2. Cultural differences which affect business
practices
• Social stratification system
• Competence
• Gender Bias
• Age
• Family based stratification
• Materialism and leisure
• Power distance
• Risk seeking behaviour
• Information processing
3. Cultural differences which affect business
practices
• Social stratification system: Every culture has its own
social hierarchy which may be based on ascribed
group membership i.e. determined by birth or
achieved group membership i.e. political or religious
affiliations. Some cultures may have a very rigid
hierarchy whereas others may have a flexible
hierarchy.
4. Cultural differences which affect business
practices
• Competence: In some cultures an individual’s
eligibility for employment is based on his /her
personal achievements and competence e.g.
American culture. In other cultures an individual’s
employability will depend upon group effort, seniority
and cooperation.
5. Cultural differences which affect business
practices
• Gender Bias: In most of the Asian and developing
counties there is a definite bias towards the male
members of the society and the role of women is
restricted.
• Age Bias: Some cultures accord greater importance to
age and wisdom such as India and China, while others
may give more importance to the younger generation
and innovativeness.
6. Cultural differences which affect business
practices
• Family based stratification: In some cultures an
individual’s acceptance in society depends upon the
social status of his family.
• Materialism and leisure: Some cultures accord greater
emphasis to materialism and material wealth, while
other cultures lay greater emphasis on leisure or
spiritualism.
7. Cultural differences which affect business
practices
Power distance: Power distance pertains to the
distance people are expected to maintain between
superiors and subordinates. Some cultures follow a
very rigid hierarchy whereby superiors and
subordinates are supposed to maintain distance,
leading to less interaction and consultation.
Risk seeking behaviour: People in some cultures are risk
seekers and are willing to take greater risks while in
other cultures people may be risk avoiders.
8. Cultural differences which affect business
practices
• Information processing: It refers to the way people in
some cultures process information. Information may be
processed Mônochronically i.e. people prefer to work on
a single task and finish various tasks sequentially or
polychronically i.e people prefer to work on several tasks
simultaneously.
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