Culture, Management style, and Business system Chapter 5

Agenda/Topics To Be Covered

1. Required adaptation 2. The impact of American culture on management style 3. Management styles around the world 4. Gender bias in International Business 5. Business ethics 6. Culture’s influence on strategic thinking 7. A synthesis, relationship-oriented versus information-oriented cultures


What is it? How does it affects you?

1. Required adaptation
–Customs or -A need to and Relates to areas of understand to behavior patterns or a expectations that counterparts customsmet and exclusively for the must be that custom cultural aliensbe locals and from conformed or may wish to conform to which the avoided if or to participate to foreigner is barred. relationship are in butsuccessful. be that are not required.

Cultural exclusives Degree electives of adaptation imperatives

2. The impact of American culture on management style
“master of destiny” viewpoint Wide sharing in decision making Personnel selection and reward based on merit Decision based on objective analysis Independent enterprise as the instrument of social action

t anagemen 3. M e s around th style world

k on ming ecisisioma aking nd d eci n y •Authority a nd d t a •Authori ions d aspirat ives an nt object e obility •Managem ity and m Secur life tance Personal cial accep and so ffiliation A ent achievem d Power an


tyles ication s ommun

tion mmunica ce co ons ace-to-fa F municati com Internet

empo lity and t •Forma -time versus M •P-time e and ronic tim e -polych c tim nochroni mo a si s ns emph io •Negotiat

4. Gender bias in International Business

It is true that in many cultures – Asian, Middle Eastern, and Latin America – women are not typically found in upper levels of management and men and women are treated very differently.

5. Business ethics

The western focus on bribery Bribery: variations on a theme Bribery and extortion Subornation and lubrication Agent’s fees

5. Business ethics: ethically and socially responsible decisions

Utilitarian ethics Rights of parties Justice or fairness

6. Culture’s influence on strategic thinking

How culture influences manager’s thinking about business strategy?

7. A synthesis, relationship-oriented versus information-oriented culture

What is "Culture"?
Culture is the acquired knowledge people use to interpret experience and generate behavior.

High and Low Context
"high context" and "low context" (popularized by Edward Hall) are used to describe broad-brush cultural differences between societies.

Low context refers to:
societies where people tend to have many connections but of shorter duration or for some specific reason

Example: large US airports, a chain
supermarket, a cafeteria, a convenience store, sports where rules are clearly laid out, a motel.

Low context
• Rule oriented, people play by external rules • More knowledge is codified, public, external, and accessible. • Sequencing, separation--of time, of space, of activities, of relationships • More interpersonal connections of shorter duration • Knowledge is more often transferable • Task-centered. Decisions and activities focus around what needs to be done, division of responsibilities.

High context refers to:
• societies or groups where people have close connections over a long period of time Examples: Small religious congregations, a party with friends, family gatherings, expensive gourmet restaurants and neighborhood restaurants with a regular clientele, undergraduate on-campus friendships, regular pick-up games, hosting a friend in your home overnight.

High context
• Less verbally explicit communication, less written/formal information • More internalized understandings of what is communicated • Multiple cross-cutting ties and intersections with others • Long term relationships • Strong boundaries- who is accepted as belonging vs. who is considered an "outsider" • Knowledge is situational, relational. • Decisions and activities focus around personal face-to-face relationships, often around a central person who has authority.

Entering High and Low Context Situations?