How Culture Effects Business

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HOW CULTURE EFFECTS BUSINESS?

Cross-culture binds together fields which are not quite related such as cultural anthropology and communication within organisation. For understanding cultural issues in organizational setting against international perspective, it is essential to understand employee behavior. Five basic conclusions can be drawn about cross-cultural impact on business: First, individual behavior in organisational setting varies across cultures. Thus, employees based in India, Japan, U.S. and Germany are likely to have different attitudes and patterns of behaviour. The behaviour patterns are likely to be widespread and pervasive within an organisation. Second, culture itself is an important variable for this variation. There are also other factors like differing standards of living and varied geographical conditions which cause variations in behaviour. However, culture is a significant factor. Third, although behaviour within organisational setting remains quite diverse across cultures, organisations themselves appear to be increasingly similar. Hence, managerial practices at a general level may be alike, but the people who work within organisations differ markedly. Fourth, the same manager behaves differently in different cultural settings. A manager may adopt one set of behaviours when working in one culture, but may change those behaviours when moved into a different culture. Lastly, cultural diversity can be an important source of energy in enhancing organisational effectiveness. More and more organisations are realising the virtues of cultural diversity, but surprisingly, little do they know how to manage it. Cross-cultural management literature is replete with studies examining cross-national differences in individual behaviour, managerial attitudes, values and beliefs. Behaviour variations can be studied in terms of individual differences, managerial responses, motivation, and rewards across cultures. When a business goes global and conducts...
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