Understanding AmericanBusiness Management

Carrine Kezia Aulia

Why leaderships and management style differs from country to country?

Local culture plays an important role in management around the world

OUTLINE

• Cultural Aspect• Management Aspect

– Business Values– Setting up Meetings– Communications– Business Etiquette– Business Communication Style : Non-Verbal– Written Communications– Conversation

• “Gung Ho” Movie Report

Cultural Aspect

Hofstede’sCultural Dimension Research

• Study based on 116,000 people in 50 countries

• He proposed following 4 value dimension

POWER

DISTANCE INDIVIDUALISM MASCULINITYUNCERTAINTY

AVOIDANCE

POWER DISTANCE

• The extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.

• People in low power distance cultures are much more comfortable with a less status differential

• Superiors are always accessible and managers rely on individual employees and teams for their expertise

• Both managers and employees expect to be consulted and information is shared frequently

• At the same time, communication is informal, direct and participative

INDIVIDUALSM

• Whether people´s self-image is defined in terms of “I” or “We”

• People are supposed to look after themselves and their direct family only

• Employees are expected to be self-reliant and display initiative

• Americans are not shy about approaching their prospective counterparts in order to obtain or seek information

• Hiring and promotion decisions are based on merit or evidence of what one has done or can do

MASCULINITY

• A high score (masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the “winner” or “best-in-the-field.”

• Behavior in school, work, and play are based on the shared values that people should “strive to be the best they can be” and that “the winner takes all”

• Americans will tend to display and talk freely about their “successes” and achievements in life, here again, another basis for hiring and promotion decisions in the workplace

• Typically, Americans “live to work” so that they can earn monetary rewards and attain higher status based on how good one can be

UNCERTAINTY AVOIDANCE

• Uncertainty Avoidance is the extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these

• There is a larger degree of acceptance for new ideas, innovative products and a willingness to try something new or different, whether it pertains to technology, business practices, or foodstuffs

• Americans tend to be more tolerant of ideas or opinions from anyone and allow the freedom of expression

• Americans do not require a lot of rules than higher-scoring cultures

Management Aspect

Business Values

Management Aspect

Business Values

Management Aspect

Business Values

Management Aspect

Business Values

Management Aspect

Setting up Meetings

Management Aspect

Communications

Management Aspect

Communications

Management Aspect

Business Etiquette

Management Aspect

Business Communication Style: Non-Verbal

Management Aspect

Written Communications

Management Aspect

Making conversation

SAFE TOPICS AVOID TOPICS

• Where are you from?• Weather• Traffic• Entertainment: Movies,

music, ….• Hobbies• Food, restaurants• Sports (especially men)• Work

• Religion, political view• Family – until the person

brings it up• Salary• Woman’s age• Never ask how much one

paid for his/ her house/ apartment!

Gung Ho Movie Report

TRAINING AND DEVELOPMENT

Japan : Considering a long-term investment

US : Undertaken with hesitation (employee may go to another firm

Gung Ho Movie Report

MEETING

• Informal and relaxed in manner• Participation is expected | Silence = No

Gung Ho Movie Report

CONTRACT

US

Contract is a deal

Japan

Contract is a processI already assumed that (the company does open)

No, we did not

Gung Ho Movie Report

BUSINESS CARDS

Japan : Important, exchanging business card = ritual

US : Not so important, not a ritual

Gung Ho Movie Report

NAME SPELLING

US

Often use first name, even in business

(Low power distance = 40)

Japan

More formal, use formal title and last name in business

(Medium tend to high Power distance = 54)

Hello Mr. Stevenson

No, we did notHey, please Hunt, okay?

Gung Ho Movie Report

INDIVIDUALISM/ COLLECTIVISM

Japan (46) : Collectivist, “family companies” are normal

US (90) : Individualist, “family companies” are rare

Boss : Uncle Subordinate : Boss’ cousin