Now we delve into a bit of anthropology as it pertains to what a business manage
ID: 386218 • Letter: N
Question
Now we delve into a bit of anthropology as it pertains to what a business manager needs to know about foreign cultures, their values & mores, and respective business environments. You'll examine social structures, the individual, the group, the family, social stratification and class (in India caste) distinctions
You'll discover World Religions, their respective diets, foods, table manners and their impact on business. Yes, never to do business in Middle East on Friday (businesses closed - the day of Sabbath in Islam). Asians wear white at funerals, not our black. McDonald's learned that India practices Islam in the far north and the balance Hinduism where the cow is sacred. So, no Big Mac; but McMutton. Tough to sell life insurance in Saudi Arabia where fatalism is prevalent in their culture and religion and comes across in business decisions. Why should we plan our business? Events will happen only "If Allah wills it". Buddism - Southeast Asia, Confucianism - China, and Shintoism - Japan.
Spoken & Unspoken (body language) language. The OK sign we use in the US is insulting in Brazil. Be careful, I knew someone who lost a big business deal because of this.
Key element in this chapter is Hofstede's studies of world values in the workplace.
Power Distance: How authority is viewed. We see this in how foreign companies form their organizational management charts. Up & Down or Flat.
Individualism vs. Collectivism: Is the individual more important than the group; or visa versa. In Japan, the group is EVERYTHING."The nail that sticks out; shall be hammered down"
Uncertainty Avoidance: Approach toward risk taking. Aggressive or Conservative?
Masculinity vs. Femininity: More than what you think. Would you prefer as raise or more time-off? We would take the money; the French would take the time off.
Ethnocentrism: i.e. The way we do business in the US in the best way and the only way. Polycentrism: i.e. As a US company we must totally immerse ourselves in the foreign culture where we are doing business.
OK, let me hear your thoughts, comments, or even experiences regarding overseas business culture(s).
Explanation / Answer
The differences in the factors like masculinity, power distance, individualism, future consiousness, indulgence etc, define the way people interact among themselves and with people from different cultures. These factors are essential to know for the organisations that operate across the globe. There is nothing wrong or right in this global scenario. What can be termed as perfectly normal in one part of the world may be highly objectionable in some others. These differences affect the businesses of multinational organisations, where the business leaders are required to study the local culture, ways of communication, ettiquettes at and off the work, social structures, group dynamics and collectivism and its influence on the business etc. to be what it takes to succeed while working in those regions.
The experiences include cultural differences, sometimes to such extent that one risks his /her life by being at a risk of stoned to death while doing business in an Islamic country by violating some norm that bears such horrific sentence. Other experience, rather good, being part of local festivities in a country like India, to boost your sales by establishing a connect with locals, both customers and business people, or being part of a grand social circuit of China to be recognised as "one of them" and gain business advantage, or join a Latin American party and do business as they do.
The crux of discussion is that in order to gain global competitive advantage, an organisation must invest in cultural sensitivity training, a refresher course on the cultural and behavioural aspects of the country where business is moving and developing a global mindset among the employees.
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