Tasks on cultural differences in business Essay Example

arm's length, while Southern Europeans prefer to be closer, within arm's length, in order to feel connected. A Latin European feels rejected when a northern European steps back to recreate 'the bubble', and a northern European feels uneasy when people stand or drive too close for comfort. This difference can also be observed in queuing behavior. When standing in line, northerners who leave space for comfort shouldn't be surprised if it quickly gets filled by Latins. These cultural differences in queuing were evident at Disneyland Paris and caused issues with crowd control practices typically used in the United States. The Latins who filled the gaps during the international dialogue annoyed the northerners and Anglo-Saxon invitees because they saw it as interrupting the line. Invading someone's personal space or asking intimate questions can be seen as not only physical but also psychological invasion.
During the initial stage of getting to know each other or potential collaboration between individuals from different countries, the difference in cultural behavior becomes apparent. French executives, for instance, do not appreciate inquiries about their personal lives, family situations, or how they spent their weekend. They perceive their professional and personal lives as separate spheres. This was exemplified when a senior HR executive at Disney Paris was surprised to discover that a French executive who had been working there for 18 months never brought his family to visit the park, despite free passes and events being available for family members. The executive had no intention of intertwining his family life with work, even though the company culture actively encouraged it. These instances shed light on contrasting preferences for formality and personal contact when it

comes to acquainting oneself with others, revealing underlying assumptions about what is considered public versus private space.

Americans generally tend to be more relaxed, informal, and approachable compared to Europeans or Asians; however, Europeans often express dissatisfaction with relationships with Americans as they believe them to be superficial. On the other hand, establishing a connection may be more challenging with a European counterpart but once established it tends to endure.

The dress code also varies between Americans and Europeans as another cultural aspect that differs significantly.Directors in Northern Europe have a more casual dress code compared to their Latin counterparts. In conferences, it is common to see Norse directors dressed casually, while French directors are hesitant to remove their ties and jackets. Personal style holds significance for Latin directors, whereas Anglo and Asian directors prefer not drawing attention with their clothing choices. Additionally, French women directors often dress in ways that Anglo women directors might find inappropriate for the office. Conversely, the French find it peculiar that American businesswomen wear "masculine" business suits (sometimes paired with sneakers). Dress code can also indicate the project's orientation. Rolled-up shirt sleeves signify "getting down to business" in the United States or "relaxing on the job" in France. Presently, popular ideas regarding dress codes include "dressing down days" and "dressing for the client." Some US companies designate specific days (like Fridays) where employees are encouraged to wear more casual attire akin to what they would wear at home. Other companies encourage employees to align their dressing preferences with those of their clients; for instance, doing business with Levi-Strauss may involve wearing denim jeans (such as Levis) instead of a Chanel suit.However,

there may be resistance to attempts to enforce a specific dress code, whether at work or elsewhere, particularly in France where clothing choice is considered an expression of individuality.

Task 3

According to Hofstede's cultural dimensions framework, there are five distinct dimensions for understanding cultural differences between nations: power distance, uncertainty avoidance, individualism/collectivism, masculinity/femininity, and long-term/short-term orientation. Power distance and uncertainty avoidance can be measured by examining the degree to which a society desires or rejects inequality and the levels of dependence and interdependence. In countries with high power distance, less justification is required for holding onto power compared to countries with lower power distance. The concept of uncertainty and its impact on different societies is discussed in the text. In places where uncertainty is seen as a threat (such as France), reliance on regulations, experts, and absolute truths is prevalent. On the other hand, in places with low uncertainty (like the US and South Africa), there is less emphasis on rules and procedures and more trust in relativism and empiricism. Hofstede explored cultural differences and their effects on motivation, leadership, and organization but questioned whether American theories could be applied in other countries. He argued that countries with high power distance would have more hierarchical levels, a higher number of supervisors,
and centralized decision-making.In societies with a high level of uncertainty avoidance, organizations tend to have more formalization and written rules. They also place greater emphasis on specialized competency in staff roles and delineating occupations and functions. Directors prioritize stability and security while avoiding risks. The role of leadership involves planning, organizing, and commanding. Hofstede ranked countries based on different dimensions and created cultural maps using

these rankings. He identified distinct country clusters such as Anglo, Nordic, Latin, and Asian.

One particular cultural map relevant to the construction industry considers both power distance (acceptance of hierarchy) and uncertainty avoidance (desire for formal rules). Countries that rank high in both power distance and uncertainty avoidance are expected to have a more bureaucratic or "mechanistic" structure. Latin countries fall into this category characterized by a traditional bureaucratic pyramid where decision-making is centralized, top-level coordination is prevalent, delegation is limited, roles are highly specialized with strong staff functions and analytical abilities. Informal relationships along with "Systeme D," elitism (power and authority), and input control are common traits in these countries.France is considered to have a relatively high power distance index of 68 and an uncertainty avoidance index of 86. Similarly, countries like the Nordic states and to a lesser extent, the Anglo states, also exhibit low rankings in both power distance and uncertainty avoidance. These countries tend to have a more organic structure characterized by decentralization and less formal rules and procedures. In these Anglo/Nordic countries, there is little power distance and weak uncertainty avoidance, resembling small town markets. The structure tends to be decentralized with individuals seen as free agents who are entrepreneurial and flexible. Decision-making is often delegated and coordinated through informal personal communication.

On the other hand, the United States falls into this category with a power distance index of 40 and an uncertainty avoidance index of 46. In societies where power distance is low but uncertainty avoidance is high, organizations typically have a different structure. Hierarchy is downplayed, decisions are decentralized, and there tends to be a narrow span of control. Specialists

with technical competence play a significant role, but their discretion is limited by expertise. The top management team possesses industry and company knowledge while the organization itself follows functional departments or compartments for organization purposes. Coordination within these organizations relies on routines, rules, regulations, and structural solutions.
Throughput control and efficiency are emphasized in organizations where rules, regulations, roles, and responsibilities are clearly defined. In such organizations, there is no need for a supervisor or foreman as operations run smoothly through routines. This characteristic is typical of Germanic groups.

In societies with high power distance but low uncertainty avoidance, organizations resemble households or communities. These organizations have centralized structures with the leader holding the most power. They are described as paternalistic, loyal, versatile, with strong social roles instead of task-specific roles. Personal relationships and social control play important roles in these organizations. Subordinates have social roles rather than clearly defined tasks and responsibilities. This type of organizational structure is commonly found in Asian countries where centralized power and personal relationships are prevalent. South Africa also falls into this category with a power distance index of 49 and an uncertainty avoidance index of 49.

Task 4: Strategies for managing multicultural teams

One crucial aspect of successful teams is establishing a shared sense of purpose. This purpose should be developed within the team itself, regardless of whether it originates from higher authorities. Often, teams are formed without a clear understanding of their reason for existence other than being seen as a good idea at the time.These groups have a tendency to lose motivation quickly unless they can establish their own purpose. However, creating this shared sense of purpose is challenging, especially

when initial commitments may be to functional, business, or national units. Different civilizations have different beliefs about the reasons for teams: sharing information and discussing problems, making decisions and taking actions, or building social relationships.
This will determine issues such as the frequency of meetings and contacts, who should attend them, whether they can be conducted through conference calls or if face-to-face interaction is necessary, and the time allocated specifically for socializing. The perceived purpose of the team will determine who needs to be involved.
In task-oriented cultures, only those directly involved with the appropriate knowledge and skills will be invited. The goal is to get the job done. In cultures where hierarchy matters, members may be assigned to teams based on their power and influence in the organization rather than their specific expertise. The presence of influential members may indicate the importance attached to the team as well as the likelihood of a decision being made.
The notion that team members should come from similar hierarchical levels in order to avoid one member exerting dominance seems like an unusual idea.In civilizations that prioritize relationships and collective values, inclusivity is emphasized regardless of the relevance of an individual's cognition. The objective of a team in such societies is to cultivate a sense of belonging, strengthen relationships, and reinforce group identity. Experiencing exclusion can be uncomfortable as it may give the sensation of being socially rejected. When structuring their tasks, teams must make decisions regarding project organization which includes setting agendas, scheduling meetings, determining deadlines, and allocating responsibilities. Cultural differences can lead to confusion and conflicts in this regard. For example, French culture does not favor a systematic approach

with one agenda point at a time; they prefer inclusive discussions that address all issues together. In polychronic cultures, rigid agendas can hinder creativity during meetings; deadlines are more flexible; and multiple people speaking simultaneously is not considered chaotic. Conversely, in monochromatic cultures like America, teams expect consistent treatment of agenda points; timely decision-making; adherence to deadlines; and only one speaker at a time. Additionally, teams also need to assign tasks and responsibilities among their members. In more individualistic societies, team members often prefer working independently through task division so that everyone has autonomy over their work. However, in more collectivized societies assigning individual responsibility may seem unfamiliar or odd.
The expectation is for the group's work to be done together, interdependently. The concept of individuals working independently does not make sense to them. Team leaders and members have significantly different roles and responsibilities across cultures. In France, this is based on their power and political influence within the organization. Many American experts stress the importance of selecting a team leader with strong interpersonal skills who can also facilitate. They specifically caution against choosing leaders solely based on narrow task knowledge or hierarchical positions. Hence, multicultural groups must actively negotiate strategies for the project in order to find a common approach to collaboration. Additionally, they need to openly discuss process issues that pertain more to member interactions rather than task structure.

Task 5

MAKING ECONOMIC VERSUS MORAL SENSE
Is it genuine concern for society or just another method to increase corporate profit? There is an ongoing debate about "the business of business is business". Ethical behavior is crucial for a free society and economic system and

can be viewed as a requirement of globalization. This requirement encompasses principles of equality and fairness, such as providing equal opportunities and market access without favoritism. Social responsibility refers to the belief that corporations have an obligation to society beyond what is legally mandated.The text discusses the importance of considering the well-being of the community, employees, and customers in corporate social responsibility. It acknowledges that acts of corporate social responsibility can be driven by profitability rather than causing it. The text provides an example of Levi-Strauss withdrawing its business from China in protest against human rights violations, demonstrating a choice between ethics and profit. Additionally, it mentions how Levi-Strauss addressed child labor in Bangladesh by paying children to attend school, reflecting their long-term commitment to both business development and contributing to society.

The text then defines corruption as the misuse of power for personal gain, including acts like bribery, nepotism, extortion, embezzlement, and unauthorized use of resources for personal purposes.

It goes on to discuss ethics and code of conduct across different cultures. Different societies have diverse perspectives on what is considered "right" or "wrong" behavior. For instance, there are varying views on abortion legality in the US. Each cultural environment develops its own unique ethics and standards based on the opportunities and constraints they face. Ethical values refer to individuals' personal beliefs about right or wrong behavior.Universalism suggests that there are objective ethical guidelines that apply across countries. On the other hand, cultural relativism argues that ethical behavior is determined by a country's unique culture, laws, and business practices. Code of Conduct guidelines are being developed within companies and across countries to provide a set of

standards for behavior. A statement is a document that outlines corporate rules, ethics, behavior regulations, and company doctrine pertaining to employee duty, stockholders, consumers, the environment, and other society-related aspects.

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Undertaking 6

Rational / Economic View

Many strategic management models emphasize a "rational analytic" approach which assumes that the environment and organization are objective worlds perceived and analyzed by intelligent managers. However, when making strategic decisions managers often encounter environmental uncertainty, complex problems, and socio-political processes. Instead of treating these as objective worlds it can be argued that both environments and organizations are subjective worlds perceived and enacted in different ways. This means that managers see different things, create different realities, and act accordingly. Therefore there can be multiple interpretations and responses to seemingly similar situations.The role of national culture in determining strategic behavior is significant. The rational analytic approach assumes that directors follow a similar path when making strategic decisions. This involves gathering relevant information, generating options, evaluating costs and benefits, selecting the optimal solution, and acting upon it. However, directors and organizations have limitations in processing all this information due to bounded reasoning. The specific ways cultural influences limit decision-making remain unknown. In other words, how does culture affect the gathering and interpretation of information, choice between options, and establishment of action criteria? Many discussions on strategic management assume objectivity in environments and organizations, as well as a rational and analytical decision-making process. However, this functionalist view may be challenged in different cultures.

Dynamic View

The text discusses the concept of strategy from a dynamic perspective, in line with Islamic principles. It highlights that strategy is not static but rather a

fluid process influenced by emotions. The focus is on contemplating the corporate mindset and purpose rather than relying solely on facts and figures. Cultural differences play a role in shaping this understanding of strategy, emphasizing the importance of emotions and questioning the dominance of logic and objective truth over religious intent.

Furthermore, strategy is seen as a collective endeavor that evolves over time. The Matsushita approach, known as the 'Seven Spirits of Matsushita,' embodies different cultural values such as harmony with nature, unlocking human potential, and achieving corporate prosperity.

According to Pascale, Japanese companies challenge the Western perception of strategic management as narrow-minded and simplistic. They believe that reality cannot be captured within simple matrices or cause-and-effect models; instead, they recognize that truth is complex and multifaceted.

This view aligns with other Western management scholars who also question the purely rational analytical approach to strategy. Henry Mintzberg argues against strategic planning as a rigid process and suggests that strategies emerge gradually through conscious decision-making.

Overall, these perspectives advocate for a more holistic understanding of strategy that acknowledges its dynamic nature driven by emotions, cultural beliefs, consciousness, and evolutionary processes over time.Recently, there has been an increased interest in developing organizational resources and capabilities in the field of strategic management. The resource-based and core competencies views suggest that building corporate identity enables companies to adapt to changes in the environment and reflect underlying assumptions by emphasizing their essence rather than their actions. Instead of focusing on making strategic moves or actions, the focus shifts towards possessing the right strategic traits. There are two main approaches to strategic management: controlling (rational) and adapting (dynamic), depending on the underlying assumptions.

In terms of

controlling versus adapting, scanning refers to actively hunting for information and monitoring it. This can be done in a focused and systematic manner or in a broad and sporadic way. The scanning process can also be centralized or decentralized, depending on the section responsible for it. Planning can be formalized within systems or informal through treatment.

Strategic planning itself can also be centralized or decentralized. The types and sources of information used can vary, ranging from quantitative to qualitative, objective to subjective, impersonal to personal. Interpreting this information relies either on formal theoretical models and methods or informal methods such as place-grown models.

Scenario planning involves discussion and argumentation among those involved in the process. These individuals are typically at higher levels within the organization's hierarchy but may also include experts and employees from various ranks.Decisions are made primarily at the top or on the front lines, and they can be political or consensus-based. Strategic goals and action plans may be clearly defined or broad and implicit. Explicit measures are rewarded but vaguely monitored. Time horizons for action plans can range from short-term to long-term, while the plans themselves can be sequential or simultaneous.

FPD has two investors located in Vancouver with a background in Florida, both in North America. It is crucial for the team to understand the US culture within which the business will operate, including language, customs, employment laws, and real estate regulations. These factors play a significant role in hiring local administrative forces to support the business and establishing an office.

Given the controlling nature of US culture (rational/making), the controlling model is deemed most suitable for FPD.