International Business Management - Lecture No 04

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IBM L04 as per syllabus of HEC Pakistan

Transcript of International Business Management - Lecture No 04

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Lecture No: 04

Course Facilitator: Khurshid Alam SwatiEmail your query to:

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Cultural Influences on International Business - Importance of culture

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CultureShared values, traditions, belief and general ways of doing things is called culture – Broader perspectiveIt influence the actions of organization members – Organizational perspective“that complex whole which includes knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by man as a member of society”The commonly held standards of what is acceptable or unacceptable, important or unimportant, right or wrong, workable or unworkable, etc., in a community or society refers to values

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Diverse Definitions

Topical:Culture consists of everything on a list of topics, or categories, such as social organization, religion, or economy

Historical:

Culture is social heritage, or tradition, that is passed on to future generations

Behavioral:

Culture is shared, learned human behavior, a way of life

Normative:

Culture is ideals, values, or rules for living

Functional:

Culture is the way humans solve problems of adapting to the environment or living together

Mental:Culture is a complex of ideas, or learned habits, that inhibit impulses and distinguish people from animals

Structural:

Culture consists of patterned and interrelated ideas, symbols, or behaviors

Symbolic:

Culture is based on arbitrarily assigned meanings that are shared by a society

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Cross-cultural Values

FreedomIndependenceSelf-reliance & Social loafingEqualityIndividualismCompetitionEfficiencyTime

BelongingGroup harmonyCollectivenessAge/seniorityGroup consciousnessCooperationQualityPatience

Pakistan/ Americans

Japanese

Elashmawi & Harris 1993

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Pakistani culture - Overview

Pakistani culture is very distinct due to its Islamic nature and rich historical background. it has the following characteristics:

Islamic values and traditions - Religious Uniformity National and regional languages Mixed culture – Pashtoon, Balooch, Sindhi Culture Rich literature Male dominated society Variety of Dresses Fairs and Festivals Sports Handicrafts

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Organizational Culture

Personality of the organizationOrganizational culture is the behavior of humans who are part of an organization and the meanings that the people attach to their actions E.g. Organization values, visions, norms,

working language, systems, symbols, beliefs and habits

The way we see and do things around here is culture

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How employees learn organization Culture..???

Socialization - the process of adopting culture of an organization, 1st step in orientationCodes of ethics and decision rulesTop Management leadership and commitmentShared stories – Ex-Employees Material Symbols –T-shirts, boxes, walls, stores, bumper stickersLanguage - JargonsRituals – Routine work of an organizationOrganization current mission , customs, traditions and general ways of doing thingsCultural audit

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Culture Types

Strong Culture Values are widely shared to all people

Weak Culture Values are limited to few people

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Forces Shaping Individual Culture

Personal Culture

Values

World-views

Beliefs

Behaviours

Urbanization - City

MigrationMinority

Experience

Cross-cultural

Adjustments

Profession

Gender Language

Education

Industrialization

Social background

Ethnic background

Religion

Nationalism Rural

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