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Sacred Heart University College of Business
BUS/IB 203 International Business Culture Dr.
Balbir B. Bhasin
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What is Management?
Management is a form of work that involves
coordinating an organizations resources -
human and capital to accomplish organizational
goals.
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Levels of Management
1. Top management
2. Middle management 3.
Supervisory management
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Functions of Management

• Planning
• Organizing
• Staffing
• Leading
• Controlling

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Roles of a Manager
Interpersonal - leader, figurehead,
liaison Informational - monitor, disseminate,
represent Decisional - allocate resources,
negotiate, problem solving
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Management Skills
Conceptual skills - decision making, planning,
organizing Human relations skills - understand
people, motivating, collaborating Technical
skills - able to get a particular job done
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What is International Management?
Process of developing strategies, designing and
operating systems, and working with people
around the world to ensure sustained
competitive advantage
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What is International Business?
Profit related activities conducted around
national boundaries, ever changing.
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What are the variables affecting the management
function?
National variables - economic system, legal
system, political system Socio-cultural variables
- religion, education, language Cultural
variables - values, norms, beliefs Attitudes -
work, time, individualism, materialism Response
- motivation, productivity, ethics, commitment
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End
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Chapter 2
Culture International Business
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What is Culture?

• Set of commonly held values
• A way of life of a group of people
• Includes knowledge, belief, art, morals,
• law, customs and habits
• Everything that people have, think and do
• as members of their society
• An integrated system of learned
• behavior patterns that are characteristic
• of the members of any given society

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Cross Cultural Myths
Myth One We really are all the same Myth Two
I just need to be myself and everything will be
okay Myth Three I have to adopt the
practices Of the other culture to succeed (Adapt
rather than adopt)
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US Values Possible Alternatives

• Beliefs - control vs. destiny
• Change - action vs. accept
• Attitude - practical vs. dreams aspirations
• Approach/work ethic - hard work vs. luck
• Promises - keep vs. perhaps
• Time - depends on priorities
• Obligation -company or family
• Employment - short term vs. lifelong
• Meritocracy - best person vs.
• Other considerations

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Stereotypical American (as seen by people of
other countries)

• Inconsiderate of other peoples cultures
• Racially prejudices
• Ignorant of other countries
• Shallow, immature, naïve
• Violent, aggressive
• Generous, forgiving
• Always in a hurry
• Outgoing, friendly
• Informal
• Loud, rude, boastful
• Hard working
• Arrogant, proud, insensitive
• Innovative
• Extravagant, wasteful,
• Confident they have all the answers

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Culture is Learned

• Culture is transmitted through
• the process of learning and
• interacting with ones environment
• rather than through the generic
• process
• Primary Socialization
• Cultures and Subcultures
• Secondary Socialization

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Culture Universals

• Common problems and common features
• Economic systems
• Marriage and family systems
• Educational systems
• Social control systems

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Cultural Change

• All cultures experience continued change
• Cultural change is a selective process
• Cultural change through borrowing
• Cultural change through innovations
• Cultural diffusion

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Ethnocentrism
Ethnocentrism

• Tendency for people to judge
• behavior by their own standards
• The belief that own culture is superior
• All people in all societies are ethnocentric
• to some degree
• Ethnocentrism can contribute to prejudice

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End
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Chapter 3
Communicating across Cultures Languages
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What is Communication?

• Process of sharing meaning by transmitting
• messages - words and behavior
• Critical factor in cross cultural management
• Need for effective communication to give
• information, share ideas, give orders, and to
• motivate
• Interpersonal issues leadership, motivation,
• group interaction, negotiation

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Barriers to Effective Communications

• Semantics - different words have different
• meaning to different people fix, fag, shag
• Jargon - technical terms
• Acronyms and Abbreviations - culture,
• military
• Perception - interpreting information,
• distortion
• Emotions - breakdown in communication

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The Need to Understand Language

• There is a close relationship between
• language and culture
• 2. Language is a precondition to success
• in international business
• Languages helps in understanding
• culture
• 4. Second language is first step to learning
• third and fourth language
• 5. Learning other languages helps us
• appreciate our own language (and culture)

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What is Language?

• Language is a symbolic code of
• Communications
• Meanings attached to any word are
• totally arbitrary
• Major languages of the world are
• Mandarin, Spanish, English, Bengali,
• Hindi, Portuguese, Russian, Japanese,
• German, Wu

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The Influence of Culture on Language

• The vocabulary of a language depicts
• what is considered important in that
• culture
• Industrialized societies have more
• Technological terms
• Example 7 words for bamboo in South
• India but none for snow

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The Influence of Language on Culture

• Language influences perception,
• categorization and worldview
• Language reflects values of the group
• Example individualism in the US so
• many words pertaining to self
• In Japan. we always comes before the
• I indicating the collectivist approach

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Language Key Points for Business

• The US is the only country where business
• people dont think its necessary to learn a
• foreign language
• Is it easier to speak or understand a foreign
• language?
• Comprehension is a function of speed
• Is it easier to speak or write a foreign
• language?
• Is there an international language of
• business?

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Avoiding Misunderstandings Across Language
Barriers

• Recognizing the symptoms blank stares,
• unnatural stopping points in conversation,
• feeling of not connecting
• What to do explain the message in several
• different ways, use visual aids, slow down,
• avoid slang and idiomatic expressions, listen
• to the other persons entire messagedont
• assume anything, keep good notes, follow up

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High Context vs. Low Context Cultures
Low context cultures task oriented, communication
is specific, elaborate, direct and unambiguous.
Swiss, German, American, French, British High
context cultures based on relationships, rely on
communication that is indirect, ambiguous,
nonverbal, and the context. Japanese, Chinese,
Arab In between Italian, Spanish, Greek
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End
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Chapter 4
Communicating across Cultures The Nonverbal
Dimension
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Function of Nonverbal Communication

• Helps convey feelings and emotional states
• Elaborates on verbal messages
• Governs the timing and turn taking
• between communicators
• Concerns
• 1, Same nonverbal cue carries different
• meanings in different cultures
• Different nonverbal cues carry the same
• meaning in different cultures

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Nonverbal Cues

1. Facial expressions (smiles, frowns)
2. Hand gestures
3. Posture
4. Touching
5. Scents or smells (perfume)
6. Color symbolism
7. Clothing, hairstyles, cosmetics
8. Artifacts (jewelry, fly whisks)
9. Graphic symbols
10. Silence

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Non- verbal Language

• Touching U.S. vs. Latin America
• Space U.S. vs. Japan
• Queues U.S. vs. China vs. Britain vs. Japan
• Dress U.S. vs. Europe vs. Japan
• Silence U.S. a gap that must be filled
• - Japan preferable to conversation

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Nonverbal Language

• Eye Contact intermittent in U.S., Intense,
• Unbroken in Arab countries, Very little in
• Japan
• Para Language um, er, ah, hai
• Smiling,
• Head movements Bulgaria, India
• Arm Movements Italy vs. Japan
• Posture U.S. vs. China
• Handshakes

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Cultural Variables

• Stereotyping - assuming that all have same
• attributes
• Language - literal or poor understanding
• Kinesic behavior - posture, gesture, facial
• expression, eye contact
• Oculesics - behavior of the eye during
• communication
• Proxemics - effect of proximity and space
• Paralanguage - how something is said
• Time mono-chronic or poly-chronic
• Context - in which the communication
• takes place

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Proxemics

• Distance preferred by middle class US
• Intimate distance - body contact to 18
• Personal distance -18 to 4 feet
• Social distance - 4 feet to 12 feet
• Public distance- 12 to 20 feet

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How to Manage Communication Effectively

• Develop cultural sensitivity - be aware of self
  
• and the other!
• Careful encoding - use proper words, gestures
• Selective transmission - use proper medium
• Careful decoding of feedback - careful
• interpretation of message
• Seek feedback - ask, verify, follow-up

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Greetings

• When you shake hands, look them straight
• In the eye and give em a good firm grip
• Asia Mid East gentle handshake
• Mexico/Latin America palm slip/grasp thumb
• Never shake hands with a woman in the
• Middle East and parts of India
• Staring at someone is intimidating and
• disrespectful in many areas of the world,
• especially Japan
• Slight bows are appreciated in Asia
• Presenting business cards?

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Touching

• Touch Middle East, Latin America, Italy,
• Greece, Spain/Portugal, Russia
• Dont Touch Japan, U.S., England,
• Scandinavia, Northern Europe, Australia
• Middle Ground France, China, India

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Hands/Eyes/Arms/Feet

• Where to place hands when eating?
• US Beneath table
• Europe On top of table
• Eyes Closed in Japan indicates concentration
• Eyelid pull in France and England
• Arms Folded arms universal defensive
• posture
• Hands on hip aggressiveness in Asia,
• along with finger pointing
• Feet Remove shoes in Japan, India, Asia
• Do not show the soles of shoes in the
• Middle East

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End
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Chapter 5
Contrasting Cultural Values
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Hofstedes Value Dimensions (IBM data collected
on 100,000 individuals in 40 countries)
Power distance - extent to which subordinates
accept authority Uncertainty avoidance -
threatened by ambiguous situations, prefer
formal structure, feel safe and
secure Individualism vs collectivism Masculinity
- assertiveness, materialism Femininity - concern
for society, others
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Trompenaars Findings
Obligation - universalism, pluralism Emotional
in relationship - neutral, affective Involvement
in relationship - specific, diffuse Legitimizatio
n of power and status based on achievement
and competency or based on position, age or
education
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Five Universal Problems

• Human nature orientation innately good
• or bad?
• 2. Man-nature orientations mastery or
• harmony?
• 3. Time orientation past, present or futuregt
• 4. Activity orientation individuals
• accomplishment or personal traits?
• 5. Relational orientation individualism or
• collectivism?

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Cultural Dimensions

• Individual-Collective dimension the self
• first or the community?
• 2. Equality-Hierarchy dimension differences
• in power or status or equality?
• Tough-Tender dimension what is success-
• material comforts or relationships?
• Uncertainty-Avoidance dimension the
• need for un-ambiguity and predictability
• of the future?
• 5. Time dimension tight or loose?

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Time Dimension
Single Focus (American Western Europe, Industriali
zed Asia) one task at a time meet deadlines,
Lets get to work, Time is money Multi Focus
(Southern Europe, Latin America, Middle East)
Simultaneous tasks, completion \ of task based on
strength of relationship, delays are expected,
commitments are not Written in stone
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Environment Dimension
Control Cultures (Western Societies) Go
for it, Life is what you make it, The future
can be planned for Harmony Cultures (Asian
Cultures) Dont rock the boat, Go with the
flow Constraint Culture (Latin America,
Middle East) Its a matter of fate, You take
what life gives you
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Action Dimension
Doing Cultures (American) God helps those who
help themselves If at first you dont succeed,
try again Who are you? Answer with job
title Being Cultures (Latin America, Africa,
Middle East, Southern Europe) Who are you?
Answer with family description or philosophical
outlook
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Competitive Dimension
Competitive Cultures (U.S., Western Europe, Hong
Kong, Mexico, Argentina, Japan) Winner takes
all Predominantly materialistic We live to
work Cooperative Cultures (Scandinavian
Countries, Some Latin Countries, Some European
Countries, Parts of Asia) Were in this
together We work to live
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Individualistic and Collectivist Cultures
Individualist USA, UK, Italy, Scandinavia,
France, Germany Intermediate Israel, Spain,
Japan, Argentina Collectivist Brazil, Turkey,
Mexico, South America, Much of Asia.
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End
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Chapter 6
Negotiating Across Cultures
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Negotiations

• a process between two or more parties aimed
• at reaching a mutually acceptable agreement
• Goal - to bring about a win-win situation
• where all parties benefit
• Process preparation, relationship building,
• exchange of task related information,
• persuasion, concession and agreement.

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Variables in the Negotiation Process

• Competitive process or problem solving
• approach?
• How negotiators are selected - best qualified?
• How are persuasive arguments presented?
• Rational or emotional?
• Motivations? Personal, family, company,
• country?
• Ability to take risk?
• Decision making process - individual or
• collective?
• Trust - handshake or legal document?

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Effective Strategies for International Negotiators

1. Concentrate on long term relationships
2. Focus on interest behind the positions
3. Avoid reliance on cultural generalizations
4. Be sensitive to timing
5. Remain flexible
6. Prepare carefully
7. Learn to listen
8. Be patient!

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Eight Recommendations for Success In Global
Negotiations

• Do pre-work with the other side if possible,
• possibly using cultural go-betweens
• Develop a strategy to deal with the language
• barrier
• Use visual aids extensively, but check with
• cultural expert
• Be prepared for long negotiations
• Decide on strategy for obtaining a written
• agreement, where acceptable
• Know your walk away point
• Avoid ethnocentrism

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Confrontation

• Expect less confrontation in high context,
• collectivist cultural settings
• But, face is more important within the
• culture than outside it
• Disrespectful out-of-group behavior
• does not carry as many social issues
• as the same behavior within the
• cultural group
• Agents or third parties can be helpful when
• confrontation may be expected

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End
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Chapter 7
Coping with Culture Shock
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What is Culture Shock?
It is the unpleasant consequences of
experiencing a foreign culture Results in
confusion, surprise, disgust, panic,
rejection, loss of self-esteem, and inability
to function effectively
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Manifestations of Culture Shock

1. Homesickness
2. Boredom
3. Withdrawal
4. Irritability
5. Marital stress
6. Stereotyping
7. Hostility
8. Inefficiency
9. Physical un-wellness
10. Depression

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Process of Adjustment 4 Stages

• Honeymoon stage unrealistically positive
• feelings and approach
• Irritation and hostility problems arise and
• become insurmountable
• Gradual adjustment Passing of crisis
• and gradual recovery
• Biculturalism Full recovery and ability
• to function effectively in both cultures

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Minimizing Culture Shock

• Choose to stay at home and not enter IB
• Select the IB arena where adjustment
• can be made more easily
• Have a realistic understanding of issues
• and likely problems
• Learn cross cultural coping skills
• language, religion, history, social
• environment
• 5. Approach issues as opportunities to
• learn and grow

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Monochronic People

• Do one thing at a time
• Concentrate on the job
• Take time commitments seriously
• Are low context and need information
• Show great respect for private property,
• seldom borrow or lend
• Are accustomed to short term relationships

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Polychronic People

• Do many things at once
• Are highly distractible and subject to
• interruptions
• Consider time commitments an objective
• to be achieved, if possible
• Are high-context and already have info
• Borrow and lend things often and easily
• Have tendency to build lifetime
• relationships

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End
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Chapter 8
Developing Global Managers
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Global Management Goals

• Maximize long term retention of
• international managers so that company
• can develop a top management team with
• global experience
• Understand, value and promote role of
• women and minorities in order to maximize
• underutilized resources, and
• 3. Work effectively within local labor laws

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The Need to Develop Global Managers

• Difficult to control geographically
• dispersed operations
• 2. Need for local decision making independent
• of home office
• 3. Suitability of managers from alternative
• sources

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Staffing Alternatives

• Ethnocentric staffing - fill staff position
• from HQ
• 2. Polycentric staffing - local managers,
• host country nationals
• 3. Global staffing - recruiting the best
• within and outside the country
• (transpatriates)
• 4. Regio-centric staffing - from the region

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Training Global Managers

• Area studies - history, geography, politics,
• economy
• 2. Language training
• 3. Sensitivity training
• 4. Field experiences )host family, immersion)
• 5. In-country training

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Developing Skills for Global Managers

1. Communications skills
2. Personality traits
3. Motivation
4. Family circumstances
5. Cross cultural training

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Managing Process for Global Managers

• Preparation
• Adaptation
• Repatriation - reverse cultural
• shock
• 4. Transition - mentor program

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Developing Global Management Teams
Objective - how to develop and empower
intercultural groups and task forces at all
levels of an organization to achieve set
goals. Synergy advantages different
perspectives, share experiences, share
technology Disadvantages language problems,
different management styles, complex decision
making process
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