Documente Academic
Documente Profesional
Documente Cultură
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BBSB4103
CROSS-CULTURE
MANAGEMENT
Dr Sabariah Yaakub
Dr Nik Abdul Halim
Mohd Haniff Jedin
Nursafinas Mohd Saad
Mustafa Zakaria
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Table of Contents
Course Guide xi- xvi
Answers 197
References 204
viii X TABLE OF CONTENTS
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COURSE GUIDE W xi
INTRODUCTION
BBSB4103 Cross-culture Management is one of the courses offered by the Faculty
of Business and Management at Open University Malaysia (OUM). This course is
worth 3 credit hours and should be covered over 8 to 15 weeks.
COURSE AUDIENCE
This is a core course for Bachelor of Management students and a major core
course for Bachelor of Human Resource Management students. This course is
also an elective course for Bachelor of Business Administration students majoring
in International Business.
As an open and distance learner, you should be able to learn independently and
optimise the learning modes and environment available to you. Before you begin
this course, please confirm the course material, the course requirements and how
the course is conducted.
STUDY SCHEDULE
It is a standard OUM practice that learners accumulate 40 study hours for every
credit hour. As such, for a three-credit hour course, you are expected to spend
120 study hours. Table 1 gives an estimation of how the 120 study hours could be
accumulated.
xii X COURSE GUIDE
Study
Study Activities
Hours
Briefly go through the course content and participate in initial discussion 3
Study the module 60
Attend 3 to 5 tutorial sessions 10
Online participation 12
Revision 15
Assignment(s), Test(s) and Examination(s) 20
TOTAL STUDY HOURS 120
COURSE OUTCOMES
By the end of this course, you should be able to:
1." Explain the cultural aspects which influence the operations and decisions of
organisations;
2." Analyse the situations experienced by organisation managers of different
cultural backgrounds;
3." Review the different concepts and practical aspects of planning,
management, organisation, control and leadership in international and
multicultural organisations;
4." Evaluate value differences that exist in a culture; and
5." Summarise the aspects of culture in the era of globalisation.
COURSE SYNOPSIS
This course is divided into 10 topics. The synopsis for each topic is presented
below:
Topic 2 discusses the cultural spheres of influence. You will learn each cultural
sphere, the competitive advantages created by each cultural sphere, and finally
COURSE GUIDE W xiii
evaluate the various cultural spheres of influence and the complex interaction in
implementing an efficient cultural management.
Learning Outcomes: This section refers to what you should achieve after you
have completely covered a topic. As you go through each topic, you should
frequently refer to these learning outcomes. By doing this, you can continuously
gauge your understanding of the topic.
Summary: You will find this component at the end of each topic. This component
helps you to recap the whole topic. By going through the summary, you should
be able to gauge your knowledge retention level. Should you find points in the
summary that you do not fully understand, it would be a good idea for you to
revisit the details in the module.
Key Terms: This component can be found at the end of each topic. You should go
through this component to remind yourself of important terms or jargon used
throughout the module. Should you find terms here that you are not able to
explain, you should look for the terms in the module.
PRIOR KNOWLEDGE
Learners of this course are required to pass the BDPP1103 Introductory
Management course.
ASSESSMENT METHOD
Please refer to myVLE.
REFERENCES
Deresky, H. (2003). International management: Managing across borders and
cultures. New Jersey: Prentice Hall.
Edgar, H. S. (1997). Organisational culture and leadership. San Francisco: Jossey
Bass Wiley.
Farid Elashmawi, & Haris, R. P. (1998). Multicultural management 2000.
Houston: Gulf Publishing Company.
Hodgetts, M. R., & Luthans, F. (2003). International management: Culture strategy
and behaviour. Boston: McGraw Hill.
Hofstede, G. (1997). Cultures and organisations: Software of the mind. New
York: Mc Graw Hill.
Md Zabid Abdul Rashid, & McLaren, C. M. (2002). Issues and cases in cross-
cultural management: An Asian perspective. Selangor: Prentice Hall.
Schneider, S. C., & Barsoux, J. L. (2003). Managing across cultures. Essex:
Prentice Hall.
Seelye, H. N., & Seelye, J. A. (1995). Culture clash: Managing in a multicultural
world. Lincolnwood: NTC Business Books.
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Topic " "
X Undertow
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of Culture
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" LEARNING OUTCOMES
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" By the end of this topic, you should be able to:
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" 1." Define culture;
" 2." Explain all the elements that constitute culture;
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r" 3." Discuss how culture can give an organisation a competitive
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4." Identify two enduring myths in the direction of culture.
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X" INTRODUCTION
Read the following story.
Ahmad was very excited about his first business assignment, which was in Jordan. He
was going to negotiate a joint venture project in Amman with a company there.
However, upon his arrival at the airport in Jordan, Ahmad became upset because no one
came to pick him up. Instead, he had to take a taxi to his hotel. Ahmad had expected the
Jordanian company to send someone to fetch him like Malaysian companies usually do
for their business partners.
Later, Ahmad had a meeting at 2pm with the representatives of the Jordanian company.
He arrived at 2.10pm. In Malaysia, people usually arrive 10 to 15 minutes later than the
scheduled time. To AhmadÊs surprise, the representatives were already at the meeting
venue and had been waiting there since 1.55pm. Ahmad felt embarrassed and
apologised. He offered a handshake to his business partner but the Jordanian spread out
his hands and gave Ahmad a hug and tried to kiss him on both cheeks. Ahmad felt very
uncomfortable being hugged and kissed by another man while the Jordanian felt Ahmad
was not friendly as he seemed to distance himself when he was about to be hugged.
2 X TOPIC 1 UNDERTOW OF CULTURE
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With these questions in mind, this topic will give you insight into the meaning,
elements, direction and myths about culture, as well as, the relationship between
culture and business.
How do we make a connection between culture and business? How does culture
make an impact on a business organisation? You may wonder about these
questions when you are reading this topic. So, let us find out the role of culture in
business.
Source Definition
Edward (1871) Culture⁄. is that complex whole which includes knowledge,
belief, art, morals, law, custom and any other capabilities and
habits acquired by man as a member of society.
One of the most recent definitions of culture by Luthans and Doh (2009)
refers to culture as the acquired knowledge that people use to interpret
experience and generate social behaviour. This knowledge will form values,
create attitudes and influence the behaviour of individuals or society. To know
more about culture, it is better to look at these characteristics of culture:
(a)" Learned
Culture is acquired by learning and experience, it is not inherited;
(b)" Shared
People as members of a group, organisation or society share a culture;
(c)" Transgenerational
Culture is passed down from one generation to the next;
(d)" Symbolic
Culture is based on the human capacity to symbolise or use one thing to
represent another;
(e)" Patterned
Culture has structure and is integrated; a change in one part will bring
changes in another; and
(f)" Adaptive
Culture can change or adapt according to other cultures.
TOPIC 1 UNDERTOW OF CULTURE W 5
ACTIVITY 1.1
Do an online search on definitions of culture by other scholars. Next,
write your own interpretation of culture. Present your work during
your tutorial.
(a)" Values
Values refer to abstract ideas about what a group believes to be right and
acceptable such as attitudes towards justice, individual freedom, truth,
honesty, loyalty, collective responsibility, role of women, love, sex and
marriage (Hill, 2010). One example of values is a societyÊs attitude towards
same-gender marriage (refer to Figure 1.3). In some cultures, it is acceptable
while in other cultures, it is shameful and even against the law.
6 X TOPIC 1 UNDERTOW OF CULTURE
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(b)" Norms
Norms are social rules and guidelines that prescribe appropriate behaviour
in particular situations (Hill, 2010). Usually, violations of norms are
considered less serious than violation of values. For example, it is a
violation of norms if a Westerner enters the house of an Asian with shoes
on or an Asian eats dinner with his hands in a Western country.
(i)" Individual
The individual culture stresses on individualism and emphasises
personal achievements and social standing of individuals. Success in
this type of culture is determined by performance and achievements.
This type of social structure is usually associated with Western
culture.
(ii)" Group
In some societies, especially in the East, more emphasis is placed on
group orientation. The social status of an individual is determined by
the status of the group the person belongs to. The group could be in
the form of a family, a village, a team or an organisation where people
work. This type of culture encourages members to work together for
the common good of the whole society.
In countries like Japan, people usually work for a lifetime at the same
company because of their close associations with the company.
Japanese managers feel proud to introduce themselves together with
the company they work for, such as „Mr Saito of Fuji‰ or „Mrs
Chiyaki of Sony‰, due to their strong feeling of belonging to the
organisations.
1.3.3 Language
At the mention of language, what comes to your mind? Basically, language
comprises two categories:
1.3.4 Communication
Communication differs across cultures as some societies have the following aspects:
1.3.5 Religion
Now, let us look at this last element of culture. You may wonder why religion is
one of the elements involved in the formation of culture. Let us find out why.
Religion is an element of culture because it shapes the values, ethics and behaviour
of people in a society. There are four major religions in the world: Christianity,
Islam, Hinduism and Buddhism. So how does religion influence culture?
Christianity encourages individuals to work hard and create wealth for the glory
of God. It creates a value system that stresses capitalism. It spurs the
entrepreneurial activities and economic growth in society.
Islam also encourages its people to work hard and seek wealth but reminds its
followers that wealth is temporary in nature. The main objective for Muslims
should be to gain the greater treasure, which is to enter paradise. In Islam, wealth
is a blessing from God and should be shared with the needy by giving donation
and zakat (alms).
ACTIVITY 1.2
1." Briefly explain, using your own words, each of the elements that
constitute culture; and
2." Give one example for each element.
10 X TOPIC 1 UNDERTOW OF CULTURE
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Previously, Malays usually lived in rural areas or villages. But now, many have
migrated to big cities such as Kuala Lumpur in search of better living. This is also
the case with the Chinese and Indian communities. The Tionghuas (a Chinese
ethnic group), who were previously known for engaging in business, now prefer
to be employed by others. On the contrary, some Indians, previously farmers or
rubber tappers, have become successful businessmen today.
According to Schneider and Barsoux (2003), there are two enduring myths in the
direction of culture (refer to Figure 1.6). We will concentrate on one of these
myths in the coming section. The term „global village‰ will be discussed as well
in the following sections.
SELF-CHECK 1.1
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What are the two myths associated with cultural direction?
In the context of culture, the world is described as „getting smaller‰ not due to
physical changes but due to rapid development in the information and
communication network. How do you relate the claim that the world is getting
smaller to the information and communication network? What is the actual
meaning behind this myth?
TodayÊs world is said to be at our fingertips. Just with a click or a phone call, a
person can contact another within a few seconds. The information and
communication network, which includes the telephone, radio, computer,
Internet, satellite and so on, enables you to send and receive information. These
communication gadgets, as shown in Figure 1.7, even allow you to attend a
meeting without having to spend much time and money.
The myth that the world is getting smaller is illustrated in Figure 1.8.
12 X TOPIC 1 UNDERTOW OF CULTURE
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According to Marshall McLuhan (1968), the world today seems like one Global
Village. National boundaries are diminishing and peopleÊs tastes and
preferences are becoming much more similar to one another. This view gives the
impression that everything is becoming the same worldwide, such as eating at a
McDonaldÊs fast food restaurant, wearing Adidas apparel or using an ACER
computer. This means that culture is no longer influenced by societies.
However, all of this is nothing but a myth because the culture of a society is
still preserved no matter where the place is (e.g. China Town). It will only
change according to the preferences of a given time. Furthermore, people tend to
adopt other cultures as long as they are not against the local values and norms.
We can take the United States, for example, as the American society is made of
various ethnic groups from all over the world. These various races and ethnicities,
however, still preserve their own cultures. Take for instance, the existence of
China Town for example, where a majority of the occupants are Chinese
communities. The communities in these China Towns still practise their own way
of life and embrace the Chinese culture even though they have been living in
America for centuries. These people preserve their culture and language so that
they can be more competitive. This shows that there are still a few layers of
cultural barriers that exist which prevent total assimilation of other culture.
ACTIVITY 1.3
There is, however, a contrasting view which says that this universal
management is a myth because there a r e differences i n c u l t u r e s u c h a s
in Malaysia, compared to Portugal or African countries. In fact, the differences
are so obvious due to economic, technological and management gaps. It is not
necessary for the development of an economy, technology and management to
follow either the Western or Asian management practices as each society has
its own management culture identity. If we compare between a Japanese firm
and an American firm, or a French firm with a British firm, we will find out that
various systems such as accounting, marketing, human resource practices,
economic policy and management approaches practised by each firm varies from
one to another.
Rosabeth Moss Kanter, the former editor of Harvard Business Review said that
management practice is not a practice which can be considered totally global. In
her latest research, it was concluded that „the idea of a corporate village
where a common culture of management unifies the practice of business around
the world is more dream than reality.‰
The example shown in the introduction of this topic (Ahmad and the Jordanian)
clearly shows how important cross-cultural understanding is because it can
influence the outcome of a business meeting or negotiation.
In the following sections, we will take an in-depth look at two elements which
play a part in business:
(a)" Culture shock; and
(b)" Competitive advantage.
The ability of expatriates to complete their tasks and assignments depends very
much on their ability to respond and adjust to the local culture. Failure to do so
will result in culture shock, a situation where expatriates feel upset, confused,
disoriented and face emotional upheaval. Those experiencing culture shock
might fail to assimilate into a different culture and return to their home country
without completing their given tasks."
Competitive advantage is defined as an advantage that a firm has over its competitors,
allowing it to generate greater sales or profit margins and retain more customers than its
competitors. There can be many types of competitive advantages such as the firm's cost
structure, product offerings, distribution network and customer support.
Competitive advantage gives a company an edge over its rivals and an ability to generate
greater value for the firm and its shareholders. The more sustainable the competitive
advantage, the more difficult it is for competitors to neutralise the advantage.
(Source: http://www.investopedia.com/terms/c/competitive_advantage.asp)
The Japanese have a concept called Keiretsu. It involves a set of companies with
interlocking business relationships or a strong relationship between the client
and the supplier. This business culture is rarely found because it requires a
strong value of trust between one another. Such a relationship creates a unique
strength which provides competitive advantage for firms, especially in todayÊs
environment which is full of uncertainties and high risks due to issues such as
terrorism, economic crisis, globalisation and e-commerce.
Malaysia has its own competitive advantage through the intervention of the
government in protecting local firms. This is very important because these
firms are still young and need the governmentÊs assistance. For instance,
Proton, the first local car manufacturer, still needs the assistance of the
government to strengthen its operations and management. A good relationship
between these two parties is crucial to create a competitive advantage in
producing the cars.
SELF-CHECK 1.2"
EXERCISE 1.1
1." Who is of the view that culture refers to everything that people
have, think and do as members of society?
A. Geert Hofstede
B. Richard M. Hodgets and Fred Luthans
C. Gary Ferraro
D. Edward Hall
2." There are two main myths with regard to the direction of culture.
Which myth talks about the global village?
A. The world is getting bigger
B. The world is getting smaller
C. Management is management
D. Management is business
3." Japanese organisations are well known for their success. There is
a term used in Japanese organisations which refers to the strong
relationship among clients and suppliers. What is this term?
A. Sogo sosha
B. Chaebol
C. Kumikawa
D. Keiretsu
•" Culture not only can be learned and shared but is also transgenerational,
symbolic, patterned and adaptive.
•" Culture consists of multiple elements such as values and norms, social
structure, religion, language and communication.
X" INTRODUCTION
Have you noticed how Proton, our national car-maker, has a business culture
that is different from the business culture of Royal Selangor, our internationally-
acclaimed pewter producing company? Why should there be differences in the
business culture when both companies are local? You may find the answer by
reading the following paragraph.
In this topic, we will learn about cultural spheres of influence. Each sphere of
influence has its own set of artefacts (such as building and architecture),
behaviour, beliefs and values. These influences can be dealt with through
external adaptation and internal integration. You will also learn how various
spheres can create problems or possibilities for gaining competitive advantage in
businesses which involve businessmen from different cultural backgrounds.
Think of the culture practised by you and your family. There is no doubt that you
have your own culture. You might realise that the culture of people in your
society is somewhat unique and different from that of other societies in the other
areas of your country. This is known as regional culture. Now, let us see what is
meant by regional culture as shown below.
Regional culture refers to the spatially defined communities that share values,
attitudes, opinions, lifestyles, symbols and behaviours that are unique to a
particular community.
22 X TOPIC 2 CULTURAL SPHERES OF INFLUENCES
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Regional culture evolves from time to time. We will look at some of the factors
that result in this evolution as shown in Figure 2.3.
In order to elaborate more on the factors that result in the regional evolution of a
state or country, let us take the example of Perak, the most developed state in
Malaysia after Selangor.
(a)" History
Based on the history of Perak, it was at the peak of development in the past
due to its mining activities and vast resources such as tea plantations and
limestone hills. The British settlement in Perak also brought glory and fame
to the state.
(b)" Politics
Politics in Perak has always been stable due to its loyalty to Barisan
National, the leading political party in Malaysia.
(c)" Economy
Tin-mining, trading, tourism and many other activities have been
developed to make Perak a developed state. PerakÊs evolution mainly lies
in its vast natural resources which have been generating profit and stability.
TOPIC 2 CULTURAL SPHERES OF INFLUENCES W 23
(d)" Language
The stateÊs emphasis on English as one of the languages which need to be
learned has also made Perak more developed than states like Kelantan and
Terengganu which put more emphasis on the Malay language.
(e)" Religion
PerakÊs official religion is Islam, similar to other states in Malaysia. Even
though religion does not play a big role in the evolution of Perak, it helps
Perak deal effectively with other states which have adopted Islam and other
Muslim countries.
(f)" Geography
The state is located strategically along the Straits of Malacca. This
encourages trading activities and the promotion of beaches and islands
located along the straits as tourist destinations for Perak.
Why do you need to know the culture of a given place? Knowing the culture of a
given place will give you a picture of why an industry thrives in certain areas.
Cultural influences according to area can be divided into two categories: within
national borders and beyond national borders.
There are also countries which are divided into two parts, causing cultural
differences. It could be a north-south divide, as in the case of North Korea
and South Korea, or an east-west divide, as in the case of East Germany and
West Germany. South Korea is regarded as more liberal and welcoming to
visitors compared to North Korea which is ruled by a very strict regime and
is quite conservative in dealing with outsiders.
24 X TOPIC 2 CULTURAL SPHERES OF INFLUENCES
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Table 2.1 shows the differences that exist in a country with more than one
division.
Regional culture is always evolving from time to time. There are a couple
of factors that have resulted in this evolution as shown in Figure 2.5.
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Figure 2.5: Regional evolution factors
In order to better understand the points above, look at Table 2.2. It shows
countries distinguished according to particular categories.
26 X TOPIC 2 CULTURAL SPHERES OF INFLUENCES
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Category Countries
Germanic Germany, Switzerland and Austria
Nordic Finland, Norway, Denmark and Sweden
Near East Turkey, Iran and Greece
Arab Bahrain, United Arab Emirates, Oman and Kuwait
Far East Malaysia, Vietnam, Singapore, Taiwan, China, Thailand,
Philippines, Indonesia and Brunei
Latin America Argentina, Venezuela, Mexico, Peru, Chile and Colombia
Latin Europe France, Belgium, Italy, Spain and Portugal
Anglo United States, Canada, New Zealand, Ireland,
Britain, Australia and South Africa
Independents Brazil, Japan, India and Israel
Figure 2.6: The practice of taking off shoes before entering a house
Source: http://gawker.com
TOPIC 2 CULTURAL SPHERES OF INFLUENCES W 27
ACTIVITY 2.1"
1." In your own words, write about the influence of culture within
national borders.
2." Find out whether there are any other factors which may cause the
evolution of a regional culture.
According to Gordon (2001), the industry culture evolves from various sources
such as:
(a)" The industry environment and characteristics such as customer
requirements, competitive environment and societal expectations, and
„right things to do‰ in the industry;
(b)" Strategies, structure and business process developed by management of
organisations in the industry; and
(c)" The outcomes of demand for performance and survival in the industry.
Firms in the banking industry, for example, have a different culture from firms in
the insurance industry. Let us look at the comparison of these two industries as
shown in Table 2.3.
28 X TOPIC 2 CULTURAL SPHERES OF INFLUENCES
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Professional cultures also include the „proper behaviour‰ and distinctive image
of a profession. In the United States and Malaysia, for example, professionals
such as doctors or lawyers are not allowed to advertise their services through the
TOPIC 2 CULTURAL SPHERES OF INFLUENCES W 29
mass media. Professionals also have their own dress code which reflects their
profession.
For example, a doctor wears a white coat and a judge wears a black robe (refer to
Figure 2.8). Professionals also differ in their values and beliefs. For example,
medical doctors and lawyers differ in their missions and methods.
Figure 2.8: Professionals like doctor must adhere to their dress code
Source: http://personalisedgift.org.uk/product/5/277/Personalised-Occupation-
Caricatures-Mechanic.html
ACTIVITY 2.2
We can clearly see the differences when we compare these two divisions:
Which functions are most highly valued is in part determined by the nature
of the industry. In pharmaceutical companies, R&D may be the most
valued. For consumer goods, marketing has the biggest say.
Corporate culture is a blend of the values, beliefs, taboos, symbols, rituals and
myths all companies develop over time. It is influenced by the industry,
business and product of a given company.
The concept of corporate culture emerged in the early 1980s when Americans
tried to follow in the steps of the Japanese to gain competitive advantage. It is
believed that the JapaneseÊs corporate culture was the secret weapon responsible
for the success of Japanese firms.
However, Peters and Waterman (1982) in their book, In Search of Excellence, said
that we do not have to be like the Japanese to achieve excellence. They provided
examples of strong corporate cultures in US companies such as IBM, Disney and
Delta. Many multinational firms focused on strategic planning, structure and
systems in the previous decade. These firms have now changed their directions
and determined their mission and philosophy in order to create greater
coordination and integration.
For example, the late Anita Roddick, who founded The Body Shop,
demonstrated her personal values in her actions through innovation and a
strong sense of social responsibility (see Figure 2.11). Leaders can also
influence and change the culture of a given organisation such as Sir John
Harvey-Jones who changed the meaning of Imperial Chemical Industries
(ICI) to Innovative, Competitive and International.
For example, the Ford Motor Company started with a functional structure
and grew through vertical integration in order to have better control over
supply and distribution. At Ford, control was highly centralised.
Meanwhile, General Motors began with a divisional structure as it was
created by merging several of its subsidiaries and grew through related
diversification.
National culture interacts with corporate culture in ways which may converge to
create opportunities for competitive advantage, such as the corporate culture of
BMW and Audi which is influenced by German engineering, and the culture of
McDonaldÊs which was established in the United States.
34 X TOPIC 2 CULTURAL SPHERES OF INFLUENCES
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Even though corporate culture can provide opportunities, it can also cause
difficulties as shown in the example below.
This huge amount of losses not only brought failure to Disneyland but also made
a long-term impact on DisneyÊs effort to establish itself in a country. The failure
to adapt the corporate culture of an organisation according to the culture of a
particular country not only creates minor problems but can even bring a huge
impact to an organisation, such as illustrated in the Disney example.
ACTIVITY 2.3
How will you apply the five cultural spheres of influence in your
own business?
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SELF-CHECK 2.1
For example, a smart partnership between firms from different countries, cultural
backgrounds and industries allows them to share expertise, technologies and
costs associated with a project. People from different cultural backgrounds
provide a blend of creativity that might not exist if firms work alone.
Let us look at companies which have more than two cultural spheres
incorporated in them and how this helps the companies create a competitive
advantage. One example is Proton Holdings which formed a partnership with
Mitsubishi Motors Corporation. They shared the industry and functional
spheres, which helped them to strengthen their competitive advantage. The
Proton Inspira, a Proton-Mitsubishi car, shows how partnerships between
companies with different approaches but which share the same spheres can
create outstanding products.
However, interaction among spheres can also create problems, as shown below.
ACTIVITY 2.4
In your opinion, will the merging of a bank and an insurance institution
experience the interaction of cultural spheres, therefore creating a
competitive advantage?
Give an example for this merger and post your opinion in the myVLE forum.
36 X TOPIC 2 CULTURAL SPHERES OF INFLUENCES
"
EXERCISE 2.1
Multiple Choice Questions
3." The study done by Ronan & Shenkar (1985) found that cultures
beyond national borders are divided into several categories.
Which among the following is CORRECT?
A. Eastern Europe – France, Belgium and Italy
B. Nordic – Finland, Norway and Denmark
C. Far East – Malaysia, Vietnam and Taiwan
D. Germanic – Switzerland, Austria and Germany
"
TOPIC 2 CULTURAL SPHERES OF INFLUENCES W 37
•" There are five cultural spheres of influence – regional culture, industry
culture, professional culture, functional culture and corporate culture.
•" Professionals such as doctors, engineers, lawyers and judges have their own
culture.
38 X TOPIC 2 CULTURAL SPHERES OF INFLUENCES
"
•" Organisations have different cultural spheres and some might have
more than two cultural spheres. These spheres can bring about changes in
companies and make them more dynamic and productive.
Corporate Professional
Functional Regional
Industry
"
"
"
"
Topic " "
X Exploring
3
"
"
"
Culture
"
"
"
"
" LEARNING OUTCOMES
"
" By the end of this topic, you should be able to:
"
1." Explain the two frameworks of culture;
"
" 2." Discuss the external cultural dimension;
"
3." Elaborate how beliefs and values can lead to organisational success;
"
and
"
" 4." Examine the basic underlying assumptions used by scholars of
" culture and management.
"
X" INTRODUCTION
Imagine you are a businessman trying to market your products in a foreign
market such as Japan. After carrying out an in-depth research about the country,
you feel there are various cross-cultural differences and problems that might
arise when you deal with your potential business partners in Japan. List the
potential problems and think about what you can do to overcome them. Identify
what you have to do to adjust to the Japanese culture, which is known for its
uniqueness. Imagine the effect on your business if you failed to explore and
understand the culture of others.
Let us look at Figure 3.1 which shows one of the possibilities when someone
approaches a person from a different culture.
40 X TOPIC 3 EXPLORING CULTURE
"
You need to realise that culture has a great effect on businesses especially when
people operate outside their home country. Due to cultural differences,
companies are usually cautious about doing business with foreign businessmen.
Knowledge and understanding about the culture of potential business partners
are very important when doing business at the international level. In order to
develop understanding, managers must first conduct research and explore the
culture of potential business partners because their business could suffer great
losses if they make a wrong move.
In this topic, you will learn in detail the framework of culture from two different
dimensions: external and internal. This framework will explain several cultural
dimensions which are very useful for company managers.
behaviours. Underneath the ocean is the internal culture which requires more in-
depth study for better understanding and it consists of beliefs and values. This
framework by Schneider and Barsoux (2003) will assist you in understanding in
detail the dimensions of culture.
"
EXTERNAL
INTERNAL
This framework states that culture has two dimensions as depicted in Figure 3.3,
namely:
Beliefs and values are difficult to assess and need to be inferred through
sophisticated interpretation such as attitude towards women who work.
Each of the aspects involved in both dimensions will be discussed in detail in the
following sections.
3.2 ARTEFACTS
Artefacts refer to anything created by humans which give information about the
culture of its creator and users. It can be discovered easily through the societyÊs
architecture, interior design, dress code, contracts and others. You may begin
learning about the culture of a society by studying and observing the artefacts
and the way of life of its people.
3.2.1 Architecture
The most obvious artefacts that symbolise culture are the architecture and
interior design of a building. A country is not only identified by its people and
government but by its architecture as well. Through architecture, it is possible to
gauge many things about a culture, such as lifestyle, artistic sensibilities and
social structure. For example, when someone mentions India, we will
straightaway think of the Taj Mahal (see Figure 3.4a). Without IndiaÊs unique
culture, would the Taj Mahal be designed that way or would it look different?
The Egyptians are another amazing example as their environment and culture
produced the great pyramids (see Figure 3.4b).
Figure 3.6 shows the different dress codes for men in the following situations:
(a) Leisure – Street wear;
(b) Informal – Casual;
(c) Sporting events such as golf – Business casual;
(d) Office environment – Smart casual;
(e) Business meeting, informal business negotiation – Business/Informal; and
(f) Function – Black tie/Semi-formal.
Let us look at the dress code used by the different countries in Table 3.2.
There are also some firms which encourage their workers to dress in ways that
match the customersÊ style. For example, the employees of Levi Strauss & co. wear
jeans to work.
3.3 BEHAVIOUR
Behaviour refers to the cultural conduct of a particular society and forms the
social characteristics of the membersÊ personality. It covers greeting rituals,
making contact, forms of address, moral norms and rules of religion, folk and
traditional etiquette. These differ from one cultural group to another.
Now, let us take a look at the examples of behaviour in the following sections:
(a)" Greeting rituals;
(b)" Forms of address; and
(c)" Making contact.
For example, let us say an Indian businessman is having a meeting in New Zealand.
As he arrives at the airport, his business counterpart is already there waiting for him.
Instead of the usual handshake, the New Zealander greets the Indian by rubbing his
nose against his. The Indian is shocked as he does not know this is the Maori form of
greeting (refer to Figure 3.7). Now, let us have a look at other interesting examples of
how greeting rituals differ according to society (refer to Table 3.3).
Other greeting rituals include body contact in greeting. Each body movement
reflects the intention of the greeter. Are women supposed to shake hands with
men? Can men embrace or kiss one another? This phenomenon has caused many
misunderstandings among international businessmen. For example, a female
student from Hong Kong was quite distressed when her French male colleagues
48 X TOPIC 3 EXPLORING CULTURE
"
insisted on kissing hello and goodbye. As for Brazilians, shaking hands and
kissing is a farewell ritual known as the abruca (two-armed hug).
In a society where the level of class consciousness is high, for example, titles such
as Professor, Doctor, Your Majesty, Sir and so on must be mentioned during
conversation. Even in Malaysia, students address their teachers or lecturers as
Ms, Madam, Dr or Prof. In the context of Malaysian culture, it is rude to just call
these persons by their name.
The form of address might be different if it is for a friend, family member, elderly
person, business counterpart, teacher and so on. Now, let us look at some of the
ways to address people from Europe, Japan and China (see Table 3.4).
"
Table 3.4: Forms of Address Used in Different Countries
ACTIVITY 3.1
1." Malaysia has moved another step forward with the presence of
many skyscrapers. Discuss how the architecture of a building
can reflect the national culture of a country.
2." Discuss the benefits and insights gained from the framework of
culture.
3." Discuss briefly the external cultural dimension.
Every culture has a different distance of personal space and it is important for
managers to understand it. Do you know the distance preferred by Malaysians
when talking to another person? Do Malaysians prefer large personal space
distance or do they prefer to get very close to each other? Figure 3.8 shows you
an example of how distance is maintained between people.
The topic chosen to be discussed also plays an important role in establishing a good
relationship. For example, French people do not appreciate inquiries into their
personal lives and family circumstances. They consider their professional life and
their personal life as quite separate domains. Topics such as sports, weather and
travel would be suitable when communicating with people from Latin American
countries but avoid discussions on local politics and religion with them.
What about the European, Middle Eastern and American society? How do they
maintain their physical space? Table 3.5 will answer your questions.
SELF-CHECK 3.1
3.4 BELIEF
In contrast to artefacts and behaviour which have been discussed before, belief is
the internal aspect of culture that you cannot directly observe. Let us look at the
definition of ÂbeliefÊ in relation to culture before delving into the explanation
given for it.
Beliefs are the assumptions we make about ourselves and about others, and
about how we expect things to be.
3.5 VALUES
Values are deeply held-ideas about what is good, right, and appropriate. We
accumulate our values from childhood based on teachings and observations of
our parents, teachers, religious leaders, and other influential and powerful
people. Acquired values will eventually influence peopleÊs personal and work
behaviours, decision-making skills, contributions, and interpersonal interactions.
People from different cultures will demonstrate different values.
How do companies communicate their beliefs and values to their workers? The
answer is through their objectives, mission and vision of the company.
Objectives, missions and visions which are clearly employee-centred, will foster
beliefs and values among the workers and they will do their best towards
achieving these goals.
"
Figure 3.9: Elements which form the beliefs and values of an organisation
"
These three dynamic elements are the stakeholders of the organisation namely
the shareholders, employees and customers. Different stakeholders have
different criteria for success. Therefore, beliefs and values differ in terms of what
is considered to be important to the stakeholders, be it product integrity,
technological leadership, market share, customer satisfaction or shareholder
value.
In the United States, a company exists for the benefit of the shareholders. On the
other hand, in Japan, a company exists to fulfil the needs of the customers. While
in Germany, it may be the employees who have the divine rights, such as right to
job security, social welfare and others. These different beliefs and values actually
dictate the relevant corporate success factor in different countries.
"
In order to aid your comprehension, let us observe Table 3.6 which explains how
product quality, technological leadership and market share are relevant to
corporate success in different countries.
TOPIC 3 EXPLORING CULTURE W 53
Stakeholder
Country Corporate Success Factor
Priorities
Germany Product Quality (i)" German companies are known for
producing products with good design and
high quality.
(ii)" Their success is based on product quality and
not profit or market share.
(iii)" They stress on product integrity and customer
satisfaction.
France Technological (i)" For French companies, belief in the
Leadership supremacy of technology is a source of
national pride.
(ii)" Their success in producing sophisticated
technologies is evident: aeronautic and space
industries, nuclear energy, telecommunications
and railways.
(iii)" Their education system supports the high
technology orientation.
Japan Market Share (i)" Japanese companies regard market share as
the road to success.
(ii)" Limited domestic market encourages emphasis
on the customer and searching for markets
abroad.
(iii)" For example, HONDA and SONY have
many branches abroad in order to secure
cheaper production resources and manpower.
"
Figure 3.10: Key dimensions of culture
Source: Schein, E. (1997)
"
Kluckholn and Strodbeck conclude that the value orientation as suggested by the
other researchers can be grouped into five important value orientations in society
and they are:
(a)" Relationship with nature;
(b)" Human activity;
(c)" Human nature;
(d)" Relationship with people; and
(e)" Relationship with time.
"
Let us take a look at the explanation provided for each of the value orientations.
Let us look at a study by Douglas McGregor (1960) which is related to this human
nature orientation. According to McGregor, there are two types of workers:
(a)" Theory X (Evil); and
(b)" Theory Y (Good).
SELF-CHECK 3.2
1." Explain how beliefs and values can lead to success for an
organisation.
2." What are the five value orientations that exist in society?
ACTIVITY 3.2
EXERCISE 3.1
Multiple Choice Questions
1." The framework of culture is divided into two dimensions. What
are these?
A. Basic assumptions and artefacts
B. External and internal cultures
C. Interpretation and basic assumptions
D. Beliefs and values
•" Exploring culture is not an easy task. Many aspects must be studied and
examined as cultures differ from one country to another.
•" The framework of culture is divided into two dimensions – external and
internal.
•" The framework of culture can assist in identifying the level of culture:
whether it can be seen physically such as dress codes, or cannot be seen
physically such as customs and beliefs.
India, on the other hand, the buildings are more artistic and use statues as
decoration.
•" In any given culture, values and beliefs play a big role, particularly in leading
companies towards success, such as producing quality products and using
modern technology.
•" There are basic value orientations which play an important role in exploring
culture.
•" These orientations, which are derived from several studies on culture,
include relationships with time, nature, people, human activity and human
nature.
X" INTRODUCTION
Read the following case study.
In the early 1990s, Chrysler had terrible customer service and press relations, with a
history of innovation but a current reputation for outdated products. Its market share
was falling, and its fixed costs and losses were high. Bob Lutz, then the president,
wanted Chrysler to become the technology and quality leader in cars and trucks; a clear,
globally-applicable vision. A programme of cultural change, Customer One, was built
around it.
The results were impressive as overhead was cut by $4.2 billion in less than four years,
the stock price quadrupled and the company reversed its slide into bankruptcy and
became profitable. A completely new and competitive line of cars or trucks has appeared
each year since. New engines produce more fuel economy and power as new cars
provide more comfort, performance and space. They did this with the same people but
by working in different ways.
(Source: http://www.toolpack.com/culture.html)
"
62 X TOPIC 4 CULTURE AND ORGANISATION
"
Based on the case study, can you answer the following questions:
(a)" What is the meaning of „an organisational culture‰?
(b)" Why is organisational culture so important, especially to a firm?
(c)" Does organisational culture differ among firms?
(d)" Should organisational culture follow national culture?
You will be able to find the answers by reading through until the end of this
topic.
So, let us find out what this topic is all about. It highlights the meaning of
organisational culture. Studies on organisation management from across the
world have shown that there are unique national differences from one country to
another in terms of organisational culture. We will discuss several views of
culture and structure as well as value dimensions which influence organisational
structure and processes. We will also discuss the definition, features and
categories of corporate culture.
-Gareth Morgan
"A pattern of shared basic assumptions that the group learned as it solved its
problems that has worked well enough to be considered valid and is passed
on to new members as the correct way to perceive, think and feel in relation to
those problems."
-Edgar Schein
(Source: http://www.organizationalculture101.com/definition-of-organiz
ational -culture.html)
"
"
"
TOPIC 4 CULTURE AND ORGANISATION W 63
(b)" Norms
Norms are reflected by things such as the amount of work to be done and
the degree of cooperation between management and employees.
(d)" Philosophy
A philosophy relates to how employees and customers should be treated in
an organisation.
(e)" Rules
Rules dictate the dos and donÊts of employee behaviour relating to areas
such as productivity, customer relations and inter-group cooperation.
"
64 X TOPIC 4 CULTURE AND ORGANISATION
"
Among these arguments which specifically discuss culture and structure are the
following:
(a)" The culture-free (Etic);
(b)" The structuralists (Emic); and
(c)" The culturalists.
You can find the detailed explanations of all these arguments in Table 4.1.
Culture and
Explanation
Structure Argument
For example:
The Aston studies conducted in the 1960s in the United
Kingdom state that size is the most important factor
influencing structure. Larger firms tend to have a greater
division of labour and more formal policies.
"
TOPIC 4 CULTURE AND ORGANISATION W 65
"
Figure 4.1: HofstedeÊs value dimensions
"
Now, let us explore these four value dimensions identified by Hofstede in the
following sections.
"
"
"
"
"
66 X TOPIC 4 CULTURE AND ORGANISATION
"
Table 4.2: Differences between Countries with High and Low Power Distance
Countries with High Power Distance Countries with Low Power Distance
Centralised decision-making. Decentralised decision-making.
Have many hierarchy levels of Have flatter organisation structures.
organisation structures.
Power and status are motivating factors. Smaller proportion of supervisory
personnel and promoting empowerment.
People blindly obey the orders of their Encourage and promote cooperation
superior. between people at different levels.
When it comes to power distance, how does Malaysia fare? Malaysia scores the
highest in power distance with an index score of 104. This explains the reason
workers in Malaysia have very high respect for their superiors. Table 4.3 shows
the index scores obtained by other countries in terms of their power distance.
"
TOPIC 4 CULTURE AND ORGANISATION W 67
4.4, there are differences between countries having low and high uncertainty
avoidance.
Table 4.4: Differences between Countries with High and Low Uncertainty Avoidance
"
68 X TOPIC 4 CULTURE AND ORGANISATION
"
Individualism/
Countries Index Score
Collectivism
Panama 11 Low/High
Indonesia 14
Thailand 20
Malaysia 26
Great Britain 89 High/Low
Australia 90
United States 91
"
TOPIC 4 CULTURE AND ORGANISATION W 69
Table 4.8: Differences between Countries with High and Low Masculinity/Femininity
"
70 X TOPIC 4 CULTURE AND ORGANISATION
"
ACTIVITY 4.1
Let us look at how decision making is made in countries which differ in their
emphasis on power and hierarchy:
"
TOPIC 4 CULTURE AND ORGANISATION W 71
How fast a decision is made also depends on the culture. Table 4.10
shows the timeframe of decision making between the Japanese and the
Americans.
If you refer to Table 4.5, you will realise that Japan scores very high on
HofstedeÊs uncertainty avoidance dimension. This explains the detailed study for
each proposal by the Japanese, unlike the Americans. The American manager
will complain about the „slowness‰ of Japanese managersÊ decision making
while the Japanese managers will think that American managers make decisions
hurriedly.
(a)" Theory Y
When workers are seen as capable and self-directed, the level of control will
be low.
"
72 X TOPIC 4 CULTURE AND ORGANISATION
"
(b)" Theory X
When workers are seen as lazy and require direction, the level of control
will be higher.
"
Planning also differs from one culture to another. In the United Kingdom, for
example, planning practices are more strategic, more long-term with more
participants in the process. In France, on the other hand, planning is more short-
term with fewer participants involved in the process.
Some believe that best practices can be transferred anywhere. This is because
they consider management as universal. This might be the rationale behind the
WestÊs rush to copy Japanese management practices and the current attempt by
"
TOPIC 4 CULTURE AND ORGANISATION W 73
ACTIVITY 4.2
"
This will include how different departments or functions relate to one another in
the production process, the line of communication established between
management and departmental employees, and rules governing acceptable
conduct of everyone who is part of the company. This basic organisational
"
74 X TOPIC 4 CULTURE AND ORGANISATION
"
For example, when employees are provided with ways to make suggestions that
could improve the productivity or the general working environment of the
company, it can be said that the corporate culture is inclusive, as it allows for free
communication between everyone employed by the business.
As with many types of cultures, corporate culture usually involves some rites or
rituals. This can be something as simple as annual holiday bonus, a week in the
summer when the entire company shuts down or even the naming of an
employee of the month (refer to Figure 4.2). These rites help to bond people
together and provide some sense of collective identity, which is very important
to the creation of a positive corporate culture (http://www.wisegeek.com/what-
is-corporate-culture.htm).
"
"
(a) Summer holiday (b) Naming of the employee of the
month
Figure 4.2: Rites conducted by companies
Source: http://holiday.turkeyvacation.info/
http://www.cafepress.com
"
"
TOPIC 4 CULTURE AND ORGANISATION W 75
Source Definition
Greenberg & A cognitive framework consisting of attitudes, values,
Baron (1997) behavioural norms, shared beliefs and expectations.
Clemente & Collective thoughts, habits, attitudes, feelings and patterns of
Greenspan (1999) behaviour.
Ahmed et al. (1999) Material or behaviour which has been adopted by a society
(corporation, group, or team) as the accepted way of solving
problems.
"
In other words, corporate culture based on values, assumptions, attitude and
belief will be reflected in the process and routine of organisations, language used,
symbols, logos and artefacts found in organisations. Thus, corporate culture can
be considered as a set of behaviours, rules or norms which can be used to control
or determine the behaviour of employees in an organisation.
"
76 X TOPIC 4 CULTURE AND ORGANISATION
"
"
Figure 4.3: Corporate culture categories
(a)" Academy
In the academy category, employees are exposed to various types of works
so that they can be transferred to any division within the organisation. This
culture is usually found in new companies where employees share jobs and
incentives.
(b)" Club
The club category focuses more on adjusting the employees in the
organisation. Employees regard the organisation as their home and co-
workers as family. Work is done through subcultures in the organisation.
(d)" Fortress
This category is concerned primarily with survival. The employees work
independently and seldom interact with co-workers. This culture is
normally found in law firms and organisations which are reducing the
numbers of employees.
"
TOPIC 4 CULTURE AND ORGANISATION W 77
SELF-CHECK 4.3
What are the four categories of corporate culture? Explain briefly
each of the categories.
"
However, it is not only firms which do business at the international level that
encounter workforce diversity nowadays, as culturally different workers can be
found even in domestic-based firms. For example, a Malaysian firm usually
consists of different ethnic groups such as Malays, Chinese, Indians and other
groups as shown in Figure 4.4. This different ethnicity creates workforce
diversity in an organisation.
"
"
78 X TOPIC 4 CULTURE AND ORGANISATION
"
"
Figure 4.5: Different ethnicities
Source: http://www.benetonproperties.com/
"
TOPIC 4 CULTURE AND ORGANISATION W 79
Let us take a look at the advantages of cultural diversity as shown in Table 4.12.
Aspe Advantages
t
Marketing Increases the ability to respond to cultural preferences of local markets.
Resource Increases the ability to recruit employees of different national
acquisition backgrounds, and host country elites.
Cost Reduces cost incurred by turnover of non-home country managers.
Problem-solving Improves decision-making through wider range of perspectives and
more thorough critical analysis.
Creativity Enhances creativity through diversity of perspectives and less
emphasis on conformity.
System flexibility Enhances organisational flexibility and responsiveness to
multiple demands and changing environments.
"
Diverse teams, in meetings, come up with broader solutions. With a workforce
which is more diverse, productivity will be enhanced. Among the benefits of
using cultural diversity is that it creates systems flexibility. Learning about
other cultures gives us the ability to understand and analyse other
cultures. It means being able to assess views of our own and othersÊ culture, to
evaluate the effectiveness of interaction and to develop strategies for dealing
with differences.
"
80 X TOPIC 4 CULTURE AND ORGANISATION
"
Figure 4.5 shows a non-verbal cue expressed by the former president of the
United States, George W. Bush.
"
"
Figure 4.5: Non-verbal cue
Source: http://crosswordcorner.blogspot.com
"
TOPIC 4 CULTURE AND ORGANISATION W 81
SELF-CHECK 4.4
"
82 X TOPIC 4 CULTURE AND ORGANISATION
"
EXERCISE 4.1
Essay Questions
1." State the school of thoughts on culture and structure. What are
the differences between these views?
2." This culture is considered as the set of behaviour and norms that
can be used to control the behaviour of all employees in the
organisation.
"
"
TOPIC 4 CULTURE AND ORGANISATION W 83
3." In what type of culture are people more willing to accept the risks
associated with the unknown?
A." Masculine
B." Individualism
C." High Power distance
D." Low uncertainly avoidance
"
•" The views which form the structure, systems and processes of an
organisation are the culture-free (etic) argument, structuralist (emic)
argument and the culturalist argument.
•" The value dimensions identified by Hofstede are power distance, uncertainty
avoidance, individualism/collectivism and masculinity/femininity.
•" Four categories of corporate culture are academy, club, baseball team and
fortress.
Academy Fortress
Baseball team Individualism
Club Masculinity
Collectivism Power distance
Culturalists Structuralists
Culture-free Uncertainty avoidance
Femininity
"
"
"
"
Topic " "
X International
5 Manager
"
"
"
"
"
"
" LEARNING OUTCOMES
"
" By the end of this topic, you should be able to:
" 1." Explain the roles of an international manager;
"
" 2." State three categories of culture shock reactions;
" 3." Examine three phases of cultural adjustment;
"
4." Analyse the skills and abilities needed to manage cultural
"
differences; and
"
" 5." Examine the strategies required to help managers in the transitional
" period.
"
X" INTRODUCTION
Read the following story:
The productivity level of the workers is very far behind that of their American
counterparts. The workers union is so strong that any action he takes towards the
problematic workers will result in a strike. At the individual level, John finds it
hard to adjust to the Mexican lifestyle. The food is too spicy, the public
transportation uncomfortable and the people at the market cannot communicate
in English. All these things are making him upset. The thought of leaving and
returning to the United States is growing stronger by the day.
TOPIC 5 INTERNATIONAL MANAGER W 85
After reading the story, you may have formed some of these questions:
(a)" What is NashÊs problem?
(b)" How can a successful manager such as Nash face these kinds of difficulties?
(c)" How can he avoid such problems?
As you may be aware, big companies need people who are capable of
representing them in the international market. They need people who can
expand and manage their businesses at the global level. These people are known
as international managers or commonly known as expatriates. It is not an easy
job, as it requires someone with skills and in-depth knowledge of management
systems and cultures of foreign countries. Adequate physical and mental
preparation are also necessary to avoid failure.
(c)" Inpatriates
Managers from the host country or third countries recruited to work in the
home country. This group is also known as inpatriates.
- Tacitus
TOPIC 5 INTERNATIONAL MANAGER W 87
You may have heard another quote that says talented individuals are not born
but made. The same goes for international managers. They are not born but
groomed through proper training. However, there are some existing traits of
people that can determine whether a person can become a good international
manager. International managers must act based on the current situation and
take into account the source of problems in making a decision. Listed below are
some traits of a good international manager:
-Kalvaro Oberg
Why does culture shock happen? Culture shock among international managers
occurs when they find that life in a foreign country is not like what they had
expected. The environment in a foreign country might be very different from
their home country. These differences will make it difficult for them to adjust and
might lead to various traumas and conflicts.
Furthermore, they will experience stress, worry and depression easily, making it
difficult for them to control situations. They will feel unable to perform their
duties and become dependent on others. This problem can be solved if
international managers are given initial training such as performing short-term
international tasks in a foreign country in order to give them brief exposure to
the culture of a particular country.
You may ask whether culture shock happens to managers only. Under certain
circumstances, the family members of the managers such as their spouse and
children will also experience culture shock. The spouse might find it hard to
communicate with neighbours if they speak a different language or might feel
lonely as there are no family members or friends to talk to. The children might
find it hard to adjust to the new environment.
Basic facilities, education system and the surrounding community which are
different will make it quite difficult to adjust. Most times, the spouse and
children are the main reason why international managers fail to perform their
duties effectively.
TOPIC 5 INTERNATIONAL MANAGER 89
There are also expatriates who are asked to return home although they have yet
to complete their term abroad. They are asked to come back as they fail to
perform their assignment due to the reasons shown in Table 5.1:
They are not happy with the international assignment, sometimes due to lack
of support from the headquarters.
The manager or family members fail to adjust to the new culture and local
setting.
The manager has neither motivation nor interest in carrying out the
international assignment.
For example, if an American manager who has never been to India is assigned to
work there, he will feel awkward in the beginning due to the differences in
infrastructure such as inadequate public transport, poor hygiene, spicy food,
different religious practices and different daily customs from those practised in
the United States.
These differences will cause stress to international managers. The attitude of the
managers will change as they start to feel frustrated, angry and unable to control
themselves. The psychological signs which indicate that the managers are
experiencing culture shock are stress, anger, loneliness, fear of being deceived
and suspicion. These differences and stresses will cause the managers to react
consistently with the culture shock they are facing.
Let us look more closely at the three culture shock reaction categories as shown
below:
(a)" Withdrawal
In this category, managers will demonstrate an aggressive reaction such as
rejecting the new culture, being aggressive and angry. This situation is
classified as encapsulator culture, where managers will have the following
contacts:
Truly global leaders need a set of core values that will guide them in
whatever environment they may find themselves.
"
- Kets de Vries
"
"
As you may be aware based on the above saying, in a different cultural
environment, international managers must change their attitude and behaviour
in order to adjust themselves. They must have knowledge of the management
system from the perspective of their own culture as a basis to face problems
which might arise in foreign cultures. Without knowledge and adequate
preparation, managers will easily experience culture shock which is a main factor
in the failure of an international manager.
Do you know that adjustment to a particular culture can make a difference in the
success or failure of an international manager? Cultural adjustment is a very
important process for an international manager. If adjustment is not made, the
mission of achieving the international assignment objective will fail.
Happily ever after Period of gradual adjustment to the new environment (also
known as the adjustment stage which is followed by the mastery
stage)
However, after facing the problems hands-on, they discover that it is not an
easy task, after all. The situation becomes even more complicated and
confusing if the problems affect their values and principles. All the
symptoms of culture shock, as discussed before, will start to appear at this
stage. Those who fail to cope with the pressure will eventually give up and
return to their home country without completing the assignment.
94 X TOPIC 5 INTERNATIONAL MANAGER
"
At the same time, the managers might also gain more knowledge on the
culture and language of the foreign country. The relationship with the
foreign workers might improve. Since the managers are now able to adjust
to the culture and lifestyle, it means they have undergone cultural
adjustment and managed to assimilate into the new culture successfully.
ACTIVITY 5.1
Read the following:
Before going for the dinner, your colleagues advise you to take
a souvenir for to the Chinese official because according to
them, the Chinese culture requires you to give a souvenir to
build trust and friendship. You do not agree because you see
the gift as an act of bribery which goes against your values and
principles.
SELF-CHECK 5.1
According to Scheneider and Barsoux (2003), there are seven skills and abilities
which are needed to manage cultural differences in a foreign country as can be
seen in Figure 5.2. Each of the skills will be elaborated in the following sections.
Perhaps, you may have experience of conversing with foreigners. For example,
when those whom you think do not know the Malay language suddenly say
„Selamat pagi‰ or „Apa khabar‰, you will feel impressed with them. Likewise, if
you were assigned to work in China and greeted the locals in Mandarin, they will
be impressed with your ability. If you do not want to try to use their language,
it will be difficult for you to gain the trust and respect of the local workers.
TOPIC 5 INTERNATIONAL MANAGER W 97
SELF-CHECK 5.2
Motivation to live and work abroad is a key ingredient for the successful
adaptation of expatriates and their families. They should be selected based on
genuine interest in other cultures and enthusiasm to gain new experiences.
A positive ego will reinforce the ability to handle stress, particularly in critical
situations, when the manager is far from the headquarters. All uncertainties and
frustrations of international experiences need to be appropriately handled. If the
chosen manager is someone with a high mental resistance, he or she will be able
to face all problems rationally.
TOPIC 5 INTERNATIONAL MANAGER W 99
For example, if you attend a formal event in which alcohol is served as the main
drink and you do not consume such drink for the reason of religion, then you are
not obliged to do so. The reason is that it goes against your cultural values and
personal principles. Muslims for example, are admonished from taking alcohol
as it is against the religion.
Adjusting oneself can be made easier by preparing a profile on both the foreign
and home cultures. From here you will be able to identify the cultural similarities
and differences and form a basis for international management. However, in
reality, the international manager should not depend totally on the information
gained through reading and training. This is because the clash of culture can be
handled through negotiation which requires your skills to be modified and
adjusted from time to time.
to adjust themselves easily and interact effectively with the workers and
community of the host country.
There are six types of cross-culture training programmes which can be provided
to managers who have been selected for international assignments. Apart from
possessing the technical skills and abilities mentioned in Subtopic 5.5, these
training programmes will help managers to adjust their attitude and
behaviour in order to be able to perform their international assignment
successfully. These programmes are:
5.8 REPATRIATION
Most expatriates will return to their home country after spending two or three
years abroad. Firms usually stress on training for expatriates before they leave for
an overseas assignment but overlook the importance of preparing the same
expatriates for re-entry into their home countryÊs organisation. Upon returning to
their home country, managers might face another problem, which is adjusting their
families and themselves to the home countryÊs culture, as well as returning to their
old job.
Regardless of the reason for their repatriation, many companies fail to make the
necessary planning to assist managers in re-adjusting themselves to the setting of
the home country. Many managers feel that the position given to them upon their
repatriation is a demotion as they are not given the opportunity to use their
experience abroad, and they have not been informed clearly about their new
position. Some of them even tender their resignation immediately upon their
repatriation.
Studies have also shown that the following are the main causes of why managers
sometimes quit the organisation upon their return:
•" International managers might argue about their duties in the foreign country
when they feel that their identity and belief are threatened.
•" Accepting or adjusting to a new culture does not mean that international
managers will lose their personal values and identity.
•" The personal values and identity of international managers are considered an
important guideline which can be used when facing difficulties during their
assignment abroad.
•" The success or failure of the international manager depends on the training
and personal abilities and skills.
•" While technical skills are needed, the ability to manage workers of different
cultural background, to control oneself and to cope with uncertainties is far
more important.
•" If all these abilities are integrated with technical skills, the international
manager will be able to handle whatever problems in any new environment.
"
X" INTRODUCTION
What do companies such as Shell, Tesco, INTEL, Microsoft, Procter & Gamble,
Unilever, Honda, Sony, Hyundai, Nokia, Proton and Allianz have in common?
Can you spot the similarities between them? Basically, all of them are few
examples of true global organisations as shown in Figure 6.1.
Based on the term „global organisation‰, the following would be the questions
asked in order to enhance our knowledge on global organisation:
(a)" Can you determine the birthplace of these companies?
(b)" Why did they become global organisations?
(c)" How did they survive in various countries with different cultural
environments?
108 X TOPIC 6 GLOBAL ORGANISATION
"
"
This topic will discuss why global organisations, more commonly known as
multinational corporations (MNC), are important and how they manage and
adjust their operations according to the local environment. We will also look at
some strategies used in managing cultural differences and how to gain
competitive advantage from cultural differences across nations.
Now, let us move on to find out the strategies employed by the multinational
companies in managing cultural differences.
However, it is not really easy to find a company which uses cultural differences
to create competitive advantage. The „ignore, minimise‰ and „fully utilise‰
strategies have implications for relationships between headquarters and
subsidiaries as well as for managing conflicting demands for global integration,
local responsiveness and organisational innovation.
Let us look in depth at each of the strategies used to manage cultural differences
in the coming sections.
Companies assume that policies and practices developed in the home country are
readily transferable. The host country subsidiaries feel that they have to maintain
product quality to uphold customer service and technological standards, and
ensure that the corporate culture is shared by all employees. Such companies
might even create their own training centres or universities to inculcate the
necessary management practices and behaviour, core beliefs and values.
110 X TOPIC 6 GLOBAL ORGANISATION
"
"
Figure 6.2: EmployerÊs lack of awareness
TOPIC 6 GLOBAL ORGANISATION W 111
As you may realise, this ignorance towards cultural differences may lead the
management to implement standardised procedures in all host countries. Indeed,
there are multinational companies which succeed although they do not pay
much attention to cultural differences. In fact, their competitive advantage is
derived from this standardised way of operating worldwide. This may be
particularly true in industries which are engineering-driven, such as oil or
construction, or rely on high technology such as telecommunications.
You need to realise that sensitivity towards cultural differences and willingness
to solve related problems are only considered important for the purpose of
improving communication among one another. Companies like Coca-Cola (refer
to Figure 6.3) are able to sell standardised products worldwide because people
around the world prefer the same original taste of Coke and there is no need for
any product customisation to local taste and preferences.
The assumptions of „one best way‰ means that management practices just
require fine-tuning for optimal effectiveness. A study of eight foreign
acquisitions of US firms found that while cultural differences were easy to
identify, they did not seem to have important operational consequences.
112 X TOPIC 6 GLOBAL ORGANISATION
"
ACTIVITY 6.2
For example, Sony sends managers from their subsidiary in Malaysia to Japan to
learn the latest Japanese quality practices in manufacturing. However, success is
not always guaranteed as non-Japanese managers, even those who speak fluent
Japanese, are not able to develop the necessary personal network. They also
would never really be able to understand the Japanese way of doing things.
Local managers would not have the essential experience that is needed to build
relationships and understand management processes. While these approaches
may take into account national cultural differences, they aim to assimilate these
differences into an overriding corporate culture. Efforts to create a strong
corporate culture in order to reduce cultural differences often meet with
resistance because the parent company culture remains dominant.
SELF-CHECK 6.1
What are the ways to reduce cultural differences?
"
(d)" Implement the Polycentric Approach between the Headquarters and
Subsidiaries
Another way of minimising the impact of culture is to isolate the different
cultures, thus, avoiding clashes between the two. This approach reflects
apolycentric approach to headquarter-subsidiary relations, where each
subsidiary has the autonomy to make operating decisions. In other words,
the parent company determines what has to be done and the local
subsidiary is free to do it as it sees fit, provided targets are met.
European managers often complain that they spend most of their time
gathering information for the head office and that they are judged solely on
results without concern for local conditions. They also complain that this
leads to an obsession with numbers and short-term thinking.
Do you realise that one of the key concerns that must be addressed is preserving
the autonomy of each partner? Clearly, boundaries between sectors and nations
are becoming less distinct. Companies can engage in joint ventures or strategic
alliances with other companies worldwide, sometimes even with rival
companies. Both joint ventures and strategic alliances will result in a new entity,
which will make use of the best cultural aspect from all parent companies to
create its own organisational culture.
towards either the home country or host country, top managers consider the
organisation's goals, plans and performance from a broader, worldwide
perspective.
The best managers, regardless of their nationality or location, are selected for the
assignments that fit their skills and abilities. The various units are connected by a
coordinated plan that allows for local needs and actions in the context of overall
organisational performance. Although this is the most complex of the three
international management approaches (ethnocentric, polycentric and
regiocentric), managers who apply geocentric management can make the most
effective use of their resources, regardless of origin or location, and achieve the
highest possible overall performance.
(Source:http://www.blurtit.com)
"
Top management in this type of organisation openly talks about cultural issues
and encourages each team to define its own culture. Expatriates are chosen based
not solely on job competence but on being adaptable and having a sense of
adventure and good problem-solving skills. Support is provided before and after
expatriation by outside consulting firms. Training is provided based on the needs
of expatriates and organisations. The training itself is globalised, using methods,
materials and trainers from different cultures.
"
SELF-CHECK 6.3
How does one establish closer relations between headquarters and
subsidiaries by fully utilising cultural differences?
"
TOPIC 6 GLOBAL ORGANISATION W 119
EXERCISE 6.1
Essay Questions
1." What is the best model to understand how firms fully utilise
cultural differences in international business?
A." Strategic alliances and joint ventures
B." Training and internship
C." Observation and argument
D." Franchising and licensing
•" They have to adopt several new approaches to ensure that the organisation is
not faced with any problems. Cultural differences have various effects on
organisations.
•" Companies could totally ignore, minimise or fully utilise cultural differences
for their own benefit.
•" Companies that ignore cultural differences will bring their work culture and
ethics to other countries without considering the cultural differences.
•" There are several ways to reduce cultural differences, such as:
–" Creating a corporate culture;
–" Assigning senior management from the parent company;
–" Providing intensive training to the local workers;
–" Implementing the polycentric approach between the headquarters and
subsidiaries;
–" Using standardised systems and procedures;
–" Creating regional headquarters;
–" Producing global products; and
–" Encouraging global cooperation through structural mechanism.
• Global organisations that fully utilise cultural differences use geocentric
management, which involves a global view of the organisation's international
operations, rather than orienting themselves towards either the home country
or the host country.
• Managers must act wisely in handling problems if the organisations want to
preserve harmony among members of the group and in the organisations.
"
"
TOPIC 6 GLOBAL ORGANISATION W 121
Ethnocentric Polycentric
Geocentric Regiocentric
Global
"
"
"
Topic " "
X Leadership
7 Across
"
"
"
"
"
"
Cultures
"
" LEARNING OUTCOMES
" By the end of this topic, you should be able to:
"
" 1." Explain the term „leader‰;
" 2." Explain different leadership styles and behaviour across cultures;
"
" 3." Compare leadership practices in different countries; and
" 4." Analyse three types of leaders.
"
X" INTRODUCTION
Managers nowadays cannot escape from working with people from different
cultural backgrounds as globalisation and regional integration increase. Even
firms that do not have businesses abroad might face challenges in managing a
culturally diverse workforce. This creates a need for leaders who are well-versed
in cross-cultural management and its impact on the workplace.
7.1 LEADERS
Good leaders are made not born. If you have the desire and willpower, you
can become an effective leader. Good leaders develop through a never-ending
process of self-study, education, training and experience
- Jago, 1982
Now, what do you understand from the above quote? Well, it says that in order
to become a leader, you need to be willing and make the effort to be an effective
leader.
What is meant by the term „leader‰? Leaders are people who hold a dominant or
superior position within their field, and are able to exercise a high degree of
control or influence over others. Leadership can be defined as the process of
influencing people to direct their efforts towards the achievement of some
particular goal or goals (Luthans & Doh, 2009). In the context of global business,
leaders are those who have the ability to inspire and influence the thinking,
attitudes and behaviour of people everywhere in the world (Deresky, 2007).
124 X TOPIC 7 LEADERSHIP ACROSS CULTURE
"
SELF-CHECK 7.1
What are the definitions given for the term „leader‰?
"
"
Figure 7.2: Styles of leadership
"
Figure 7.3: Leaders involving workers in decision making
Source: www.techlearning.com
You need to realise that even though participative leaders encourage group
members to participate, they retain the final say over the decision-making
process. Group members feel engaged in the process and are more motivated
126 X TOPIC 7 LEADERSHIP ACROSS CULTURE
"
and creative. This leadership style is normally used when managers have part of
the information and employees have other parts.
The leader is not expected to know everything and this is why decision-making
is shared with more knowledgeable and skilful employees. Using this style is of
mutual benefit as it allows employees to become part of the team and allows
managers to make better decisions. This kind of leadership is usually associated
with managers from technologically-advanced countries such as the United
States, the United Kingdom and Scandinavian countries.
However, the leader is still responsible for the decisions made. This is used when
employees are able to analyse the situation and determine what needs to be done
and how to do it. Leaders will only make important decisions based on the pre-
determined set of priorities and at the same time, will delegate certain tasks to
the employees.
Using this leadership style does not mean that the leaders can blame others when
things go wrong. Instead, this style is used when leaders fully trust and have
confidence in the people below them. Leaders should not be afraid of using this
style. However, it must be used wisely.
Usually, this leadership behaviour satisfies some employee needs, and in turn,
subordinates tend to exhibit loyalty and compliance. While this style can be
effective in situations where group members are highly qualified in an area of
expertise, it often leads to poorly defined roles and a lack of motivation. Studies
have shown this behaviour can be seen throughout Latin America.
ACTIVITY 7.1
(a)" What do you think is the leadership style of the manager at your
workplace?
(b)" Is your managerÊs style the best or should it be changed? Discuss
with your classmates.
TOPIC 7 LEADERSHIP ACROSS CULTURE W 127
SELF-CHECK 7.2
Explain briefly the different leadership styles that exist across
cultures.
American leaders are able to use this style, specifically in the decision-making
processes. There are four types of participation approaches:
(a)" Quality circle;
(b)" Self-directed work teams;
(c)" Quality of work-life programme; and
(d)" Scale on gain-sharing plans.
128 X TOPIC 7 LEADERSHIP ACROSS CULTURE
"
While most Japanese organisations are highly hierarchical and rigidly organised,
the leaders have an outstanding concern for the personal lives of their
subordinates. Trust plays a vital role as most Japanese leaders leave their
subordinates with a set of instructions and it is up to them to carry out the work.
Most Japanese managers believe that their employees are so motivated by
teamwork that they want to share in the responsibility for attaining group goals.
Thus, Japanese workers seek opportunities to participate in the management
process. In terms of decision-making, they similarly acknowledge the consensus
of everyone particularly during extensive consultation.
best practices with Chinese wisdom and this is one of the most important
differences that has led to business leadership success in Chinese companies
today.
"
Figure 7.4: Influence of Chinese communist ideology
Source: http://www.andyross.net
"
Many Western leadership best practices are imported to China because they have
been proven in the West. But they often fail in China unless they are modified in
some ways. An example of this is the empowerment concept. This Western
concept is always mentioned in Western leadership books. It works very well in
a Western environment where employees are looking for more independence
from their bosses and „ownership‰ of their jobs. In China, however, a society
founded on Confucianism, where hierarchy is advocated and roles are clearly
defined, empowerment needs some explanation before it can be applied
effectively.
"
Figure 7.5: Top-down approach used by Middle Eastern leaders
Not only are leadership attitudes in many Middle Eastern countries highly
authoritative, their organisational structures are bureaucratic, over-centralised
with authority and power unequally distributed at the top. This results in a slow
business environment, with lots of time taken to make decisions or get approval
for projects.
Decisions are made only at the highest levels. Performance evaluation and
control are informal, with routine checks on performance. This is due in part to
the fact that personnel policies depend on personal relationships. Contacts and
social networks are more important than finding the strongest candidate through
more formal channels.
general statement, most evidence indicates that European managers tend to use a
participative approach (Luthans & Doh, 2008).
However, the results of the Globe project state that organisations in Latin
America tend to value the following:
(a)" Flexibility to face uncertainty;
(b)" Vertical hierarchy;
(c)" Work groups;
(d)" Good personal relations over performance;
(e)" Management with masculine characteristics; and
(f)" Short-term results.
ACTIVITY 7.2
"
Figure 7.6: Types of leaders
Let us look at the explanation given for each type in the following sections.
The transactional leader will create clear structures to indicate what is required of
their subordinates, and the rewards they will get for following orders.
Punishments are not always mentioned but they are well-understood and formal
systems of discipline are usually in place. When work is allocated to the
subordinates, they are considered to be fully responsible for it, whether or not
they have the resources or capability to carry it out. When things go wrong, the
subordinates are considered to be personally at fault and punished for their
failure (just as they are rewarded for their success).
Charismatic leaders use a wide range of methods to manage their image and, if
they are not naturally charismatic, may tirelessly practise developing their skills.
They may engender trust through visible self-sacrifice and taking personal risks
in the name of their beliefs. Charismatic leaders will always show these traits:
(a)" Inspire great confidence in their followers;
(b)" Very persuasive; and
(c)" Make very effective use of body language and verbal language when
communicating.
"
"
"
"
"
134 X TOPIC 7 LEADERSHIP ACROSS CULTURE
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ACTIVITY 7.3
Essay Questions
"
"
"
"
TOPIC 7 LEADERSHIP ACROSS CULTURE W 135
•" Leaders are people who hold dominant or superior positions within their
fields and are able to exercise a high degree of control or influence over
others.
•" Leadership is the process of influencing people to direct their efforts towards
the achievement of some particular goal or goals.
•" Behaviours and styles of leaders may be divided into three commonly
recognised styles – authoritarian, participative and delegative.
Authoritarian Leadership
Charismatic Participative
Delegative Transactional
Leaders Transformational
"
"
"
Topic " "
X Cross-Cultural
8 Communication
"
"
"
"
"
"
" LEARNING OUTCOMES
"
" By the end of this topic, you should be able to:
" 1." Differentiate between cross-culture communication and
" normal communication;
"
" 2." Apply procedures and guidelines which must be observed in cross-
" culture communication; and
" 3." Explain six cultural variations that exist in several cultures in cross-
" culture communication.
"
X" INTRODUCTION
Read the following situation:
Honda introduced its new car "Fitta" in Nordic countries in 2001. If they had
conducted cross-cultural marketing research, they might have discovered that
"Fitta" was an old vulgar word used to refer to a woman's body part in
Swedish, Norwegian and Danish. In the end, they renamed it "Honda Jazz". In
another example of cross-cultural communication issues, even pictures or
symbols are not interpreted the same across the world. Once, staff at the
African port of Stevedores saw the "internationally recognised" symbol for
"fragile" (the broken wine glass picture) and presumed it to mean a box of
broken glass. They decided not to waste space and threw all the boxes into the
sea.
Do you know that many companies from around the world are now conducting
their businesses across the borders of their countries in order to gain more profits
or raw materials? The increase in multinational operations requires company
managers to communicate with their counterparts from different parts of the
world. How to properly communicate with people from other countries is an
important consideration nowadays, as failure to do so will result in embarrassing
TOPIC 8 CROSS-CULTURAL COMMUNICATION W 137
mistakes just as the example of the Honda car and the African port workers. The
word „communication‰ originates from the Latin word ÂcommunicareÊ
which means to share views, hopes or knowledge with others. In this topic, we
will discuss how culture influences the process of global communication.
"
Figure 8.1: Levels in the communication process
"
Each communication process level is explained in Table 8.1.
Communication Explanation
Level
The information to be conveyed to the receiver is identified by
Thought
the sender.
Encoding The sender converts an idea into words or expressions.
The sender identifies the suitable channel of transmission:
Channel
verbally, in writing or gestures.
ACTIVITY 8.1
"
Let us look at the elaboration for each of these guidelines in the coming sections.
(i)" Empathy
It is the ability to understand and somehow feel the emotions of
others.
Apart from the skills mentioned above, language skills also play an
important role in the process of cross-culture communications.
Although English is now considered the main medium of
communication in international business, the ability to speak the
language of the receiver is an advantage to the speaker. Such ability
will create a more pleasant atmosphere and show that you are serious
in doing business together.
TOPIC 8 CROSS-CULTURAL COMMUNICATION W 141
ACTIVITY 8.2
"
SELF-CHECK 8.1
As illustrated in the quote, willingness to accept new cultures does not mean that
managers must change the values from original culture and totally practise a
different culture. Instead, they must create cultural awareness within themselves.
Awareness of social values of a given society will enable managers to understand
how others think and act, factors which promote the behaviour, attitude and
142 X TOPIC 8 CROSS-CULTURAL COMMUNICATION
"
For example, businessmen from Malaysia doing business in Japan must adjust
themselves to the practices of their Japanese counterparts and vice-versa. But
when they are in their own countries, they will return to the practices of their
own cultures.
practised in a given country or culture. This is to ensure that the managers will
not commit any mistake which might damage their reputation and jeopardise the
chances of getting a potentially profitable business opportunity.
SELF-CHECK 8.2
1." What are the procedures and guidelines which must be observed
in cross-culture communication?
2." Based on what you have read, how can you apply these
guidelines?
"
Figure 8.3 lists six cultural variations in the communication process. These
variations influence the outcome of the communication process and will be
discussed further in the following sections.
"
"
Figure 8.3: Cultural variations in the communication process
144 X TOPIC 8 CROSS-CULTURAL COMMUNICATION
"
Let us look at the example below in order to get a clearer picture of what
this means.
The culture of the American people is very different from that of the
British. Although both use the English language, their culture differs. It is
the same for the Spanish language which is used by 21 countries in Latin
America due to colonisation. It is not accurate to assume that the cultures
of these countries are similar to each other or are similar to the Spanish
culture.
"
Although differences in terms of verbal language can be dealt with by using
the English language, problems such as different dialects, idioms, proverbs
and slang may make it difficult for the other party to understand the
intended message. In fact, a word may carry different meanings in different
cultures. Even in English, there are many obvious differences in the
meaning of English words used by people from different countries as
shown next.
TOPIC 8 CROSS-CULTURAL COMMUNICATION W 145
Do you know that a word from one language when translated into another
language might also result in a funny or negative meaning? Multinational
companies are among the guilty parties who commit such translation
errors.
Let us look at the hilarious meanings derived from the words used in the
advertisement as shown in Table 8.2. The translation errors damaged the
reputation of the companies shown below.
Word Used in
Company Meaning in Local Language
Advertisement
Figure 8.4 shows the logo of KFC which says ÂItÊs finger lickin good!Ê. This
is one of the advertisement examples which can mean different things to
different people.
146 X TOPIC 8 CROSS-CULTURAL COMMUNICATION
"
There are many forms of non-verbal communication which share the same
meaning in some cultures, such as nodding the head to mean agreement.
However, nodding carries a different meaning in other cultures. You have
to be careful with your body language as some non-verbal cues might carry
a negative meaning in another culture.
Facial expressions, hand movements, how you walk, sit down, touch
something and look may carry different meanings for different people.
What follows are some examples of cultural variations in non-verbal
communication:
(i) Turning your thumb upwards means „OK‰ in Malaysia and most
other countries. However, in Australia, Greece and Italy, the „thumbs
up‰ sign is an insult.
(ii) Colour can also give different meanings in different cultures. Black,
for example, reflects prestige and happiness in the United States. In
China, it reflects death, grief and misfortune (refer to Figure 8.6).
148 X TOPIC 8 CROSS-CULTURAL COMMUNICATION
"
ACTIVITY 8.3
To further enhance your understanding of cultural variation, provide
several variations of non-verbal communication which exist between
Malaysian and European cultures.
This is prevalent among Westerners, where in their cultures, time must not be
wasted. All tasks, activities or appointments are scheduled properly so that time
can be fully utilised. Each task carried out must be completed within a specified
TOPIC 8 CROSS-CULTURAL COMMUNICATION W 149
period. Those who are brought up in such cultures are educated from the very
beginning about the importance of punctuality. Failure to observe a deadline or
to be punctual for an appointment is the wrong thing to do, and the person is
considered undisciplined as shown in Figure 8.7.
Have you ever heard that in Germany and Japan, arriving late is considered as
rude and unacceptable? The Americans emphasise punctuality very much, too,
and it plays a very important role in their daily lives. Thus, it is normal for them
to feel stressed and uncomfortable when they have to wait for someone who is
late for an appointment. In some other cultures, however, failure to observe
punctuality is not considered a serious mistake and is quite commonplace as
shown below.
Being 30 minutes late might be considered as „too much‰ in the United States.
However, it is a normal thing in South America and many developing
countries. In fact, if you want to set an appointment with an executive from
Brazil at noon, you must indicate clearly that the time meant is noon
„English time‰. If you do not indicate so clearly, the Brazilian executive will
show up any time between noon and 2pm.
During discussions, those who are concerned about time will strictly discuss
business and would not be interested to have leisurely conversations in order to
save time. Such behaviour might be construed as rude by their business
counterparts; particularly those from Asian countries who tend to begin
discussions by talking about family, current and personal affairs first. The
objective is to establish better relations and a friendly atmosphere before
discussing a much more serious business issue. As a result, the discussion will
take more time than what is expected by those who are concerned about time.
150 X TOPIC 8 CROSS-CULTURAL COMMUNICATION
"
ACTIVITY 8.4
1." Have you ever been asked „the Malay time‰ or the „English time‰
when making an appointment?
2." How do you relate such question to the culture of time?
3." How do you rectify negative nuances with relation to punctuality
and culture?
Hence, burping is a sign of appreciating the efforts of the host who served you
the food. In such cultures, failing to burp might be considered as a sign that you
do not appreciate the food or that you are implying the food is not appetising.
For Asians, eating using hands is common. Westerners, however, might feel
uncomfortable using their hands because they are not used to it or are
unsure whether it is hygienic. Another important rule to know is that when
eating with the French, do not change the position of the fork and spoon
from one hand to the other as doing so is regarded as rude and impolite.
TOPIC 8 CROSS-CULTURAL COMMUNICATION W 151
given privately such as at dinner parties or while playing golf and not during
meetings or formal discussions.
The type and colour of gift may also reflect different meanings. Gifts which
come in white are normally avoided in many Asian countries as they
symbolise death. The type of hamper or gift which is suitable for all
cultures are chocolates, books or items which can be used in the office.
Giving alcoholic beverages as a gift in countries where Muslims form the
majority population must be avoided as it goes against their religion.
How people greet and welcome their guests is important as it will create a
first impression and build relationships. People of most cultures greet
guests with a hand shake, light embrace or both. However, there are also
cultures which have their own unique way of greeting guests with the hope
that they will respond in a similar manner.
As depicted in Figure 8.10, the Japanese people, for example, will greet a
person by bowing. Thais do it by putting their hands together and saying
„Sawasdee‰ which means „welcome‰. Arabs, on the other hand, greet each
other with an embrace and cheek-to cheek kissing, while the Maoris of New
Zealand rub noses.
TOPIC 8 CROSS-CULTURAL COMMUNICATION W 153
Figure 8.10: Greeting rituals of the Japanese (left) and Thais (right)
For example, in the Middle East, people of the same sex stand much closer to
each other than North Americans and Europeans, while people of the opposite
sex stand much further apart. Japanese men stand four or five feet apart when
154 X TOPIC 8 CROSS-CULTURAL COMMUNICATION
"
Figure 8.11 shows how gender plays a role in peopleÊs preference to stand closer
to or apart from each other.
Please refer to Table 8.3 on the comparison about appropriate distances when
talking in different countries.
in terms of dress code, dining ethics and others which are common practices in
European countries and the United States.
In general, a business visitor to a foreign country should dress well. Men should
dress in a suit and tie in most foreign countries. Businesswomen who go to an
Islamic country should wear dresses with slightly lower hemlines than in the
West and with the shoulders and arms covered to the wrists as depicted in
Figure 8.12. As a visitor, managers are also expected to be patient, punctual and
not overly demonstrative in personality or mannerisms.
"
Figure 8.12: Proper attire for women managers when doing business in a
Muslim country
SELF-CHECK 8.3
1." What are the six cultural variations that exist in cross-culture
communication?
2." Explain briefly each of the variations.
156 X TOPIC 8 CROSS-CULTURAL COMMUNICATION
"
EXERCISE 8.1
Essay Question
X" INTRODUCTION
Read the following situation:
George Mason, who is from the United States, was in India to have a negotiation
with Dharmendra Choudhury who is his new business colleague. Choudhury,
who used to study in California, watches American football and listens to rock
music and speaks excellent English. All this made Mason think Choudhury is just
like any American. During the negotiation, however, things did not go really well.
It even came to a screeching halt as Choudhury decided to take a break during the
negotiations.
What was the problem? Both parties had different perceptions of the negotiation
process and misinterpretations of the otherÊs behaviour. For Mason, negotiation is
about pushing through a quick deal. When Choudhury took a lot of time asking
about his family and life, Mason became increasingly impatient and pushy in the
meetings. Choudhury interpreted this with suspicion and assumed that Mason
was pulling a trick on him. He thought there was something not right and
therefore, he needed some more time to study MasonÊs proposals. Though the
negotiations concluded successfully, it took a longer time than Mason initially
anticipated.
TOPIC 9 NEGOTIATION ACROSS CULTURES W 159
The above example shows how cultural differences are often ignored by both
parties in a negotiation and how it affects the process itself. It is said that over
two-thirds of the effectiveness of a negotiation is determined by non-verbal
communication. Body language, as shown in the above example, provides
valuable insight into a person's feelings and attitudes. Gestures and facial
expressions can communicate diverse emotions and attitudes. They are, however,
often misleading due to the marked cultural differences in the use and
interpretation of non-verbal cues.
Do you agree that the above quote shows that negotiation is more effective
compared to confrontation? This is because finding a solution can be accepted by
all parties rather than finding a way to fight. Basically, negotiations are
conducted to solve a problem or conflict between two parties or to find an
alternative to an existing problem.
In this topic, we will discuss the process and important factors to be considered
in a cross-cultural negotiation. This is followed by explanation on the best
negotiation strategy to ensure success and some discussion on various styles of
negotiation among people from different countries.
160 X TOPIC 9 NEGOTIATION ACROSS CULTURES
"
ACTIVITY 9.1
Some negotiations are successful while others are unsuccessful.
Let us explore each of the stages involved in the negotiation process in the
following sections.
TOPIC 9 NEGOTIATION ACROSS CULTURES W 161
9.1.1 Preparation
You can never overstate the importance of proper preparation for cross-cultural
negotiations. Distinct advantage can be gained if negotiators familiarise
themselves with the entire context and background of their counterparts because
most negotiation problems are caused by misinterpretation of the other partyÊs
culture, language and environment.
Do you know that there are several variables which must be studied by
managers in this planning process? These findings can help managers
understand the deep-rooted cultural and national motivations and traditional
processes underlying negotiations with people from other countries. Table 9.1
illustrates several variables which must be considered when planning a
negotiation.
Source: Weiss, S. E., & Stripp, W. (1985). Negotiation with foreign business persons: An
introduction for Americans with propositions in six cultures. New York University
Faculty of Business Administration
After developing profiles of the other parties, managers should find out as much
as possible about the kind of demands that might be made, the composition of
the „opposing‰ team, and the relative authority that the members possess. With
these three things, you will be able to predict what the negotiators want and
determine the aim of the negotiation process.
This approach is well understood in the United States but it can be disastrous if
the foreign negotiators want to take some time to build trust and respect as a
basis for negotiating contracts. In such cases, American efficiency does not go
well with the Asian laidback approach in developing a mutually trusting
relationship, which is the cornerstone of an Asian business agreement.
An intermediary is someone who already has the trust and respect of the the
foreign negotiator.
You may wonder how people from different countries make their presentations
or channel their queries during a negotiation process. To satisfy your curiosity,
Table 9.2 will show the characteristics of negotiators from different nationalities.
9.1.4 Persuasion
Do you know that the persuasion stage can be considered as the hardest to
implement? Typically, both parties try to persuade each other to accept more of
their position and to give up some of their own. Often, some persuasion has
164 X TOPIC 9 NEGOTIATION ACROSS CULTURES
"
already taken place beforehand in informal social settings and through mutual
contacts. This will facilitate the actual negotiation and help in reaching an
agreement quickly.
Based on a research in the United States, better end results are attained by
starting with extreme positions. After a long process of bargaining, both parties
will agree on a certain concession that benefits both parties. If not, the negotiation
is considered as having failed and another round of negotiation might be needed
if both parties are still interested in doing business with each other.
ACTIVITY 9.2
The Japanese culture is very unique and different from other
cultures. Based on your knowledge of Japanese culture and society,
list the main reasons they rely on trust and understanding and not on
contracts in reaching a mutual agreement in negotiations.
TOPIC 9 NEGOTIATION ACROSS CULTURES W 165
"
Figure 9.2: Intercultural negotiation factors
9.2.2 Decision-making
How the business counterpart chooses to negotiate and conduct decision-making
must be studied and understood. Sometimes, how a person makes a decision is
influenced by the culture of his or her home country.
For example, Asian negotiators are indirect in their words due to Asian culture
which stresses on politeness and face-saving value. They are reluctant to say a
straight „no‰ because it might hurt the other negotiatorsÊ feelings and they might
feel embarrassed. As a result, they will use words such as „We will think about
your proposal first‰ or‰ „Your proposal is interesting but I have to discuss with
the top management first‰. Negotiators who understand the style of Asian
negotiators will get the message directly that the negotiation has failed.
Negotiators from other countries that are group-oriented or do not enjoy such
freedom might have quite a different style. In contrast with what the American
managers believe, these negotiators might hold the view that nothing is
permissible except that which is allowed by the country.
remember that associations with gender vary greatly across cultures, so that
elements considered masculine in one culture might be considered feminine in
another. Negotiators may find it useful to consider the way gender roles play out
in the cultural contexts of their negotiating partners.
French people are very proud of their culture and language. Therefore, most of
them prefer to communicate in French. Even the number of French people who
can speak in English is very small. So, negotiations should be conducted in
French and for managers who do not speak French, there is no way that the
negotiation can take place.
So, what will you do if you were a manager trapped in the situation portrayed
above? In such situations, it is a good idea to use an interpreter to assist the
manager and his or her counterpart. Furthermore, it will give the managers more
time to think about their next statement while the previous statement is being
translated. However, there could also be a problem.
Since language and culture are intertwined, translators may not convey the
intended message due to the nuances of the languages involved. What the
managers say might be translated wrongly or out of context. Another thing to be
considered is that the body language of the translator might not reflect the
attitude of the managers. Such misinterpretations will negatively affect the
negotiation.
SELF-CHECK 9.1
9.3.1 Location
These would be the questions forming in your mind while conducting a
negotiation:
(a)" Where should the negotiation take place?
(b)" Should it be at the office, golf club, hotel or restaurant?
(c)" Should it be a formal or informal meeting?
Choosing the right place is very important because it reflects the sincerity of each
party in doing business with each other. In general, managers have four options
for the venue:
In addition, if negotiators are at their own office, they will have easier
access to any documents or records they might need during the negotiation.
They will also have the benefit of support staff and access to computers and
other sources of information that may be important.
Neutral sites might also include the golf course, service clubs or an
exclusive club. Deals can be negotiated without the pressure of an office
environment or any other disturbance. If the negotiation is held at some
place upscale, it gives the message to the other negotiator that "I think you
are special enough to invite you here," or "This is the way I do business".
(d)" No Place
Finally, with the development in information and communication
technology, negotiation can be done through video conferencing. Both
parties have the advantage of being at home, so they can access all
necessary information, documents and advice needed during the
negotiation. The only problem with this kind of negotiation is both parties
cannot access the overall body language of others as the view is very
limited.
9.3.3 Authority
Now, let us move on to the last tactic used to bring success to the negotiation
process. Most people would like to end the negotiation process as quickly as
possible. Good managers with good negotiation skills will never follow the same
tune and let the other partyÊs impatience beat them. One great way of doing this
is to let them believe the person they are negotiating with is not actually the
manager but some other people with higher authority.
Managers should stress that they are not the person who can make a definite yes
or no decision and should say something like, "I will have to discuss your
proposal with my boss or partner before I can give our decision on this matter".
A skilled negotiator will want to talk to the person who makes the final decision
but do not allow this. Use whatever excuse such as the person with the authority
over the deal wants you to sort things out but still needs to have the final say or
TOPIC 9 NEGOTIATION ACROSS CULTURES W 171
he or she is out of office. Then, managers should notify the other party that it will
be discussed and get back with an answer later. This is also a great strategy for
preventing people from rushing to make a decision.
SELF-CHECK 9.2
1." Explain the five stages involved in a negotiation process.
2." What are the tactics you can use during negotiations?
ACTIVITY 9.3
Draft your tactics and give your justifications for them. Share your
answers in the myVLE forum.
"
Give your ideas on the style and characteristics which you must
present as a successful and effective Malaysian negotiator.
"
"
TOPIC 9 NEGOTIATION ACROSS CULTURES W 173
EXERCISE 9.1
"
•" Many people are not aware that they go through the negotiation process
every day in their daily life, such as negotiating for a salary increase, to get a
low price for a piece of land, bargaining for accident compensation, and
negotiating to sell a used car.
•" These are all negotiations which involve various processes and decisions.
•" If you understand that the basic purpose of negotiation is to obtain what is
desired from others, it would be easier for you to use negotiation strategies to
help you achieve your goals.
•" As time passes by, there are more and more matters which require
negotiations. This is because, conflicts in matters which involve various
cultures are increasing from time to time. Such situations occur because each
culture has its own style of managing problems and reaching an agreement.
•" The best way to reach an agreement is an agreement which benefits both
parties.
•" Each negotiation is different due to differences in culture, negotiators,
negotiation purposes, negotiation atmosphere and how negotiations are
conducted. Thus, in order to bridge the gap, negotiators must first
study their counterparts.
•" Such preparations will facilitate the negotiation process as strategies can be
organised beforehand, conflicts can be reduced and agreements can be
reached quickly.
•" If all negotiating parties understand one another, the likelihood of a win-win
situation is greater.
–" Persuasion;
–" Exchanging task-related information;
–" Relationship building; and
–" Preparation.
X" INTRODUCTION
Read the following situation:
After reading RahimÊs story, do you have friends or relatives who have a similar
habit? Rahim is a perfect example of a new generation of workers who live
differently from those in the 1970s and 1980s. Young workers nowadays are very
much exposed to other cultures and have no problem embracing these types of
food as part of their daily life. Traditional Malaysian breakfasts such as nasi
lemak and nasi goreng are now replaced with American or European breakfasts
TOPIC 10 GLOBALISATION: CULTURAL ISSUES AND CHALLENGES W 179
"
These following questions may be bothering you after reading the above
explanation:
(a)" Does this mean that culture is evolving?
(b)" Will the new culture replace the current national culture?
(c)" Is there any implication of this cultural change to business?
This topic will discuss globalisation and its impact on culture, followed by a
couple of issues regarding culture such as culture clash and ethics in the current
global business environment.
Globalisation has become a very popular term this decade. The topic has become
the centre of discussion in many aspects of life by the writers, politicians,
businessmen, academicians and even regular workers, as almost everybody now
feels the effect of globalisation as illustrated in Figure 10.2. It is a global
phenomenon as the world is experiencing great changes with the emergence of
new economic, political and cultural environments.
"
Figure 10.2: Everyone knows and feels the impact of globalisation
Nevertheless, it is not true that the effects of globalisation are limited to the
commercial arena. Many things can be globalised such as products, services,
human beings, information, or even abstract things such as ideas, traditions and
customs.
TOPIC 10 GLOBALISATION: CULTURAL ISSUES AND CHALLENGES W 181
The following are two definitions of globalisation which are often used as
depicted in Table 10.1:
Source Definition
Hill, (2001) A shift towards a more integrated and interdependent
world economy.
Ceglowski, (1998) A world in which goods, services, capital and information
flow across seamless national borders.
Some welcome globalisation as a revolution which makes this world a safer place
and provides the world with an economic environment which is more stable and
equitable, while others regard globalisation as a new form of colonisation which
exploits poor countries.
Let us look at Figure 10.3 which reflects the opinion of people from various
countries. A majority of them view globalisation as mostly good. It is, however, a
surprise to see that people from the United States and France are among those
who say that it is mostly bad.
"
Figure 10.3: Public opinion on globalisation
Source: PIPA, April (2007)
TOPIC 10 GLOBALISATION: CULTURAL ISSUES AND CHALLENGES W 183
ACTIVITY 10.1
"
Figure 10.4: Technological development
"
Figure 10.5: Competition among international firms
At the same time, companies which succeed locally might not succeed in the
international market if they fail to look at the differences in culture between both
countries. When a company enters a foreign market, rival companies will follow
suit to avoid losing competitive advantage. The sudden increase in international
competition among international firms has resulted in rapid globalisation, as
they bring product, people (expatriates), organisational culture and practices
from their home country to the other markets.
For example, McDonaldÊs brings with it the culture of its home country, whether
in terms of management, processes or technology, when expanding its business
to China. Similarly, LeviÊs will do the same when entering the Indian market, and
Sony when entering the African market and so on.
186 X TOPIC 10 GLOBALISATION: CULTURAL ISSUES AND CHALLENGES
"
The decrease in the cultural gap among countries has created a form of
unification in consumer preferences and tastes worldwide, more commonly
addressed as the global village. With this unification, multinational companies
are able to offer uniformed products in the market. Companies no longer have to
bear the cost of modifying the products according to the taste of each local
community.
Various proofs have shown that globalisation has created a global village and
brought along with it a culture which is almost universal. Brand names such as
McDonaldÊs, Sony, Mercedes and Burger King have become synonymous with
the daily life of people worldwide, including the Malaysian community.
Do you know that the main concern among cultural scholars is the possibility
that the cultural identity of a country might disappear due to the presence and
influence of the global culture? Governments are no longer able to prevent global
culture, which is mostly based on Western culture, from entering our culture and
identity. It spreads freely through communication technology, is absorbed into
the minds of the local community and finally, erodes cultural identity and
values, thus drastically changing the way of life of a particular society.
Do you eat local delicacies such as karipap, samosa, popiah and other traditional
food items? If you do not, global culture could be one of the reasons. The
influence of global culture on local culture and its effects is evident everywhere,
including in Malaysia. Many Malaysian citizens nowadays prefer eating
TOPIC 10 GLOBALISATION: CULTURAL ISSUES AND CHALLENGES W 187
Kentucky Fried Chicken instead of ayam percik and pizza instead of roti canai;
they also buy imported clothes and cars. What is even more disturbing is
globalisationÊs influence among youths who are becoming less interested in
practising traditional Malaysian culture. They imitate negative Western trends in
terms of dressing and music preferences. They also imitate destructive habits
such as having intercourse out of wedlock, taking drugs, consuming alcohol and
so on.
ACTIVITY 10.2
Globalisation and the concept of global culture can prevent conflicts from
occurring or continuing to occur through political and cultural integration
between the involved parties. When each party understands the otherÊs
culture, or practises a unified global culture, religious and ethnic
differences will not be that obvious and any disagreement can be resolved
through tolerance.
"
Figure 10.6: Communities of various cultures unite through globalisation
Are you aware that globalisation also allows people from around the world to
learn about each otherÊs cultural elements, such as the norms and behaviour of
communities? When everyone understands each otherÊs culture, they will try to
adjust themselves and practise tolerance towards other cultures. Intercultural
conflicts can be eliminated. As for firms, cultural uniformity will assist them in
offering uniformed products across the world. ConsumersÊ tastes and needs can
be easily understood due to the fact that they are becoming more and more
similar. Furthermore, product modification or marketing techniques will no
longer be considered as against the ethics or norms of a given culture.
"
TOPIC 10 GLOBALISATION: CULTURAL ISSUES AND CHALLENGES W 189
ACTIVITY 10.3
Discuss how intercultural conflicts can be eliminated through
globalisation.
"
"
Cultural colonisation is one of the disadvantages of globalisation according to the
opponents of globalisation. It is a threat to the local culture and tradition as it
brings with it a global culture which is based on the Western culture that
contradicts the traditional culture of a given country. Communities have no
choice but to slowly accept this global culture and allow it to be absorbed into
their life. Soon, it will eliminate the noble values which represent the core of the
traditional culture of a nation.
Figure 10.7 depicts the situation of developing nations, which face the threats
posed by the global market, in a lighter perspective.
190 X TOPIC 10 GLOBALISATION: CULTURAL ISSUES AND CHALLENGES
"
"
Figure 10.7: Developing nations face threats posed by the global market
ACTIVITY 10.4
"
Figure 10.8: Possibility of culture clash
A research carried out by a consulting firm from Europe found that cultural
differences are the biggest source of difficulty in integrating European
acquisitions. Cultural differences are obvious between one country and another.
Therefore, problems and misunderstandings often happen among businessmen
as shown below.
"
Shoe designers at shoe-making firm in Leicester, England, designed a shoe with
the writing „There is no god but Allah‰ in order to attract Muslim buyers to buy
the product. However, this was strongly opposed by the Muslim community
in England. Some of them even went to the extent of destroying the shops which
sold the shoes. Although the idea behind the design of the shoes was to attract
Muslims to buy the product, from an Islamic perspective, placing the name of
Allah on a shoe was an act which disgraces Islam.
"
Such ignorance and lack of comprehension must be avoided in order to prevent
conflict among multi-religion races. Managers of manufacturing firms must learn and
know about other cultures and traditions in order to avoid mishaps similar to the one
above.
192 X TOPIC 10 GLOBALISATION: CULTURAL ISSUES AND CHALLENGES
"
Companies which want to expand operations to foreign countries must learn first
the customs of the local people in order to avoid undesired incidents as
portrayed below.
"
An American oil company on a Pacific Island recruited foremen with suitable
qualifications for oil-drilling operations. However, most of these foremen were
too young and were put in charge of workers who had served the company for
very long periods. After one week, all the foremen quit their jobs as they could
not stand the harassment received from the senior workers. After the incident,
the management realised that hiring younger men as foremen to supervise
senior workers was not acceptable to the local community.
"
Let us have a look at some culture clash issues which often occur in business as
shown in Table 10.2.
"
Table 10.2: How to Avoid Culture Clash Problems
However, there are certain things which managers must know when coping with
a cultural clash. Table 10.3 shows some tips on overcoming cultural clash.
DoÊs DonÊts
Take care of your friends and invite them Avoid judging a culture by comparing it
to your parties. with your own culture.
Socialise with locals and participate in their Do not brag about the country which you
activities. have just visited.
Learn the micro behaviour practised Do not ever interrupt your friendÊs
locally. conversation, particularly when he or she is
talking about an internal political issue.
Provide community services to the Do not decline anything straight away. Do
locals. it politely.
ACTIVITY 10.6
SELF-CHECK 10.1
"
EXERCISE 10.1
1." „The world nowadays has been moving away from previously
distinct and separate national markets towards one that is
integrated where national borders seemingly are becoming less
important.‰
"
"
"
"
TOPIC 10 GLOBALISATION: CULTURAL ISSUES AND CHALLENGES W 195
4." What might occur when two people with different cultural
backgrounds meet each other to discuss something?
A. Global village
B. Culture clash
C. Sovereignty
D. Expatriate
5." Which among the following is NOT TRUE about things to avoid
when dealing with culture clash?
A. Do not ever interrupt your friendÊs conversation, particularly
when he is talking about an internal political issue.
B. It has a huge workforce from the whole of European Union.
C. Do not be too proud when talking to a person who comes from
the same country as yours.
D. Do not judge a culture by comparing it with your own culture.
"
Answers
TOPIC 1: UNDERTOW OF CULTURE
Exercise 1.1
Multiple Choice Questions
1. C
2. B
3. D
4. C
5. B
1. C
2. C
3. A
4. B
5. B
1. B
2. C
3. C
198 X ANSWERS
4. A
5. B
1. A
2. A
3. D
"
"
TOPIC 5: INTERNATIONAL MANAGER
Exercise 5.1
Essay Questions
1. B
2. A
3. B
4. A
5. C
"
200 X ANSWERS
"
ANSWERS W 201
1. B
2. D
3. B
"
"
202 X ANSWERS
1. B
2. C
3. B
4. D
5. C
"
ANSWERS W 203
1. B
2. C
3. A
4. B
5. B
"
204 ""X"""REFERENCES"
"
"
"
References
Deresky, H. (2008). International management: Managing across borders and
cultures (6th ed.). Plattsburgh: Pearson Prentice Hall.
Duygulu, E., & Ozeren, E. (2009). The effects of leadership styles and
organizational culture on firmÊs innovativeness. African Journal of
Business Management, 3 (9), 475-485.
Nacinovic, I., Galetic, L., & Cavlek, N. (2009). Corporate culture and
innovation: Implications for reward systems. World Academy of
Science, Engineering and Technology, 53, 397-402.
Peters, T., & Waterman, R .J. (1982). In search of excellence. New York: Harper
& Row.
"
" REFERENCES W"" 205
"
"
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Phatak, A. V., Bhagat, R. S., & Kashlak, R. J. (2009). International management:
Managing in a diverse and dynamic global environment (2nd ed.). New
York: McGraw-Hill.
"
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