Cultural awareness
To be successful in world markets, U.S. managers must obtain a better knowledge of
historical, cultural, and religious forces that motivate and drive people in other
countries. For multinational firms, knowledge of business culture variation across
countries can be essential for gaining and sustaining competitive advantage. An
excellent website to visit on this topic is www.worldbusinessculture.com, where you
may select any country in the world and check out how business culture varies in that
country versus other lands.
A weakness of some U.S. firms in competing with Pacific Rim firms is a lack of
understanding of Asian cultures, including how Asians think and behave. Spoken
Chinese, for example, has more in common with spoken English than with spoken
Japanese or Korean. U.S. managers consistently put more weight on being friendly
and liked, whereas Asian and European managers often exercise authority without
this concern. Americans tend to use first names instantly in business dealings with
foreigners, but foreigners find this presumptuous. In Japan, for example, first names
are used only among family members and intimate friends; even longtime business
associates and coworkers shy away from the use of first names. Table 11-3 lists
other cultural differences or pitfalls that would benefit U.S. managers.
Managers from the United States place greater emphasis on short-term results than
do foreign managers. In marketing, for example, Japanese managers strive to
achieve “everlasting customers,” whereas many Americans strive to make a one-time
sale. Marketing managers in Japan see making a sale as the beginning, not the end,
of the selling process. This is an important distinction. Japanese managers often
criticize U.S. managers for worrying more about shareholders, whom they do not
know, than employees, whom they do know. Americans refer to “hourly employees,”
whereas many Japanese companies still refer to “lifetime employees.”
Rose Knotts summarized some important cultural differences between U.S. and
foreign managers. Awareness and consideration of these differences can enable a
manager to be more effective, regardless of his or her own nationality.
Americans place an exceptionally high priority on time, viewing time as an asset.
Many foreigners place more worth on relationships. This difference results in
foreign managers often viewing U.S. managers as “more interested in business
than people.”
Personal touching and distance norms differ around the world. Americans
generally stand about three feet from each other when carrying on business
conversations, but Arabs and Africans stand about one foot apart. Touching
another person with the left hand in business dealings is taboo in some
countries.
Family roles and relationships vary in different countries. For example, males are
valued more than females in some cultures, and peer pressure, work situations,
and business interactions reinforce this phenomenon.
Business and daily life in some societies are governed by religious factors.
Prayer times, holidays, daily events, and dietary restrictions, for example, need
to be respected by managers not familiar with these practices in some countries.
Time spent with the family and the quality of relationships are more important in
some cultures than the personal achievement and accomplishments espoused
by the traditional U.S. manager.
Many cultures around the world value modesty, team spirit, collectivity, and
patience much more than competitiveness and individualism, which are so
important in the United States.
Punctuality is a valued personal trait when conducting business in the United
States, but it is not revered in many of the world’s societies.
Eating habits also differ dramatically across cultures. For example, belching is
acceptable in some countries as evidence of satisfaction with the food that has
been prepared. Chinese culture considers it good manners to sample a portion
of each food served.
To prevent social blunders when meeting with managers from other lands, one
must learn and respect the rules of etiquette of others. Sitting on a toilet seat is
viewed as unsanitary in most countries, but not in the United States. Leaving
food or drink after dining is considered impolite in some countries, but not in
China. Bowing instead of shaking hands is customary in many countries. Some
cultures view Americans as unsanitary for locating toilet and bathing facilities in
the same area, whereas Americans view people of some cultures as unsanitary
for not taking a bath or shower every day.
Americans often do business with individuals they do not know, unlike
businesspersons in many other cultures. In Mexico and Japan, for example, an
amicable relationship is often mandatory before conducting business.
In many countries, effective managers are those who are best at negotiating with
government bureaucrats, rather than those who inspire workers. Many U.S.
managers are uncomfortable with nepotism, which is practiced in some countries.
The United States defends women from sexual harassment, defends minorities from
discrimination, and allows gay marriage, but not all countries embrace the same
values. American managers in China have to be careful about how they arrange
office furniture because Chinese workers believe in feng shui, the practice of
harnessing natural forces. Also, U.S. managers in Japan have to be careful about
nemaswashio, whereby Japanese workers expect supervisors to alert them privately
of changes rather than informing them in a meeting. Japanese managers have little
appreciation for versatility, expecting all managers to be the same. In Japan, “If a nail
sticks out, you hit it into the wall,” says Brad Lashbrook, an international consultant
for Wilson Learning.
Probably the biggest obstacle to the effectiveness of U.S. managers—or managers
from any country working in another—is the fact that it is almost impossible to
change the attitude of a foreign workforce. “The system drives you; you cannot fight
the system or culture,” says Bill Parker, president of Phillips Petroleum in Norway.
For example, in the Middle East, gifts should not be made of pigskin, and should not
be any type of alcohol, because Muslims do not eat pork or drink alcohol. In India,
cows are revered, so no leather gifts.
Communication Differences across Countries
Communication may be the most important word in strategic management.
Americans increasingly interact with managers in other countries, so it is important to
understand communication differences across countries. Americans sometimes
come across as intrusive, manipulative, and garrulous; this impression may reduce
their effectiveness in communication. Asian managers view extended periods of
silence as important for organizing and evaluating one’s thoughts, whereas U.S.
managers have a low tolerance for silence. Sitting through a conference without
talking is unproductive in the United States, but it is viewed as positive in Japan if
one’s silence helps preserve unity. Managers from the United States are much more
action-oriented than their counterparts around the world; they rush to appointments,
conferences, and meetings-and then feel the day has been productive. But for many
foreign managers, resting, listening, meditating, and thinking is considered
productive.
Most Japanese managers are reserved, quiet, distant, introspective, and other
oriented, whereas most U.S. managers are talkative, insensitive, impulsive, direct,
and individual-oriented. Americans often perceive Japanese managers as wasting
time and carrying on pointless conversations, whereas U.S. managers often use
blunt criticism, ask prying questions, and make quick decisions. These kinds of
communication differences have disrupted many potentially productive Japanese-
American business endeavors. Viewing the Japanese communication style as a
prototype for all Asian cultures is a stereotype that must be avoided.
Like many Asian and African cultures, the Japanese are non confrontational. They
have a difficult time saying “no,” so you must be vigilant at observing their nonverbal
communication. Rarely refuse a request, no matter how difficult or nonprofitable it
may appear at the time. In communicating with Japanese, phrase questions so that
they can answer yes—for example, “Do you disagree with this?” Group decision
making and consensus are vitally important. The Japanese often remain silent in
meetings for long periods of time and may even close their eyes when they want to
listen intently.
Source: David Fred, David Forest (2016), Strategic Management: A Competitive
Advantage Approach, Concepts and Cases, Pearson (16th Edition).
