the pe rso n's
upbring ing. The word comes from t he Lati n terms ex (" o ut of ") and patria ("count ry, fa therland").
Cultural Values
A cultu re's va lues a re its ideas abo ut wha t is g ood , rig ht , fair, a nd just . Socio logist s d isag ree , however, on how t o
concept ua lize values . Conflict t heory focuse s o n how values diffe r between g roups wit hin a culture, while funct io nali sm
focuses o n t he sha red values w it hin a cultu re . For exam ple , Ame rica n sociologist Robert K. Merto n s uggest ed that t he m ost
im porta nt va lues in America n soci ety a re wealt h, s uccess, power, a nd p re st ige , but t ha t eve ryo ne d oes not have a n equ al
o pport u nity to attain these va lues. Functiona l socio logist Ta lcott Parsons noted t ha t America ns s ha re the com mon va lue of
the 11Ame rican work ethic," which e ncou rages hard wo rk. Ot he r sociologists have pro posed a co m mon core of American
values, including accomplish ment , mat erial success, pro blem-solving, reliance o n scie nce a nd t echnology, democracy,
oatriot is m. c ha ritv. freedom . eoualitv a nd iustice . individ ualism. resoonsibilitv. and account abilitv.
A cult ure, t hough, may harbor conflicting values. Fo r insta nce, t he value of materia l success may conflict with t he value of
cha rity. Or t he value of equality may conflict wit h the value of individua lism . Such co nt radictio ns may exist d ue to a n
incons istency between peop le's actions and t he ir professed values, which expla ins why sociologist s must carefully
distin guis h betwee n what people do and what they say. Real culture refers to t he values a nd norms that a society actually
follows, while idea l cult ure refe rs to t he values a nd norms t hat a society professes to be lieve.
World View
A wo rld view or worldview is t he fundamental cognitive orie ntat io n of a n ind ivid ua l o r societ y encompassing t he whole of
the individual's o r society's knowle dge a nd point of view. A world view can include nat ural philosophy; funda menta l,
existent ia l, and normative postulates; or t hemes, va lues, emotions, and ethics.
It is a concept fu ndamental to German philosophy a nd e pistemology and re fers to a wide world pe rception. Additionally, it
refe rs to t he framework of ideas a nd beliefs forming a glo bal description t hrough wh ich an individua l, group o r cult ure
watches and interprets t he world and interact s wit h it.
Worldviews a re often taken to operate at a conscious level, directly accessible to articulation a nd discussio n, as oppose d t o
existing a t a deeper, pre- conscious level, such as t he idea of "ground" in Gestalt psycho logy and media a na lysis. However,
core worldview beliefs are often deeply rooted, and so are o nly rarely reflected o n by individuals, and are broug ht to the
surface only in mo ments of crises of fa ith.
SOCIO-CULTURAL SYSTEMS
A sociocultura l system is a " huma n po pulation viewed in its ecologica l context a nd as one of the many subsystems of a
larger ecological system"
The te rm "sociocult ura l system" em braces t hree concepts: society, cu lture, and system. A soc ie t y is a numbe r of
interdependent orga nisms of t he sa me species. A culture is t he learned behaviors that a re sha red by t he members of a
societ y, together wit h t he materia l products of suc h behaviors. The words " society" and "cultu re" are fused t ogether t o
form th e word ccsociocultural". Asystem is Ha collection of parts which interact with each other to function as a whole".
Main components of a sociocultural system:
1 . Economic system
2 . Po lit ica l o rgan izatio n
3 . Social structure
4. Be lief system
5. Arts a nd le is ure
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What is Culture and why is it Important?
Culture is the invisible bo nd which t ies people togethe r. It refers t o t he pattern of huma n activity. The a rt, li terat ure,
la nguage, and re ligion of a commu nit y represent its cult ure. Our cultura l va lues and be liefs ma nifest themselves through
our lifestyle. Our moral values represent our culture. The importance of culture lies in it s close associa tion wit h t he ways of
t hinking and living. Diffe re nces in cult ures have led t o a diversity in t he people from differe nt parts of the world.
Culture is relat ed to the development of our attitude. Our cultural values influence how we a pproach living. According to the
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behaviorist definition of cult ure, it is t he ulti mate system of social control where peop le monito r their own s tanda rds and
behavior. Our cult ura l values serve as t he fou nding principles of our li fe. They shape o ur t hi nking, behavio r, and pe rsona lity.
Importance of Culture
Cult ure has g reat im portance. Cult ure is the ide ntity of t he nat ion, wit ho ut cul t ure the society is impossible. An autho r says
about t he im porta nce of cult ure t hat "cult ure is t he set of t ransm it ted a nd lea rned be havio r patterns , beliefs , instit ut io ns
and a ll other product s of huma n work a nd thought t hat cha racterize t he functio ning of part icula r po pula t io n, profession,
o rganization or community", so the o nly representative of the particular com munity o r popula tion is the culture. Culture is
the basic root of a ny community which give s the m t he ways of life. Th e culture provides solution to t he critica l problem t ha t
is faced t o community. Culture teach us to think for t he whole natio n not individua lly, it provide the concept of fa mily,
nat ion etc.
The cultura l values of a commu nity give it a n ident ity of its own. A community gains a character and a personality of its own,
because of t he culture of it s people. Culture is sha red by the members of a community. It is learned a nd passed from t he
older generati ons to the newer ones. For an effect ive tra nsfer of cult ure from o ne generation to another, it has to be
trans lated into symbols. Language, a rt, a nd re ligion serve as the symbolic means of t ra nsfe r of cult ura l values between
generat ions.
Culture is a bond that t ies the people of a regio n o r com muni ty t oget her. It is that one common bo nd, whic h brings the
people of a co mmunity toget her. The customs a nd trad itio ns t hat the people of a community follow, the festiva ls they
ce lebrat e, t he kind of clothing t hey wear, t he food t hey eat, a nd most importantly, the cult ura l values they ad he re t o, bind
them t ogether. The cu ltura l values he lp develop a sense of belonging, a nd a feeling of unity in t he minds of t he people of
that particular culture. People of a culture share their t raditio ns a nd to a cert ain extent , their ideologies. They have a s imila r
way of t hinking and living. If they be long to t he same re li gio n, t he ir belief syst e m is the sa me , which furthe r leads to a
feeling of o ne ness a mong the m.
Cult ure is seen as a system of social control, whe rein people sha pe th eir standa rds a nd behavior. The cult ural values form
the founding principles of o ne's life. They influence o ne's principles a nd philosophy of living. They impact our way of living
a nd t hus affect our social life.
The cultural heritage of a society incl udes t he way it is socia lly a nd polit ica lly o rga nized. It a lso involves the myt hological
a nd ph ilosophical concepts of t hat society and its science and lite ra t ure. When t he term is used in its adjective fo rm as
'cultured', it is used to mea n t he degree of sop histication in the ma nners a nd educatio n of t he people who belong t o t ha t
cult ure .
The importance of cult ure lies in the fact that it is a link between people a nd t he ir va lue systems.
Importance of Culture
OCulture affects market demand.
0 Managerial behavior is driven by his/her
cultural knowledge
0 Knowledge of Native culture is useful when
dealing with home markets but it has little
value when dealing in foreign markets
0 Culture affects the nature of business
negotiations
0 Culture acts as a hidden entry barrier, but it
can be overcome with cultural sensitivity,
hard work & quality
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How do People React to Cultural Diffe rences?

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All people a re in na te ly progra m med t o thin k lo gically. Otherw ise, t hey would in dang e r e lim inating t h emselve s from the
ge ne pool. What culture does , and it's call ed socializatio n, is too within the co nfines of su rvivabilit y rear a nd teaches t heir
Ill
children to survive in t he cu lture a nd e nviro nment the y w ill inhabit . This is for both t h e benefit of the individual a n d the
bene fit of that person's peo ple group. <D X
Wha t is differe nt a re t he pre su pposit ions of t he culture. Often ca ll ed the world view it is t he basic moral a nd va lue Menta l Health is a priority
a ssumption s of that cult u re. Et hnoce nt rism is a n exam ple. All people assume t he ir culture is norma l a nd every ot he r Do not ignore it
cu lture is stra nge . The cult ure is ofte n built upon skills necessary fo r t he individ ua l a nd culture t o survive in it s
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10 Tips for Responding to Cultural Differences
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How to Eng age Different Cultures:
1. Keep a n Open Mind
The a bilit y to keep opinion s flexible a nd receptive to new stimul i is im po rtant to intercu lt ural adjustm ent. Even if you don't
unde rstand why people d o a particular thing, be careful not to jump t o co nclusions.
2. l earn to Cope with Failure
Learnin g to tolerate fa ilure is critical beca use eve ryo ne fails at somet h ing overseas !
3. Be Flexible
The abil it y to respon d to or tolerate the a m bigu it y of new situatio ns is very im porta nt to inte rcu lt ura l success. Keepin g
o ptions open a nd judg m ental behavio r to a minimu m h elps you adapt well.
4. Maintain a He althy Curiosity
Curiosit y is t he demonst ra ted desire to know a bo ut othe r peo ple , places, id eas, etc. Th is personality t ra it is im portant for
intercu lt ural t ravelers because t hey need to learn m a ny t h ings in o rder to adapt to th eir new e nviron men t .
5. Ho ld Positive a nd Rea listic Ex pectations
There a re strong correlatio ns between posit ive expecta t io ns for an inte rcultural experience and successful adjustm e nt
oversea s. Being realist ic in what to expect w ill help you feel prepa red for a ny sit uatio n.
6. Be Tolera nt of Diffe rences
A sym pathetic unde rsta n ding of be lie fs or practices d ifferent from your own is key to successfu l intercu lt ura l a djustment .
7. Rega rd Othe rs Positi vely
The ability to express warmt h, e m pa t h y, respect, and positive regard fo r othe r persons is a n im portant com pone nt of
effect ive inte rcu lt ura l re lat io ns. Try to t h ink of th ings you rea lly enjoy or like about their cult ure a nd e m b race differe nces.
8. Be Good Gue st s
As a gu est in someon e's h ome, you would never remark a bout t he 11dirty" kit chen, t he "terrible" food , or t he 11crazy''
seating a rra ngem e nt . As a t raveler you a re, in a broad sense, going into som eone's " ho m e ." Show respect.
9. Have a Se nse of Humor
A sense of hu m or is importa n t because in anothe r cult ure so m any t hings can lead t o inte nse emot ions. Sadness, anger,
a n noyance, e m barrassment and discouragement a re a ll com mon. The abilit y to la ugh in s pite of t he circu m stances w ill h elp
guard against despair.
10. Have Fun

It's okay to acknowledge cult ura l d ifferences - do n't ta ke t he m too seriously a nd don 't ho ld an " I' m right /Yo u're wrong"
attitude. Re lax, have fun , a nd e njoy your new frie nds.
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Can we Measure or Gra ph Cultural Differences? Wha t is Culture and why is it Importa nt?
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Can we Measure or Graph Cultural Differences?
Ident ifying cultu ral differences
There a re severa l cult ural d ifferences t hat we w ill face in an internatio na l negotiatio n and we conclude t hat t he most
im portant are:
• Communication: Verbal and non-verbal communication

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• Culture
Communication
Differen ces in verbal communicat io n can be caused by d iffe rent language t hat the other party speaks., o r a lso can it be tha t Meet the simple tool that helps you learn
we sha re the same language but t he use of words has a d iffere n t mea ning beca use it is influenced by t he other pa rty culture. a new language while browsing the web.
- oucan
However it is important to lea rn that a lso non - verbal com m unicat ion ha s a n importan t role because it is pa rt of behavio r
that com m u nicated wit ho ut words.
Culture
As we ha d a lready defined t hat culture shapes behavior, therefore it is useful to identify t he mains such differe nces in o rder
to deci de which one can cause a th rea t o r a wea kness in ou r negotiat io n process a nd wh ich can he lp us as o pportunities and
strengths. One of t he a pproac hes that we identified to be very helpful fo r the prepara tion is Richa rd Lewis Mode l of cult ural
types. Th is mode l has been based on the Hofste de's Value Dime nsions,
Power distance:
" Is t he leve ls of acceptance by a society of the unequal d istribut ion of power in insti tut ions".
Therefore where we find a hig h power d ista nce a mong ind ividua ls mea ns t hat they have the need for hie ra rchy and status
within t heir cu lt ure. For Example USA vs. Norway
Individualism- Collectivism :
" It refers to the degree to which individuals are integra t ed into groups". The first o ne refe rs " to the t e ndency of people t o
look a fter the mse lves and their immediat e families o nly a nd to neglect the need of society" and the second one if the
opposit e.
So in the individua list ic cultures loyalty a mong individuals is not as stro ng as in collectivism cult u re s. For example ja panese
are col lectivist and Americans are individualistic.
M ascul inity-Femininity
Refe rs to t he d is tributio n of ro les between the gende rs which is a nothe r fund ame ntal issue for a ny socie ty to which a range
of solutions a re fou nd.
Masculinity is in cult ures w he re the gende r ro les a re clea rly defined: Men have to be assertive and concentrate o n mate rial
success. Women s hould be hu mble and affectionate a nd have to maint ain a good qua lity of life. In fem ininity represe nts a
society, there is no d iffere nce: Men a nd women are equal a nd both are responsib le for main tain ing life qua lit y. An example
of m asculine cult ure is Mexican and a fem inine cult ure is Norwegian.
Unce rtainty Avoid ance
"Refers to the extent to which people in societ y fee l th reatened by a mbiguo us s it uatio n.
The degree of uncert ainty t hat ind ivid ua ls a llows in t he daily lives. For exam ple hig h level of uncertainty avoidance a re
japanes e (laws a re very strict with fo rma l rules) and wit h low leve l of u nce rtainty like Great Brita in; protest are tolerated,
ma nager take mo re ris ks)
Long Term Orientation
The ext ent to which cult ure program s it s m embe rs to accept delay gra t ification of their ma terial, social, and e motional
needs.
Short te rm cult ures t end to consider va lues that are re levant for past a nd present (traditions a nd fulfil li ng social dut ies).
The long term te nd to focus on future success a nd persevera nce.
Examples for Long Te rm Orie nted are t he Chinese and Short Term a re t he America ns.
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Is it Possible to Change a Culture? If so, how? How do People React to Cultural Differences?
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Is it Possible to Change a Culture? If so, how?
Culture change is a term used in pu blic policy making t hat emphasizes t he influence of cult ural capital on individua l a nd
co m mu nity behavior. It has been so met imes called reposit io ning of cult ure, which mea ns the reconstruct ion of the cultural
concept of a societ y. It places stress o n the socia l and cult ura l ca pital determ ina nts of decisio n making a nd t he ma n ner in
w hich t hese interact with o ther factors like the availab ility of informat ion o r t he fina ncia l incen tives facing ind ividua ls t o
drive behavior.
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These cultural capital infl uences include th e role of paren ting, famil ies and close associates; organizatio ns such as schools & TOURISM INSTITUTES IN INDIA
and workplaces; commu nit ies and neighborhoods; a nd wider socia l influences such as the media. It is argued that t his s tude nts placed with
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cult ura l ca pita l ma nifests into specifi c va lues, attitudes o r socia l no rms which in turn gu ide the be haviora l intent ions t hat ADMISSIO NS OPEN 2022
individuals ad opt in rega rd to pa rt icul ar d ecisio ns o r courses of actio n. These behavio ra l intent io ns interact wit h ot he r
fact ors d riving behavio r such as finan cia l incen tives, regulat ion a nd legislation, o r levels of information , to d rive act ual
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behavior a nd ult imately feed back into underlying cult ura l capital.
In gene ra l, cult ural st ereotypes present great resista nce to cha nge a nd to t he ir own redefinit ion. Cult ure, often ap pears
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fixed to t he observer at a ny one point in t im e because cult ura l muta tio ns occur increment a lly. Cult ura l change is a long-
term process. Policymakers need to ma ke a great effort to improve some basics aspect s of a society's cult ural traits.
The four main ways to influe nce culture
I I I I I I I I I I I
I I I I I I I I I I I I
~
In t he cent re of THE d iagra m is a cycle of fo ur e le ments: behaviou rs; symbols; leadersh ip; sto ries. I suspect these a re t he key
"e lemen ts" t ha t go to make up a cult ure. And therefore , if you want to cha nge a cultu re you need to act on each of these
e lements. Let's look at each in turn.
1. Behaviours
The be haviours I'm talking abu t he re are the " gro up norms" we see. What time do people get into work? Do the y feel
compelled to stay late? Is t here an assumptio n that everyo ne has read an ema il five min utes a fter it 's been se nt? Do people
t urn up t o meet ings o n t ime - or is t he cult ure such that you ca n come t en minutes late?
But I thi nk they can a lso incl ude such t hings a s:
• How we speak about people when they're not th ere.

• How we speak to peop le and t reat them w hen t hey've done something wrong.
• Whether we keep silent and do nothing when we see som et hing happeni ng that's w rong.
Anyway, I suspect you get the idea. (! Be haviours" is basically 11 t he way we do things a round here".
So, if you want to change culture you need to start chang ing t he "normed" behaviours. And that's all about a crit ical mass of
people, it's a bo ut exa m ples , it's about doing t hings different ly.
2. Symbols
Symbo ls are profound ly impo rtant in o ur mode rn life: eve n as we tell ourselves t hat we are post -Enlig htenment h umans
a nd not susceptible to t hat stuff. (If you dou bt me, just no tice a ll t he rich iconogra phy in you r local shopping mall next t ime
you're t here).
Sym bols are t he t hings we see that mean something to us - either deliberate or unintentional. Years ago, I worked at a
company t hat measured your stat us by th e number of ceil ing tiles in your off ice - a great symbol of a hierarchical cult ure .
Common symbols might include:
• Wh at d oes the clie nt rece ption area of your off ice look like - w ha t m essage is it t rying to d e liver?
• What's hig hl ig h t ed on yo ur int ra net sit e . Eg how easily can I find the values stat ement s compared t o h ow
e a s ily I ca n find this week's sa les report .
What happens t o a good sales person if they're fo und to breach com pliance requirement s?
3.leadership
I almost chose to leave t his one out - beca use I suspect leadershi p expresses itself in behaviours, st ories and symbols. In
short, it's going to be hard to get cult ure change unless the leadership buys in.
4.Stories
The st ories we tell ourselves profoundly influence the culture of our organ isation. Those stories can be expl ici t or more
implicit. Overarching stories help us ma ke sense of our world - they can give us a " schema" into which to place things. As
such t hey will hel p us explain events and make meani ng. Helpfully, or unhelpfully.
For example, I wonder what t he prevailing story is in t radit ional newspaper organisations right now? I suspect t he story
being to ld is one of industry decl ine and disruption. That would make for an int eresting culture in most newsrooms.
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What does Culture have to do with Business?
CULTURE has become one of the most important bus iness topic. CEOs and HR leaders now recognize t ha t cu lture drives
people's behavior, innovation, and custo mer service: 82 percent of survey respo ndents believe that 11culture is a potential
competitive advantage." Knowing that leadership behavior and reward systems directly impact organizational
performance, customer service, emp loyee engagement , and retent ion, leading companies a re using data and behavioral
information to manage and influence their culture.
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Cult ure descri bes " the way things work around he re." Specifically, it includes the values, beliefs, be haviors , a rt ifacts, a nd
rewa rd syste ms t hat influence people's beha vior on a day- to- day basis. It is driven by top leadership a nd becomes deeply
embedded in t he com pany t hrough a m yriad of processes, reward system s, and behaviors. Culture includes a ll the behaviors
that may or may not improve business performance. Today, cult ure is a CEO- level issue and so mething tha t can be
measured and improved to drive strategy.
Engagement, in contrast, describes " how people fee l a bout the way things work a round here." It is a way of describing
employees' level of comm it m ent t o the com pa ny and to t heir work. According to our model, e ngagement encompasses five
broad areas: mea ningful work a nd jobs, ma nagement practices and behaviors, t he work e nvironme nt, opport unities fo r
development and growth, a nd trust in leadership. When engage ment is poor, employees feel uneasy or uncom mitted,
resulting in high turnover, low performa nce, a nd low levels of innovat ion and customer se rvice. New tools a re enabling
compan ies to monitor engagement on a detailed, real- t ime basis, delive ring s pecific, act ionable info rmation to
continuous ly improve t he work e nvironment.
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The two are connected. When a company's culture is clearly aligned with business strat egy, it a ttract s people who feel
comfortable in it , which in turn should produce a high level of e ngagement . Conversely, programs to im prove e ngagement
often di scover cultura l issues, forcing t he com pany and its leadership to question and change its values, incent ives,
programs, and struct ure. Both culture a nd e ngagement require CEO - level commitment a nd strong support from HR to
underst and, measure, and improve.
Culture brings toget he r the implicit a nd explicit reward syste ms t ha t define how an organization works in practice, no
matte r wha t an organiza tiona l chart, business strategy, or corporate mission sta tement m ay say. A staggering numbe r of
compan ies - over 50 percent in this year's survey- are curre ntly a ttempting to c ha nge t heir cult ure in response to shift ing
talent market s a nd increased com petition.
In an era in which bad news travels instant aneously a nd a n organizat ion's cu lture is both t ranspa re nt a nd direct ly t ied to its
employment bra nd, great com panies conscious ly cultivate and manage t heir culture, turning it int o a compe t itive
advantage in the marketplace. Have you ever wonde red why certain compani es hire great e ngineers, de liver seemingly
endless innovations , a nd gene rate cons istent growth, while others always seem to be re inventing t hemselves? A la rge part
of the answer, in one word, is culture.
The importance of culture is readily apparent whe n t hings go wrong. Whe n two large com pa nies merged last year, for
example, it became cl ear t hat one company had a culture of "low cost" wh ile the other had a cult ure of "quality service."
Employees received m ixed signals for months until the new management t eam took t he time to carefull y diagnose and
redefine many business processes throughout t he company.
Given the importance of cult ure a nd t he conseq ue nces of cultural issues, many compan ies a re proactively defi ning culture
and issu ing culture " manifestos." The Netflix cult ure presentat ion, often used as an example, has bee n downloaded more
than 12 million times since 2009. The presentat ion clearly describes a culture that combines high expectat ions with an
engaging e mp loyee experie nce: Generous corporat e perks such as un li mited vacation, f lexible work schedules, and limit ed
supervis ion ba la nce a strong focus on result s wit h freedom a nd appreciation for the expected achi eveme nt.
The financial services industry, st ill restoring its brand after the 2008 fina ncial crisis, is sharply focused on culture. One
organization is using a variety of init iatives to help e mployees unde rsta nd " how the bank does business," including
offering speake r series on topics such as com pensat ion pac kages, custo mer sat isfaction, and maintaining regulatory
st andards. Citigroup has a n e ntire committee focused on e thics a nd cult ure a nd has im plemented a series of web - based
videos deta iling real workplace ethical dilemmas. Bank of Ame rica is focusing its corpora te cult ure transformation on
11
encouraging employees to report and escalate issues or concerns, as well as incorporating a risk boot cam p" into their
current t rain ing. Wells Fargo is increasing its efforts to gather employee survey feedback to understand cu rre nt trends and
potent ial areas of weakness in its cu lt ure.
A new industry of culture assessment tools has eme rged , enabling companies to diagnose t heir cu lt ure using a variet y of
well - established models. Yet despite t he preva lence of t hese tools, fewer than 12 percent of com panies believe t hey t ruly
understand their culture. That's where HR can help. As businesses t ry to understand and im prove their culture, HR's role is
t o im prove t he abilit y t o curat e and shape cu lture act ively. An organization's capabiliti es to understand a nd pull the levers
of culture change can be refined and st rengthe ned. HR has a natura l role to play in both efforts.
As operat ions become more di st ributed a nd move to a stru cture of " networks of t eams ," cu lture serves t o bind people
togethe r and he lps people communicate and collaborate. When ma naged well, culture can drive execut ion and ensure
business consistency a round the world. HR has a n opportunity to assume t he role of champion, monitor, a nd communicator
of culture across, and even outside, the organization. Once cult ure is clearly described , it defines who the com pany hires,
who gets promoted, a nd what behaviors will be rewarded wit h compensation or promotion.
Why Culture Matters
Assumptions Behavior Results
• The assumptions and beliefs of employees drive behavior.

• The collective behavior of employees determines results.
• The results measure performance and indicate if strategic
business objectives have been achieved.
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Ways of Describing Cultural Differences Going Internationa l
As com pa nies continue to expand across borders and t he global marketplace becomes increasingly more accessible for
sma ll a nd large businesses.
Multinationa l a nd cross- cultural team s are likewise becom ing ever m ore comm on, m eaning businesses can benef it from an
increasingly diverse knowledge base a nd new, insight ful a pproaches to business proble ms. However, along with the
benefit s of insight and expertise, globa l organ izations also face pot ential st umbli ng b locks when it comes to cult ure a nd
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inte rnational bu siness.
While t he re a rea number of ways to define culture, put s im ply it is a set of com mon an d accepted norms sha red by a society.
But in a n international business cont ext, wha t is com mon and accepted fo r a professional from one country, could be very
different for a colleague from overseas. Recognizing a nd understa nding how culture affects internationa l business in three
core a reas: communication, etiquette, and organizationa l hie ra rc hy can help you to avoid misu nd erstandin gs with
colleagues a nd clients from abroad and excel in a globalized business environment.
1. Communication
Effe ct ive communication is essent ial to the success of any business ve nture, but it is particularly crit ical when there is a real
risk of your message get t ing " lost in trans lation." In many international com pa nies , En glis h is the de fact o la nguage of
business. But more t ha n just the language you s peak, it's how you convey your message that 's im portant. For insta nce,
w hi le t he Finns may value direct ness and brevity, professionals from India can be more indirect and nuanced in their
commu nicat ion. Moreover, while fluent English might give you a professiona l boost globa lly, understanding the
im porta nce of subt le non-verba l communication between cultures can be eq ually crucia l in int ernational business.
What m ight be commonplace in your culture - be it a firm ha nds hake, making direct eye contact , or kiss on the cheek -
could be unusual or even offensive to a foreign colleague or cl ient. Whe re possible, do your research in adva nce of
professional interactions with individuals from a diffe rent culture. Remember to be percept ive to body language, and when
in doubt, ask. While navigating cross- cultural communication can be a challenge , a pproaching cult ural diffe rences wit h
sensit ivity, openness, and curiosity can help to put everyone at ease.
2. Workplace Etiquette
Differe nt approaches to professional commu nica tion are just one of t he innume rable differences in workplace norms from
around the world. CT Business Travel has put toget her a useful infographic for a quick reference of cult ural differe nces in
business etiquett e globally.
For instance, t he formality of address is a big considerat ion whe n dealing with colleagues a nd business pa rtners from
different countries. Do t hey prefer t it les and surnames or is being on the first - name basis accepta ble? While it can va ry
11
across o rganizations, Asian countries such as South Korea, China, and Singapore tend to use form ai M r./ M s. Surname.''
while Americans and Canadians te nd t o use first names. When in doubt, erring on t he side of formality is gene rally safest .
The concept of punct uality ca n also diffe r between cultures in an international business e nvironment . Differe nt ideas of
w hat constit ut es being 110n ti me" can often lead t o misunderstandings or negative cultural percept ions. For exa mple,
w here a n Am erican may arrive at a m eet ing a few minutes early, an Italian or Mexican coll eague may arrive several minu tes
- or more - aft er the schedu led start- time (and st ill be cons idered "on t ime" ).
Along with differences in etiquette, come differen ces in attit ude, pa rt icularly towards things like workplace confrontat ion,
ru les and regulations , a nd assumed working hours. While some may consider working lo ng hours a sign of com mitme nt and
achievem ent , others may conside r these extra hours a dem onstration of a lack of efficie ncy or t he de prioritization of
essentia l fa m ily or personal t ime.
3. Organizational Hierarchy
Orga nizat ional hierarchy a nd attit udes towards ma nagem ent roles can also vary widely between cult ures. Whe t her or not
those in junior or middle- management posit ions fee l co mforta ble speaking up in meetings, quest ioning senior decisions,
or expressing a differing opinion can be dictated by cultural norms. Ofte n t hese att itudes can be a reflect ion of a coun t ry's
societal values or level of social equality. For insta nce, a count ry such as Ja pa n, which t radit ionally values social hie ra rchy,
relative status, and respect for seniority, brings this approach into t he workplace. This hiera rchy helps to define roles a nd
responsibilities across t he o rgamzatton. 1nts also mea ns t hat t hose m semor management pos1t1ons command respect and
expect a cert ain level of forma lity a nd deference from junior team members.
However, Scandinavia n countries, such as Norway, w hich emphasize societal equality, te nd to have a comparative ly fla t
o rganizationa l hi era rchy. In turn , this ca n mean relat ively informa l com m unication a nd an emphasis o n cooperation across
the orga nization. When defining roles in m ultinatio nal teams wit h diverse attitudes and expectatio ns of o rganizational
hierarc h y, it ca n be ea sy to see why these cu lt ural d iffe re nces can present a challenge.
As pa rt of our mission to become the world's most re levant business school, Hu lt is ded icated to pre pa ring our st udents for
the challenges a nd opportunities of working across borders and cu lt ures. A big part of t his preparation is understa nding the
role culture plays in interna tiona l business. In many ways, the Hult classroom mirro rs today's business environment , with
students of 130 nationalities collaborat ing a nd studying t ogether. And not onl y are our student s mult icult ura l, o ur fa culty is
too. Ma ny have lived, worked, a nd taught across Eu rope, Asia, t he Middle East, and beyond.
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How do People React to Cultural Diffe rences?

10 Tips for Responding to Cultural Differences

1. Keep a n Open Mind

2. l earn to Cope with Failure

4. Maintain a He althy Curiosity

5. Ho ld Positive a nd Rea listic Ex pectations

6. Be Tolera nt of Diffe rences

7. Rega rd Othe rs Positi vely

9. Have a Se nse of Humor

10. Have Fun

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Can we Measure or Graph Cultural Differences?

Ident ifying cultu ral differences

• Communication: Verbal and non-verbal communication

Unce rtainty Avoid ance

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Is it Possible to Change a Culture? If so, how?

The four main ways to influe nce culture

But I thi nk they can a lso incl ude such t hings a s:

• How we speak about people when they're not th ere.

Common symbols might include:

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