ATMC IBS220 - Cultural Insight: East Asia & Australia Business Culture

This report provides a detailed analysis of business cultures in East Asia and Australia, addressing key aspects of cross-cultural management. It examines the impact of culture on business functions, highlighting the increasing importance of cross-cultural understanding in the era of globalization. The report utilizes Hofstede's cultural dimensions to compare and contrast the cultural values of East Asia and Australia, focusing on power distance, individualism, masculinity, and uncertainty avoidance. It also explores the cognitive approaches to Hinduism and Confucianism and their influence on business practices. By comparing business etiquettes, communication styles, and workplace norms, the report offers insights into navigating cultural differences in international business settings. The report concludes by emphasizing the need for businesses to respect and adapt to cultural nuances to foster successful cross-cultural interactions.

Running head: CULTURE
CULTURE
Name of the Student
Name of the University
Author Note

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Executive Summary
Culture is considered to be a crucial aspect of the society and as the different societies have come
together with globalization, an understanding of the different cultures is eminent. Cross cultural
management is considered to be a popular theory and is largely based on the management in
different countries and the appropriate measures which a multinational company needs to take.
The given report is based on the business culture and its components. The culture concept has
been explored with the help of four questions each of which have been supported by theoretical
as well as practical examples. A conclusion summarizes the entire report.

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Table of Contents
Introduction......................................................................................................................................3
Answer to Question 1......................................................................................................................3
Answer to Question 2......................................................................................................................3
Answer to Question 3......................................................................................................................4
Answer to Question 4......................................................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................7

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Introduction
The culture of a society can be described as the set of values, rules and thinking on which
a society is based. However, due to globalization, the different cultures have become greatly
interlinked and this has made the cross cultural management increasingly important (Chang
2016). The different companies as present in the different countries have to ensure that these
business cultures are respected all along. Hence, the given report is based on the culture of East
Asia and Australia. The report takes the form of four questions which examine different
components of culture and the related ideas.
Answer to Question 1
The culture has been considered as an important business aspect as it tends to have a huge
impact on the way a business functions. With the advent of globalization, different countries as
well as cultures have come together and due to this the cross cultural business has become
increasingly important (Crane, Kawashima and Kawasaki 2016). The culture can be considered
to be a potential competitive advantage. The culture is can be stated to be the manner in which
people in a particular society functions and how different cultures have different values and
thinking system. A culture can be widely referred to as belonging to different facets and having
different levels. These levels as well as facets have a direct influence on the cross cultural
management by making it complex in nature (Dartey-Baah 2013). Organizations employing
people from different culture now have to ensure that they look after their needs as well, without
compromising on the needs of the original host country culture.
The facets of the culture which comprise of religion, food, apparel, government, clothing
and the behavior serves as a guide to the different managers and helps them by serving as a
guideline as to how the different employees need to be functioned (Riddell 2017). Hence, the
knowledge of these different facets and levels of culture have a positive impact on cross cultural
management by helping the managers to understand the motivating factors of the employees. The
facets of cultural also comprise of the norms and values based on which a society fucntions.
When cross cultural management is based on these facets, the organization may perform well
globally.

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Answer to Question 2
The Hofstede’s cultural dimension can be described as a useful tool which can be used to
understand the culture in different countries. It is based on five different dimensions. The first
dimension is the power distance dimension which explains the extent to which the less powerful
members as present in the particular society accept that power is distributed unequally. Australia
scores low in this aspect with a score of 32 which means that power is well distributed. On the
other hand the countries in East Asia score moderate (MacWilliams 2014). The next aspect is the
individualism aspect which states the degree of interdependence of the members in the society.
The countries in East Asia score 46 in this aspect whereas Australia scores 90 which means that,
people are individualistic in nature (Sosnoski 2013). The next aspect is the masculinity aspect
where either being the best or interests motivate people. Australia is a masculine society and
even the countries in East Asia are also quite masculine (Shively 2015). The fourth aspect is the
uncertainty avoidance aspect whereby the perception of a society as based on the uncertainty is
measured. Australia scores medium in this aspect whereas East Asian countries score high. In
other scales like the Long term orientation and Indulgence, the Australian country can be stated
to be a normative society and indulgent respectively whereas the East Asian Society can be
stated to be orientation oriented society and highly restraint which means that it has an exposure
to cynicism and pessimism.
Answer to Question 3
Business culture can be popularly defined as the beliefs and behaviors which shape the
manner in which the employees as well as the management involved in a business tend to
interact with one another (7continentlist.com. 2015). This also has an impact in the manner the
business transactions are carried out. The culture which is followed by a company is generally
reflected in its business hours, dress code, the setup of the office, hiring decisions, the manner in
which the employees are treated and other related aspects of the organization. The Parent
company of Google named Alphabet is popular for its employee friendly cultural and it is a
determinant of their lunches, doctors and flexible time management (Lee, Trimi and Kim 2013).
The company offers massages, fitness classes as well as hair stylists to the employees. Due to
this, it scores considerably well on Fortune list of best companies to work for.

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The business culture in China and in East Asia is quite different in nature. In Australia,
the business individuals are very straight forward and have a receptive views towards the new
ideas. Moreover, they are oldest in nature and have reasonable working hours which range from
9-5pm. Punctuality is considered to be very crucial and offering gifts is not a part of the business
culture, On the other hand, in East Asia, they are not very receptive to new ideas and having
contacts assists in ensuring that the deals can be successful. Even the East Asian’s like to be
punctual but offering gifts is considered to be important.
Answer to Question 4
Cognitive approach to Hinduism
The cognitive approach which is present towards Hinduism is largely based on the Hindu
Philosophy which is largely based on the epistemological concepts like the procedure of
perceiving and knowing, the meaning behind knowledge, self as well as personal identity, the
problem relating to the body and mind, emotions, health and wellbeing (Hofstede 2013). The
Hinduism has detailed discussions based on the process of knowledge and more importantly is
concentrated on the individual possessing the knowledge. Mind is considered to be an important
topic for discussion and it helps to know the nature of cognition and contributes to understanding
the nature of the self. Various schools of the Hindu systems tend to develop on the concept of
consciousness and underline the Yoga and meditation as an essential nature of the functioning of
the brain.
Cognitive Approach to Confucianism
The Confucianism can be characteristic as a manner in which a system is largely based
on social as well as ethical philosophy (Szkudlarek 2017). It has formed its basis on social
values, ideals and institutions on which the society of China is based on.
The Confucian values in the business are quite popular and tend to have a huge impact on
the business. The year in which China modernized, was the year in which the Confucian values
began to increase. The Confucianism concept is deeply associated with the rigid disciplinary
boundaries, which is based on academia from the west (Garcia-Gavilanes, Quercia and Jaimes
2013). The Chinese society firmly fucntions on the concepts of Confucianism and can be
considered to be normative in nature. These values can be stated to be purely scientific as well.

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Conclusion
Hence, from the given analysis it could be understood that the cultural of Australia can be
stated to be quite liberal in nature whereby the different ideas, thinking and concepts are highly
appreciated. On the other hand, the culture of the East Asian countries are very restricted in
nature and focus on building and trusting old long term ties. Hence, when the businesses in these
countries tend to interact with one another, they need to ensure that all cultural aspects are abided
by. Business culture of each country differs and hence the etiquettes based on this need to be
learnt prior to conducting the business dealings.

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References
7continentlist.com. ,2015. Asian Culture Facts and History - Interesting Information About Asia.
Article posted 15 November 2015. Accessed at http://www.7continentslist.com/asia/asian-
culture-facts-and-history.php
Chang, O. ,2016. The biggest cultural differences between companies in Australia and Asia,
according to an Asia Pacific executive. Accessed at
https://www.businessinsider.com.au/thisintuit-exec-shares-the-5-biggest-cultural-differences-
when-doing-business-in-australia-andasia-2016-4#b1PKZxi7MKV5lbPZ.99.
Crane, D., Kawashima, N. and Kawasaki, K.I. eds., 2016. Global culture: Media, arts, policy,
and globalization. Routledge.
Dartey-Baah, K., 2013. The cultural approach to the management of the international human
resource: An analysis of Hofstede’s cultural dimensions. International Journal of Business
Administration, 4(2), p.39.
Garcia-Gavilanes, R., Quercia, D. and Jaimes, A., 2013. Cultural dimensions in twitter: Time,
individualism and power. Proc. of ICWSM, 13.
Hofstede, G., 2013. National cultural dimensions. Recuperado el, 22.
Lee, S.G., Trimi, S. and Kim, C., 2013. The impact of cultural differences on technology
adoption. Journal of World Business, 48(1), pp.20-29.
MacWilliams, M.W., 2014. Japanese visual culture: explorations in the world of manga and
anime. Routledge.
Riddell, A. ,2017. Australian Culture, Values and Customs. Accessed at
https://www.careerfaqs.com.au/courses/study-tips/australian-culture-values-and-customs
Shively, D.H. ed., 2015. Tradition and modernization in Japanese culture. Princeton University
Press.
Sosnoski, D. ed., 2013. Introduction to Japanese culture. Tuttle publishing.

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Szkudlarek, B. ,2017. Four cultural clashes that are holding East Asian employees back.
Accessed at https://theconversation.com/four-cultural-clashes-that-are-holding-east-
asianemployees-back-72661