Global Perspectives in Business - Term Paper Example

Global Perspectives in Business General Review The main purpose of this paper is to bring in knowledge the cultural influence on two countries with entirely different cultural background. This paper strongly argues on the historical background of cultures of two different countries like Netherlands and Singapore, which have very strong culture of their own and it also puts light on those businessmen of Netherlands who are interested in doing some business in other country like Singapore. It consists on the large household survey, researches, internet approach and cultural dimensions and models like, Hofstede, Trompenaars and Project GLOBE. These three models give us clearance about the cultural difference. This paper is to analyze the business and legal environment within and outside the organization. Introduction Culture is referring to behaviour of human being. Whatever the preferences are, the culture of each country depended on its people who always use to display various colourful customs, traditions, language, and many of which are heavily influenced by foreign customs. Big companies always get chances to work in the entire world to get their products and services more famous and demanded (House, 2004). When a company get to merge with some other international company, or is going to acquisition the company of some other country with different culture, they assume that each person working within the company has the same aim and goal but most of the times they had to bear many problems due to cultural diversity. When multiple cultures started work together, they ultimately face a lot of difficulties and problems and communication is one of the biggest problems they can have [ CITATION Grz00 \l 1033 ]. When two or more different cultures works together they find many difficulties and the people of these companies, most of the times, do not feel comfortable with each other and many few people can adopt these differences of culture. Language is the most powerful and professional instrument one needed to work in good and effective way to make his communication understandable. Nevertheless, learning other’s language is not the biggest barrier and one can easily learn the other’s language by spending some time and giving attention [ CITATION Grz00 \l 1033 ]. How Cultures Work Thinking deeply, cultures are a variable or a dynamic set of starting points allow us to respond to the society in particular ways. All of us freely belong to one or more than one cultures that give us messages about what is normal, appropriate, and expected. When a person from other culture is unable to understand us, it clearly gives us a clue that our cultural expectations are different. What is common to one group may seem strange, counterintuitive, or wrong to another [ CITATION Mic03 \l 1033 ]. Given Case: In given situation, a well known company in Netherlands wants to negotiate with its new subsidiary company in the Singapore. While working in the Singapore, the employee and associated persons of Netherlands can have the following problems due to the cultural diversification: Communication and negotiation Adopting Singapore’s culture Managing work with employee of Singapore These are some of the problems, which they can face due to difference of culture. The difference of culture can be a big reason of conflict (House, 2004). Here are some advices and suggestions, which can help the people of Netherlands to overcome the above-mentioned barriers in the light of cultural dimension models like Hofstede, Trompenaars and Project GLOBE. Suggestions from five-dimension model Communication: In business, and especially in international business, it is commonly agreed that communication is one of the primary and more focused concerns. Good and effective communication is a thing, which can forecast the success of a business (House, 2004). Therefore, for professionals of Netherlands it is necessary to learn the native language of Singapore. All the levels in communication are affected by cultural dimensions: verbal communication like words and language itself, non verbal communication like body language and gestures, and the etiquette which tells the “do’s and don’ts” about a culture like clothing, gift-giving, dining, customs and protocol, etc (Hofstede et al, 2010). Effective way of negotiation: In international negotiations, communication style, expectation, issue ranking and goals will change according to the negotiators’ countries of origin. If applied properly, the understanding of cultural dimensions should increase success in negotiations and reduce frustration and conflicts (Hofstede et al, 2010).  International management: These considerations are also true in international management and cross-cultural leadership. Decisions taken have to be based on the country’s customs and values. When working in international companies, managers may provide training to their employees in order to make them sensitive to cultural differences, develop nuanced business practices, with protocols across countries (Hofstede et al, 2010). Marketing: As five dimension model of Hofstede has helped us in communication, negotiation and management, this model is also equally useful in international marketing too because it defines national values not only in business context but in general (Hofstede et al, 2010). The Dutch people can do marketing in a way, which is acceptable for the people of Singapore. In the book “Riding the waves of culture” (written in 1997) Trompenaars and Hampden- Turner mainly focused on clearing up the cultural diversity in term of business. With the help of this seven dimension model, we can easily solve the problem of Dutch employees: Universalism vs. Particularism: rules versus relationships. It is a kind of culture where people think that they have to adhere to their culture. If the Dutch employees are facing such problems then they should allow the people to develop skills in them slowly after setting the clear objectives for solving the cultural conflicts (Tating, 2011). Individualism vs. Communitarianism: the individual versus the group. This dimension can help a lot in knowing about the people and culture of other country, which can be very helpful to control the conflicts (Tating, 2011). Neutral vs. Affective: the range of feelings expressed. Members of cultures, which are effectively neutral do not telegraph their feelings but keep them carefully controlled and subdued. In contrast, in cultures high on affectivity people show their feelings plainly by laughing, smiling, grimacing, scowling and gesturing; they attempt to find immediate outlets for their feelings (Tating, 2011). Specific vs. Diffuse: the range of involvement. In diffuse cultures, the concept of “saving face” is related to the belief that something made public is always personal too (Tating, 2011). Achievement versus Ascription: how status is accorded. While some societies accord status to people on the basis of their achievements, others ascribe it to them by virtue of age, class, gender, education, and so on (Tating, 2011). Sequential vs. Synchronic: this dimension can help the Dutch people in knowing about the mental condition of the people working over in Singapore (Tating, 2011). Internal versus External Control: Societies either believe that they can or should control nature by imposing their will (Tating, 2011). Strategies to promote effective cross-cultural communication in the multi-cultural workplace: Pronounce names correctly. When in doubt, ask the person for the correct pronunciation. Make it sure to ask for the person’s permission to use his or her first name, or wait until you are given the permission to do so. You should be aware of gender sensitivities. Be aware of subtle linguistic messages that may convey bias or inequality, for example, referring to a white man as Mister while addressing a Black female by her first name. it is better to call people by their proper names. Avoid slangs. Refrain from using slang, pejorative, or derogatory terms when referring to persons ethnic, racial, or religious groups, and convey to all staff that this is a work environment in which there is zero tolerance for the use of such language. Violators should be counselled immediately. Identify people by race, colour, gender, and ethnic origin only when necessary and appropriate. Avoid using words and phrases that may be offensive to others. Use language in communication that includes all staff rather than excludes some of them. Do not expect a staff member to know all other employees of his or her background or to speak for them. They share ethnicity, not necessarily the same experience, friendship, or beliefs (Tating, 2011). Factors Influencing Traditional Beliefs and Practices The length of time in a given place, the size of the ethnic or cultural group with which an individual identifies and interacts. As a general rule, children acculturated more rapidly than adults or seniors, the ability to speak the major language and communicate with members of the majority culture. Individuals and groups who have distinguishing ethnic characteristics, such as skin colour, may be more isolated because of discrimination and thus may retain traditional values related to health beliefs and behaviour (Tating, 2011). Conclusion The cultural dimension models can be successful along with the effective leadership, cross-cultural communication, and mutual respect. Without all these elements, it is destined to fail. International projects that use effective cross-cultural teams can provide a source of experience and high rate of innovative products in the entire world with the help of new ideas and thinking to enhance the competitive position of their companies, and to resolve potential communication barriers. Bibliography Grzyb RC (2000) Cross Cultural Differences Problems and Solutions. A view of impact factory. Hofstede G, Hofstede GJ and Minkov M (2010) Cultures and Organizations: Software of the Mind. 3rd ed. New York: McGraw-Hill. House RJ (2004) Culture, Leadership and Organizations: The Globe Study of 62 Societies. California: Sage Publications. LeBaron M (2003) Culture and Conflict. Available at: http://www.beyondintractability.org/bi-essay/culture-conflict (accessed 10 June 2012) Tating TR (2011) A Report on Cultural Diversity. Available at: http://www.scribd.com/doc/32724632/A-Report-on-Cultural-Diversity-1 (accessed 10 June 2012) Read More