What Is the Influence of Cultural Differences in Business Practices - Essay Example

What is the influence of cultural differences in business practices? s) The modern day business context continually takes the globalization realignment where different cultures interact for business. In this study, the importance of cultural orientation in business decision making is assessed. The introduction of the scope of culture in business organization is made to generate the wider picture within which cross border business processes occur. The evolution of the organization from the ancient rational framework to the contemporary human relations setting facilitates the understanding of the cultural setting of business today. In view of the theoretical frameworks, an explanation of the various implications of culture to business is consequently developed. An analysis of the applied theories in the discourse further explains the background analysis of culture in business. An illustration of practical managerial decision making processes affected most by cultural environment is adopted for three scenarios. These highlights facilitate the development of a conclusion that concurs with the thesis statement at the beginning of the discourse. What is the influence of cultural differences in business practices? Introduction In the deliberations of culture interplay with business functions and practices, an international outlook applies due to the apparent cross-border differences in terms of culture and social attributes in that context. In this discourse therefore, the interpretation of the diverse cultural environments in business practices will take the international business platform. Culture influence on various human behaviors implies that related projections influence business decisions in different ways. Differences in cultural environment at a level where several cultures interact, for instance at the international business platform, present a challenge to the operation of business as a harmonized process. From this perspective, the research question that this discourse attempts to respond to is how different cultures impact on business processes. The importance of this study is to highlight the evolving nature of business as a responsive entity regarding various human attributes of the organization and the stakeholders’ environment. It is also important to mention the interaction of global communities in the globalization setting that attempts to make the entire global market a single village. There are various theoretical perspectives that highlight the impact generated on the business process. Two of the most prominent theories in this field and that capture nearly every aspect of culture in business include cultural dimensions theory by Hofstede and diversity cultures by Trompenaars. Thesis Statement: Business in the modern competitive environment must respond to cultural attributes of the stakeholders, particularly in terms of human resource, marketing, and public relations. Background to Culture and the Organization Managing business cannot take place devoid of variable and forces of the human society within which the business takes place. The organization is a factor of human interactions that define the type of relations established in the process of business operations (Bolman and Deal 58). Whereas business consideration takes the form of a legal entity that obtains its status from the law of the land, formalities require relationship with the local setting for business to thrive. Due to the forces of sociocultural setting within which the organization is established, several features that directly originate from the society determine the kind of organizational interactions and experiences witnessed. Alternatively, the evolution of the organization in terms of management approaches embraced, from the scientific rational setting to the human resource, perspective illustrates the importance of human values in modern business. As an illustration, early versions of management theories considered the organizational needs from a scientific perspective that did not recognize human aspects of the human resource. The proposed production enhancement moves by the rational perspectives heavily relied on the premise that productivity bottlenecks removal translates to exponential results improvement. However, later versions of management approaches built on the missing aspect of human nature of the organization. Sociocultural forces of the human society cannot miss out of the effective management approaches embraced today. Consequently, assessing the relationship that culture and other society attributes have on the type of business organization can only lead to the conclusion that the definition of the human resource based organization directly involves cultural values into business. Theoretical Background According to Hofstede, cultural dimensions influence the workplace and the external environment. The cultural dimensions perspective includes five points that directly affect the business environment and therefore affect productivity and operations. Firstly, the power and distance concept implies that the business environment is shaped by the inequalities in the society as experienced by the interaction of the powerful and powerless. Inside the various cultural settings defined by the relevant inequality levels, business should adjust and acknowledge the applicable power and distance interpretations without destabilizing the cultural practices. Secondly, the measure of individualism within the society must be addressed in business approaches by adjusting to apparent relationship ties held among individuals. High individualism in the business environment implies that ties are not very close between individuals and privacy is valued than in lower individualism. A range of issues emerge in this setting from respect for privacy and debates to respect for traditions and individuals’ age and appropriate coping strategies must be formulated. Thirdly, the business adjustment in an environment must be defined by the level of masculinity and gender roles. High masculinity levels imply that several business decisions favor a patriarchal system and lower levels have a balanced gender experience between women and men. Issues of staffing and role assignments arise in this category and must be adopted to avoid clashing with the established culture. Fourthly, uncertainty avoidance index describes how prepared a particular society is towards sudden changes in operations. High levels of uncertainty avoidance in the society lead to strict processes and change is less welcome unlike in low uncertainty avoidance society that encourage liberal approaches. Appropriate adjustment implies that business operations must respond to the actual uncertainty responsiveness. Closely related to the fourth aspect, the fifth cultural dimension highlights the long-term orientation to established practices, where societies with a high orientation level holds on to traditions and values strongly and for long than low-level orientation societies. It therefore implies that disbanding traditions for newer trends may find different scrutiny levels depending on the applicable culture (Mind Tools, para.5). In the theoretical work proposed by Fons Trompenaars, four different approaches are used to define different variables of organizational setting in five scopes. Firstly, family or power oriented concept is used to describe how centralized and bonded the operations of the organization are. Secondly, Eiffel tower concentrates on how the culture responds to roles assigned to the players. The third concept is the guided missile, which assesses the project-oriented scope adopted within an organization. Finally, the incubator dimension considers how conscious a culture is on fulfillment and achievements. From these dimensions, five operations variables emerge for a specific definition of the appropriate response and approach depending on the applicable culture. Firstly, the relationship between employees is different in all the four dimensions above, with family dimension having strongest measure of ties. Secondly, attitude to authority is given a different focus in the four dimensions, with each of them ascribing different status on a different player. Family dimension for instance focuses on the parent figure, Eiffel tower focuses on the powerful figure yet distant in the relationship, guided missile focuses on successful group, and incubator dimension highlights creative minds. Thirdly, the concept of ways of thinking and learning as cultural environment dictates varies across the four dimensions with different criteria of understanding the learning scope. Fourthly, attitudes towards people take different cultural interpretations with family members, human resources, experts, and co-creators taking the various forms across the dimensions. Finally, the way cultural preparedness to managing change across the dimensions is approached varies with the center of power taking charge. The family has the father figure managing changes in the family dimension, Eiffel is controlled by rules, and guided missile considers targets for changes while the incubator dimension considers improvisations (Changing Minds para.1-2). Theories Analysis Both theories provide organizational adjustment tips for the accommodation of diverse cultural environment that business may be conducted. On one hand, the nature of the environments in which the organization operates is characterized into distinct forms. On the other hand, the appropriate business management approach to cope with the pressures of the cultural diversity is defined for different perspectives. In both theories, it is clear that understanding the cultural environment is important in determination of survival and success within the organization. In the consideration of the above cultural settings, it is possible to isolate specific managerial tasks and roles that a diverse cultural setting may have a direct influence on. Working Hypothesis: it is impossible for certain managerial decisions to be made devoid of cultural considerations at the cross-cultural business platform. Practical Influence of Cultural Differences on Business Practices Within the context of globalization and international business, cross border business interactions dominate business relationships between different cultures. Various levels of interactions may find obstacles in implementing smooth business transactions. Among the most affected business practices that the cultural perspective highlights as mentioned in the thesis statement are discussed below. Human Resource Management At the cross-cultural business setting, cultural attributes of the organization and the environment define the interactions between the management and the human resource. As an illustration, the hiring process may need to be defined to meet the cultural interpretations such as the gender definition of roles and the desired candidate for a particular post. Alternatively, the most effective relationships adopted among the employees and the managers may need to be realigned with the local perceptions of relations and power. Concepts of balance of power and freedoms amongst the personnel may also take shape of the interpretation of the applicable culture. Overseas business interactions when dealing with human resource must consider understanding the local culture in different perspectives to attain optimum productivity. Marketing Consumer behavior is highly responsive to cultural trends and values and success of entry into a new market is driven by the response to cultural concerns taken by the market. To introduce a product for the first time in a new market, it is important to consider cultural values about the product. Presenting the product as culturally acceptable as possible without infringing on the market’s cultural values translates the kind of reception to be achieved. Considering that the product may have a different market segment, it is also important to characterize the various cultural expectations across the various market segments. As an illustration, it is possible to present a product to the lower end market without implying that its consumers are inferior to the upper end market in a class-segregated society. Alternatively, choosing the appropriate product to launch in a particular market must be considered from a cultural perspective without annoying the consumers (Cui and Ting 8). As an illustration, it would be taken as an insult for a fast foods outlet to introduce pork products in a society whose culture is based on the Muslim faith. Public Relations Cultural attributes of the society define the kind of treatment that the organization proposes and adopts for the public relations such as corporate social responsibility. In a highly cohesive society where attitudes to people are inclined to a family setting, it is important to adopt a more social-oriented management. Ensuring that the pubic does not feel isolated and abused by business practices is mainly guided by the nature of the cultural perceptions created over relations with communities. In certain cultural environments, it may be highly expected that business contribute directly to community needs whereas in other settings, it may be conducted out of goodwill from the organization. Public image is a consideration that matters more in societies with a lower individualism approach. However, the role of public relations as a business ethics requirement ensures that corporate culture augurs well with the social position of the modern day organization. Conclusion Business continually adopts the face of the society in various managerial evolution aspects of the organization. Ancient ideas of the organization were devoid of the human values such as infusion of sociocultural values of the society (Taylor 25). Evolution of the society however has led to the incorporation of the human attributes of the surrounding society into the business organization, making it a factor of social and cultural values than before. The modern approach to business with a more human approach to business is a departure from rational and scientific management approaches into the human relations perspective. In view of the role of changing human relations into business, cross-cultural issues become important determinants of appropriate responses to adapt to the modern business interpretations. Cross-cultural business management is an important aspect of business processes, at a time when globalization presents the business opportunity of the global village. Whereas it may be difficult to encompass every cultural value into business decisions at every corner of the globe, it is possible to optimize business productivity by considering specific cultural expectations at particular business context. As highlighted above, practical considerations for human resource management, marketing and public relations can be constituted from the local context of business environment. Works Cited Baker, Kathryn A. “Organizational Culture,” n.d., Web. http://www.au.af.mil/au/awc/awcgate/doe/benchmark/ch11.pdf (Accessed 22 February 2012) Bolman, Lee G., & Deal, Terrence E. Reframing organizations: artistry, choice, and leadership, San Francisco: Jossey-Bass Publishers, 2003. Print Changing Minds, “Trompenaars Four Diversity Cultures,” 2012, Web. http://changingminds.org/explanations/culture/trompenaars_four_cultures.htm (Accessed 22 February 2012) Cui, Yu., & Ting, Zhang. “American Fast Food in Chinese Market: A Cross-Cultural Perspective,” 2009, Web. http://hh.diva-portal.org/smash/get/diva2:286121/FULLTEXT01 (Accessed 22 February 2012) Mind Tools “Hofstedes Cultural Dimensions Understanding Workplace Values Around the World,” 2012, Web. http://www.mindtools.com/pages/article/newLDR_66.htm (Accessed 22 February 2012) Taylor, Fredirick W. Scientific management, New York, NY: Harper and Row, 1947. Print Read More