Chapter 16: Culture and Diversity in Business

Chapter 16:Culture and Diversity in Business

Introduction to Business

Unit 5: Human Resources

CULTURE IN BUSINESS

Section 16.1

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Culture in a Global Economy

•Culture: the beliefs, customs, and attitudes of adistinct group of people

–dress, food, language, art

–history, geography, and religion

•Culture may refer to an entire country, ethnic group,social group, or institution.

•As companies trade worldwide, they must be awareof different cultural and business practices (e.g.etiquette, business customs, rules for personalinteractions)

Culture and Business

•In business, culture has two important meanings.

In the broad sense, it refers tothe customs of other countrieswith which companies dobusiness.

Business culture refers to thestandards of a particularcompany.

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Consider This . . .

•Why is it important to understand other cultures when doingbusiness in a global marketplace?

•What are some things that you would do when planning toconduct business in another country?

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Marketing Abroad

•To market products successfully in another country,companies must research the country’s languages, customs,and tastes.

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Doing Business Abroad

•Companies doing business in other countries must be awareof cultural differences that affect the workplace.

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Problems forEuroDisney

-Fear of culturalimperialism

-Resistance to strictdress codes

-Mandatory use ofEnglish in meetings

Business Etiquette

•Business etiquette: conduct that is considered sociallyacceptable in business; differs from country to country

•Strategies to avoid cultural problems

–Hire local managers (e.g. hire a Swedish person to manage office inSweden)

–Train American employees to live and work in other countries

•As more countries trade globally, there is an increaseddemand for people who have studied other languages andcultures.

–Study high-demand language/culture (Spanish, Mandarin/Chinese,Arabic, etc.)

–Spend a semester or two of college studying abroad

–Teach English in a foreign country

Corporate Culture

•Corporate culture: a company’s shared values, beliefs, andgoals

•Culture may be defined

–Formally, through a company code of ethics, a written manual, and theorientation process

–Informally, through dress codes, work habits, and social activities

•Factors influencing cultures may include

–Company’s founder

–Industry (banking vs. technology)

–Geographic location (NYC vs. Silicon Valley)

Consider This

Why is it important to know something about a firm’s corporate culturebefore accepting a job there?

Consider This

Why is it important to know something about a firm’s corporate culturebefore accepting a job there?

Corporate Culture continued . . .

Formal Culture

•May have a strict hierarchy, orchain of command

•May have one top decisionmaker with several layers ofmanagement below(bureaucracy)

•Making changes or passingdown decisions may becomplicated

•Job titles indicatepower/status

•Dress codes and work hoursstrictly enforced

Informal Culture

•Employees encouraged tomake decisions on their own;may have decentralizedorganization

•Dress code is more casual

•Work hours are more flexible;may also work from home

•Job titles are not as important

•May value innovation overtradition

Note: There may be different cultures within one company.

Considering Corporate Culture

•Form groups of two to four people. Appoint a timekeeper andrecorder.

•Discuss the following questions. Your recorder should writeyour answers on a separate sheet of paper (to hand in at endof class).

–Review the descriptions of formal and informal culture. What aresome drawbacks and benefits of each?

–Describe the classroom culture of your favorite class(es). Whatclassroom rules, work habits, and activities help shape how you work,act, and deal with problems? How does this culture influence yourwork as students? Try to connect your discussion of classroom cultureto the notes on corporate culture.