Cross Cultural Management

What is Culture?
• Culture is acquired knowledge that people use
to interpret experience and generate social
behavior.
• Culture forms values, creates attitude,
influences behavior
 Concept of Culture
• Culture is the configuration of learned
behaviour and result of behaviour whose
component elements are shared and
transmitted among the members of a
particular society
 Elements of Culture
• Culture has normative value. It prescribes Do’s
and Don’ts which are binding on the members
of a society.
• Culture is a group Phenomenon.
• Cultural practices are passed on from
generation to generation
 Education
Political
Language Philosoph
y

Determinants Social
Religion of Culture
Structure
 Level of Culture
• Pervasive and
Dominant Culture
Extends to Whole of
Country
• Varies according to the
Sub Culture
regions in the country

Organizational • Varies from organisation to

Culture organisation
Occ
upa
tion • Established according to the Occupation
al
Cult
ure
 Cultural Sensitivity

• Knowing that cultural differences as well as

similarities exist, without assigning values (i.e.
better or worse, right or wrong) to those
cultural differences.
 Every Manager need to know Cultural differences
among nations in order to be able to…

• Communicate effectively with customers, suppliers, business associates

and partners in other countries and foreign employees (expatriates).

• Conduct negotiations and understand the nuances of the beginning

postures of the other parties into a negotiation.

• Predict trends in social behavior likely to affect the firm’s foreign

operations.

• Understand the ethical standards and concepts of social responsibility in

various countries.
 Every Manager need to know Cultural differences
among nations in order to be able to…

• Build Foster relationships between union confederations and

employee associations require cultural empathy.

• Understand local Government policies and influences it for business

promotion.

• Conduct efficient meetings in different countries and encourage

employees participation in management.

• Understand how people interpret market research an other

information.
 Cross Cultural Management
Cross Cultural Management seeks to
• understand how national cultures affect
management practices
• identify the similarities and differences across
cultures in various management practices and
organizational contexts
• increase effectiveness in global management
 Cross Cultural Communication
• Activities such as leading, motivating, decision making, problem
solving, exchanging ideas and information depends on the
ability of proper communication from one culture to another
• Mistakes in cross-cultural communication often go unnoticed by
the communicators, but these mistakes have the potentials to
cause damage to international relationships and negotiations
 Culture Shock
• Culture shock is a term used to describe the anxiety and
feelings (of surprise, disorientation, confusion, etc.) felt
when people have to operate within an entirely different
cultural or social environment, such as a foreign country.

• It grows out of the difficulties in assimilating the new

culture, causing difficulty in knowing what is appropriate
and what is not.
 Cross-Cultural Preparation
• Cross-cultural preparation involves educating employees
and their families who are to be sent to a foreign country.
• To successfully conduct business in the global market
place, employees must understand the business practices
and the cultural norms of different countries.
 Terminology
• Parent-country national: Employee whose country of
origin is where the company has its headquarters
• Host-country national: Employee from the host country
• Third-country national: Employee who has a country of
origin different from both the parent country and host
country where he or she works
 Cross-Cultural Training Programs

• Major types of cross-cultural training programs

– Environmental Briefings
• Provide information about things such as geography,
climate, housing, and schools

– Cultural Orientation
• Familiarize the individual with cultural institutions and
value systems of the host country
 Cross-Cultural Training Programs
• Cultural Assimilators
– Programmed learning techniques designed to expose members
of one culture to some of the basic concepts, attitudes, role
perceptions, customs, and values of another culture

• Language Training
– Provide information about things such as geography, climate,
housing, and schools
 Cross-Cultural Training

• Field Experience
– Send participant to the country of assignment to
undergo some of the emotional stress of living and
working with people from a different culture

• Sensitivity Training
– Develop attitudinal flexibility
 Cross-Cultural Training Programs
• A variety of other approaches can be used to
prepare managers for international assignments
including:
– Visits to the host country

– Briefings by host-country managers

– In-house management programs

– Training in local negotiation techniques

– Analysis of behavioral practices that have proven most effective

 Cross-Cultural Training Programs

• A variety of other approaches can be used to

prepare managers for international assignments
including:
– Visits to the host country
– Briefings by host-country managers
– In-house management programs
– Training in local negotiation techniques
– Analysis of behavioral practices that have proven most effective