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Impact of Culture on Business Communication_FINAL_SecBGrp12

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    Impact of Culture on BusinessCommunication

    Prashant

    105

    Priyamvada

    106

    R. Aravindh

    107

    Rahul

    108

    24/August/2010

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    Agenda

    Defining Culture

    Measuring CultureHofstedes 4-D Model of Culture

    Cultural Dimensions

    Egalitarian vs. HierarchicalIndividualism vs. CollectivismRisk-taking vs. Risk-averseHigh-context vs. Low-contextTask-oriented vs. Relationship-orientedPolychronic vs. Monochronic

    Conclusion

    Q&A

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    ValuesPractices

    Rituals

    Heroes

    Symbols

    Defining Culture

    THINK

    ACT

    MENTAL PROGRAM

    tive programming of the mind that distinguishes the members of one group/ category from a

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    COMMON PROBLEMS

    Measuring Culture

    DIFFERENT ANSWERS

    Relation to Authority

    1

    individual and society

    Ways of Dealing with Conflict

    3

    Conception of the Self

    2

    masculinity and feminity

    control of aggression

    expression of feelings

    Power Distance Index (PDI)

    Individualism (IDV)

    Masculinity (MAS)

    Uncertainty Avoidance Index (U

    4-D

    Four-Dimensional (4-D) Model ofNational Culture

    Long-Term Orientation (LTO)

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    Perception of Relationships

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    Individualism

    niversal validity of certain rulesRelations

    hips target mutual advantage

    Involves management of groups

    Decisions made with employees in group in mind

    Mot

    ivation: Achievement,Autonomy,

    Self-sufficiency

    Centrality of relationshipsRelationships driven by morals

    loyees look after their own interestsInvolves

    management of individuals

    made on the basis of rules and skills only Driven by sense of duty, loyalty,devotion

    INDIVIDUALISTIC COLLECTIVISTIC

    Collectivism

    UK, United States,Australia, Canada

    Taiwan, Mexico,Greece

    Organization defends employee interests

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    Case Study

    A company from UK (highindividualism) is consideringinvesting in Mexico (lowindividualism)

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    Collectivism

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    Perception of Power

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    EgalitarianHierarchical

    Rigid Centralization in placeSubordinates dependent on leaders for directions

    e boss acts as a benevolent autocratStatus symbols are expected and cherished

    Organisations tend to be DecentralizedInterdependence prevails

    The boss acts as a resourceful democratStatus symbols are frowned upon

    HIERARCHICAL EGALITARIAN

    Philippines, Mexico, India,Brazil

    Austria, Israel, Denmark,Sweden, Norway

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    Case Study

    A company from Austria (low powerdistance) is considering enteringinto the Mexican(high powerdistance) market

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    High Power Distance

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    Perception of risk

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    Risk Taking

    Uncertainty normal feature Low Stress

    Few general rulesComfortable in ambiguous situations

    Open to innovation

    Uncertainty: common threatHigh Stress

    Many precise rules and lawsFear ofambiguous situations

    Resistance to innovation

    LOW HIGH

    Risk Averse

    Singapore

    Japan

    FranceIndia

    Denmark

    Greece

    Accepting of other nationalities Trust mostly family and friend

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    Case Study

    A company from France (highuncertainty avoidance) isconsidering investing in Denmark(low uncertainty avoidance)

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    Perception of risk

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    High-Context vs Low-Context

    Japan Germany

    Obscure addresses Detailed postal addresses

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    High Context

    Explicit messagesSpoken words have higher value

    Few general rulesAlso known as Direct/

    Explicit

    HIGH LOW

    Low Context

    Japan

    CanadaMiddle East

    US

    Direct Communicators

    t deal of background informationMore information in context

    Many precise rules and lawsAlso known as Indirect/

    Implicit

    Indirect Communicators

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    High-Context vs Low-Context

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    High-Context vs Low-Context

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    Perception of timeand priorities

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    Monochronic

    One thing at a timeWork time and personal time are separate

    Schedule co-ordinationTime is tangible

    High respect for privacyDeadlines are sacrosanct

    Several things at a timeNot clearly separable

    Interpersonal relation co-ordinationTime is fluid

    Low respect for privacyDeadlines are flexible

    HIGH LOW

    Polychronic

    Germany, USA, UK, Australia India, China, UAE, France

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    Example

    A Canadian conducting business in Kuwait issurprised when his meeting with a highranking official is not held in a closed office

    and constantly interrupted He starts wondering if the official is as

    important as he had been led to believe and

    he starts doubting how seriously his businessis being taken

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    What is the importance of time?

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    One step at a time or several?

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    Perception of objectivityand subjectivity

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    Task-Oriented

    Material Success Objectivity

    Decisive and assertive Task first

    Progress Confrontational

    Caring for others Subjectivity

    Intuitive and Striving Relationship first

    PreservationCompromise and negotiation

    HIGH LOW

    Relationship- Oriented

    Japan, Mexico, Germany, UK Sweden, Denmark, Portugal, Korea

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    Case Study

    A company from Denmark(Relationship Oriented) isconsidering investing in Mexico(Task Oriented)

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    What is more important - rules or relationship?

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    Conclusion

    Culture is shared, intangible and confirmed by others

    Influences management, negotiation and decision-making

    Can make international business difficult or easy

    Organizations are deploying resources internationally

    Cross-border M&A activity has drastically increased

    Organizations should invest in Inter-cultural training of employees

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    Culture is more often a source of conflictthan of synergy. Cultural differences are anuisance at best and often a disaster.

    - Prof. Geert Hofstede

    Culture hides more than it reveals and strangelyenough what it hides, it hides most effectively onits own participants. Years of study have

    convinced me that the real job is not tounderstand foreign culture but to understand ourown.

    - Prof. Edward T. Hall

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    Thank You !

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    References

    1. Culture and Organizations: Intercultural Cooperation and itsImportance for Survival (Software of the Mind) by GeertHofstede

    2. The Silent Language by Edward T. Hall

    3. The Hidden Dimension by Edward T. Hall

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    FAMILY BUREAUCRACY:Parallels an extended family: dominant fatherfigureLess specialization of rolesControl personal supervisionDirect contactHighly centralized decision making

    FULL BUREAUCRACY:The most formalizedOrganization dominated by rules, procedures andhierarchical relationshipsStandardization of the work processPredictability and control

    ADHOCRACY:Flat organizational pyramidPeople can tolerate ambiguity in organizationalrolesLess need for formalized rules and regulationsDistance between managers and workers tends to

    be small

    PROFESSIONALBUREAUCRACY:Standardization of skillsCentralized decision makingOrder and compartmentalization

    Organizational structures

    PowerD

    is

    tance

    Uncertainty Avoidance

    Low

    Low High

    High


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