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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