Differences in culture and cultural values.

Submitted
By
Ravi kumar Meduri

Abstract:-

This note comments on main topics in literature on cultural differences and their impact on International
life and transnational dealings of culture. It should be analysed on two levels National and Organizational
levels.
Introduction:Cultural differences impact on international life. Both parties spend lot of time to reach an agreement.
They both spend time on negotiations and renegotiation their agreements. The basic reason behind these
things is differences in culture and each party takes time on the basis of making business in different
ways.

Here, we would like to highlight some main points of argument, the categorization of Eastern,
Asian or Western countries to conceptualize culture.

Its hard to explain the relationship between culture and negotiations between categorizing
countries western, eastern and Asian. The problem is categorization lies in assumption of the
cultures in their categories. And every country has different national cultures, different
geographical locations, historical developments and developments.

The issue is we cannot assume that all categories share a similar culture and it should be
analyzed on two levels of culture National and Organizational.

National level of culture:Every country has its own distinct national culture that shows the attitudes and values of its members of
cultural differences in relations in negotiating agreements. Hofstede explained the variations in social
behaviors of the main theoretical frameworks across countries.

Hofstede defines culture as the collective programming of the mind which distinguishes the
members of one group from another.

On survey basis conducted around 1967 and 1973 within IBM subsidiaries in 66 countries,
Hofstede identified four dimensions: power distance, individualism, uncertainty avoidance and
masculinity.

In this model the important contribution is to explain the national culture attitudes and values.
Hofstedes observed that the development and understanding the role of behaviors in cultures.
Chanchani and Macgregor didnt agree with Hofstede that assuming the national culture into one
level. They argued that Hofstede failed in explaining the different levels in countries. Since
different countries has different cultures arises and is homogeneous.

Organizational Level of culture:

Culture can be organization-specific, and the shared meanings or assumptions, beliefs, and
understandings held by a particular group or mini-societies. There are two different approaches in
considering the impact of organizational culture on the values and attitudes of members in the society.
The first approach in any culture derived from within Organization or some set of values on all common
basis and are expected people to do same in that community to share same type of values. But people
have different attitudes, backgrounds, local cultures and views and expecting to bring into one
organization which leads to fail.
So, the second approach argues for a heterogeneous Organizational culture where explains as a mix of
various local cultures each with their own distinctive values. And it argues about the people with different
kind of cultures, behavours, backgrounds, organizational cultures, local cultures share many common
organizational things into one Organizational attributes.
Cultural differences in International business:Role of the Government and Bureaucracy:
American entrepreneurs expect minimal government interference in private sector Generally Government
in developing countries like India take part in all major decisions. Few countries both private and
Government works together. And in France retired govt officials takes place in private companies in which
is completely opposite to South American countries, entrepreneur will face administrative and
bureaucratic problems.

Business Meetings:
The meetings in Asian and South American countries are long and US companies meetings are short.
And decision makings also take lot of time in Asian countries. The meetings schedules are punctual in
Japan and in Germany meetings they like to see right facts. Whereas in French the meetings are long
term and South American firms are short term plans.

Communication:

In some countries written communication is important and others give importance to verbal
communication. In Argentina and Brazil verbal is important and Germany and French vice versa give
importance to written communication. French likes to see grammatically correct and Germans likes to see
their business to be precise. In US and Australia office communication likes to be outgoing, Where it is
opposite in Japan, China and Germany. British like to be diplomatic and Asian countries like modesty.
Seniority, Meritocracy and Decision-Making:
In Asian countries Seniority is given importance and countries like U.S., Australia and Germany
meritocracy is important. In France its mixture of seniority and meritocracy. And senior persons are not
only the authorized of making business decisions in Organizations. In Britain its not clear and job
responsibilities are not clear and precise and the making rules and decisions in organizations are not
clear in South American countries.
Gifts and Personal Favors:
In Asian countries like India and other countries Gifts and favors are very common and whereas in US
they have strict rules regarding favors exchange in organizations. In Asian countries gifts and favors bring
more relationships and in US they feel that they get affected with their decision making processes. And
also in Asia they dont like to be too much formal Managers behaving bossy towards to subordinates.
They like to discuss in personal relationships and in US they get offended.
Conclusion:The analysis of the impact of culture should go in relatively simplistic categorization of Eastern, Asian or
Western countries. To understand the cultures researchers should bring new concept levels of cultures.
And cultural levels should be considered in analysing the role of cultures in international life and
transnational dealings. To understand the behaviours of cultures they should consider the collective
notion of cultures. In the international scene, knowing and identifying cultural differences can make a big
difference between successful business negotiations and mortifying rejections. International business
communication plays a major role in this, as knowing how to communicate through their point of view is a
great advantage.
The worrying issues in internationals business are the cultural business that most international business
executive fails to understand culture and miss the business opportunities. Thru these differences
international business communication can make the difference between a successful deal and failures. It
shows that culture is in different ways where people behave, think, act, families and other people in
society. The cultural customs also connected with social, political, family and religious values. These
differences must be known and identify and make international business communication much smoother
and fill the gaps between cultures and real communication in businesses. Hofstede's framework is one of
the most prominent one in international management and he identified four major dimensions of cultural

values individualism-collectivism, power distance, uncertainty avoidance, and masculinity-femininity along

with a fifth dimension subsequently identified as Confucian Dynamism.
In the future globalization will continue to increase the flow and interactions of people across cultures,
which surfaces even more international differences. Understanding the different dimensions of culture
provides an initial knowledge base to develop cultural intelligence and competence for effective
international business relationships. However, global managers require cross-cultural training to advance
their learning and growth in cultural intelligence and competence as they take on international
assignments. More importantly, organizations will have an increasing need for global managers to
become agents to develop effective international relationships. In addition, government leaders have
opportunities to shape their national culture and support international competitiveness with new
multiculturalism policies that promote both the inclusion of multiple cultural identities and the development
of local communities in an era of globalization.
Every country has their own way of showing and doing things in their cultural style; It may be offending to
some or may not be offending to them. Business in international levels always should consider the
communication between the people. Some levels understand and they can mix up well and some may not
fit at all. It doesnt mean that cultural habits and practices everybody will have it. When doing business in
certain people with culture should be maintain some standards so that business goes smooth. As old
saying when in Rome, do as the Romans do.