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its nuances. Culture analysis involves two divergent themes: y g Culture Universals: There are certain common cultural practices and values across the world. We understand them as we grow and learn about our surroundings e g e.g. Culture Differentials: Most values and practices, however, differ across the world. It is these cultural differentials that complicate decision making for MNCs Differentials involve decision-making MNCs. cross-cultural evaluation e.g. communication style, behaviour, societal traditions.
Culture Analysis Culture Universals: There are certain common cultural practices and values across the world. We understand them as we grow and learn about our surroundings e.g. expressions of love, happiness, sorrow, love happiness sorrow success etc or celebrations of global events like Christmas, New year etc. Universals are characteristics that are used to identify, compare, compare and contrast cultures These are customs and cultures. practices found in every culture. The only difference is that each culture expresses each custom or practice quite differently. Thus, despite being universals, variations may exist even in these cultural symbols.
Culture Analysis
Dimensions of Cultural Universals Basic Needs: All cultures have the basic needs for survival: food, shelter, clothing. Communication & Education: All cultures develop ways to communicate in order to pass on valuable information. Family Structures: All cultures develop a family or kinship organization. organization Belief in the Unknown: Cultures create religions, rituals, and stories to explain life, death and creation Artistic Expression & Leisure: Cultures develop music, dance, rituals and artistic representations it l d ti ti t ti Government: As cultures and tribes get larger, a system of governance is created and monitored. Trade and Economy: Ultimately, as a culture creates abundance of a resource they seek out ways to trade with other cultures for items they need to improve the quality of life.
Culture Analysis Culture Differentials: Most values and practices however practices, however, differ across the world. It is these differentials that complicate decision-making for MNCs. Differentials involve cross-cultural evaluation. Differentials can be evaluated along two evaluation dimensions: Cultural Mix: The extent of homogeneity-heterogeneity (similarity-dissimilarity) (similarity dissimilarity) within a culture It indicates the culture. degree of diversity and differences existing within a culture. Cultural Complexity: The extent of simplicity-complexity within a culture. The amount of background and contextual information that is required to understand a given situation indicates the complexity of a culture. Cultural Mix and Cultural Complexity are interrelated. The more heterogeneous the culture is, the more will be its complexity too.
Cultural Mix Cultural Mix: The extent of similarity dissimilarity within a similarity-dissimilarity culture. Cultural mix is evaluated along a continuum of heterogeneity and homogeneity. Some countries have homogenous cultures while some have heterogeneous heterogeneous. Heterogeneous cultures may involve: Dominant National Culture: Expresses the core values that are shared by a majority of the people in the country Each country. country has its own dominant national values and practices. Subcultures: There could be sub-cultures, regional or minicultures within a country. In homogenous cultures there is little difference in national a d sub cu tu e and sub-culture. In heterogeneous countries like India, ete oge eous cou t es e d a, diversity is high-there is a wide gap between national and regional or sub-cultures, thus making it difficult to analyze and interpret
Cultural Complexity A. Edward Halls High-Context (VS) Low-Context Cultures B. Hofstedes Framework of National Cultures Individualism (VS) Collectivism Power Distance Uncertainty Avoidance Achievement /Masculinity Long Termism Long-Termism C. Deal-Oriented (VS) Relationship Oriented Cultures Deal Oriented Cultures Relationship Oriented Cultures
Halls High-Context (V.S) Low-Context Cultures: High context refers to societies where people have close connections over a long period of time. Many aspects of cultural behavior are not made explicit because most members know what to do and what to think from years of interaction with each other. Low context refers to societies where people tend to have many connections but of shorter duration or for some specific reason. In these societies, cultural behavior and beliefs may need to be spelled out explicitly so that those coming into the cultural environment k h l l i know h to b h how behave. 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 member vs outsider Strong boundaries member outsider Decisions and activities focus around personal face-to-face relationships, often around a central person who has authority. Low Context Rule oriented, people play by external rules More knowledge is codified, public, external, and accessible. Sequencing, separation of Sequencing, separation-of time, of space, of activities, of relationships More interpersonal connections of shorter duration Decisions and activities focus on business
Ways th t Hi h and L C t t Diff W that High d Low Context Differ The Structure of Relationships High Context: Dense, intersecting networks, long term relationships, strong boundaries, relationship more important than task Low Context: Loose, wide networks, shorter term, compartmentalized relationships, task more important than relationship Type of Cultural Knowledge High Context: More knowledge is below the waterline--implicit, covert, patterns that are not fully visible, hard to explain Low Context: More knowledge is above the waterline--explicit, overt, consciously organized and visible
Hofstedes Framework of Values and Cultures Values differ across cultures and so do behaviours behaviours. Low Vs High Power Distance: The extent to which people accept that power is distributed equally (low) or not (high). Individualism Vs Collectivism: The degree to which people prefer to act as individuals rather than in groups. Achievement Vs Nurturing (Masculine or Feminine): Whether people value assertiveness competition success assertiveness, competition, (achievement/masculine) or relationships, welfare, care and concern (nurturing/feminine). Low Vs High Uncertainty Avoidance: Degree to which people prefer structured situations (high) over unstructured situations (low). Long Vs Short Term Orientation: Valuing futuristic approach vs. emphasizing short termed objectives.
Deal/task Oriented Cultures Engineering culture Professional decision-makers Somewhat risk adverse Tend to react to changes Processes d i employees P drive l Tend to lack commitment Based on facts and data
Relationship Oriented Cultures Entrepreneur culture Visionary leadership Risk takers Want to drive changes Employee empowerment E l Strive on organization commitment Based on trust and faith
Japanese Business
Mutual trust-oriented business: business is based on trusting relationship among people rather than the rules of game Highly precision-oriented and perfectionism-high dependency on human awareness Quality-oriented Mid-to-long term evaluations g Job security and committment
Efficiency-oriented and approximate accuracy Quantity-oriented Short-term performance p evaluation Easy layoffs, dismissals of employees, and selling of businesses
Japanese Business
Heavy dependence on human resources bottom-up management High mutual dependence between employers and employees l d l Joint management of business by Employees and Employees
Heavy dependence on human skills and core competence Strong loyalty and motivation
Cultural Awareness and Business Etiquette Around the World Greetings and Introductions Forms of Address Use of Business Cards Gift Giving and Receiving Meetings and Appointments Timing Appearance Negotiations Decision-making Styles of Communication
Cultural Awareness and Business Etiquette Around the World Appointment times, date, annotation and measurements can vary considerably. A meeting i the U i d S id bl i in h United States can b put at 1 00 be 1:00 O clock, while other countries would clock 13:00. The US requires 08/12/2008 or August 12, 2008 for the 12/8/2008. The q g measurements in U.S. are gallons and meters, while many other countries use liters and feet. This may seem like small details, but it could create confusion and misunderstanding misunderstanding.
Greetings and Introductions Kiss, Bow or Handshake In Germany, US and UK always shake hands, firmly but briefly. In Japan, greet with a limp hand shake. In most of Europe, you must shake hands with everyone in the party upon arriving and leaving--do not simply wave hello or good-bye good bye as in US US. In Italy, Mexico, Latin America and in Spain, women may kiss on both cheeks after knowing you awhile. In the Middle East, men often embrace or kiss on the cheeks but maintain distance with women. Arab men and women do not shake hands with each other. In Asia, a man should usually wait for the woman to act before he extends a hand. In China people mingle slowly hence they maintain distance China, slowly,
Forms of Address
In Japan or Chi never use fi t names. S I J China first Surnames are preferred. f d The Japanese often use professional titles in the place of actual names, as an acknowledgment of a person's status e.g. Mr CEO. In Germany, M i always use professional titl after M or M I G Mexico, l f i l titles ft Mr. Mrs. An individual with a Ph.D. should be addressed as Doctor Professor in Germany, France and most European countries. "Madame" i a b i titl of courtesy f "M d " is basic title f t for all women, as i ll is "Monsieur" for men in France. The French will sometimes introduce themselves by first saying their surname, followed by first name. Russians h R i have th three names. Th fi t name i a given name, while The first is i hil the last name is the father's name. The middle name is known as a patronymic. Mr or Mrs before last name is best form of address. In US, I US UK or A t li t ki fi t name i OK P l also h Australia, taking first is OK. People l have abridged names like Bill for Williams.
Business Cards In Japan business cards are extremely important. Present your card with both hands. When you receive a business card spend several seconds studying it and do not write on it or put in your pocket in the presence of the giver. Have one side of your business card translated into Chinese in gold i k H ld th card i b th h d when offering it Chi ld ink. Hold the d in both hands h ff i it, Chinese side facing the recipient. In many parts of the Middle East, you should never use your left hand when giving your business card. When in France, have the other side of your business card translated into French. French business cards are often a bit larger than in many other countries. In US or Europe, business cards are professional and have little detail exchanged casually at the beginning Print your business card in English on one side, and in the language of your host on the other.
Concept of Time
6 5 4 Week ks 3 2 1 0
6 1
New York
2
Geneva
4
So Africa Japan
Negotiations
Negotiation tactics and behaviours also differ from culture to culture. A famous Japanese writer describes United States negotiators as hard to understand. Americans describe Japanese negotiators as finicky. Time orientation Negotiators from polychronic cultures tend to : start and end meetings at flexible times, take breaks when it seems appropriate, pp p , be comfortable with a high flow of information, expect to read each others' thoughts and minds, sometimes overlap talk, view start times as flexible and not take lateness personally. Negotiators from monochronic cultures tend to: prefer prompt beginnings and endings, schedule breaks, h d l b k deal with one agenda item at a time, rely on specific, detailed, and explicit communication, prefer to talk in sequence, sequence view lateness as devaluing or evidence of lack of respect.
Negotiations
Another dimension of time relevant to negotiations is the focus on past past, present, or future. Cultures like Iran, India, and the Far East are categorized by Carbaugh as past-oriented. The United States, he indicates, tends to be oriented to the present and the near-future. Latin America leans toward both p present and past orientations. Indigenous people in North America combine a past- and future-oriented approach to time that stretches seven generations forward and back. Negotiators focused on the present should be mindful that others may see the past or the distant future as part of the present. Negotiators for whom time stretches into the past or the future may need to remember that a present orientation can bring about needed change.
Negotiations
Negotiation tactics and behaviours also differ from culture to culture Timing of stages of negotiations: Some people spend lot of time on non-task activities while some prefer getting straight to the point. Pre-negotiation Pre negotiation In lot of cultures, like Japan, china, India, significant time and energy is spent on preliminary introductions, ice-breaking, getting to know the other party and so on Pre negotiation exchange of greetings etc is common People are not on. Pre-negotiation etc. common. comfortable dealing with a stranger so they spend lot of time asking personal questions and getting familiar. Many a times, the entire outcome of the negotiation process is affected by what happens pre-negotiation. pre negotiation. In America or Europe people come directly to business. No personal questions asked, no elaborate exchange of greetings. Negotiation While in Japan, a lot of time is spent on finalizing a deal, Americans are far quicker. The t l Th styles of negotiation, ti f ti ti time t k and process f ll taken d followed-all diff f d ll differ from culture to culture.
Negotiations
Location of stages Formal vs. informal locations: While some cultures (USA, European) prefer formal locations e.g. office, meeting rooms etc. for a deal, in certain cultures like India it is common to have deals over informal tea, lunch/dinner (sometimes even at home of the host) Number of locations: Americans prefer one or few number of meetings hence number of locations are also one or few. Indians or Japanese spend lot of time on ice breaking etc so multiple meetings at multiple locations are common ice-breaking etc. common. Participants Type of participants: The leader or head may himself prefer to close deals in some cultures, while i some places i may b d l l hil in l it be delegated to representatives. d i Number of participants: Few in western cultures, several in case of India or Japan Influence tactics Aggression: Generally Americans or Europeans are more aggressive than Indians, Japanese or Chinese. Japanese and Chinese are however, considered more shrewd negotiators. Power play: Political pressure, lobbying, canvassing etc for business is common practice in US and is gradually getting common elsewhere too
Decision-Making
Speed of decisions: Quick vs. slow Timing of decisions: polychronic vs. monochronic, past, present or future oriented Time horizon: Long vs short term decisions Info-processing: Objective (data-based) vs. subjective (relationship-based) Risk propensity: High vs low (ambiguity tolerance) Style of decision-making: Rational vs. intuitive y g
Styles of Communication
You can buy in any language, but to sell you have to speak their language Language can be obstacle in business. Just because someone speaks English, one should remember it never is spoken nor understood quite same way as in U.S.A. Verbal communication Language Dialect Accent Choice of words Intonation, it h I t ti pitch, modulation, frequency d l ti f Speed and fluency
Clothes & bodily characteristics: Elements such as physique, height, weight, hair, skin color, gender, odors, and clothing send nonverbal messages during interaction. Physical environment: Environmental factors such as furniture, architectural style, interior decorating, lighting , colors, temperature, music also convey meanings.