The word culture itself comes from the Latin term pronounce as cultura, which is related to cult or worship. In general, the term refers to the feedback of human interaction. Culture is knowledge that acquired that people use to interpret experience and generate social behaviour. This knowledge forms values, creates attitudes, and influences behaviour. Somehow, culture also has the characteristics of being learned, shared, trans-generational, symbolic, patterned, and adaptive. There are also many dimensions of cultural diversity, which is focus on centralized vs. decentralized decision making, safety vs. risk, individual vs. group rewards, informal vs. formal procedures, high vs. low organizational loyalty, cooperation vs. competition, short-term vs. long-term horizons, and stability vs. innovation area in this assignment.
This assignment will focus on central and decentralized decision making, individual and group reward, high and low organizational loyalty as well as cooperation and competition in US, German and Japan.
Start with Unites State culture. US is a well develop country that merely focus on effective and efficient strategy in their business. They have developed a culture that high in confidence and respect. These are some of the culture in doing negotiation among the Americans today:
It is a tradition to begin and end business meetings with a brief but firm handshake.
Maintaining direct eye contact at earlier of the greeting and whenever in conversation is also essential is important, as it demonstrates to your American colleagues your interest and sincerity.
The exchanging of business cards is a casual affair in the US. Americans regard business cards as a resource for future information. It may be done either during introductions or when leaving.
During negotiations, it is important to remember that the aim of most business discussions in the US is to arrive at a signed contract. Americans consider negotiations as problem-solving situations based on mutual benefit and personal strengths.
When doing business in the US, parties will be expected to adhere to rules and guidelines that related US business counterparts must also follow. Company policy and business procedures such as legally binding contracts, are aspects of American business culture that require strict compliancy to avoid uncertainty.
Centralized vs. Decentralized Decision Making
In some societies, top managers make all important organizational decisions. This is called as centralized decision making. This type of decision making requires all subordinates to refer to top manager to solve problem, approve all changes as well as response to any circumstances. Implementing centralization in a firm might brings disadvantage in the management. For example during the critical time such as bidding at an important auction. Top manager cannot be at two different places at one time. Centralization is also time consuming as subordinate will have to wait for the superior to make small decision which supposedly can be made by lower level manager. This kind of decision making will only cause bottleneck to firm upper management as they have to response to many problem at a time. This will eventually reduce effectiveness and efficiency.
On the other...