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Culture ManagementStyle andBusinessSystems Chapter5 McGraw Hill Irwin 2005TheMcGraw HillCompanies Inc Allrightsreserved Introduction Recognizebusinessculture managementvalues andbusinessmethodsandbehaviorsasimportantforsuccessininternationalmarket Thus managementstylehastobeadaptedininternationalmarketing Importanceofdevelopingfriendship humanrelations andattainingaleveloftrustbeforebeginningbusinessnegotiations Knowledgeofforeignbusinesspracticesandsuccessfulbusinessrelations Needtorecognizethatpatternsofthinking localbusinesstempo religiouspractices politicalstructure andfamilyloyalty aredifferentandimpactbusinesstransactions Culture Managementstyle andBusinesssystems Culturaladaptation1 Culturalimperatives2 Culturalelectives3 Culturalexclusives RequiredAdaptation AdaptationisakeyconceptininternationalmarketingTosuccessfullydealwithindividuals firms orauthoritiesinforeigncountries managersshouldexhibit opentolerance flexibility humility justice fairness abilitytoadjusttovaryingtempos curiosity interest knowledgeofthecountry likingforothers abilitytocommandrespect andabilitytointegrateoneselfintotheenvironment CulturalImperatives ElectivesandExclusives Culturalimperativesarethebusinesscustomsandexpectationsthatmustbemet conformed recognizedandaccommodatedifrelationshipsaretobesuccessful Culturalelectivesrelatetoareasofbehaviorortocustomsthatculturalaliensmaywishtoconformtoorparticipateinbutthatarenotrequired Culturalexclusivesarethosecustomsorbehaviorpatternsreservedexclusivelyforthelocalsandfromwhichtheforeignerisbarredandmustnotparticipate Culture Managementstyle andBusinesssystems MethodsofdoingbusinessBecauseofthediversestructures managementattitudes andbehaviorsencounteredninternationalbusiness thereisconsiderablelatitudeinthewaysbusinessisconducted Nomatterhowthoroughlypreparedamarketermaybewhenapproachingaforeignmarket acertainamountofculturalshockoccurswhendifferencesinthecontactlevel communicationemphasis tempo andformalityofforeignbusinessareencountered SeeChap 5PPT9 Culture Managementstyle andBusinesssystem Moreexplanationformanagementstyle DifferencesinManagementStylesAroundtheWorld Threetypicalpatternsexist top levelmanagementdecisions decentralizeddecisions andcommitteeorgroupdecisions SecurityespeciallyoflifetimeemploymentAffiliationandSocialAcceptancebyneighborsandfellowworkersPowerandAchievementOrientationsoughtbymanagersImportanceofpersonal familylifeoverworkandprofit DifferencesinManagementStylesAroundtheWorld AccordingtoEdwardT Hall thesymbolicmeaningsoftime space things friendships andagreements varyacrosscultures Insomecultures messagesareexplicit thewordscarrymostoftheinformation Inothercultures lessinformationiscontainedintheverbalpartofthemessagesincemoreisinthecontext Communicationinahigh contextculturedependsheavilyonthecontextual whosaysit whenitissaid howitissaid ornonverbalaspectsofcommunicationCommunicationinalow contextculturedependsmoreonexplicit verballyexpressedcommunicationsHallplaceselevenculturesalongahigh context low contextcontinuum DifferencesinManagementStylesAroundtheWorld LevelofformalityinaddressingbusinessclientsbyfirstnameLevelofformalityinaddressingyourbossbyfirstnameTempoorspeedingetting downtobusiness Perceptionoftimevariesinmanycultures DifferencesinManagementStylesAroundtheWorld M time ormonochronictime typifiesmostNorthAmericans Swiss Germans andScandinaviansMostlow contextculturesoperateonM timeconcentratingononethingatatimeP time orpolychronictime ismoredominantinhigh contextculturesP timeischaracterizedbymulti taskingandby agreatinvolvementwithpeople ComparisonofM timeandP time P timeM timeDoonethingatatimedomanythingatonceconcentrateonthejobareeasilydistractedandsubjecttointerruptiontaketimecommitmentsconsidertimecommitment deadline schedules seriouslyasanobjectivetobeachieved ifpossibleArelowcontextandneedinformationarehighcontext ArecommittedtothejobarecommittedtothepeopleandhumanrelationsAdheretoplansChangeplansoftenandeasilyAreaccustomedtoshorttermedrelationshiphaveastrongtendencytobuiltlifetimerelationshipAreconcernedaboutnotdisturbingaremoreconcernedwithOtherswithpeopleclosetothem GenderBiasinInternationalBusiness Thegenderbiasagainstwomenmanagersexistsinsomecountries Genderbiasposessignificantchallengesincross culturalnegotiations WomenarenotacceptedinupperlevelmanagementrolesinAsian MiddleEastern andLatinAmerican InternationalBusiness Strategy Management andtheNewRealities 19 Dealvs RelationshipOrientation Deal orientedcultures managersfocusonthetaskathand areimpersonal typicallyusecontracts andwanttojust getdowntobusiness Examples Australia NorthernEurope andNorthAmericaRelationship orientedcultures managersvalueaffiliationswithpeople rapport andgettoknowtheotherpartyinbusinessinteractions relationshipsaremoreimportantthanthedeal trustishighlyvaluedinbusinessagreements Examples China Japan LatinAmericancountries ittooknineyearsforVolkswagentonegotiateanautomobilefactoryinChina BusinessEthics Businessethicsiscomplexintheinternationalmarketplacebecausevaluejudgmentsdifferwidelyamongculturallydiversegroups TheForeignCorruptPracticesAct1997 Imprisonmentforbribery Existenceofdifferentlevelsofcorruption bribery andfraud Corruptionvaryinglydefinedfromculturetoculture Briberycreatesamajorconflictbetweenethicsandprofitability TransparencyInternational http www transparency org whoweareOurvisionAworldinwhichgovernment politics business civilsocietyandthedailylivesofpeoplearefreeofcorruption Culture Managementstyle andBusinesssystem BusinessethicEthicsreferstothemoralbehaviorofpeople firms orgovernments issuesoftenarise ormaybeexacerbated bydeficienciesinlegalsystems Bribery VariationsonaTheme Voluntarilyofferedpaymentbysomeoneseekingunlawfuladvantage Paymentsareextractedunderduressbysomeoneinauthorityfromapersonseekingonlywhattheyarelawfullyentitled Bribery VariationsonaTheme Involvesarelativelysmallsumofcash agift oraservicegiventoalow rankingofficialinacountrywheresuchofferingsarenotprohibitedbylaw Involvesgivinglargesumsofmoney frequentlynotproperlyaccountedfor designedtoenticeanofficialtocommitanillegalactonbehalfoftheoneofferingthebribe involvesbreakingthelaw EthicalandSociallyResponsibleDecisions Areasofdecisionmakingwhereethicalissuesarise employmentpracticesandpolicies consumerprotection environmentalprotection politicalpaymentsandinvolvementinpoliticalaffairsofthecountry andbasichumanrightsandfundamentalfreedoms AFrameworkforEthicalPrecepts Threeethicalprinciplesthatprovideaframeworkfordistinguishingbet
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