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CROSS CULTURAL
MANAGEMENT
Chapter Outline
bull Concept of Culture
bull Elements of Culture
bull Determinants of Culture
bull level of culture
bull Cross cultural theories
bull Cross Cultural Communication
bull Culture Shock
Concept of
Culture
bull Culture is the configuration of learned behavior
and result of behavior whose component
elements are shared and transmitted among the
members of a particular society
Culture is Relative that guide the behavior of people in a society
community and that are passed on from one generation to the next
Elements of
Culture
bull Culture has normative value It prescribes
Dorsquos and Donrsquots which are binding on the
members of a society
bull Culture is a group Phenomenon
bull Cultural practices are passed on from
generation to generation
Elements of
culture
bull Language
bull Nationality
bull Sex
bull Education
bull Profession
bull Ethnic group
bull Religion
bull Social class
bull Corporate culture
bull Family
bull Values
bull Norms
bull Attitudes
bull folkways
bull Customs
bull Example Women in Indian Society wear lsquoKumkumSindurrsquo on their foreheads because their parent told them to wear The parents did the same because their parents had done so
bull Eating cowrsquos meat is viewed critically by Hindu Society While drinking liquor is common in the US the same is prohibited in Saudi Arabia and is a punishable offence
Characteristics of
Culture
bull Culture is learned
bull Culture is unconscious
bull Culture is shared
bull Culture is integrated
bull Culture is Symbolic
bull Culture is a way of life
bull Culture is Dynamic
bull Culture is Relative
bull Culture is universal
Determinants of CultureReligion
Language
Education
Political philosophy
Social structure
level of culture
Dominant Culture
Sub Culture
Organizational
Occupational
pervasive and extends to the whole of a
country
practices of Punjabies are different from
those obtain in Karnataka
TATA is different from that of INFOSYS while
that of INFOSIS is not the same as that of
WIPRO
An Account for example speaks the same
financial language whether he or she is an
Indian or an American So is the case with a
medical practitioner or an attorney
Characteristics of
Organization
Culture
bull Centralized vs decentralized decision making
bull Safety vs risk in some so
bull Individual vs group rewards
bull Informal vs formal procedures
bull High vs low organizational loyalty
bull Cooperation vs competition
bull Short term vs long term horizons
bull Stability vs innovation
Cultural
Sensitivity
Knowing that cultural differences as well as
similarities exist without assigning values (ie
better or worse right or wrong) to those cultural
differences
Cultural Sensitivity
bull Communicate effectively with customers suppliers business associates and
partners in other countries and foreign employees (expatriates)
bull Conduct negotiations and understand the nuances of the beginning postures of the
other parties into a negotiation
bull Predict trends in social behavior likely to affect the firmrsquos foreign operations
bull Understand the ethical standards and concepts of social responsibility in various
countries
bull Build Foster relationships between union confederations and employee associations
require cultural empathy
bull Understand local Government policies and influences it for business promotion
bull Conduct efficient meetings in different countries and encourage employees
participation in management
bull Understand how people interpret market research an other information
Therefore every international manager need to know about cultural differences among
nations in order to be able to
MULTICULTURALISM
An American family on assignment in
Indonesia went to restaurant with their Pet
dog The restaurant manager politely
greeted then at the door took their dog and
30Minutes later-family was shocked
They had SERVED IT TO THEM
The consumption of dog meat is associated
with their culture where dog meat is
considered a festive dish usually reserved for
occasions such as weddings and Christmas
Cross cultural theories
Cross cultural
Theories
Organizational culture varies one from another based on 4 factors
bull Organizational objectives and Goals
bull Competitive Challenge
bull National variables and
bull Socio cultural variables like different religion language education etc
Cultural Diversity or Multi-Culturism
Hofstedersquo Cultural
DimensionDutch Scientist has analyzed
cultural dimension in IBM
Employees (116000) in 70
countries and in 3 regions
like E Africa W Africa and Saudi
Arabia
Hofstede tried to eliminate the
impact of changing organizational
cultures and analyzed the influences
of different national cultures
Hofstede provides a useful framework for
understanding the workforce diversity His main
findings were
bull Work related value are not universal
bull Underlying values continues when a multinational
company tries to impose the same norms on all its foreign
interests
bull Local value determine how the headquarters regulations
are interpreted
bull By implication a multinational that tries to insist on
uniformity is n danger of creating morale problems and
inefficiencies
Hofstedersquos
framework for
Assessing culture
Hofstedersquos studies of the interactions between
national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations and that are very
persistent across time
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Chapter Outline
bull Concept of Culture
bull Elements of Culture
bull Determinants of Culture
bull level of culture
bull Cross cultural theories
bull Cross Cultural Communication
bull Culture Shock
Concept of
Culture
bull Culture is the configuration of learned behavior
and result of behavior whose component
elements are shared and transmitted among the
members of a particular society
Culture is Relative that guide the behavior of people in a society
community and that are passed on from one generation to the next
Elements of
Culture
bull Culture has normative value It prescribes
Dorsquos and Donrsquots which are binding on the
members of a society
bull Culture is a group Phenomenon
bull Cultural practices are passed on from
generation to generation
Elements of
culture
bull Language
bull Nationality
bull Sex
bull Education
bull Profession
bull Ethnic group
bull Religion
bull Social class
bull Corporate culture
bull Family
bull Values
bull Norms
bull Attitudes
bull folkways
bull Customs
bull Example Women in Indian Society wear lsquoKumkumSindurrsquo on their foreheads because their parent told them to wear The parents did the same because their parents had done so
bull Eating cowrsquos meat is viewed critically by Hindu Society While drinking liquor is common in the US the same is prohibited in Saudi Arabia and is a punishable offence
Characteristics of
Culture
bull Culture is learned
bull Culture is unconscious
bull Culture is shared
bull Culture is integrated
bull Culture is Symbolic
bull Culture is a way of life
bull Culture is Dynamic
bull Culture is Relative
bull Culture is universal
Determinants of CultureReligion
Language
Education
Political philosophy
Social structure
level of culture
Dominant Culture
Sub Culture
Organizational
Occupational
pervasive and extends to the whole of a
country
practices of Punjabies are different from
those obtain in Karnataka
TATA is different from that of INFOSYS while
that of INFOSIS is not the same as that of
WIPRO
An Account for example speaks the same
financial language whether he or she is an
Indian or an American So is the case with a
medical practitioner or an attorney
Characteristics of
Organization
Culture
bull Centralized vs decentralized decision making
bull Safety vs risk in some so
bull Individual vs group rewards
bull Informal vs formal procedures
bull High vs low organizational loyalty
bull Cooperation vs competition
bull Short term vs long term horizons
bull Stability vs innovation
Cultural
Sensitivity
Knowing that cultural differences as well as
similarities exist without assigning values (ie
better or worse right or wrong) to those cultural
differences
Cultural Sensitivity
bull Communicate effectively with customers suppliers business associates and
partners in other countries and foreign employees (expatriates)
bull Conduct negotiations and understand the nuances of the beginning postures of the
other parties into a negotiation
bull Predict trends in social behavior likely to affect the firmrsquos foreign operations
bull Understand the ethical standards and concepts of social responsibility in various
countries
bull Build Foster relationships between union confederations and employee associations
require cultural empathy
bull Understand local Government policies and influences it for business promotion
bull Conduct efficient meetings in different countries and encourage employees
participation in management
bull Understand how people interpret market research an other information
Therefore every international manager need to know about cultural differences among
nations in order to be able to
MULTICULTURALISM
An American family on assignment in
Indonesia went to restaurant with their Pet
dog The restaurant manager politely
greeted then at the door took their dog and
30Minutes later-family was shocked
They had SERVED IT TO THEM
The consumption of dog meat is associated
with their culture where dog meat is
considered a festive dish usually reserved for
occasions such as weddings and Christmas
Cross cultural theories
Cross cultural
Theories
Organizational culture varies one from another based on 4 factors
bull Organizational objectives and Goals
bull Competitive Challenge
bull National variables and
bull Socio cultural variables like different religion language education etc
Cultural Diversity or Multi-Culturism
Hofstedersquo Cultural
DimensionDutch Scientist has analyzed
cultural dimension in IBM
Employees (116000) in 70
countries and in 3 regions
like E Africa W Africa and Saudi
Arabia
Hofstede tried to eliminate the
impact of changing organizational
cultures and analyzed the influences
of different national cultures
Hofstede provides a useful framework for
understanding the workforce diversity His main
findings were
bull Work related value are not universal
bull Underlying values continues when a multinational
company tries to impose the same norms on all its foreign
interests
bull Local value determine how the headquarters regulations
are interpreted
bull By implication a multinational that tries to insist on
uniformity is n danger of creating morale problems and
inefficiencies
Hofstedersquos
framework for
Assessing culture
Hofstedersquos studies of the interactions between
national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations and that are very
persistent across time
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Concept of
Culture
bull Culture is the configuration of learned behavior
and result of behavior whose component
elements are shared and transmitted among the
members of a particular society
Culture is Relative that guide the behavior of people in a society
community and that are passed on from one generation to the next
Elements of
Culture
bull Culture has normative value It prescribes
Dorsquos and Donrsquots which are binding on the
members of a society
bull Culture is a group Phenomenon
bull Cultural practices are passed on from
generation to generation
Elements of
culture
bull Language
bull Nationality
bull Sex
bull Education
bull Profession
bull Ethnic group
bull Religion
bull Social class
bull Corporate culture
bull Family
bull Values
bull Norms
bull Attitudes
bull folkways
bull Customs
bull Example Women in Indian Society wear lsquoKumkumSindurrsquo on their foreheads because their parent told them to wear The parents did the same because their parents had done so
bull Eating cowrsquos meat is viewed critically by Hindu Society While drinking liquor is common in the US the same is prohibited in Saudi Arabia and is a punishable offence
Characteristics of
Culture
bull Culture is learned
bull Culture is unconscious
bull Culture is shared
bull Culture is integrated
bull Culture is Symbolic
bull Culture is a way of life
bull Culture is Dynamic
bull Culture is Relative
bull Culture is universal
Determinants of CultureReligion
Language
Education
Political philosophy
Social structure
level of culture
Dominant Culture
Sub Culture
Organizational
Occupational
pervasive and extends to the whole of a
country
practices of Punjabies are different from
those obtain in Karnataka
TATA is different from that of INFOSYS while
that of INFOSIS is not the same as that of
WIPRO
An Account for example speaks the same
financial language whether he or she is an
Indian or an American So is the case with a
medical practitioner or an attorney
Characteristics of
Organization
Culture
bull Centralized vs decentralized decision making
bull Safety vs risk in some so
bull Individual vs group rewards
bull Informal vs formal procedures
bull High vs low organizational loyalty
bull Cooperation vs competition
bull Short term vs long term horizons
bull Stability vs innovation
Cultural
Sensitivity
Knowing that cultural differences as well as
similarities exist without assigning values (ie
better or worse right or wrong) to those cultural
differences
Cultural Sensitivity
bull Communicate effectively with customers suppliers business associates and
partners in other countries and foreign employees (expatriates)
bull Conduct negotiations and understand the nuances of the beginning postures of the
other parties into a negotiation
bull Predict trends in social behavior likely to affect the firmrsquos foreign operations
bull Understand the ethical standards and concepts of social responsibility in various
countries
bull Build Foster relationships between union confederations and employee associations
require cultural empathy
bull Understand local Government policies and influences it for business promotion
bull Conduct efficient meetings in different countries and encourage employees
participation in management
bull Understand how people interpret market research an other information
Therefore every international manager need to know about cultural differences among
nations in order to be able to
MULTICULTURALISM
An American family on assignment in
Indonesia went to restaurant with their Pet
dog The restaurant manager politely
greeted then at the door took their dog and
30Minutes later-family was shocked
They had SERVED IT TO THEM
The consumption of dog meat is associated
with their culture where dog meat is
considered a festive dish usually reserved for
occasions such as weddings and Christmas
Cross cultural theories
Cross cultural
Theories
Organizational culture varies one from another based on 4 factors
bull Organizational objectives and Goals
bull Competitive Challenge
bull National variables and
bull Socio cultural variables like different religion language education etc
Cultural Diversity or Multi-Culturism
Hofstedersquo Cultural
DimensionDutch Scientist has analyzed
cultural dimension in IBM
Employees (116000) in 70
countries and in 3 regions
like E Africa W Africa and Saudi
Arabia
Hofstede tried to eliminate the
impact of changing organizational
cultures and analyzed the influences
of different national cultures
Hofstede provides a useful framework for
understanding the workforce diversity His main
findings were
bull Work related value are not universal
bull Underlying values continues when a multinational
company tries to impose the same norms on all its foreign
interests
bull Local value determine how the headquarters regulations
are interpreted
bull By implication a multinational that tries to insist on
uniformity is n danger of creating morale problems and
inefficiencies
Hofstedersquos
framework for
Assessing culture
Hofstedersquos studies of the interactions between
national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations and that are very
persistent across time
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Elements of
Culture
bull Culture has normative value It prescribes
Dorsquos and Donrsquots which are binding on the
members of a society
bull Culture is a group Phenomenon
bull Cultural practices are passed on from
generation to generation
Elements of
culture
bull Language
bull Nationality
bull Sex
bull Education
bull Profession
bull Ethnic group
bull Religion
bull Social class
bull Corporate culture
bull Family
bull Values
bull Norms
bull Attitudes
bull folkways
bull Customs
bull Example Women in Indian Society wear lsquoKumkumSindurrsquo on their foreheads because their parent told them to wear The parents did the same because their parents had done so
bull Eating cowrsquos meat is viewed critically by Hindu Society While drinking liquor is common in the US the same is prohibited in Saudi Arabia and is a punishable offence
Characteristics of
Culture
bull Culture is learned
bull Culture is unconscious
bull Culture is shared
bull Culture is integrated
bull Culture is Symbolic
bull Culture is a way of life
bull Culture is Dynamic
bull Culture is Relative
bull Culture is universal
Determinants of CultureReligion
Language
Education
Political philosophy
Social structure
level of culture
Dominant Culture
Sub Culture
Organizational
Occupational
pervasive and extends to the whole of a
country
practices of Punjabies are different from
those obtain in Karnataka
TATA is different from that of INFOSYS while
that of INFOSIS is not the same as that of
WIPRO
An Account for example speaks the same
financial language whether he or she is an
Indian or an American So is the case with a
medical practitioner or an attorney
Characteristics of
Organization
Culture
bull Centralized vs decentralized decision making
bull Safety vs risk in some so
bull Individual vs group rewards
bull Informal vs formal procedures
bull High vs low organizational loyalty
bull Cooperation vs competition
bull Short term vs long term horizons
bull Stability vs innovation
Cultural
Sensitivity
Knowing that cultural differences as well as
similarities exist without assigning values (ie
better or worse right or wrong) to those cultural
differences
Cultural Sensitivity
bull Communicate effectively with customers suppliers business associates and
partners in other countries and foreign employees (expatriates)
bull Conduct negotiations and understand the nuances of the beginning postures of the
other parties into a negotiation
bull Predict trends in social behavior likely to affect the firmrsquos foreign operations
bull Understand the ethical standards and concepts of social responsibility in various
countries
bull Build Foster relationships between union confederations and employee associations
require cultural empathy
bull Understand local Government policies and influences it for business promotion
bull Conduct efficient meetings in different countries and encourage employees
participation in management
bull Understand how people interpret market research an other information
Therefore every international manager need to know about cultural differences among
nations in order to be able to
MULTICULTURALISM
An American family on assignment in
Indonesia went to restaurant with their Pet
dog The restaurant manager politely
greeted then at the door took their dog and
30Minutes later-family was shocked
They had SERVED IT TO THEM
The consumption of dog meat is associated
with their culture where dog meat is
considered a festive dish usually reserved for
occasions such as weddings and Christmas
Cross cultural theories
Cross cultural
Theories
Organizational culture varies one from another based on 4 factors
bull Organizational objectives and Goals
bull Competitive Challenge
bull National variables and
bull Socio cultural variables like different religion language education etc
Cultural Diversity or Multi-Culturism
Hofstedersquo Cultural
DimensionDutch Scientist has analyzed
cultural dimension in IBM
Employees (116000) in 70
countries and in 3 regions
like E Africa W Africa and Saudi
Arabia
Hofstede tried to eliminate the
impact of changing organizational
cultures and analyzed the influences
of different national cultures
Hofstede provides a useful framework for
understanding the workforce diversity His main
findings were
bull Work related value are not universal
bull Underlying values continues when a multinational
company tries to impose the same norms on all its foreign
interests
bull Local value determine how the headquarters regulations
are interpreted
bull By implication a multinational that tries to insist on
uniformity is n danger of creating morale problems and
inefficiencies
Hofstedersquos
framework for
Assessing culture
Hofstedersquos studies of the interactions between
national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations and that are very
persistent across time
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Elements of
culture
bull Language
bull Nationality
bull Sex
bull Education
bull Profession
bull Ethnic group
bull Religion
bull Social class
bull Corporate culture
bull Family
bull Values
bull Norms
bull Attitudes
bull folkways
bull Customs
bull Example Women in Indian Society wear lsquoKumkumSindurrsquo on their foreheads because their parent told them to wear The parents did the same because their parents had done so
bull Eating cowrsquos meat is viewed critically by Hindu Society While drinking liquor is common in the US the same is prohibited in Saudi Arabia and is a punishable offence
Characteristics of
Culture
bull Culture is learned
bull Culture is unconscious
bull Culture is shared
bull Culture is integrated
bull Culture is Symbolic
bull Culture is a way of life
bull Culture is Dynamic
bull Culture is Relative
bull Culture is universal
Determinants of CultureReligion
Language
Education
Political philosophy
Social structure
level of culture
Dominant Culture
Sub Culture
Organizational
Occupational
pervasive and extends to the whole of a
country
practices of Punjabies are different from
those obtain in Karnataka
TATA is different from that of INFOSYS while
that of INFOSIS is not the same as that of
WIPRO
An Account for example speaks the same
financial language whether he or she is an
Indian or an American So is the case with a
medical practitioner or an attorney
Characteristics of
Organization
Culture
bull Centralized vs decentralized decision making
bull Safety vs risk in some so
bull Individual vs group rewards
bull Informal vs formal procedures
bull High vs low organizational loyalty
bull Cooperation vs competition
bull Short term vs long term horizons
bull Stability vs innovation
Cultural
Sensitivity
Knowing that cultural differences as well as
similarities exist without assigning values (ie
better or worse right or wrong) to those cultural
differences
Cultural Sensitivity
bull Communicate effectively with customers suppliers business associates and
partners in other countries and foreign employees (expatriates)
bull Conduct negotiations and understand the nuances of the beginning postures of the
other parties into a negotiation
bull Predict trends in social behavior likely to affect the firmrsquos foreign operations
bull Understand the ethical standards and concepts of social responsibility in various
countries
bull Build Foster relationships between union confederations and employee associations
require cultural empathy
bull Understand local Government policies and influences it for business promotion
bull Conduct efficient meetings in different countries and encourage employees
participation in management
bull Understand how people interpret market research an other information
Therefore every international manager need to know about cultural differences among
nations in order to be able to
MULTICULTURALISM
An American family on assignment in
Indonesia went to restaurant with their Pet
dog The restaurant manager politely
greeted then at the door took their dog and
30Minutes later-family was shocked
They had SERVED IT TO THEM
The consumption of dog meat is associated
with their culture where dog meat is
considered a festive dish usually reserved for
occasions such as weddings and Christmas
Cross cultural theories
Cross cultural
Theories
Organizational culture varies one from another based on 4 factors
bull Organizational objectives and Goals
bull Competitive Challenge
bull National variables and
bull Socio cultural variables like different religion language education etc
Cultural Diversity or Multi-Culturism
Hofstedersquo Cultural
DimensionDutch Scientist has analyzed
cultural dimension in IBM
Employees (116000) in 70
countries and in 3 regions
like E Africa W Africa and Saudi
Arabia
Hofstede tried to eliminate the
impact of changing organizational
cultures and analyzed the influences
of different national cultures
Hofstede provides a useful framework for
understanding the workforce diversity His main
findings were
bull Work related value are not universal
bull Underlying values continues when a multinational
company tries to impose the same norms on all its foreign
interests
bull Local value determine how the headquarters regulations
are interpreted
bull By implication a multinational that tries to insist on
uniformity is n danger of creating morale problems and
inefficiencies
Hofstedersquos
framework for
Assessing culture
Hofstedersquos studies of the interactions between
national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations and that are very
persistent across time
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
bull Example Women in Indian Society wear lsquoKumkumSindurrsquo on their foreheads because their parent told them to wear The parents did the same because their parents had done so
bull Eating cowrsquos meat is viewed critically by Hindu Society While drinking liquor is common in the US the same is prohibited in Saudi Arabia and is a punishable offence
Characteristics of
Culture
bull Culture is learned
bull Culture is unconscious
bull Culture is shared
bull Culture is integrated
bull Culture is Symbolic
bull Culture is a way of life
bull Culture is Dynamic
bull Culture is Relative
bull Culture is universal
Determinants of CultureReligion
Language
Education
Political philosophy
Social structure
level of culture
Dominant Culture
Sub Culture
Organizational
Occupational
pervasive and extends to the whole of a
country
practices of Punjabies are different from
those obtain in Karnataka
TATA is different from that of INFOSYS while
that of INFOSIS is not the same as that of
WIPRO
An Account for example speaks the same
financial language whether he or she is an
Indian or an American So is the case with a
medical practitioner or an attorney
Characteristics of
Organization
Culture
bull Centralized vs decentralized decision making
bull Safety vs risk in some so
bull Individual vs group rewards
bull Informal vs formal procedures
bull High vs low organizational loyalty
bull Cooperation vs competition
bull Short term vs long term horizons
bull Stability vs innovation
Cultural
Sensitivity
Knowing that cultural differences as well as
similarities exist without assigning values (ie
better or worse right or wrong) to those cultural
differences
Cultural Sensitivity
bull Communicate effectively with customers suppliers business associates and
partners in other countries and foreign employees (expatriates)
bull Conduct negotiations and understand the nuances of the beginning postures of the
other parties into a negotiation
bull Predict trends in social behavior likely to affect the firmrsquos foreign operations
bull Understand the ethical standards and concepts of social responsibility in various
countries
bull Build Foster relationships between union confederations and employee associations
require cultural empathy
bull Understand local Government policies and influences it for business promotion
bull Conduct efficient meetings in different countries and encourage employees
participation in management
bull Understand how people interpret market research an other information
Therefore every international manager need to know about cultural differences among
nations in order to be able to
MULTICULTURALISM
An American family on assignment in
Indonesia went to restaurant with their Pet
dog The restaurant manager politely
greeted then at the door took their dog and
30Minutes later-family was shocked
They had SERVED IT TO THEM
The consumption of dog meat is associated
with their culture where dog meat is
considered a festive dish usually reserved for
occasions such as weddings and Christmas
Cross cultural theories
Cross cultural
Theories
Organizational culture varies one from another based on 4 factors
bull Organizational objectives and Goals
bull Competitive Challenge
bull National variables and
bull Socio cultural variables like different religion language education etc
Cultural Diversity or Multi-Culturism
Hofstedersquo Cultural
DimensionDutch Scientist has analyzed
cultural dimension in IBM
Employees (116000) in 70
countries and in 3 regions
like E Africa W Africa and Saudi
Arabia
Hofstede tried to eliminate the
impact of changing organizational
cultures and analyzed the influences
of different national cultures
Hofstede provides a useful framework for
understanding the workforce diversity His main
findings were
bull Work related value are not universal
bull Underlying values continues when a multinational
company tries to impose the same norms on all its foreign
interests
bull Local value determine how the headquarters regulations
are interpreted
bull By implication a multinational that tries to insist on
uniformity is n danger of creating morale problems and
inefficiencies
Hofstedersquos
framework for
Assessing culture
Hofstedersquos studies of the interactions between
national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations and that are very
persistent across time
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Characteristics of
Culture
bull Culture is learned
bull Culture is unconscious
bull Culture is shared
bull Culture is integrated
bull Culture is Symbolic
bull Culture is a way of life
bull Culture is Dynamic
bull Culture is Relative
bull Culture is universal
Determinants of CultureReligion
Language
Education
Political philosophy
Social structure
level of culture
Dominant Culture
Sub Culture
Organizational
Occupational
pervasive and extends to the whole of a
country
practices of Punjabies are different from
those obtain in Karnataka
TATA is different from that of INFOSYS while
that of INFOSIS is not the same as that of
WIPRO
An Account for example speaks the same
financial language whether he or she is an
Indian or an American So is the case with a
medical practitioner or an attorney
Characteristics of
Organization
Culture
bull Centralized vs decentralized decision making
bull Safety vs risk in some so
bull Individual vs group rewards
bull Informal vs formal procedures
bull High vs low organizational loyalty
bull Cooperation vs competition
bull Short term vs long term horizons
bull Stability vs innovation
Cultural
Sensitivity
Knowing that cultural differences as well as
similarities exist without assigning values (ie
better or worse right or wrong) to those cultural
differences
Cultural Sensitivity
bull Communicate effectively with customers suppliers business associates and
partners in other countries and foreign employees (expatriates)
bull Conduct negotiations and understand the nuances of the beginning postures of the
other parties into a negotiation
bull Predict trends in social behavior likely to affect the firmrsquos foreign operations
bull Understand the ethical standards and concepts of social responsibility in various
countries
bull Build Foster relationships between union confederations and employee associations
require cultural empathy
bull Understand local Government policies and influences it for business promotion
bull Conduct efficient meetings in different countries and encourage employees
participation in management
bull Understand how people interpret market research an other information
Therefore every international manager need to know about cultural differences among
nations in order to be able to
MULTICULTURALISM
An American family on assignment in
Indonesia went to restaurant with their Pet
dog The restaurant manager politely
greeted then at the door took their dog and
30Minutes later-family was shocked
They had SERVED IT TO THEM
The consumption of dog meat is associated
with their culture where dog meat is
considered a festive dish usually reserved for
occasions such as weddings and Christmas
Cross cultural theories
Cross cultural
Theories
Organizational culture varies one from another based on 4 factors
bull Organizational objectives and Goals
bull Competitive Challenge
bull National variables and
bull Socio cultural variables like different religion language education etc
Cultural Diversity or Multi-Culturism
Hofstedersquo Cultural
DimensionDutch Scientist has analyzed
cultural dimension in IBM
Employees (116000) in 70
countries and in 3 regions
like E Africa W Africa and Saudi
Arabia
Hofstede tried to eliminate the
impact of changing organizational
cultures and analyzed the influences
of different national cultures
Hofstede provides a useful framework for
understanding the workforce diversity His main
findings were
bull Work related value are not universal
bull Underlying values continues when a multinational
company tries to impose the same norms on all its foreign
interests
bull Local value determine how the headquarters regulations
are interpreted
bull By implication a multinational that tries to insist on
uniformity is n danger of creating morale problems and
inefficiencies
Hofstedersquos
framework for
Assessing culture
Hofstedersquos studies of the interactions between
national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations and that are very
persistent across time
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Determinants of CultureReligion
Language
Education
Political philosophy
Social structure
level of culture
Dominant Culture
Sub Culture
Organizational
Occupational
pervasive and extends to the whole of a
country
practices of Punjabies are different from
those obtain in Karnataka
TATA is different from that of INFOSYS while
that of INFOSIS is not the same as that of
WIPRO
An Account for example speaks the same
financial language whether he or she is an
Indian or an American So is the case with a
medical practitioner or an attorney
Characteristics of
Organization
Culture
bull Centralized vs decentralized decision making
bull Safety vs risk in some so
bull Individual vs group rewards
bull Informal vs formal procedures
bull High vs low organizational loyalty
bull Cooperation vs competition
bull Short term vs long term horizons
bull Stability vs innovation
Cultural
Sensitivity
Knowing that cultural differences as well as
similarities exist without assigning values (ie
better or worse right or wrong) to those cultural
differences
Cultural Sensitivity
bull Communicate effectively with customers suppliers business associates and
partners in other countries and foreign employees (expatriates)
bull Conduct negotiations and understand the nuances of the beginning postures of the
other parties into a negotiation
bull Predict trends in social behavior likely to affect the firmrsquos foreign operations
bull Understand the ethical standards and concepts of social responsibility in various
countries
bull Build Foster relationships between union confederations and employee associations
require cultural empathy
bull Understand local Government policies and influences it for business promotion
bull Conduct efficient meetings in different countries and encourage employees
participation in management
bull Understand how people interpret market research an other information
Therefore every international manager need to know about cultural differences among
nations in order to be able to
MULTICULTURALISM
An American family on assignment in
Indonesia went to restaurant with their Pet
dog The restaurant manager politely
greeted then at the door took their dog and
30Minutes later-family was shocked
They had SERVED IT TO THEM
The consumption of dog meat is associated
with their culture where dog meat is
considered a festive dish usually reserved for
occasions such as weddings and Christmas
Cross cultural theories
Cross cultural
Theories
Organizational culture varies one from another based on 4 factors
bull Organizational objectives and Goals
bull Competitive Challenge
bull National variables and
bull Socio cultural variables like different religion language education etc
Cultural Diversity or Multi-Culturism
Hofstedersquo Cultural
DimensionDutch Scientist has analyzed
cultural dimension in IBM
Employees (116000) in 70
countries and in 3 regions
like E Africa W Africa and Saudi
Arabia
Hofstede tried to eliminate the
impact of changing organizational
cultures and analyzed the influences
of different national cultures
Hofstede provides a useful framework for
understanding the workforce diversity His main
findings were
bull Work related value are not universal
bull Underlying values continues when a multinational
company tries to impose the same norms on all its foreign
interests
bull Local value determine how the headquarters regulations
are interpreted
bull By implication a multinational that tries to insist on
uniformity is n danger of creating morale problems and
inefficiencies
Hofstedersquos
framework for
Assessing culture
Hofstedersquos studies of the interactions between
national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations and that are very
persistent across time
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
level of culture
Dominant Culture
Sub Culture
Organizational
Occupational
pervasive and extends to the whole of a
country
practices of Punjabies are different from
those obtain in Karnataka
TATA is different from that of INFOSYS while
that of INFOSIS is not the same as that of
WIPRO
An Account for example speaks the same
financial language whether he or she is an
Indian or an American So is the case with a
medical practitioner or an attorney
Characteristics of
Organization
Culture
bull Centralized vs decentralized decision making
bull Safety vs risk in some so
bull Individual vs group rewards
bull Informal vs formal procedures
bull High vs low organizational loyalty
bull Cooperation vs competition
bull Short term vs long term horizons
bull Stability vs innovation
Cultural
Sensitivity
Knowing that cultural differences as well as
similarities exist without assigning values (ie
better or worse right or wrong) to those cultural
differences
Cultural Sensitivity
bull Communicate effectively with customers suppliers business associates and
partners in other countries and foreign employees (expatriates)
bull Conduct negotiations and understand the nuances of the beginning postures of the
other parties into a negotiation
bull Predict trends in social behavior likely to affect the firmrsquos foreign operations
bull Understand the ethical standards and concepts of social responsibility in various
countries
bull Build Foster relationships between union confederations and employee associations
require cultural empathy
bull Understand local Government policies and influences it for business promotion
bull Conduct efficient meetings in different countries and encourage employees
participation in management
bull Understand how people interpret market research an other information
Therefore every international manager need to know about cultural differences among
nations in order to be able to
MULTICULTURALISM
An American family on assignment in
Indonesia went to restaurant with their Pet
dog The restaurant manager politely
greeted then at the door took their dog and
30Minutes later-family was shocked
They had SERVED IT TO THEM
The consumption of dog meat is associated
with their culture where dog meat is
considered a festive dish usually reserved for
occasions such as weddings and Christmas
Cross cultural theories
Cross cultural
Theories
Organizational culture varies one from another based on 4 factors
bull Organizational objectives and Goals
bull Competitive Challenge
bull National variables and
bull Socio cultural variables like different religion language education etc
Cultural Diversity or Multi-Culturism
Hofstedersquo Cultural
DimensionDutch Scientist has analyzed
cultural dimension in IBM
Employees (116000) in 70
countries and in 3 regions
like E Africa W Africa and Saudi
Arabia
Hofstede tried to eliminate the
impact of changing organizational
cultures and analyzed the influences
of different national cultures
Hofstede provides a useful framework for
understanding the workforce diversity His main
findings were
bull Work related value are not universal
bull Underlying values continues when a multinational
company tries to impose the same norms on all its foreign
interests
bull Local value determine how the headquarters regulations
are interpreted
bull By implication a multinational that tries to insist on
uniformity is n danger of creating morale problems and
inefficiencies
Hofstedersquos
framework for
Assessing culture
Hofstedersquos studies of the interactions between
national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations and that are very
persistent across time
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Characteristics of
Organization
Culture
bull Centralized vs decentralized decision making
bull Safety vs risk in some so
bull Individual vs group rewards
bull Informal vs formal procedures
bull High vs low organizational loyalty
bull Cooperation vs competition
bull Short term vs long term horizons
bull Stability vs innovation
Cultural
Sensitivity
Knowing that cultural differences as well as
similarities exist without assigning values (ie
better or worse right or wrong) to those cultural
differences
Cultural Sensitivity
bull Communicate effectively with customers suppliers business associates and
partners in other countries and foreign employees (expatriates)
bull Conduct negotiations and understand the nuances of the beginning postures of the
other parties into a negotiation
bull Predict trends in social behavior likely to affect the firmrsquos foreign operations
bull Understand the ethical standards and concepts of social responsibility in various
countries
bull Build Foster relationships between union confederations and employee associations
require cultural empathy
bull Understand local Government policies and influences it for business promotion
bull Conduct efficient meetings in different countries and encourage employees
participation in management
bull Understand how people interpret market research an other information
Therefore every international manager need to know about cultural differences among
nations in order to be able to
MULTICULTURALISM
An American family on assignment in
Indonesia went to restaurant with their Pet
dog The restaurant manager politely
greeted then at the door took their dog and
30Minutes later-family was shocked
They had SERVED IT TO THEM
The consumption of dog meat is associated
with their culture where dog meat is
considered a festive dish usually reserved for
occasions such as weddings and Christmas
Cross cultural theories
Cross cultural
Theories
Organizational culture varies one from another based on 4 factors
bull Organizational objectives and Goals
bull Competitive Challenge
bull National variables and
bull Socio cultural variables like different religion language education etc
Cultural Diversity or Multi-Culturism
Hofstedersquo Cultural
DimensionDutch Scientist has analyzed
cultural dimension in IBM
Employees (116000) in 70
countries and in 3 regions
like E Africa W Africa and Saudi
Arabia
Hofstede tried to eliminate the
impact of changing organizational
cultures and analyzed the influences
of different national cultures
Hofstede provides a useful framework for
understanding the workforce diversity His main
findings were
bull Work related value are not universal
bull Underlying values continues when a multinational
company tries to impose the same norms on all its foreign
interests
bull Local value determine how the headquarters regulations
are interpreted
bull By implication a multinational that tries to insist on
uniformity is n danger of creating morale problems and
inefficiencies
Hofstedersquos
framework for
Assessing culture
Hofstedersquos studies of the interactions between
national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations and that are very
persistent across time
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Cultural
Sensitivity
Knowing that cultural differences as well as
similarities exist without assigning values (ie
better or worse right or wrong) to those cultural
differences
Cultural Sensitivity
bull Communicate effectively with customers suppliers business associates and
partners in other countries and foreign employees (expatriates)
bull Conduct negotiations and understand the nuances of the beginning postures of the
other parties into a negotiation
bull Predict trends in social behavior likely to affect the firmrsquos foreign operations
bull Understand the ethical standards and concepts of social responsibility in various
countries
bull Build Foster relationships between union confederations and employee associations
require cultural empathy
bull Understand local Government policies and influences it for business promotion
bull Conduct efficient meetings in different countries and encourage employees
participation in management
bull Understand how people interpret market research an other information
Therefore every international manager need to know about cultural differences among
nations in order to be able to
MULTICULTURALISM
An American family on assignment in
Indonesia went to restaurant with their Pet
dog The restaurant manager politely
greeted then at the door took their dog and
30Minutes later-family was shocked
They had SERVED IT TO THEM
The consumption of dog meat is associated
with their culture where dog meat is
considered a festive dish usually reserved for
occasions such as weddings and Christmas
Cross cultural theories
Cross cultural
Theories
Organizational culture varies one from another based on 4 factors
bull Organizational objectives and Goals
bull Competitive Challenge
bull National variables and
bull Socio cultural variables like different religion language education etc
Cultural Diversity or Multi-Culturism
Hofstedersquo Cultural
DimensionDutch Scientist has analyzed
cultural dimension in IBM
Employees (116000) in 70
countries and in 3 regions
like E Africa W Africa and Saudi
Arabia
Hofstede tried to eliminate the
impact of changing organizational
cultures and analyzed the influences
of different national cultures
Hofstede provides a useful framework for
understanding the workforce diversity His main
findings were
bull Work related value are not universal
bull Underlying values continues when a multinational
company tries to impose the same norms on all its foreign
interests
bull Local value determine how the headquarters regulations
are interpreted
bull By implication a multinational that tries to insist on
uniformity is n danger of creating morale problems and
inefficiencies
Hofstedersquos
framework for
Assessing culture
Hofstedersquos studies of the interactions between
national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations and that are very
persistent across time
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Cultural Sensitivity
bull Communicate effectively with customers suppliers business associates and
partners in other countries and foreign employees (expatriates)
bull Conduct negotiations and understand the nuances of the beginning postures of the
other parties into a negotiation
bull Predict trends in social behavior likely to affect the firmrsquos foreign operations
bull Understand the ethical standards and concepts of social responsibility in various
countries
bull Build Foster relationships between union confederations and employee associations
require cultural empathy
bull Understand local Government policies and influences it for business promotion
bull Conduct efficient meetings in different countries and encourage employees
participation in management
bull Understand how people interpret market research an other information
Therefore every international manager need to know about cultural differences among
nations in order to be able to
MULTICULTURALISM
An American family on assignment in
Indonesia went to restaurant with their Pet
dog The restaurant manager politely
greeted then at the door took their dog and
30Minutes later-family was shocked
They had SERVED IT TO THEM
The consumption of dog meat is associated
with their culture where dog meat is
considered a festive dish usually reserved for
occasions such as weddings and Christmas
Cross cultural theories
Cross cultural
Theories
Organizational culture varies one from another based on 4 factors
bull Organizational objectives and Goals
bull Competitive Challenge
bull National variables and
bull Socio cultural variables like different religion language education etc
Cultural Diversity or Multi-Culturism
Hofstedersquo Cultural
DimensionDutch Scientist has analyzed
cultural dimension in IBM
Employees (116000) in 70
countries and in 3 regions
like E Africa W Africa and Saudi
Arabia
Hofstede tried to eliminate the
impact of changing organizational
cultures and analyzed the influences
of different national cultures
Hofstede provides a useful framework for
understanding the workforce diversity His main
findings were
bull Work related value are not universal
bull Underlying values continues when a multinational
company tries to impose the same norms on all its foreign
interests
bull Local value determine how the headquarters regulations
are interpreted
bull By implication a multinational that tries to insist on
uniformity is n danger of creating morale problems and
inefficiencies
Hofstedersquos
framework for
Assessing culture
Hofstedersquos studies of the interactions between
national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations and that are very
persistent across time
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
MULTICULTURALISM
An American family on assignment in
Indonesia went to restaurant with their Pet
dog The restaurant manager politely
greeted then at the door took their dog and
30Minutes later-family was shocked
They had SERVED IT TO THEM
The consumption of dog meat is associated
with their culture where dog meat is
considered a festive dish usually reserved for
occasions such as weddings and Christmas
Cross cultural theories
Cross cultural
Theories
Organizational culture varies one from another based on 4 factors
bull Organizational objectives and Goals
bull Competitive Challenge
bull National variables and
bull Socio cultural variables like different religion language education etc
Cultural Diversity or Multi-Culturism
Hofstedersquo Cultural
DimensionDutch Scientist has analyzed
cultural dimension in IBM
Employees (116000) in 70
countries and in 3 regions
like E Africa W Africa and Saudi
Arabia
Hofstede tried to eliminate the
impact of changing organizational
cultures and analyzed the influences
of different national cultures
Hofstede provides a useful framework for
understanding the workforce diversity His main
findings were
bull Work related value are not universal
bull Underlying values continues when a multinational
company tries to impose the same norms on all its foreign
interests
bull Local value determine how the headquarters regulations
are interpreted
bull By implication a multinational that tries to insist on
uniformity is n danger of creating morale problems and
inefficiencies
Hofstedersquos
framework for
Assessing culture
Hofstedersquos studies of the interactions between
national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations and that are very
persistent across time
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
An American family on assignment in
Indonesia went to restaurant with their Pet
dog The restaurant manager politely
greeted then at the door took their dog and
30Minutes later-family was shocked
They had SERVED IT TO THEM
The consumption of dog meat is associated
with their culture where dog meat is
considered a festive dish usually reserved for
occasions such as weddings and Christmas
Cross cultural theories
Cross cultural
Theories
Organizational culture varies one from another based on 4 factors
bull Organizational objectives and Goals
bull Competitive Challenge
bull National variables and
bull Socio cultural variables like different religion language education etc
Cultural Diversity or Multi-Culturism
Hofstedersquo Cultural
DimensionDutch Scientist has analyzed
cultural dimension in IBM
Employees (116000) in 70
countries and in 3 regions
like E Africa W Africa and Saudi
Arabia
Hofstede tried to eliminate the
impact of changing organizational
cultures and analyzed the influences
of different national cultures
Hofstede provides a useful framework for
understanding the workforce diversity His main
findings were
bull Work related value are not universal
bull Underlying values continues when a multinational
company tries to impose the same norms on all its foreign
interests
bull Local value determine how the headquarters regulations
are interpreted
bull By implication a multinational that tries to insist on
uniformity is n danger of creating morale problems and
inefficiencies
Hofstedersquos
framework for
Assessing culture
Hofstedersquos studies of the interactions between
national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations and that are very
persistent across time
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Cross cultural theories
Cross cultural
Theories
Organizational culture varies one from another based on 4 factors
bull Organizational objectives and Goals
bull Competitive Challenge
bull National variables and
bull Socio cultural variables like different religion language education etc
Cultural Diversity or Multi-Culturism
Hofstedersquo Cultural
DimensionDutch Scientist has analyzed
cultural dimension in IBM
Employees (116000) in 70
countries and in 3 regions
like E Africa W Africa and Saudi
Arabia
Hofstede tried to eliminate the
impact of changing organizational
cultures and analyzed the influences
of different national cultures
Hofstede provides a useful framework for
understanding the workforce diversity His main
findings were
bull Work related value are not universal
bull Underlying values continues when a multinational
company tries to impose the same norms on all its foreign
interests
bull Local value determine how the headquarters regulations
are interpreted
bull By implication a multinational that tries to insist on
uniformity is n danger of creating morale problems and
inefficiencies
Hofstedersquos
framework for
Assessing culture
Hofstedersquos studies of the interactions between
national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations and that are very
persistent across time
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Cross cultural
Theories
Organizational culture varies one from another based on 4 factors
bull Organizational objectives and Goals
bull Competitive Challenge
bull National variables and
bull Socio cultural variables like different religion language education etc
Cultural Diversity or Multi-Culturism
Hofstedersquo Cultural
DimensionDutch Scientist has analyzed
cultural dimension in IBM
Employees (116000) in 70
countries and in 3 regions
like E Africa W Africa and Saudi
Arabia
Hofstede tried to eliminate the
impact of changing organizational
cultures and analyzed the influences
of different national cultures
Hofstede provides a useful framework for
understanding the workforce diversity His main
findings were
bull Work related value are not universal
bull Underlying values continues when a multinational
company tries to impose the same norms on all its foreign
interests
bull Local value determine how the headquarters regulations
are interpreted
bull By implication a multinational that tries to insist on
uniformity is n danger of creating morale problems and
inefficiencies
Hofstedersquos
framework for
Assessing culture
Hofstedersquos studies of the interactions between
national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations and that are very
persistent across time
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Hofstedersquo Cultural
DimensionDutch Scientist has analyzed
cultural dimension in IBM
Employees (116000) in 70
countries and in 3 regions
like E Africa W Africa and Saudi
Arabia
Hofstede tried to eliminate the
impact of changing organizational
cultures and analyzed the influences
of different national cultures
Hofstede provides a useful framework for
understanding the workforce diversity His main
findings were
bull Work related value are not universal
bull Underlying values continues when a multinational
company tries to impose the same norms on all its foreign
interests
bull Local value determine how the headquarters regulations
are interpreted
bull By implication a multinational that tries to insist on
uniformity is n danger of creating morale problems and
inefficiencies
Hofstedersquos
framework for
Assessing culture
Hofstedersquos studies of the interactions between
national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations and that are very
persistent across time
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Hofstede provides a useful framework for
understanding the workforce diversity His main
findings were
bull Work related value are not universal
bull Underlying values continues when a multinational
company tries to impose the same norms on all its foreign
interests
bull Local value determine how the headquarters regulations
are interpreted
bull By implication a multinational that tries to insist on
uniformity is n danger of creating morale problems and
inefficiencies
Hofstedersquos
framework for
Assessing culture
Hofstedersquos studies of the interactions between
national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations and that are very
persistent across time
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Hofstedersquos
framework for
Assessing culture
Hofstedersquos studies of the interactions between
national cultures and organizational cultures
demonstrated that there are national and regional
cultural groupings that affect the behaviors of
societies and organizations and that are very
persistent across time
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Dimensions of Hofstedersquos framework of
assessing culture
bull Low and High Power Distance
bull Individual and collectivism
bull Masculinity vs Femininity
bull Uncertainty avoidance
bull Long and short term orientation
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Power Distance
unequal power of distribution
It is the distance between individuals at different levels of hierarchy
Hofstede observed two types of distance
1 High power distance
2 Low power distance
High Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Power Distance
unequal power of distributionHigh Power distance Low power distance
Countries in which people blindly obey the
orders of their superior employees
acknowledge the bossrsquos authority simply
by
respecting that individualrsquos formal position
in
the hierarchy and they seldom bypass the
chain of command
Countries which people (supervisors and
sub
ordinates) are apt to regard one another
equal in
power
Results
bull Less Harmony and less cooperation
bull Centralized order
bull Autocratic Leadership
bull Taller Organization structure
bull More harmony and cooperation
bull Decentralized structure
bull Democratic leadership
bull Flatter organization structure
Maxico South Korea and India Austria Esrael USA UK Denmark
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Uncertainty Avoidance
High uncertainty avoidance Low uncertainty avoidance
Countries with a high level of uncertainty
avoidance tend to have strict laws and
procedures to which people adhere
closely and there is strong sense of
nationalism
In a business context this value results in
formal rules and procedures designed to
provide more security and greater career
stability
In countries with lower levels of
uncertainty
avoidance nationalism is less pronounced
and protests and other such activities are
tolerated As a consequence company
activities are less structured and less
formal
so
bull Managers have propensity for low risk
decisions
bull employees exhibit little aggressiveness
bull lifetime employment is common
bull Taller organization structure
bull Managers take more risk and there is
high job mobility
bull Peoples have risk taking attitude and
high labour turnover
bull Flatter organizational structure
Japan Israel Austria Pakistan India USA UK etc
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Individual and collectivism
Individual collectivism
Interest of Self and Family
lsquoIrsquo consciousness
Independence of Individual from
organization
Grater Individual Initiatives
Promotions are based on Merit and
performance
Interest of Group
lsquoWersquo consciousness
Dependency on organization
Less Individual initiatives
Promotions are seniority based
USA UK Australia Japan Taiwan and Pakistan
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Masculinity vs Femininity
Traditionally lsquomasculinersquo values ndash assertiveness materialism aggressiveness and a
lack of concern for others that prevail in society femininity emphasizes feminine
values ndash a concern for others for relationships nurturing care for weak and for
quality of life The degree of masculinity affects in the following characteristics way
High Masculinity Low Masculinity
bull Career is considered as most
important
bull Work needs take precedence
bull Individual decision-making is
emphasized
bull Achievement is given importance and
is defined in terms of money and
recognition
bull Importance is placed on cooperation
and friendly atmosphere
bull Employee security gets precedence
bull Group decision ndash making is
emphasized
bull Achievement is defined in terms of
human contacts and living
environment
Countries with high masculinity ndash India
Japan
USA UK etc
Countries with low masculinity ndash Denmark
Norway Sweden etc
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Kluckhohn - Strodthbeck
This theory is based on the lsquoPatterns
of behavior and thinkingrsquo in different
cultures The researchers distinguish
and compare cultures based on the
following dimensions
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
1 What is the nature of people ndash Good evil or mixed
2 What is a personrsquos relationship to nature ndash Dominant Harmony subjugation
3 What is a personrsquos relationship to ndash Hierarchical collectivist or others
Individualistic
4 What is the modality of human activity ndash Doing being or containing
5 What is the temporal focus of human activity Future present or past
6 What is the conception of Space Private public or mixed
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Halls and Halls
Halls and Halls in 1987 provided another basis for
cross cultural classification They divided
the world into two cultures
A) Low context Culture
B) High context Culture
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
1048708 Members of high ndash context
cultures depend heavily on the
external environment
situation and non ndash verbal behavior
in creating and interpreting
communication Members
of this culture group learn to
interpret the covert clues when they
communicate ndash so much
meaning is conveyed indirectly
1048708 Examples ndash Arabic Chinese and
Japanese where indirect style of
communication and
ability to understand the same is
highly valued
In low ndash context cultures like the
US Sweden and Britain the
environment is les important
and non-verbal behavior is often
ignored
1048708 Therefore communication has to
be explicit and clear
1048708 A direct and blunt style is valued
and ambiguity is disliked in
managerial communication
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Trompennars
7d cultural dimension model
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Research produced five cultural dimensions that are based on
relationship orientations and attitudes toward both time and the
environment
1048708 Individualism vs collectivism
1048708 Universalism vs particularism (rules)
1048708 Neutral vs affective (emotion)
1048708 Specific vs diffused involvement
1048708 Achievement vs ascription (status)
1048708 Past present and future orientation
1048708 Internal vs external control (nature)
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Universalism vs
Particularism
Universalism - belief that ideas
and practices can be applied
everywhere in the world
without modification
Particularism - belief that
circumstances dictate how
ideas and practices should be
applied and something cannot
be done the same everywhere
Focus on formal rules and rely on
business contacts
Focus on relationships working
things out to suit the parties
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Individualism vs Communitarianism
1048707 Individualism - people regard
themselves as individuals
1048707 Communitarianism - people
regard themselves as part of a
group
1048708 Rely on individuals to make
decisions
1048708 Seek consultation and mutual
consent before making decisions
Neutral vs Emotional
1048707 Neutral - culture in which
emotions are held in check
1048707 Emotional - culture in which
emotions are expressed openly
and naturally
1048708 People try not to show their feelings 1048708 People smile talk loudly greet
each other with enthusiasm
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Specific vs Diffuse
1048707 Specific - culture in which
individuals have a large public
space they readily
share with others and a small
private space they guard closely
and share with
only close friends and associates
Diffuse - culture in which both
public and private space are similar
in size and individuals guard their
public space carefully because
entry into public space affords
entry into private space as well
People often are open and extroverted People often appear indirect and
introverted and work and private life
often are closely linked
Work and private life are separate
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Achievement vs AscriptionAchievement - culture in which
people are accorded status
based on how well
they perform their functions
Ascription - culture in which
status is attributed based on
who or what a person is
For example status may be
accorded on the basis of age
gender or
social connections
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Time
1048707 1048707 Sequential approach to time -
people do one thing at a time keep
appointments strictly follow plans
to the letter
1048707 1048707 Synchronous approach -
people do more than one thing at a
time appointments
are approximate
Environment
1048707 Inner-directed
1048707 People believe in controlling
environmental outcomes
1048707 Outer-directed
1048707 People believe in allowing things
to take their natural course
Cultural Patterns or Clusters
Defined groups of countries that are similar to each other in terms of the
five
dimensions and the orientations toward time and the environment
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Andre Laurentrsquos
Laurent analyzed the values of
managers in nine European countries
and the US in 1983 and 1989
in China Indonesia and Japan
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Laurent used four parameters
bull Perceptions of the organizations
bull Authority systems
bull Role formulation systems
bull Hierarchical systems
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
bull This research treated management as a process by which
managers express their cultural values ndash like how far manager
caries his her status into the wider context outside the
workplace Therefore the international manager needs cross ndash
cultural competence to manage multiculturalism
bull Cross cultural competence includes skills awareness and
Knowledge In order to be culturally competent an individual
needs to
1 Possess a strong personal identity
2 Have knowledge of and facility with the beliefs and values of
the culture
3 display sensitivity to the effective process of the culture
4 Communicate clearly in the language of the given culture
group
5 Perform specially sanctioned behavior
6 Maintain active social relations within the cultural group
7 Negotiate the institutional structures of that culture
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Why needed
1 In global businesses activities such as leading motivating decision making
problem solving exchanging ideas and information depends on the ability of
proper
communication from one culture to another
2 Mistakes in cross-cultural communication often go unnoticed by the
communicators but these mistakes have the potentials to cause damage to
international relationships and negotiations
3 Mistakes or misinterpretations of the subtle gestures of the hands and face
the use of silence what is said or not said and the intricacies of dealing with
age and status often provide PITFALLS for International Business
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Critical dimensions in
Intercultural
communication are
1 Language and Culture
2 Difference between high and low context
cultures
3 The use of interpreters
4 non-verbal communication
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Culture shock
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Culture shock is a term used to describe the anxiety and
feelings (of surprise disorientation confusion etc) felt
when people have to operate within an entirely different
cultural or social environment such as a foreign country
It grows out of the difficulties in assimilating the new
culture causing difficulty in knowing what is appropriate
and what is not
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Phases of Culture Shock
1048708 The Honeymoon Phase - During this period the differences between
the old and new culture are seen in a romantic light wonderful and new
1048708 Negotiation Phase - After a few days weeks or months minor
differences between the old and new culture are resolved
1048708 The Everything is OK phase - Again after a few days weeks or
months one grows accustomed to the new cultures differences and
develops routines By this point one no longer reacts to the new culture
positively or negatively because it no longer feels like a new culture One
becomes concerned with basic living again as one was in their original
culture
1048708 Reverse Culture Shock - Returning to ones home culture after growing
accustomed to a new one can produce the same effects as described above
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Sign of Culture
Shock
bull Irritability
bull Fluctuating appetite
bull Moodiness
bull Disrupted sleep
bull Homesickness
bull Spending time alone
bull Avoiding the locals
bull Reading all day
bull Boredom
bull low energy
bull Confusion
bull Anxiety
bull Negativity
bull Alienation
bull Depression
bull Physical illness
bull Depression
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
OCTAPACE
The most important aspect of organizational culture are the values it
practices Eight values may be examined to develop the profile of an
organizational culture that is called OCTAPACE
OPENNESS
CONFRONTATION
TRUST
AUTHENTICITY
PROACTIVELY
AUTONOMY
COLLABORATION
EXPERIMENTING
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
a) Openness - the comparative openness in the system should
influence the design of HRS Organizations can be classified in
continuum from completely open to completely close No orgn
may be on the two extremes of the continuum However they
will tend to be towards one or the other end The degree of
openness of the orgn will be an imp factor in determining the
nature of the various dimensions of HRD being designed as
well as the way in which these dimensions should be
introduced orgn which are fairly open may start with several
confronting designs of HRS
b) Confrontation - this term is used in relation to problem putting
the front rather than the back to escaping the problems A better
term would be confrontation exploration that implies facing a
problem and working jointly with other concerned to find its
solution If an organization encourages people to recognize a
problem bring it to people concerned explore with them to
under it and search possible ways of dealing with it
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
c) Trust - which introducing the HRD in an orgnization trust in another
factor which should be considered along with openness If the
level of trust is low the various dimensions of HRS are likely to be
seen with suspicion and therefore the credibility of the system may
go down in such a case the system if introduced may become
a vital and cease to perform the main functions for which it meant
d) Authenticity- is the value underlying trust It is the willingness of a
person to acknowledge the feelings he she has and accept
imself herself as well as other who relate to himher as persons
Authenticity is reflected in the narrowest gap between the stated
vales and the actual behavior This value is important for the
development of a culture of mutuality
e) Proactive - can be contrasted with the term react It in the later
action is in response to an act from some source while in the
former the action is taken independently of act form the other
source Proaction means anticipating issues in advancing to take
advantage of this undertaking conflict or responding to needs of the
future in fact creating the future
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
f ) Autonomy - nothing but willingness to use power without fear and
helping other to do same It multiplies power in system and the basis is
collaboration
g) Collaboration - involves working together during one another
strengths for a common cause Individuals instead of solving their
problems by themselves share their concerns with one another ands prepare
strategies working out plan of actions and implement them together
h) Experimenting - as a value emphasizes the importance given to
Innovating and trying out new ways of dealing with problems in the
organization
A profile of an organization on these aspects may help to decide what
elements of HRS should be introduced in what sequences in the organization
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Flag
UAEUAEUnited Arab Emirates
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Dressing
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Food Culture
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Food Culture ndash
No No
bull Pork
Muslims are prohibited from eating pork so it is not included in Arabmenus There are substitutes for the same
bull Alcohol
Alcohol is generally only served in hotel restaurants and barsExceptions are some clubs (eg golf clubs) and associations
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Doing Business in
the UAE
Working Practice
Companies Structure
Working Relation
Business Practices
Social Customs
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Working
Practice
bull Saturday ndash Wednesday (Traditional Working Week)
bull Meetings should be scheduled advanced with extra
time allocation
bull Attitude to time is comparatively relaxed
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Structure amp Hierarchy of
Companies
bull Strong vertical Hierarchy
bull Age Money amp Family ndash Determining factors of Personal
Status
bull Status is important amp must be recognized
Titles Shaikh ndash Chief Ustadh ndash Professor
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Working
Relation
bull Prefer to do Business in Person
bull Prefer to do Business with those who they know
bull Family amp Friends come before anything else
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Business
Practice
bull Customary greeting is ldquoAs-salam alikumrdquo with reply ldquoWa alaikum as-
salamrdquo
bull Initial business meeting ndash Way to become acquainted with your
counterparts
bull Business Cards are common but not essential If intended ensure
English and Arabic printed information
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Social Custom
bull Gifts
ndash Sign of Generosity
bull Dining
ndash Sign of respect ndash
starts eating last
ndash Host pays for it
bull Left Hand
ndash Do not use or offer
item with your left
hand
bull Shoes
ndash Follow the lead of your
host
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Business
Etiquette
Dorsquos Address Emirati counterpart with
appropriate titles
Dress Conservatively
Accept Invitation to a meal or
social events
Politeness and courtesy
Donrsquotbull Expect a one-on-one meeting to only
include yourself and the other person
bull Assume that the person who asks the
most questions in meetings holds the
most Responsibility
bull DONrsquoT ask about a personrsquos wife or
daughters
bull Donrsquot speak Loud and with laughter
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Tips for effective
communication
bull Be clear and concise
bull Speak more slowly
bull Reinforce your message
bull Make presentations effective
bull Double-check understanding
bull Be open-minded
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Doing Business in Latin America
bull Few people rush into business
bull Men and women congregate into separate
groups at social functions
bull Latin Americans stand more closely to
each other than North Americans when in
conversation
bull Men may embrace
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
(Cont)
bull Guests are expected to arrive late with
exception of American guests
bull Little concern about deadlines
bull Machismo - expectation that businessmen
will display forcefulness self-confidence
leadership with flourish
bull Fatalism
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Doing
Business in
East Asia
bull Japan Korea China
bull Meetings devoted to pleasantries serving
tea engaging in chitchat
bull Seniors and elders command respect
bull Consciously use slow down techniques as
bargaining ploys
bull Business cards should be bilingual
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Doing
Business in
Russia
bull Protocol-conscious
bull Do business only with highest ranking executives
bull Appear stiff and dull
bull More expressive in private than in public
bull Hard to draw up contracts due to language barriers
bull Have little advertising experience
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Doing Business
in the
Middle East
bull Prefer to act through trusted third parties
bull Personal honor given high premium
bull Fatalism
bull Emotionally expressive
bull Intense eye contact
bull Guests should avoid discussing politics religion
hostrsquos family and personal professions
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
DOING BUSINESS IN
GERMANY
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Differences between Indian Culture amp Western Culture
Basis Indian Culture Western Culture
Belief in Faith amp
Luck
Strong believers Believe in hard work amp efforts
Belief in Spiritualism Strong believers Believe in Materialism
Public Appearance No body exposures
Considered obscene
Fashionable clothes the in
thing
Care of Old People Sons are expected to
take care of their
Parents
Old parents are not cared for
Respect for Women No religious ceremony is
held without wife
Women given respect in
traditional sense
Relegated to Old Homes
Women looked as objects of
pleasure Women are free
in every aspect
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Business Culture - India
Relationships and feelings play a larger role in decisions
in India In general Indians tend to take larger risks with
a person whose intentions they trust Thus ones
credibility and trustworthiness are critical in negotiating a
deal
Showing hospitality is part of the negotiation
process Often meetings start by offering
teacoffee and snacks It is courteous to
accept the offer
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Business Culture - India
Indians are inductive in their approach to understanding things In the
Indian psyche reality can be understood only in its overall context
Knowing the personal social and historical contexts [of people events
ideas etc] are a precondition to comprehending them accurately
Therefore one should be prepared for questions and enquiries which
may not seem to be directly related to the subject To people coming
from more deductive cultures this behavior often appears to indicate a
lack of focus and digression
Indians are polychronic people ie they tend to deal with
more than one task at the same time So be prepared for
some distractions disturbances during the meeting eg a
secretary walking in to get some papers signed or the
conversation sometimes digressing into unrelated topics
One must appreciate that such behavioroccurrences do not
show a lack of interest or attention
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Business Culture - India
In general Indians are cautious in accepting a new idea or
proposal Openness to a new idea depends not only on its quality
but also on its source and endorsement That is information about
who else has implemented it or who has proposed it has a major
influence on the decision about a new idea In making a proposal
you must include such details accordingly
PowerPoint presentations are generally accepted to
start the discussion It is necessary however to
send a more detailed proposal in advance Often
the details of the proposal are vetted by some
middle-level executive who will then brief the
superior about them
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Business Culture - India
Bargaining for the price or additional concessions is normal in
India Indian negotiators expect and value flexibility in negotiation
Therefore sometimes a straightforward offer may be perceived as
a rigid stand It is always advisable to build some buffers in ones
initial offer which allow for bargaining later
Indians usually do not express their disagreements
openly and directly doing so would be considered
discourteous Instead when differences arise they
may circumvent them by statements such as we will
discuss this later or I will have to check with others
about this
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Business Culture - India
Do not insist on commitment in the first meeting Making a
decision in Indian organizations is often a long-drawn out
process This is not only because of the bureaucratic nature of
many Indian organizations but also because a decision may have
to be ratified by people who may not be present at the negotiating
table
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
bull Box of Sweets
bull Chocolates
bull Bouquet of Flowers
bull Household Items
bull Liquor but
Gifts
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
bull Families
bull Tradition
bull Foreign Countries
bull Cricket
bull Politics amp Religion
Poverty
Personal Matters
Military Spending
Topics of Conversation
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Doing Business in India
If there ever was an example of what aheterogeneous society looks like it is IndiaThe differences between people due toregion religion language and caste make itvery difficult for anyone to impart generalobservations on the country Behavioretiquette and approach are all modifieddepending on whom you are addressing andthe context in which you are doing business
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Hierarchy
One of the most significant cultural influences on Indian
culture is that of hierarchy You will see this manifest in many
ways when doing business in India For example only the
owner or the most superior person of a company will make
business decisions Even if you are dealing with a manager
they will always go to the boss for a final decision
bull You may often find that as a sign of respect subordinates stand up
when the boss enters a room If you are unsure whether to rise or
not err on the side of caution and do so
bull Women in business especially in senior positions executives are a
relatively new development If you are a woman doing business in
India you will normally find people respectful and courteous but not
very comfortable in working with you for business deals You may
have to make extra efforts to get them to discuss business with you
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Meeting and Greeting
bullHandshakes are exchanged on meeting Indians themselves use
the namaste This is where the palms are brought together at chest
level with a slight bow of the head However as a foreigner doing
business in India you would not be expected to use it
bullWhen addressing an Indian try and use the appropriate
formal title whether it is Professor Doctor Mr Mrs followed by the
family name
bullNames speak volumes about an Indianrsquos background For
example a Singh will usually (but not always) be a Sikh The suffix
ldquo-jeerdquo ( as in Banerjee) is a sign of a high caste Arabic sounding
names such as lsquoAbdulrsquo will be used by Muslims
bullWhen doing business in India business cards should be
exchanged at the first meeting English is the language of
business so there is no need to translate your cards Be sure to
receive and give with your right hand Make sure the card is put
away respectfully and not simply pushed into a trouser pocket
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Building Trust
Doing business in India involves buildingrelationships and establishing trust It isvital that a good relationship is foundedon two foundations
1) on a business level ie demonstrating strongbusiness acumen professionalism andqualifications and
2) at a personal level ie relating to yourpartner and exhibiting the positive traits oftrustworthiness and honour
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Meetings and Negotiations
bull Punctuality for meetings is expected although being 10minutes late will not have disastrous consequencesFlexibility is part of life
bull When entering a meeting room you must alwaysapproach and greet the most senior figure first Neverget lsquodown to businessrsquo Meetings should always commencewith some conversation ndash good topics of conversationinclude cricket politics and film
bull If your doing business in India involves negotiationsalways bear in mind that they can be slow If trust hasnot yet been established then concentrate efforts on buildinga rapport
bull Indians do not base business decisions solely onstatistics empirical data and flashy PowerPointpresentations They use intuition feeling and faith to guidethem Always exercise patience show good character andnever exhibit frustration or anger
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Language
Different states in India each have differentofficial languages Central government onlyrecognizes Hindi as the official language of IndiaHowever when doing business in India English isthe language of international commerce
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Foreign Investment
bull Most sectors follow the automatic approval route
bull FDI caps
Telecom up to 74 percent
Mining 74 percent
Private sector banking 49 percent
Insurance 26 percent
(The government is seeking to increase the FDI caps further)
bull FDI up to 51 percent in priority capital and intermediary goods sectors
bull Non resident Indians and overseas corporate bodies allowed 100
percent equity in key areas
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
The Characteristic of
South Koreans
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Meeting Etiquette
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Donrsquots
bull Introduce yourself to your partner
bull Use someonersquos real name
bull Write on someonersquos business card
bull Insult or criticize in front of others
bull Show annoyed expression when you are in
negotiations
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Table Manners
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Donrsquotbull Point chopsticks
bull Pierce food with chopsticks
bull Pick up food with hands
bull Accept the first offer of second helping
bull Place chopsticks parallel across your rice bowl
when yoursquore finished eating
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
bull Dorsquosbull Wrap gift in red or yellow paper
bull Use both hands when offering a gift
bull Donrsquotsbull Wrap gifts in green white or black paper
bull Sign a card in red ink
bull Opened the gift when received
Gift Giving
ETIQUETtE
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Dosbull Men should wear dark color conservative
business suits with white shirts
bull Women should dress conservatively and wear
light color
Donrsquotsbull Man shouldnrsquot wearing jewelry other than a
watch or wedding ring
Dress
Etiquette
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Japanese company structure
VS
American company structure
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Key concepts to understand
Japanese Business system
-Salary goes higher as you get older
- Once you are hired by the company you will work for it until you retire
- You are assigned various kinds of jobs in different departments within the company
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Salary
bull Japan
-You get higher salary
as you get older
Salary you get now is not
always related to your
current performance
bull US
Your salary is based
on your current
performance
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Difference of salary you get and salary
based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on yourperformance
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Findings
bull You need to stay in the company until you retire
to get the salary that you haven not received
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Company system
bull Japan
Cross functional
Workers are assigned various jobs within a company
Your career is developed within a company
Ex)A marketing senior manager is promoted to a HR Vice president
bull US
Vertical functional
Workers are promoted
within a department
Your career is developed
within a market
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Recruiting and Promotion Decision makers
bull Japan
HR department
They have the function
of recruiting and
promoting of allover the
company
bull US
Each department
There are recruiters but each
department often has recruiting
functions too
Managers of each department
usually has promotion functions
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Skills required
bull JapanGeneral skills is required in a company
Workers try to get overall skills that is necessary to fulfill various jobs in a company
bull US
Special skills that is required for a job in the market
Workers try to get special skills that is necessary to fulfill a specific job
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Commitment
bull Japan Lifelong (終身雇用)
Once you are hired to the company basically you will work for the company until you retire
Exception)Workers are sometimes sent to an another company that has relation with hisher company but mainly it is for making stronger connection between companies
bull US Short term
You change companies
or jobs and proceed
within the market
Average Americans have
6-8 different jobs and 3-4
different occupations
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Japan
Good points Bad points
bull Good You are able to see overall company
which helps you to be a manager who is fully understanding the company
Insider CEOs care more about company future or reputation than their own reputation or benefit
Strong company culture and strong loyalty is developed
-employees are thought to be assets rather than cost
You can save the cost for workers who quit jobs
bull Bad It is not easy to leave a company
which you find you do not fit
You might be assigned to a department that you do not desire
Not getting people who has experience in a different marketmakes companies more difficult to get new wind
It is not easy to fire low productive workers
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
US
Good points Bad points
bull Good
Flexible-you are able to change companies jobs as you desire
You can fire low productive workers easily
Getting new workers who has experience of a different market or jobs brings new wind to a company
bull Bad It is not easy to share company
culture with new workers
It is expensive to advertise a job opening recruit and train a new worker
Outsider CEOs care more about their own reputation or benefit than company reputation of future
Companies lay-off employees easily employees quits easily
-low trust
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Business culture-
China vs US
Presentation Outline
bull Foundation of US ethics- basic discussion
bull Comparison of Business culture-China vs US
bull Strategies and Managerial Implications
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Cultural
Foundation of
American
Ethics
bull Foundation based on Judeo-Christian and
Western socio-theological principles
bull intrinsic underlying truth
bull a sovereign moral authority--God
bull God declines ldquoright or wrongrdquo
bull Natural law -- ldquoinalienable rightsrdquo
bull life liberty and pursuit of happiness
bull Equality implies no prior claims against the
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
American ethics (continued)
bull Limits on individual freedom are either
(1) voluntary
(2) lawfully imposed
bull Results -- individualism and contract
bull Individualrsquos right to choice is consistent with
market economy
bull The functioning of a free market economy
can be described as ldquonexus of contractsrdquo
bull A business contract - spells out details of
relationships and is enforced by law if
violated
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Comparison
of Business
Culture
China vs US
bull Business culture - time-tested and conventional
practices
bull China and US have a different business culture
-- result of different history and practices
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Notion of Harmony
China
bull Everything is in
harmony
bull Change is viewed
as disruptive
bull Reason -- too many
people
US
bull Efficiency and
effectiveness
bull End result
bull logical reasoning on
facts
bull change to get
desired results
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Importance of Relationship
bull China
bull 4 important social
groups relatives
schoolmates
personal friends
and the indirect
relationship from the
3
bull Importance of
ldquoguanxirdquo
(connection)
bull US
bull constitutions
guarantee the rights
bull a short history to
inherit traditions
bull stress on
individualism for
personal
achievement
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Relationship (continued)
bull Agricultural state
(small community
mentality)
bull privacy is not highly
valued
bull individualism is not
singled out
bull ldquorule of manrdquo over
ldquorule of lawrdquo
bull Relatively few
norms
bull melting pot
bull Increased tolerance
on diversity
bull separate personal
and business
relationship
bull friendship can be
formed and
dissolved quickly
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Subtlety and Explicitness
bull US
bull Frank and open
China
bull Build on subtlety
bull Language based on
abstraction of ideas
bull Reduce
confrontation
bull Outspoken --not
norm
(read the tea leaves-
- observe body
words tone)
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Subtlety and Explicitness (continued)
bull Courtesy
(righteousness
ethics and honor)-
virtues
bull Saving face
bull Do not say ldquonordquo
easily
bull Hint to get help
bull Self-control makes
people appear ldquoshyrdquo
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Communication Style
China
bull Silence for reflection
bull Not to exaggerate
(implications on
marketing a product)
US
bull uncomfortable with
gaps of silence
bull Some American feel
ok to exaggerate
bull fluency and gift of
gab--admirable
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Communication-continued
bull Non-linear thinking
bull pragmatic thinking
bull rare physical contact
bull no eye contact
bull ldquoYesrdquo means ldquoI am
listeningrdquo (not I
accept)
bull Linear thinking
bull pragmatic and look
for innovation
bull normal touching
bull eye contact is
important (implying I
have no harm)
bull Hi- means friendly
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Negotiation
bull China US
bull contract is the end
in itself
bull Americans think
Chinese use
banquet as the way
to get upper hand
bull discuss openly costs
and benefits
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Rule of Banquet
China
bull Much attention to
eating and drinking
bull Private rooms in
restaurant
bull round table with
chopsticks
bull Seats assigned
bull Do not stretch arm
for food
US
bull using club members
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Taboos
bull China
bull Concerns with
numbers (symbol for
luck)
bull Success factors
fate luck feng-
shuigood deeds
and knowledge
US
bull Hard work
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Strategies of
Resolving Conflict
bull Avoiding
bull Forcing
bull Education and persuasion
bull Infiltration
bull Accommodation
bull Negotiation and compromise
bull Collaboration and problem solving
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
International Manners
bull Africa Present the card with right hand
bull Asia Offer the card with both hand and accept in the same way (China Japan
bull South Korea India)
bull Australia amp New Zeeland- Not so Important for them
bull Europe -Power breakfasts are become more popular (in France Switzerland
England)
bull Middle East amp Gulf Countries -Present Card with right hand with respect
bull Canada amp USA It is acceptable to make a cold call ( calling a person without making
an
bull introduction or appointment
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share and be
sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no excuse for
bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion prefer local
language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little small talk at
meetings
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Topics to Avoid
bull Africa Refer to people as Africans not Blacks
bull Asia Both men and women should avoid lsquo Going Negativersquo in their clothing
bull choices
bull Australia amp New Zeeland-Over Introduction
bull Europe Never try to make a cold call to get an appointment they donrsquot like
to make business on phone call
bull Middle East amp Gulf Countries- Other religion discussion Political discussion
bull Canada amp USA Unnecessary discussion and killing the time
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Gestures to Avoid
bull Africa In rural areas avoid strong eye contact
bull Asia Avoid Eye contact and touching the body
bull Australia amp New Zeeland- Red eyes
bull Europe Hate shaking leg with dirty shoes and dirty dress
bull Middle East amp Gulf Countries-
bull Do not walk in front of an Arab while he is praying and
never step on a prayer met Donrsquot hurry at the diner
lunch party eat separately women and men at home
bull Canada amp USA Standing too close to a north American
may be perceived as an invasion of onersquos personal space
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Corporate Gifts
Greetings
bull Africa A light warm handshake is acceptable form of greeting when anyone
meet and anyone leave
bull Asia Bow down to each other
bull Australia amp New Zeeland- During parties host will introduce to the other
guests do not expect gifts from foreigners doing business with them
bull Europe Shake hands with a firm grip when any one meet and anyone
depart
bull Middle East amp Gulf Countries- Gift should be presented publicly to the
group after a deal is closed In addition to hand shake they may touch
other arms amp shoulder and embrace when they are so close
bull Canada amp USA Hand shake is a full ndash hand grip
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Meetings and presentations
bull Africa Be prepared for a large no of people
bull Asia Decide before hand what tech information they are willing to share
and be sure everyone on your team knows
bull Australia amp New Zeeland- To the point specific and punctual
bull Europe Class conscious good manners are critical and ignorance is no
excuse for bad manners
bull Middle East amp Gulf Countries- Maintain Royalty and detail discussion
prefer local language or English
bull Canada amp USA Meeting begin and end as scheduled There is very little
small talk at meetings
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Doing business in China
1 The focus of reform in China is primarily on the state owned enterprises (SOE)
2 The managers are official not entrepreneurs there is no real incentives for them
3 Business meetings typically start with pleasantries such as tea and general
conversation about the guestrsquos trip to the country local accommodations and family
4 The Chinese host will give the appropriate indication for when a meeting is to begin
and when the meeting is over
5 Once the Chinese decide who and what is best they tend to stick with these
decisions Although slow in formulating a plan of action once they get started they
make fairly good progress
6 In negotiations reciprocity is important If the Chinese give concessions they expect
some in return
7 Because negotiating can involve a loss of face it is common to find Chinese carrying
out the whole process through intermediaries
8 During negotiations it is important not to show excessive emotion of any kind
Anger or frustration is viewed as antisocial and unseemly (indecent)
9 Negotiations should be viewed with a long-term perspective Those who will do
best are the ones who realize they are investing in a long-term relationship
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Doing business in India
1 It is important to be on time for meetings
2 Personal questions should not be asked unless the other individual is a
friend or close associate
3 Titles are important so people who are doctors or professors should be
addressed accordingly
4 Public displays of affection are considered to be inappropriate so one
should refrain from backslapping or touching others
5 Beckoning is done with the palm turned down pointing often is done with the
chin
6 When eating or accepting things use the right hand because the left is
considered to be unclean
7 The namaste gesture can be used to greet people it also is used to convey
other
messages including a signal that one has had enough food
8 Bargaining for goods and services is common this contrasts with Western
traditions where bargaining might be considered rude or abrasive
Thank You
Recommended