An Analysis of Cross Cultural Differences Between India and the United States of America in Terms of Business-Implications for Managers

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An Analysis of Cross Cultural Differences Between India and The United States of America in Terms of Business-Implications for Managers

Submitted to Submitted by
Dr. Richard Ajayi Pushyami.V

Table of contents
Executive summary
1. Introduction
2. Culture
3.1 Cross Cultural Analysis
3.2 Cultural distance
3. Different models of cross-cultural analysis
4. Hofstede dimensions to distinguish between cultures
5. Cross Cultural Analysis between India and The United States of America-Geert Hofstede’s Framework 6.3 Cross Cultural Analysis of India and The United States of America 6.4.1 Power Distance

6.4.2 Individualism
6.4.3 Masculinity
6.4.4 Uncertainty Avoidance
6.4.5 Long Term Orientation
6. Criticism of Hofstede’s Framework
7. Conclusion
8. References

Executive Summary

Globalization has reshaped our modes of thinking and ways of behaving and fostering cultural change in societies. The nature of our workplace has changed. We moved away from the monochromic make up of the offices to one that is now colored by team members from all over the world. Different cultures and cultural backgrounds between a highly diverse staff brings with it obstacles, challenges and difficulties. Cross cultural differences manifest in general areas such as in behavior, etiquette, norms, values, expressions, group mechanics and non-verbal communication. Cross-cultural management is seen as a discipline of international management focusing on cultural encounters, which aims to discover tools to handle cultural differences seen as sources of conflict or miscommunication. Cross cultural solutions to international business demands are increasingly being viewed as a valid and necessary method in enhancing communication and interaction between companies, between companies and customers and between colleagues. Hofstede successfully narrowed the concept of culture down into simple and measurable components by adopting nation-state/nation culture as the basic unit of analysis. This paper attempts to bring out the differences between cultures of India and The United States of America. The cultural differences were analyzed based on the Geert Hofstede’s framework with the five parameters. The implications of these differences to the managers was analyzed and also its impact on business.

1.Introduction
Globalization, the expansion of international trade, technological advances and the increase in the number of companies dealing on the international stage have brought about a dramatic change in the frequency, context and means by which people from different cultural backgrounds interact. Globalization has reshaped our modes of thinking and ways of behaving and fostering cultural change in societies. The nature of our workplace has changed. We moved away from the monochromic make up of the offices to one that is now colored by team members from all over the world. With this new multicultural make up come differences in cultures which in turn bring differences in areas such as communication styles, approach to time, managerial styles and a plethora of other cross cultural differences. It seems that globalization has given rise to a paradoxical movement of cultures. On the one hand, emergent global cultures transcend national boundaries and cultures. On the other hand, the synchronizing power of internet and technology provides local companies indigenous cultural values with unprecedented global exposure. Different cultures and cultural backgrounds between a highly diverse staff brings with it obstacles, challenges and difficulties. Cross cultural differences manifest in general areas such as in behavior, etiquette, norms, values, expressions, group mechanics and non-verbal communication. Cross-cultural analysis could be a very perplexing...
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