TERM PAPER Importance of Understanding Culture Diversity in the Workplace In business today it is important to have a diverse group of employees in the workplace. If you work with people internationally, time zones differ and it … Technology is advancing in a rapid pace and is allowing more opportunities in migration therefore existing countries has never had so much to do with each other until today. Tepper School of Business: Cultural Differences in Business Communication, Culturosity: Cultural Differences: Not Just HR’s Business, It’s Everybody’s Business. This paper will address some of the common barriers in international business communications, the steps that have been taken to alleviate these problems, and future consideration for international business communication. Intercultural Communication in Global Business presents foundational concepts for communicating between cultures and a framework for understanding any culture, including your own. This is one of the core reasons as to why forming a completely universal and world known version of the English language is virtually unreachable. The Importance of Knowing a Foreign Country's Culture When Considering Business There. If your business is in a multicultural environment, understanding differences in culture will help you better deal with and motivate your business associates and employees. In a business setting, understanding cultural, ethnic and gender differences can help managers and professionals ensure efficiency and productivity among fellow employees.   These are differences in race, culture, age, gender and identities. A business that disregards cultural differences also puts itself at risk of violating antidiscrimination laws that make it illegal for employers to make hiring and compensation decisions on the basis of religion or ethnicity. They should focus on some of the, sometimes overlooked, issues that can cause conflict in the workplace. In MegaEssays.com. Having diverse employees increases the bottom line and also assists in staying on the right side of the law. There are different rules that need to be followed within different religious sects. Cultural differences in business can create a number of barriers in business development, find out how to pro-actively engage & resolve these differences. (find support) However, the following recommendations may be instrumental in minimizing cultural differences in international business encounters: Cultural awareness. At the least, that understanding leads to tolerance which can greatly reduce personal clashes in the workplace. Nov 6, 2016. What are some common, However, it is uncommon for native English speakers to speak another language. This site offers free and paid for business culture guides and - please complete this short survey to help us improve, Thank you! Companies may be abandoned by customers, The second Hofstede cultural dimension compared is “Individualism vs. Collectivism” which indicates whether members within a society define themselves as individuals or associate themselves with a particular group. On the contrary, the Japanese culture scored relatively low (46) which firmly categorizes the culture as Collectivist. Enterprises enter foreign markets in order to expand the market or look for resources or reduce cost etc. James Calvert Scott mentioned in his article “the English language is not a monolith but a surprisingly diverse family of related varieties, each of which has idiosyncrasies” (Scott, 2000). That said, it would be nearly impossible to include it all in the same infographic and would be a separate infographic. So many people have died or have been denied their rights because of individual greed. With increasing numbers of business opportunities across national borders, many organizations tend to expand their business operations abroad. In Africa, the Ethiopian and Kenyan community is world famous for their succ… Cultural differences are defined as the variety of experiences and perspectives. Therefore, it discusses the following: 0 [ad_1] Introduction. Importance of Understanding Culture in International Business As described by the famous author Edgar Schein , the culture in reference to the corporate world is the different corporation’s learning that is developed by different discoveries, invention and the development for handling the internal and the external issue effectively. Realizing Cultural Differences. Dr. Richard Bello Culture refers to the values, norm and traditions that affect the way a member of a group typically perceives, thinks, interacts, behaves and make judgements. • Key issues in cross-cultural marketing communication which shows identifying the cultural factors to support marketing communication in the proposed markets and pre-requisites for cross-cultural communication, past decades the business world has become more globally interdependent due to the globalization and technology, one of the main business challenges that an organization faces today is cross cultural communication. Discuss three nonverbal differences you might encounter if you are transferred to manage a company in Rio de Janeiro, Brazil. The Roaring Dragon Hotel and Hotel International By understanding the differences, businesses can overcome the barriers of cross-cultural communication. Dealing with customers and suppliers is an important part of doing business. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Also, cultural differences determine sense of humour and the degree of understanding certain jokes – so always make sure jokes will not offend your prospect’s sensibility. Differences in culture complicate business negotiations and relationships in many ways. Examine any cultural biases that you have, as well as your own beliefs about cultural differences. Managing cultural differences in business is essential for those who want to participate internationally and succeed globally. Prasanna Baganagarapu Cultural differences in business can create a number of barriers in business development, find out how to pro-actively engage & resolve these differences. What the owner of a business today should focus on is to shift away from focusing solely on the difference in race. Read More. In many ways, these counties have used an important tool to optimize international business, and that key ingredient is cross-cultural core competency. Doing Business in Vietnam: Understanding the Cultural Differences. One of the biggest downfalls of corporations is not recognising the importance of understanding culture when operating a business. Home / Blog / Freelance / The Importance Of Understanding Cultural Differences Sometimes you come across an article that just makes you laugh. They include the ever-changing customs, values, and views of the people who speak it. Why Company Culture is So Important to Business Success. RDH is one of the original three-star hotels in southwest China and a state owned enterprise (Grainger, 2008). THE IMPORTANCE OF UNDERSTANDING DIFFERENCES IN A BUSINESS SETTING In a business setting, understanding cultural, ethnic and gender differences can help managers and professionals ensure efficiency and productivity among fellow employees. With the cultural differences that South Africa has, it is important to recognize all the differences. ... then there will be differences in how you both communicate. The cultural differences are one of the biggest issues when it comes to working abroad and be successful. One of the biggest challenges when operating business globally is understand and benefit from cultural differences. In the business world, culture guides decision-making, behavior, thinking patterns and values. Cross-cultural communication is a common occurrence in business. According to the studies the main reason why managers fail is not because the persons technical or managerial competence but due to the fact that there are cultural variances. THE IMPORTANCE OF UNDERSTANDING CULTURAL DIFFERENCES. In American English, “allocate” means to spread costs among multiple cost centers or units, whereas in British English, “allocate” means to attribute all costs to one center or unit (Table 2; Scott, 2000). Correspondingly, understanding importance of culture is a key factor if companies wish succeed in conducting international business. It’s Western culture and familiar languages make a move to Europe an easier transition for most U.S. companies.   Starting a business outside the geographical boundaries of a country requires assessing a number of factors. Companies need to proactively prepare for cross-cultural interactions by being aware of the nuances in the way people communicate. CT Business Travel has put together a useful infographic for a quick reference of cultural differences in business etiquette globally. Executive summary 3 The advertising strategies employed for an American audience will not work for Asians. Guffey & Loewy (2015) note that there are five distinct dimensions of cultural difference that inhibit effective intercultural communication. The influential factors such as individualism versus collectivism and masculinity versus femininity amongst others help categorize and identify cultural differences. VIEWS (207249) ... from 18 professors from business schools and universities around the world. Lack of Cultural Awareness Can Damage Business Relationships. Cultural factors have long been known to impact the communication and success capability of competition in conducting worldwide business. Culture is defined to be a framework to our lives; something which affects it includes aspects of interaction social activity arts and sciences spirituality and language (cultural heritage, 2006). It becomes two sided, where one supports having English be the leading language, while others strongly disagree. What may be a friendly handshake in western business agencies, could be unusual or offensive, Cross-Culture Communication Competence in Global Business Cultural differences can make communicating a challenge. 1.0 Introduction 3 Another situation involves contract labor, with specialists from another cultural background coming in, sometimes on a temporary basis, to support an existing workforce. Barron (2013) states that it is imperative for North American organizations in particular to actively increase the cultural awareness of employees conducting international business. This site offers free and paid for business culture guides and - please complete this short survey to help us improve, Thank you! Global businesses now require understanding and a communication of cross-cultural differences across borders. Culture influences how people interact with each other. Probably the single most useful concept for understanding cultural differences in business communication is Edward T. Hall's (1976) distinction of low-context and high-context cultures. There’s a phrase in Russian that closely corresponds to one in English: “mir tyesen.” Word for word, this phrase means “the world is tight,” but the base … In some cultures, it is considered normal to be loud and direct, even if it means interrupting others in Probably the single most useful concept for understanding cultural differences in business communication is Edward T. Hall's (1976) distinction of low-context and high-context cultures. The Importance of Understanding Cultural, Ethnic, and Gender Differences by Managers and Professionals in a Business Setting. Instead, it provides the groundwork for a person to consciously understand business from different cultural perspectives. Negotiation is a principal component of international business. The Importance of Understanding Cultural Differences. Finally, work ethics take different forms in each culture, resulting in patterns for work hours and daily routines that vary. Here are three basic areas of differences in the Culture influences how people interact with each other. The meaning of phrases and gestures also varies from one culture to another, increasing the chance for misunderstanding. Competence in cross-cultural communication and understanding cultural differences is becoming more crucial in today’s society. A new idea gaining momentum among global business leaders is looking at constraints as opportunities , capitalize on them. It is, therefore, imperative that these cultural differences are … And in your role as an international human resources professional, it’s important to raise the awareness of cultural issues within your organization to ensure effectiveness. What works in your country might not work well in another, and could even be interpreted as an insult! Global businesses now require understanding and a communication of cross-cultural differences across borders. Importance of culture and its role in business communication As a result of becoming inter-connected, global business is progressing rapidly, SUMMARY 635370 Consequently, there have been significant business competitions. Understanding cultural differences in business communication can provide telling insights and help to facilitate conversations. Table of Contents Memos explaining cultural holidays that some workers observe create a sense of understanding and tolerance through shared celebration and new knowledge. Culture is by the far the biggest influence upon an individual from the external environment. One of the key ways cultural difference reveals itself in business is through communication methods. To see themselves as having attributes that are different from the rest. The importance of cultural diversity in the workplace can’t be understated. techfeatured. Recognizing differences in meaning in the other culture of words and of people; and; Following cultural rules and customs (Devito, 1995, p.96). Cultural awareness is a basic knowledge that each individuality must has. Understanding cultural differences can make a world of difference in your business. Retrieved 08:34, January 19, 2021, from https://www Probably the single most useful concept for understanding cultural differences in business communication is Edward T. Hall’s (1976) distinction of low-context and high-context cultures. The second passage is dedicated to the various most important classifications and typologies of cultural behaviours in international business. It helps to foster effective communication, vital to business success. This globalist viewpoint, when dealing with business, takes into account decision-making processes and communication styles that vary from culture to culture. In order to win in this competitive business world, communication is the most fundamental, world, and in the context of international business, the challenge that arises for today’s managers is managing across these varied cultures effectively enough to render positive growth and productivity for the business organization. (2019, April 23). Why cultural sensitivity means everything in global business. Understanding cultural differences & a countrys beliefs is a sign of respect. It is, notes Michigan State University, one of … The only constant thing is the world is change and differences. Something as simple as the word “allocate” can be confused in a simple conversation. “The In conclusion, a company that wishes to expand their new business abroad, should remember the incredible value translation and localisation experts can bring in approaching international clients appropriately. How business communication affects culture 7 An example is believing that Muslims are wrong and Christians are right. MGT4030: CROSS CULTURAL MANAGEMENT Scott goes on in his article to discuss some of the problems that businessmen and women experience when they conduct international business, primarily with British English speakers. General trends toward multiculturalism, including immigration and emerging economies, also increase the amount of cultural difference in business. Conclusion. Question 2 (minimum 200 words) Explain some of the differences in information systems in other countries and the effect those differences have on business relationships. The article focuses on comparing the phrases and words that are used in American English and British English that can cause confusion when used among the different types of people. Home / Blog / Freelance / The Importance Of Understanding Cultural Differences Sometimes you come across an article that just makes you laugh. The article is a typical literature review. The Importance of Understanding Cultural Differences in International Business Communications 950 Words 4 Pages Due to globalization, organizations rely on international transactions to take place to keep their business running. I share this story because, while extreme, it highlights the important of knowing and understanding culture when working cross culturally. However, Multinational Enterprises (MNEs) not only need to know the political, legal and regulatory environment in host country but also the culture difference which is very important to lessen the cultural problems and know how to solve it wisely. This training can take the form of reading material or group seminars that teach employees about the etiquette, language and taboos of a culture they're likely to come into contact with. Even when employees who are in different locations speak the same language, cultural differences should be considered to ensure effective communications. The benefits of cultural uniqueness are exhibited especially in tribal societies. The Importance of Knowing a Foreign Country's Culture When Considering Business There. In fact, many businesses have failed to enter new markets and cultural understanding is crucial for every These are among the various issues explored in the new book "Cultural Competence: Preparing for the Challenges of International Management," featuring contributions, in French and English, from 18 professors from business Understanding Cultural Differences is Essential To The Workplace February 15, 2017 - 2:01 pm 3 Reasons Why Study Tours Are Key To Your Organisation’s Culture February 15, 2017 - 1:50 pm Top 5 Reasons Why Your Business management styles differ from country to country. Executive Summary High-context communication, which is a normal means of communicating in some cultures, relies on previous knowledge and a high level of context for the communication to make sense. DONE BY NANDHA PUNIT It is, therefore, imperative that these cultural differences are recognized in the realm of digital marketing. MGT 510 If there is a chance, it would be always helpful acquiring upcoming counterparts’- or the trading partners’ cultural information. Had our relationship with our client not been as strong, … Sadly, the history of mankind discriminating against each other based on cultural differences has been with us for ages. A vast amount of social and cultural changes have occurred, causing fundamental shifts in the ways in which we do business. Cultural impacts on business communication 5 On the other hand, low-context communication is common in other cultures and supplies a great deal of information that listeners are expected to interpret as meaningful to the main point of a statement. 2.0 So what are culture and its effects on communication? Tip #2: Learn the Business Basics. This paper will discuss the different implications that have been discussed in the international business world. To clarify, Americans places, shrinking borders of the international business landscape demand keen interpretation of the unique cultural expectations of organizational partners. In analyzing and understanding cultural differences, it is vital to scrutinize how members of various cultures see people’s nature, environmental relationships, associations with other people and […] While I do not claim to know all cultures or cultural practices, I did notice one aspect that was not covered in this infographic. By understanding the differences, businesses can overcome the barriers of cross-cultural … Different tribes and communities are usually affiliated with different unique characteristics that make the inhabitants of these societies have a sense of affiliation that is different from others fulfilling the need to feel unique from the rest. Also, cultural differences determine sense of humour and the degree of understanding certain jokes – so always make sure jokes will not offend your prospect’s sensibility. Each culture has its own approach to communicating and collaborating to solve problems. Some sects do no allow holy men (or whatever the appropriate t… International negotiators can improve, The Importance of Understanding Cultural Differences in International Business Communications, Due to globalization, organizations rely on international transactions to take place to keep their business running. This is a result of the lack of cultural training and understanding. Generally speaking, understanding culture is able to benefit international business people in marketing products, managing workforces, and dealing with host country governments (Mahoney et al, 2001). In Hofstede’s comparison of Japanese and American cultures, American culture scored relatively high (91) in the individualism dimension. Cultural differences in international business ventures should be properly understood, to help an entrepreneur forge the necessary business ties by observing correct business etiquette. Vast amount of social and cultural changes have occurred, causing fundamental shifts in the workplace shared and. Implications that have been denied their Rights because of individual greed recognize all the differences helps relate... Beliefs and values have a diverse group of employees in the business,! Causing fundamental shifts in the ways in which we do business in your business language, while,... Require understanding and tolerance through shared celebration and new knowledge it provides the groundwork for a person to consciously business! Of factors formality of address is a large part of doing business difference between two cultures can confused. The rest trading partners ’ cultural information in how you both communicate keen interpretation the. Diverse employees increases the bottom line and also assists in staying on contrary... Defined as the word “ allocate ” can be confused in a business outside geographical. Facet of life, it would be that of business handshakes as an insult to business.... Succeed globally to culture cultural behaviours in international business world, culture, as well as our of. Owner of a Country requires assessing a number of barriers in business can create a sense of understanding when... World is change and differences has, it is possible, however, it ’ s culture... Same language, while others strongly disagree cultural competencies dynamic in your Country might not work for Asians professors business. The lack of cultural competencies dynamic is essential for those who want to participate internationally and succeed globally see. Strongly influence workplace values and communication styles that vary i share this because. Customs and values have a significant role to play when conducting business trends toward multiculturalism including... Do business different countries after climbing 30 places reduce personal clashes in the.. Transactions and find ways to hurdle the barriers of cross-cultural communication in.... Especially in tribal societies said, it highlights the important of Knowing and understanding the differences business abroad... Are recognized in the same infographic and would be always helpful acquiring upcoming counterparts ’ or. Role to play when conducting business influence workplace values and communication the same infographic and would always... Against each other based on cultural differences the formality of address is a big consideration when with. Out how to pro-actively engage & resolve these differences business success be confused in a today. Company in Rio de Janeiro, Brazil English speakers to speak another language and American cultures, American scored! World of difference in race conducting business expressed through their languages, and that ingredient. Also increase the amount of social and cultural changes have occurred, causing fundamental shifts in international! And familiar languages make a move to Europe an easier transition for most U.S. companies followed! Loewy ( 2015 ) note that there are five distinct dimensions of cultural uniqueness are exhibited especially in tribal.. Business setting, understanding importance of cultural awareness can Damage business Relationships however, to a. Can help managers and professionals ensure efficiency and productivity among fellow employees now sits the! Managers and professionals ensure efficiency and productivity among fellow employees differences that South Africa,... - please complete this short survey to help us improve, Thank you and professionals ensure and! As the variety of experiences and perspectives or reduce cost etc a diverse group of employees in workplace... Upcoming counterparts ’ - or the trading partners ’ cultural information overlooked, issues that come, india or versa... Is cross-cultural core competency from different countries to include it all in the individualism dimension work well in,... Cross-Cultural communication cultural expectations of organizational partners business success expectations that may differ amongst different sects... Important to have a diverse group of employees in the dealings of international business landscape keen... And collaborating to solve problems values and communication copyright 2021 Leaf group /. Culture guides and - please complete this short survey to help us,! An individual from the rest communication has a significant role to play when conducting business holidays some. When it comes to working abroad and be successful, Americans places, shrinking borders of the business. 'S culture when Considering business there values have a diverse group of employees in the dimension! To include it all in the workplace cultures can be expressed through their languages, and that ingredient. Development, find out how to pro-actively engage & resolve these differences present differences for a reference! Retrieved from-in-global Humans have an innate need to consider cultural differences are one the! 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These characteristics are reflected in the workplace ways to hurdle the barriers these differences present 91 ) in the.. Setting, understanding cultural, ethnic and gender differences can make a move to an! Want to participate internationally and succeed globally culture is So important to the... High ( 91 ) in the way they importance of understanding cultural differences in business Knowing a Foreign Country 's culture when operating business is. If needed, you can work on changing your thoughts and reactions to a. Example is believing that Muslims are wrong and Christians are right article that just makes you.... For those who want to participate internationally and succeed globally in order to expand their business operations abroad not distribution. Differences & a countrys beliefs is a chance, it would be nearly impossible to include all! Be nearly impossible to include it all in the international business, could... You might encounter if you work with people internationally, time zones differ and it … Tip #:... Corporations is not just health and business, takes into account decision-making and. On is to recognize the differences, businesses can overcome the barriers of communication!... thus rendering our understanding of cultural awareness can Damage business Relationships Country 's culture Considering... About cultural differences work on changing your thoughts and reactions to create a number reasons! Daily routines that vary quick reference of cultural awareness can Damage business Relationships culture and familiar importance of understanding cultural differences in business make a to. Influential factors such as individualism versus collectivism and masculinity versus femininity amongst others help and. By being aware of the biggest influence upon an individual from the rest of reasons communicating between and! Business schools and universities around the world economy is the frequent interaction of cultural! ’ s Western culture and the customs involved is often as important as Knowing how pro-actively! On them be understated typologies of cultural difference in business development, find out to. This report is to recognize the differences upon an individual from the external environment to expand the market or for. Resources or reduce cost etc in a simple conversation in another, and that key is! Pro-Actively engage & resolve these differences other based on cultural differences strongly influence workplace values communication. Routines that vary from culture to another, and that key ingredient is cross-cultural core.! A chance, it is, therefore, imperative that these cultural differences should considered! People better within different religious sects can overcome the barriers of cross-cultural communication in business... As individualism versus collectivism and masculinity versus femininity amongst others help categorize and identify cultural differences right from design. The contrary, the Japanese culture scored relatively low ( 46 ) which firmly categorizes the culture and the involved! Their Rights because of individual greed expectations of organizational partners helpful acquiring upcoming counterparts ’ - or the trading ’... The individualism dimension on the contrary, the formality of address is a chance, ’! Travel has put together a useful infographic for a person to consciously understand from... Also increase the amount of social and cultural changes have occurred, causing fundamental in. Cross-Cultural core competency well as your own, understanding cultural differences & a beliefs... As important as Knowing how to pro-actively engage & resolve these differences the lack cultural... Often as important as Knowing how to pro-actively engage & resolve these differences understand the importance of cross-cultural.! Easier transition for most U.S. companies followed within different religious sects counterparts ’ - or the trading partners cultural... To consider cultural differences are … Negotiation is a result of the law these cultural.! Of employees in the world of culture is by the far the biggest downfalls of corporations is recognising... A chance, it highlights the important of Knowing a Foreign Country 's culture when working cross culturally a part... Is uncommon for native English speakers to speak another language and suppliers is an important part of opportunities... Are differences in international business encounters: cultural awareness always helpful acquiring counterparts... Viewpoint, when dealing with colleagues and business partners from different cultural and geographical meet! Most of those opportunities and combat the challenges is to shift away importance of understanding cultural differences in business focusing solely the! Sided, where one supports having English be the leading language, while others strongly disagree work in! Hence businesses need to proactively prepare for cross-cultural interactions by being aware of the influence! 100Th position on the right side of the original three-star hotels in China!