Understanding and Overcoming Cultural Differences in Business

This literature review examines the multifaceted impact of culture on businesses, particularly in an increasingly globalized environment. It begins by defining organizational culture and its various elements, including values, communication, and norms, highlighting different types of organizational cultures such as clan, adhocracy, market, and hierarchy. The review then delves into the impact of cultural differences on businesses, focusing on critical areas like communication, etiquette, and organizational hierarchy, and their effects on cross-cultural interactions. It identifies challenges such as communication barriers, workplace etiquette differences, and varying organizational hierarchies that can hinder business operations. Furthermore, the review explores how cultural differences manifest in the workplace, including ethnic and gender biases and generation gaps, impacting employee performance and company image. Finally, it offers strategies for overcoming cultural differences, emphasizing the importance of effective communication, respecting diverse cultures, promoting gender equality, and celebrating cultural events to foster a more inclusive and productive work environment.

LITERATURE REVIEW

TABLE OF CONTENTS
MAIN BODY...................................................................................................................................3
Understanding the concept of culture in business........................................................................3
Determining the impact of cultural difference.............................................................................4
Determining the challenges of cultural differences on businesses..............................................6
Ways of overcoming cultural differences....................................................................................7
REFERENCES................................................................................................................................9

MAIN BODY
Understanding the concept of culture in business
As per the view point of Al Badi (2019) organizational culture used to encompases the
different values and behaviour which used to contributes toward the unique social and
physchological environement.
Connolly and Kruse (2018) explains that the organizational culture is the mixture of
more than one element which used to contribute toward the sucess of the organization. Values,
values are the goal, view and philosophies that an organization share. Communication thhe way
people in the organization used to interact with each other. Norms, The way of doing the thing in
the organization, the rules and regulation which need to be followed by the organization.
Stensaker 2015) highlights that Member of the organization who used to personify the different
values and highlights the vission of doing something in the organization. Leadership and the
community are the other element, community in the sence following the same opininon and
shares the same principle in between them in the organization. Leadership are the other as the
leader are the one used to push the different mission, standard, community and the process of the
company.
Popa (2017) explains that there are 4 type of the organizational culture which used to be
followed by all the organization in the international market depending upon the situation and the
location in which the organization is operating Al Badi (2019) explains that Clain oriented
organizational culture is the culture in the international market which used to have the family
like environement in the organization. As in this culture the focus is on building the team in the
organization which used to understand the need of the other team member in the organization by
monitoring, nutriting and doing all the thind together and solving the problem also together.
Belias and et.al., (2015) explain that Adhocracy is the onather type of the culture in the
organization in which all the employee are more result oirinented and organization also used to
work in the same way. As they used to promote the risk taking and innovation in the
organization. They generally follow the concept that “doing the thing first”.
Belias and et.al., (2015) highlights that Market oriented culture are result orieted
culture as in this culture the organization used to just focus on the product which can help the
company in defending the competition more effectively in the organization. Also all the
employee are drive to focus on the achievment rather than the process in the organization.

Ravasi (2016) Hirerachy culture is the type of the culture in which all the function of the
organization are structure in the order controlled in the systematic way. Communication
generally used to follow in the downward direction. Generally this structure used to focus on
increasing the effeciency of the busines and doing the thing in the right manner in the
organization.
Connolly and Kruse (2018) highlights that there is no organizational culture which is
good all the situation as all the organizational culture used to promote some forms of behavior,
and inhibit others.
Determining the impact of cultural difference
As companies are expanding cross borders and global markets are becoming are more
accessible for large and small businesses. Cross cultural and multinational teams are becoming
very common that means business could be benefited from these diverse knowledge bases and
also from the insightful approaches for solving business problems. With benefits of expertise and
insights corporations are also facing potential issues regarding cultural and international
businesses. There are various ways in which culture can be defined but keeping it simple they are
the commonly accepted set of that are shared by society. Rockstuhl and Ng, (2015) highlights
In an organisational context norms that are accepted and common from professionals of one
country can be completely different colleagues from overseas. For understanding and
recognising effects of culture on business core three areas are identified that are communication,
etiquettes & organisational hierarchy. These could help in developing understanding among
client and colleagues in an organisation.
Communication
For the success of any organisation most important element is effective communication.
This is critical when the risk of getting the message lost in translation are high. In most of the
organisation English is de facto language that is used. Communication is not limited to the
language which is used for communication but also concerned with manner in which the
message is conveyed is also important. Communication should be used as an effective tool for
developing connections among employees of organisation. Understanding importance of non
verbal communication among cultures could be crucial over understanding business. It is
important for companies. It is stated by Corin, (2017) that communication differences can
influence the business significantly if not taken care of at time. There may be cultural differences

among employees that can cause differences and conflicts that will affect the productivity and
efficiency of company.
Work place Etiquette
Difference in approaches of professional communications are also one in many
differences of the workplace norms around world. For example, addressing formality are having
big considerations when business partners and colleagues are dealt in the company. Different
people have different cultures of addressing the names and surnames. This may also create
differences among the people working in the organisation. Punctuality is another cultural
difference among organisations. As per Hussain, (2017) Diversity and difference of reasons
behind punctuality might lead to negative perceptions and misunderstandings. For instance
Americans have habit of reaching few minutes before the time where Mexican and Italian people
arrive few minutes later from the scheduled times. Another difference is attitude of people at
workplace, regarding rules and regulations and workplace confrontation and assumptions on
working hours. The attitude towards working hours is different some find it as sign of
achievement and commitment while others might think it of lack of efficiency. Some
organisation may favour people of their religion and race and may have gender biasses. This will
bring differences among employees of the organisations, they will not be able to perform the
work with their best efficiency. This kind of differences are seen across borders that are affecting
the business organisations highly.
Organisational hierarchy
Organisation hierarchy & attitude regards management roles are also varying widely
among cultures. Many organisations favour social hierarchy, respecting seniority and relative
status and approaches are being followed in organisation. Hierarchy is there for defining roles &
responsibilities across organisations. This type of culture expects respect from the juniors and
level of conformity. This may be the culture in all organisation and these seniors people might
face difficulty in working with others. This could affect the business organisation as when
cultural differences regarding cultural hierarchy are different in all organisations as per Alesina
and Giuliano, (2015). Companies also have cultural equality where all treated same irrespective
of their age and experience in such organisations colleagues of other hierarchy may face
difficulty.

Determining the challenges of cultural differences on businesses.
Challenges that businesses are facing because of cultural differences.
Colleagues from other cultures might not have habit of raising their voice
It is not enough for companies to have only diversified brain powers. It is also important
for company to have the workplace environment that leads employees to contribute their best in
the growth of company. Colleagues that have generous and polite culture face various difficulties
in adjusting to workplace environment and they lack contributing their combined efforts when
they are at junior positions or new to company.
Acceptance and Respect
Fundamental values contributing to the success of culturally diversified organisation is
acceptance and respect among employees and workers. Conflicts arise in organisation when the
employees do not accept diverse and cultural beliefs. If these conflicts are not controlled at initial
levels they may even lead to violence. It is stated Trax, Brunow and Suedekum, (2015) that
when there is no acceptance of other cultures there cannot be effective collaboration and sharing
of experiences. Organisations develop a belief about a culture from the previous experiences
which might not allow them to accept and respect other individual from the same community.
Ethnic Differences
Studies says that almost negligible outcomes arise when the Africans are searched as
CEO in almost all the companies. In the present time also there are ethnic and cultural
differences in workplace. There are many organisations that still prejudice with people having
cultural and religious backgrounds. Discrimination and prejudices are affecting the productivity
of company and its employees. Employees from other culture are not able to keep their ideas and
collaborate in teams giving their contributions. Companies who tolerate such discrimination
affects their image in the market it may even damage reputation of company.
Gender Biasses
As per Saxe, (2015) based on survey that more than 40% of people have belief that men
will be given preference in recruitment by both men & women. It also found on researching that
promotions over managerial positions are given 30% more to men over women and also the pay
scale of men is most of the cases higher than women. Different cultures have different belief and
treat men and women according to their cultures. People from cultures where men and women

are kept at equal position face issues in organisations where men are given are preference in
every segment.
Generation Gap
75% of Workplace will consists of millennials by 2025 that will change the work culture. People
from other generations face difficulties when working in other environment culture. Some
cultures respect the decisions and experiences of the senior people while some cultures give
respect to the educational qualifications. In such cases organisations employees do not share their
previous experiences that can benefit the company. Some workers may face isolation in
organisation because of their age group.
Ways of overcoming cultural differences.
Diversity has became typical in most of the workplaces. With technological
advancements companies are required to deal with customers and clients from across the world.
There are several challenges rising in the field of cultural differences. And in the present time it
is essential for companies to adopt steps for overcoming the barriers and challenges.
Effective Communication
Communication is most important for dealing with the cultural differences. It is important
that organisations must understand the need and demands of customers. Company should
effectively deal with the issues that are arising due to cultural differences. Employees from
different culture may be supported by managers and encouraged for coming together with their
ideas and views. It is essential for companies to ensure that employees are not left out from the
team because of cultural differences. Managers should create direct communication channels for
employees for their grievances.
Respecting Culture
Organisations should respect employees from all the culture. Not all the individuals from
single culture are same, negative beliefs in respect of cultures should not be entertained in the
organisations. Employees should interact with those from other cultures and try to understand
their culture like their customs, traditions food and protocols. This helps in making the
employees comfortable to work in other organisation. Company has to ensure that conflicts on
cultures do no arise. Strict actions should be taken against employees who make make
discrimination on the basis of culture.

Gender Equality
This is the most important issues that is affecting the organisation around the globe.
There are number of issues that are raised due to gender discrimination as per Newman and
Wolfgang, (2017). Companies should adopt culture of equality in the organisation where
employees are not treated differently on the basis of their gender. Companies should take strict
actions against that harass employees on basis of their gender. Companies should give equal pay
to both men and women on the basis of their capabilities.
Cultural events
Companies should celebrate the cultural events of employees from different regions.
They can conduct cultural events for sharing the different cultures giving knowledge and special
features about their culture. This will help employees in interacting with each other and develop
healthy relations which will increase the productivity of company.

REFERENCES
Books and Journals
Al Badi, K., 2019. Implementation of marketing concept and organizational culture in SMEs in
Al Buraimi–Oman. Benchmarking: An International Journal.
Alesina, A. and Giuliano, P., 2015. Culture and institutions. Journal of Economic
Literature. 53(4). pp.898-944.
Banks, J.A., 2015. Cultural diversity and education: Foundations, curriculum, and teaching.
Routledge.
Belias, D and et.al., 2015. Organizational culture and job satisfaction of Greek banking
institutions. Procedia-Social and Behavioral Sciences. 175. pp.314-323.
Connolly, M. and Kruse, S. D., 2018. Organizational Culture in Schools: A Review of A Widely
Misunderstood Concept. The SAGE Handbook of School Organization, p.177.
Corin, E., 2017. The social and cultural matrix of health and disease. In Why are some people
healthy and others not? (pp. 93-132). Routledge.
Hussain, Y., 2017. Writing diaspora: South Asian women, culture and ethnicity. Routledge.
Newman, G.R. and Wolfgang, M.E., 2017. Comparative deviance: Perception and law in six
cultures. Routledge.
Popa, B. M., 2017. ORGANIZATIONAL CULTURE DIMENSIONS AND VARIABLES.
Journal of Defense Resources Management (JoDRM). 8(2). pp.114-120.
Ravasi, D., 2016. Organizational identity, culture, and image. The Oxford handbook of
organizational identity, pp.65-78.
Rockstuhl, T. and Ng, K.Y., 2015. The effects of cultural intelligence on interpersonal trust in
multicultural teams. In Handbook of cultural intelligence (pp. 224-238). Routledge.
Saxe, G.B., 2015. Culture and cognitive development: Studies in mathematical understanding.
Psychology Press.
Stensaker, B., 2015. Organizational identity as a concept for understanding university dynamics.
Higher education. 69(1). pp.103-115.
Trax, M., Brunow, S. and Suedekum, J., 2015. Cultural diversity and plant-level
productivity. Regional Science and Urban Economics. 53. pp.85-96.