How to Deal with Cultural Diversity in your Company

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Identify the 5 dimensions of cultural segmentation. CQ is identified as a way to ensure cultural diversity and mangerial excellence

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Case study on International Joint Ventures

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Summary & Conclusion Application: Joint Venture Hofstede’s 5 Dimensions Improving Cultural Intelligence Cultural Intelligence Cultural Diversity

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1 MBA 670 Capsim: Strategic Decision Making Project 5 - Creating an International Business Plan Learning Topics 2 MBA 670: Strategic Decision Making Project 5 Learning Topics 1 Assess the Characteristics of MediCorp's Potential Customers in the Selected Country International Cultural Differences Communications, teamwork, organizational hierarchy, and positive attitudes toward management roles are essential in any organization. These are crucial in international business, as problems are often exacerbated by subtle cross-cultural differences. When defining roles in multinational teams whose members have diverse attitudes and expectations about organizational hierarchy, these cultural differences can present a challenge. Culture is a system of values and norms that is shared among a group of people. The ways people interact socially, their mutual expectations, and the values they share all have consequences for doing business and managing across cross-cultural boundaries. How a country's cultural differences relate to international business can be seen in the following examples: • In Japan, social hierarchy and respect for seniority are highly valued and are reflected at the workplace. Those in senior management positions command respect and expect a formality and deference from junior team members. • In Scandinavian countries, societal equality is emphasized. Workplaces therefore tend to have a comparatively flat organizational hierarchy. In turn, this organization can result in relatively informal communication and an emphasis on cooperation across the organization. • The way to address colleagues and business partners varies in different countries. While Americans and Canadians tend to use first names, in Asian countries such as South Korea, China, and Singapore, colleagues tend to use the formal address, Mr. or Ms. So do Germans and many Europeans. • The concept of punctuality also differs between cultures. Where an American may arrive at a meeting a few minutes early, an Indian or Mexican colleague may arrive well after the scheduled start time and still be considered on time. • Attitudes to work also differ. While some may consider working long hours a sign of commitment, others may view it as an encroachment on their personal time and a sacrifice of essential family time. • Greeting customs are highly culture- and situation-specific. In the United States and Canada, a simple handshake while looking a person in the eye is the norm. In Japan, bowing is the traditional greeting—the deeper the bow, the greater the respect shown. In India, you put hands together as in prayer and say "namaste." In Arab countries, men might hug and kiss each other (but not a woman) on the cheek. • In Latin America and the Middle East, the acceptable physical distance needed to respect someone's personal space is much shorter than what most Europeans and Americans feel comfor.

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atify and describe the cult alue dimensions that help ural profile of a country iad affect organizational processes: power distance. quently arise out of garding time, change, material f fre- values and orientations re- ancertainty avoidance, individualism, and mascu- In his later research, Hofstede explored the encept of long-term versus short-term orientation . Managers can use research results and personal obser vations to develop a character sketch, or cultural profile, of a country. This profile can help managers anticipate how to motivate people and coordinate work processes in a particular international context. piscussion Questions What is meant by the culture of a society, and why is it im portant for international managers to understand it? Do you notice cultural differences among your classmates? How do e differences affect the class environment? How do they 3-3. Di Discuss how the Internet and culture interact. Which most affects the other, and how? Give some examples Discuss collectivism as it applies to the Japanese workplace. 3-4. affect your group projects? s does it affect? uss the types of operational conflicts that could occur in an international context because of different attitudes toward time, change, material factors, and individualism hat managerial functi Discuss the role of Islam in cross- cultural relations and business operations. 3-5. Give examples relative to specific countries. plication Exercises Develop a cultural profile for one of the countries in the fol- 37. In small groups of students, lowing list. Form small groups of students and compare your findings in class with those of another group preparing a profile for another country. Be sure to compare specific findings regarding religion, kinship, recreation, and other subsystems. What are the prevailing attitudes toward time, change, mate- ial factors, and individualism? nv A frican country ing the four dimensions of power distance, uncertaint ance, masculinity, and individualism for one of the countries in comparison to the United States. (Your inst assign the countries to avoid duplication.) Present yo to the class. Assume you are a U.S. manager of a subs foreign country and explain how differences on these are likely to affect your management tasks. What s you have for dealing with these differences in the w Solution Culture of a society means the way people do things living in a society. This varies from place to place to a large level. People living in a society will have different cultures, customs, behaviours, language which can become a barrier if not tackled in the right way. It is important for an international manager to understand it because of the trend of globalising the business in international market. When the business is expanded to different places problems are faced to understand the culture of that place and adjust to make variations according to the existing culture of the place. For example the most important cultural barrier c.

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