Chapter 2 cross cultural management

129
CROSS CULTURAL MANAGEMENT

Transcript of Chapter 2 cross cultural management

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

Thank You