Societal &

Corporate Culture
of Pakistan and
USA

Presented to: Sir Aftab Iqbal

 FR
Group Members
Capt (R) Ahmed Farooq Butt PN

Fayzan Ali

M Ammad Khan

Shehryar Khalid

Fahad Mirza
Scheme of Presentation FR
• Culture & Cross Culture
Mr Fayzan
• Societal Culture
• Hofstede’s Cultural Dimension
Mr Hammad
• Societal Culture Differences-US & Pakistan
• Societal Culture Similarities-US & Pakistan
Mr Shehryar

• Corporate Culture
Capt Farooq
• Corporate Culture Differences-US & Pakistan
• Corporate Culture Similarities -US & Pakistan
Mr Fahad
• Summary 3
 What is Culture & Cross Culture
• Culture refers to the lifestyle of a people, including their
ideas, values, knowledge, behaviors, and material objects
that they share
• Society refers to a group of people who are relatively self-
sufficient and who share a common territory and culture
– Society provides the context within which our relationships
with the external world develop
– Cultural preferences vary across societies
• Interacting and communicating with other culture is called
Cross Culture 4
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Societal Culture
“A set of beliefs and values about what is desirable
and undesirable in a community of people, and a set
of formal or informal practices to support the values
Characteristics of Societal Culture:
• Language
• Religion
• Norms
• Laws
• Gender Roles
• Values & Customs
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Societal Culture
“Hofstede’s dimensions of national
cultures provide us not only
understanding of single national
culture but allows to compare
different national cultures as well

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 Hofstede’s Cultural Dimension
• Hofstede dimensions are a good way to understand cultural
differences existing between the USA & Pakistan

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 Hofstede’s Cultural Dimension
• Power distance: The degree of equality, or inequality
between people in a society
• Individualism vs Collectivism: The degree to which people
of a society understand themselves as individuals, as apart
from their group.
• Masculinity vs femininity: the degree the society reinforces
or not the traditional masculine work role model
• Indulgence vs Restraint: Extent to which people try to
control their desires and impulses
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 Hofstede’s Cultural Dimension
• Uncertainty avoidance: The degree to which people in a
society feel uncomfortable in unexpected, surprising and
unknown situations
• Long-term vs short-term orientation: The degree people
attach importance to a future oriented way of thinking
rather than to a short-term oriented one

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Difference in US & Pakistani Societal Culture
Variables Pakistan USA
Power Distance High Low
• Elite symbolize money, power • Individuals feel equal /
and status Equal opportunity
• Blindly obeys superior/elders • Decentralized decision
eg `which school to go making
• People respect hierarchy, • Flat
authority & formalized rituals

Individualism vs. Collectivism Individualistic

collectivism • Joint family system. life is built • Nucleus family / people
within a group. long-term are independent
commitment & loyalty are • Use “I” and “me”
important • Individual achievement
• Use ‘we”, team achievement 10
Difference in US & Pakistani Societal Culture
Variables Pakistan USA
Uncertainty High Low
avoidance • High need for Security • Accept changes and risks
• Avoid Risks • Acceptance for new ideas,
• Maintain rigid codes of belief innovative products
and behavior • Do not require lot of rules
• Intolerant of unorthodox or
new ideas

Long term vs Short Long term Short term

Term Orientation • Long term goals
• Saving money for future
• Tradition oriented
• Reciprocate favors & gifts
• Consumerism &
materialism are accepted
• Importance of short-term
gains and quick results
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Difference in US & Pakistani Societal Culture
Variables Pakistan USA
Indulgence vs Restraint Indulgence
Restrained • Pessimistic • Optimistic
• More controlled & rigid • Importance of freedom of speech
behavior • Focus on personal happiness
• Mistakes are looked • Work hard & play harder. Mistakes are
down upon accepted because lesson is learned

Universalism Particularism Universalism

vs • Focus on relationship • Focus on rules
Particularism • Legal contracts are • Apply rules & systems objectively
readily modified • Legal contracts are readily drawn up
• Apply rules subjectively • A deal is a deal
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Difference in US & Pakistani Societal Culture
Variables Pakistan USA
Religion Islam Christianity (protestants)
• Emphasis on work • Emphasizes hard work, individual
• Employees fulfill their jobs for societal achievement & sense that people
obligation & to seek pleasure of Allah can control their environment

Language High Context Low Context

• Focus more on context, surroundings • Focus on the words, message &
& how words are communicated the content when communicating
• Message cannot be understood • Information is explicitly spelled out
without great deal of background
information

Time • Relative. Time is not important • Absolute. Time is important &

Concept • Appointments are approximate money
• More than one activity • Appointments strictly followed
• One activity at a time 13
Difference in US & Pakistani Societal Culture
Variables Pakistan USA
Dress & • Indication of position in society, • Dress for individual success,
Appearance religious rule wide variety

Food & eating • Eating is a social event • Eating is a necessity, fast food
habits

Sense of Self and • Formal hugs, bows, and • Informal handshakes

Space handshakes

Expression of • Reserved, inward reactions • Visible , external , outward

Reaction reaction
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Similarities in US & Pakistani Societal Culture
Variables Pakistan USA
Masculinity vs Masculinity
feminism • Dominant values in society are success, money and things
• Emphasis on earning and recognition
• High stress workplace

Cultural • Both Countries have diverse culture. US have black, Hispanic ,

Diversity Asian communities and Pakistan has hindu and Christian etc
communities
Festivity • Christmas, Thanksgiving, and Halloween are holidays that are
celebrated with zeal and zest in America. Like wise Pakistan
celebrate Eid and other public holidays
Violence • Violence has affected both cultures. Gun shooting in Schools and
Shopping Malls in America whereas Target killing , murder on
personal animosity or religious difference in Pakistan 15
Corporate Culture

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 Cultural Influence on Corporate
• Studies have shown that national cultural as well as
individual cultures greatly impact corporate cultural
• For example, national culture influences managerial
decision-making, leadership styles and human resource
management practices (Li, Lam and Qian, 2001; Willmott, 2000)
• Similarly, national cultures affect managerial functions such
as communication, motivation, organizational design,
people’s expectations of work design & reward systems
(Lane & Brechu, 1999)

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 Corporate Culture
• Management is about getting things done through other people
• Managers are responsible for making decisions, allocating
resources & directing activities of others to attain goals
• Corporate culture is about the values, rules, practices & norms
through which organizations manage their business operations
• Variables like values, norms, ethical codes, rules, & regulations
etc differ across national cultures & influence corporate
management styles, functions, roles & responsibilities

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 Corporate Culture Determinants
• To compare Pakistani & US Corporate culture following
variables are used to explain difference & similarities of two
cultures:
– Management Style
– Decision making Style
– Staffing
– Control
– Time management
– Role of religion in work place
– Motivation Strategies 20
Differences US & Pakistani Corporate Culture
• Management Style (Autocratic or Democratic) :
– Pakistan
 Autocratic managers do not delegate authority to their subordinates
 Top management control assets and resources. Employee
autonomy is limited, top-bottom communication is minimal and
bottom-up communication is non-existence
– USA
 Democratic Style, delegate authority to their subordinates in terms
of decision-making and resource management

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Differences US & Pakistani Corporate Culture
• Decision Making (centralized vs. decentralized) :
– Pakistan
 Centralized decision-making setup. decision-making is located at
the top due to large power distance
 Managers make decisions and transfer those decisions down to the
lower staff for implementation
– USA
 Decentralized decision-making
 Information sharing, consultation & participating decision-making
are common practices in American organizations. Employees are
expected to be self-reliant
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Differences US & Pakistani Corporate Culture
• Staffing:
– Pakistan
 In hiring, relationships, network & social status play decisive role
quiet often than technical competences of the candidate
 Quota system in some organizations
– USA
 Staffing on academic backgrounds, specialization, experience &
merit only as individual productivity and efficiency are sources of
organizational effectiveness

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Differences US & Pakistani Corporate Culture
• Time Management:
– Pakistan
 Time has no concept and therefore, getting things done on time is
quite impossible. Managers may exercise flexibility in their time
management. Assignments can be accomplished in the last minutes.
Appointments may not be considered as commitments in some
organizations. Being late for an appointment shows that the person is
a boss. Yet, punctuality is expected of foreigners
– USA
 Punctuality, time management & planning are norms of American
corporate. For Americans, time is money and time can be invested
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Differences US & Pakistani Corporate Culture
• Role of religion in the workplace:
– Pakistan
 Prayer break are part of daily office routine particularly zuhr prayers.
Prayer rooms are allocated by organization where employee can offer
prayers
 Extended break for lunch to cover Friday prayers timings plus shorter
office hours during Ramadan
– USA
 Role of religion is non existent. People keep secular views of religion
and being religious is something very personal
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Differences US & Pakistani Corporate Culture
• Training & Development:
– Pakistan
 Employees do not admit their lack of skills openly and so, the areas where
they need improvement is difficult to assess.
– USA
 In US, employees are open about the areas where they need improvement
and they directly communicate it to the trainer
• Employee Orientation:
– Pakistan
 Task and relationship oriented
– USA
 Task oriented
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Differences US & Pakistani Corporate Culture
• Negotiations:
– Pakistan
 Negotiation style is less forceful and more diplomatic. Rely on
developing interpersonal skills to have better deal. Business deals
concluded at times under political pressure
 Business negotiated between two Pakistani companies are generally,
interpersonal negotiations which have already been conducted in a
social setting before the deal enters the boardroom
– USA
 Negotiation styles in USA is forceful, explicit, urgent and result
oriented . Uncomfortable with silence and ignore body language 27
Similarities US & Pakistani Corporate Culture
• Controlling:
 In both cultures, Control is exercised & practiced through
procedures, standards & other formalized control mechanisms such
as management objectives & promotions

• Employee motivation:
– Motivations are generally intrinsic
– Good salaries and other tangible economic/financial benefits keep
employees motivated

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Similarities US & Pakistani Corporate Culture
• Performance Appraisal:
– Both Corporate cultures use performance appraisal as tool for
performance Management. However, frequency of appraisal may vary
• Expat Issue:
– Expat from US & Pakistan may take time to get accustomed to
working environment of host country

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Similarities US & Pakistani Corporate Culture
• Golf:
– Golf is a very popular sport, especially among business executives.
Golf is normally a venue for business deals
• Business Card:
– Business cards are used as a way to exchange contact information for
future reference
• Dress:
– There is a wide range of dress codes in US & Pakistan, depending on
the industry, a person’s position, and the individual company’s policies

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 Summary
• One can conclude that Pakistani Culture(societal & corporate) is a
high context culture whereas US is Low context culture having
following features:

High-Context Culture Low-Context Culture

Establish social trust first Get down to business first

Value personal relations & good will Value expertise and performance

Agreement by general trust Agreement by legalistic contract

Negotiations slow and ritualistic Negotiations as efficient as possible31

THANK YOU

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Societal Vs Corporate Culture
Societal Culture Corporate Culture
1. Values • Learned Early • Broad guidelines which are rooted
• Held deeply deeply in the guidelines of
• Changes slowly with generations organization
2. Originates • From consistency in values • From consistency in practices
3. Participation • Born into it • Socialized into it
• Totally immersed • Partly involved
4. Shared • Shared meaning • Shared behavior
5. Relationship • Unconditional relationship • Conditional relationship
6. Impact on individuals • Great impact • Less impact

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