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Business Across Cultures PDF

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Added on  2020-10-05

Business Across Cultures PDF

   Added on 2020-10-05

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BUSINESS ACROSS CULTURE
Business Across Cultures PDF_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK...............................................................................................................................................11. Hofstede model of nation culture............................................................................................12. Impact of national culture on cross border business development..........................................4CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
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INTRODUCTIONCross culture can be defined as efforts of business to interact with employees of differentnationalities and make them able to work together. Cultural difference is considered as one of themajor issue in international business (Reader and et.al., 2015). Changes in language, believes,values influence the behaviour of an individual. Present study will critically examine theHofstede culture model. Furthermore, it will explain influence of national culture on working ofemployees. Assignment will describe organisational culture inventory and will discuss the role oforganisational culture in success of business venture in international market. TASK1. Hofstede model of nation cultureCulture can be defined as belief of individual. In the modern era each company aims toexpand its business across the world and for that it has to face issues related to difference incultural aspects (Minkov, 2018). Geert Hofstede has suggested this model which explains sixdimensions of ethos. Hofstede has conducted survey on IBM employees worldwide and hasanalysed that there are many issues that face by workers due to changes in national culture.These are explained as below:Power distance index (PID)This dimension states that there is inequality in society, people with less power have toadjust in certain circumstances and people those who have high power get advantage of it. Forexample, India is the country which score high in PID, top-down structure is followed in societyand Indian organisations. People have unequal rights, persons those who are powerful can sayanything to their lower employees (Fang and et.al., 2016). This is the issue here that inequality ishandled in society, people those have power are at top level and rest are at lower side. Thishierarchical order shows power distance. On other hand low power distance is applied in somecountries where individual expect to get equal treatment, if there is inequality then they raisequestions against authorities. They always want to get involved in decision making process.UKis the country where low power distance exist, here individual or employees want equaltreatment. They do not accept top down structure, they want clarity in their responsibilities andrights (Beugelsdijk, Kostova and Roth, 2017).Individualism vs Collectivism (IDV)1
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It is another dimension which explains the integration among people in society. If there ishigh individualism, then people think about own self rather than group interest. They just takecare of themselves or their near family members. In such kind of culture people pay moreattention on “I” rather than “We”. This index shows how much importance is given by person togroup members or individual is giving importance to own only. Many countries are here wherehigh score is given to individualism (Noort and et.al., 2016). People do not think much aboutgroup interest. They just want to grow for themselves or their near family members. Hence hereloosely- knit social frameworks is followed. On other hand collectivist is the approach in whichperson thinks for group members and work in such manner so that other also get benefit of it. Insuch kind of societies people live in group and they take care of each group members. This raisesloyalty among them and give common benefit to all. For example, India is the country wherecollectivism trait is followed. Society members get influenced by wordings of their familymembers, friends and other near people (Najm, 2015). But India also have individualism cultureas many time one religion is dominated by other regional believes. They interact with each otherfor some specific reason, hence Indian society has intermediate score. On other hand UnitedKingdom follows collectivism approach, people work together and take care of group interest.There is high score of collectivism. USA is the individualistic country because self-image is themain concern of individuals.Masculinity Vs FemininityIt is another dimension of national culture, this states that how much values are given toparticular person as compare to other individual. Masculine index states that achievements,assertiveness and heroism are given more importance. Femininity states that society gives morevalue to care, modesty, cooperation and quality of life. Femininity index is more consensusoriented whereas masculinity is much more competitive. It can be defined as tough or tenderculture in organisations (Beugelsdijk, Kostova and Roth, 2017). Many organisations give valueto material benefits whereas some gives importance to work quality. Japan is the great examplewhere masculine culture is followed, every Japanese company pays more attention on workperformed by person and how much person has achieved. On other hand Scandinavian countriesfollows feminine culture, Sweden always emphases on employee’s corporation in business unitmore than assertiveness. High score shows masculine culture whereas low score reflects2
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