Business

Cultural Dimensions that Influence Business Contexts

To increase effectiveness across cultures, business professionals should learn about the influence of culture on communication. Having a sense of diverse cultural dimensions and concepts will help in the understanding and motivations of both domestic and global business partners. Often the greatest challenge is learning not to apply your own cultural values when interacting with people from other cultures. It is important to remember that there is no right or wrong way to deal with other people - just different ways.

Individualism and Collectivism

Although discussed in greater depth in other chapters, the fact that a culture leans toward individualism or collectivism can be very insightful in cultural understanding. In an individualistic culture, workers are expected to perform certain functions and have clearly defined responsibilities. There is a clear boundary that exists between individual workers and job expectations with the idea that individuals work better alone. Loyalty to the company is not demanded but pay for performance is expected. Efficiency and productivity are valued above attitude.

In collectivistic cultures, jobs are assigned to a unit, section, or department. Legal and other structures often protect the group, so individuals generally defer to the group interests. Consensus decision-making is preferred. Individuals are thought to perform better in groups. Loyalty to the company and/or superiors is more valued than efficiency and performance.

Advertising will also reflect a difference between the two dimensions. In individualistic markets, people tend to refer to themselves as "I" or "we" and prefers for everyone to take care of themselves. Hence, fast-food giant, McDonald's advertises to the US audience by focusing on the individual visitor. In collectivistic markets, people tend to focus on the group and community, prioritizing others while assuming that everyone will look after everyone else. In collectivistic markets such as Turkey, the focus of McDonald's advertisements is on the social aspect and highlights the McDonald's "community" and its popularity among consumers.

Power Distance

Elements of power exist in every business encounter both domestically and internationally. Power distance helps us understand how people with different levels of power, prestige, and status should interact with one another. Communication across power divides can be difficult, especially when there are cultural differences in how power is viewed or expressed.

Cultures that practice high power distance feel that organizations function best when the differences are clearly observed, and there is no confusion as to who the boss is, and who the worker is. Managers may reject assistance from subordinates, but willingly consult with their peers. Subordinates may compete for the attention of their superiors, while avoiding disagreements. Education can signal higher social status whereas being without a degree can mean a lack of power. Leaders in high power distance cultures, are expected to resolve conflict, while subordinates are expected to support the conflict resolution process.

Cultures that practice low power distance, such as the United States, feel that power differences should be minimized. Managers accept the support of subordinates, with subordinates expecting to have some voice or power in the decision-making process. Subordinates are relatively unthreatened by disagreeing with superiors, therefore are more likely to cooperate rather than compete. Education signals accomplishment whereas being seen as degreeless can still mean acceptance and inclusion. In low power distance cultures, managers and workers expect to work together to resolve conflict.

Other power issues that indirectly effect intercultural communication are the benefits and harms of outsourcing, access to information, one-person-one-vote versus consensus decision-making, supervision style, and tension between workers of mixed status.

Time

As we have learned previously, there are three major ways in which cultures look at time. We will briefly consider the business ramifications of two of the three.

Polychronic and Monochronic

Monochronic cultures like to do just one thing at a time. They will concentrate on the job and take time commitments very seriously. They do not like to be interrupted and are concerned about not disturbing others so there is great respect for privacy and private property. They will adhere religiously to the previously agreed upon plan and are low context. They are accustomed to short-term relationships. Businesspeople from the US, Canada, and Northern Europe are monochronic.

A business office in a polychronic culture typically has an open door, a ringing phone, and a meeting going on all at the same time. Though they can be distracted easily, they also tend to manage interruptions and are able to change plans often and easily. People are their main concern, and they tend to build life-long relationships. Promptness is based on the relationship rather than the task. Latin America, sub-Saharan Africa, and the Middle East are polychronic.

Interactions between the two types can be problematic. Monochronic businesspeople cannot understand why they can't get down to business rather than always being interrupted. Such interruptions are often considered insulting. Polychronic businesspeople cannot understand the separation between the organization and the goal. Schedules should never impact relationships.

Long-term and Short-term

Short-term cultures prefer immediate results and grow impatient when those results do not materialize. While there is a respect for tradition, there is also an emphasis on identity and integrity. There is also a greater emphasis on reciprocation of greetings, gifts, and rewards. Stability and consistency are important. The UK and US are short-term business cultures.

Long-term values are persistence, thriftiness, and an order to relationships based on age and status. Having a sense of shame that is reflected on the family and community can also occur. A Japanese CEO is likely to apologize or take the blame for a faulty product or process. Many countries in Asia that were influenced by the teaching of Confucius value a long term orientation.

The Use of Space

In the nonverbal chapter, we discussed the use of physical space and our relationship to space. Cultures are concerned with space in intercultural business contexts. Examples can include personal body space, space allotted within an office, or even parking spaces.

The Need for Space

Some people need more space, and others who encroach into that space are seen as a threat. Conversation distances (public, social, personal, and intimate) can vary greatly from culture to culture. A Japanese person who needs less space will stand closer to others than a US American inadvertently making the American uncomfortable. A Swedish person who needs at least six feet of space without any conversation while waiting for a bus will find the chatty American too close and too noisy.

Territory

Some cultures are more territorial than others with a greater concern for ownership. It might be common to mark out boundaries between workers with tall partitions or walls between desks. Territory also extends to anything that is "mine" such as a stapler or tape dispenser. Security becomes a subject of great concern for people with a high need for ownership. Cultures with high territory needs tend to be low context.

Cultures with lower territory needs have fewer needs to claim ownership and boundaries are less important. Desks may be located right next to each other, and the use of partitions is unknown. Office supplies are passed around. Workers are willing to share and their sense of "stealing" supplies is nonexistent. Cultures with low territory needs tend to be high context.

Uncertainty Avoidance

Cultures with high uncertainty avoidance generally prefer to avoid conflict and competition. They appreciate clear instructions. At the office, sharply defined rules and rituals are used to get tasks done. Stability and what is known are preferred to instability and the unknown. Company cultures in these countries may show a preference for low-risk decisions, and employees in these companies are less willing to exhibit aggressiveness. Japan and France are considered good examples of high uncertainty avoidance business cultures.

In countries with low uncertainty avoidance, people are more willing to take risks, companies may appear less formal and structured. Thinking outside the box is valued. Examples of low uncertainty avoidance businesses cultures are Denmark, Singapore, and Australia.

Masculinity and Femininity

Business in the United States has a masculine orientation where assertiveness and competition are highly valued. Self-promotion is considered normal. In other cultures, such as Sweden, business values are more attuned to modesty and taking care of society's weaker members.

Cultures in the World versus the Cultures in Business

For purposes of this book, we have focused on national cultures. According to Hofstede, his cultural dimensions, which are based on cultural values, are not suitable for comparing organizational "cultures". In fact, Hofstede (2007) created a new approach for explaining "cultural" differences within an organization. Although out of the realm of this course, it is important to be aware of the distinction when considering business communication from an international context. Those dimensions are:

• Process-oriented versus Results-oriented
• Job-oriented versus Employee-oriented
• Professional versus Parochial
• Open systems versus Closed Systems
• Tightly controlled versus Loosely Controlled
• Pragmatic versus Normative