Cross-cultural management

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RUSSIAN FEDERATION ministry of educATION AND SCIENCE

Federal State Educational Budget Institution of Higher Education

«Saint-Petersburg State University of Economics»

faculty «higher school of economics and management»

Department of International Management

ReSearch paper

«Cross-cultural management»

Fulfilled by

Avanesian Karen,

student group 5522

Scientific Leader:

Head of International Management department

PhD (econ) Tatiana Y. Grishchenko

Saint-Petersburg 2013

Table of contents

  • Introduction
  • 1. About cross-cultural management
  • 2. Differences in cross-cultural management
  • 1. Cultural differences
  • 2. Language differences
  • 3. Temporary differences
  • 4. Political conditions
  • 5. Economic stability
  • 6. Differences in methods of doing business
  • 7. The difference in sales
  • 8. Nationalism
  • 9. Economic law
  • 10. Taxes
  • 11. The risks of uncertainty
  • 3. The globalization of the world economy and the role of cross — cultural relations in the management
  • 4. Cross — cultural issues in International Management
  • Conclusion
  • Sources

Introduction

The behavior of animals, insects, birds is programmed by system of instincts: they were by nature given installation as well as that is how to survive how to twist nests when and where to fly etc. In the person the system of instincts died away though researchers argue concerning to what degree. That function which in the nature is carried out by instincts, in human society the culture carries out. It gives to each individual the approximate program of his life, defining thus a set of options.

The mass of people lives with illusion that they chose the purpose of the life, behavior model. Meanwhile when comparing life of people in different cultures it is difficult to uniformity of a «free» choice not to be surprised in one country and an era while the same need for other culture is satisfied in absolutely other forms. The reason consists that the culture is the Wednesday predetermining a choice of options of our behavior. As in water the set of options of behavior of the same people differs from options of their movement on a land, in a bog etc., and the culture dictates our «free» choice. Each culture is a micro Universe. For functioning of an individual the culture is very important. The culture strengthens solidarity between people and promotes mutual understanding.

I choose this theme for my scientific research «Cross-cultural management» because I consider this subject actual in my profession in future. For each head, any organization cooperates with foreign countries, it is very important to sign any contract or to sign any agreements. How many the countries, are so much and the customs, religion and so on.

Relevance of my subject is explained by emergence of cross-cultural problems in the international business — contradictions during the work in the new social and cultural conditions caused by distinctions in stereotypes of thinking between separate groups of people and need of ability of future manager to understand these problems.

cultural cross management international

The purpose of my scientific research is studying cross-cultural management and all that is connected with it.

Main purposes of scientific research:

to understand distinctions of cultures of the different countries;

studying of problems of the international management;

to show a role globalization of world economy;

to consider cross-cultural the relations in management.

Object of a scientific research is: cross-country — culture.

Subject of a scientific research is: cross-cultural management.

During research of a subject general scientific methods — the analysis, comparison, generalization were used.

1. About cross-cultural management

What cross-cultural management is, and on what it can affect?

In a business community of the USA you won’t understand if you aren’t able distinctly formulate mission of the company. In Japan — if your firm has at least no five-year strategic plan. In many other countries there are national features of management which it is useful for managers of the Russian companies leaving or planning an exit to foreign markets to consider. It is accepted to call them the general term «cross-cultural management».

Today in Russia crossing, interaction and collision of different cultures meets more often than many heads realize it. Cross-cultural approach belongs to many spheres of human activity, especially to business. Regional, socio — cultural and national aspect in business and territorial features of management gradually gain the importance in the Russian business society. The reason of they are cross-cultural operating conditions of business: in domestic and world economy there are the new mixed mechanisms of partnership based on interpenetration and reunion of values, installations and standards of behavior of various civilizations, cultures, subcultures, countercultures. In Russia every year there are various representations of the international companies, and the Russian business increases the activity abroad. It is important to note that activity in cross-cultural conditions creates at the same time specific opportunities and risks.

Thus, the most typical areas of socio-economic activities of business — organizations, where the intersection, the clash of different cultures, are:

Management of international and inter-regional business;

The interaction of professional subcultures in business;

Management of the company’s values??;

Communication with the external environment of the company;

Marketing;

Human Resource Management;

Relocation, job placement and career growth in the other region, the country;

The interaction of cities and villages in Russia.

Increased competence in the field of cross — cultural management of modern managers is necessary because Doing Business in Russia has a lot of regional, local and territorial characteristics. The Russian manager operates in a variety of internal (within the country) and external cultures. Knowledge of their cultural identity, as well as the specifics of the business culture of other ethnic groups, nationalities, peoples, civilizations become enormously important, because it is more diverse than the cultural field of business, the higher the reputational risks acute in cross — cultural differences, communication barriers above, more critical requirements for cross — cultural competence manager. Cross — cultural management — a relatively new area of knowledge for Russia, it’s management, implemented at the intersection of cultures:

macro level — control at the intersection of national and regional cultures, micro-level — at the junction of regional, age, professional, organizational, and other crops. Cross — cultural management is aimed at achieving the following objectives Clients:

1) assist in the management of business relationships that arise in a multicultural environment, including the creation of a tolerant interaction, successful communication, productive work environment and profitable business at the intersection of different business cultures;

2) the regulation of cross-cultural conflicts in the business environment;

3) the development of cross — cultural competence of business owners, managers, and staff.

Polyethnicity Russian society determines the feasibility of the cross — cultural aspects of the business. Therefore, the leaders and the international and regional businesses to develop appropriate in matters of cross — cultural management and communication, and organizations — to train staff in this area. The study of cross — cultural themes helps managers to learn more about themselves, identify their cultural profile, to develop cross — cultural competence, and thus avoid the risk of undesirable effects on business, career and personal life, to become more successful.

In this chapter, disclosed subject of cross — cultural management. Displaying a clash of different cultures.

Each head for a good development of the company needs to understand what the management — and its differences.

2. Differences in cross-cultural management

This chapter covers the cross — cultural differences. They are: cultural, linguistic, temporal. As well, they are: political conditions, economic stability, and the differences in the methods of doing things, and the differences in marketing; nationalism commercial law, taxes, risks of uncertainty. For each of them in detail in this chapter.

1. Cultural differences

In international management, there are many problems. One of the most important — consideration of environmental factors. It must be remembered that the external environment has always been aggressive towards us. This problem is particularly relevant for companies looking to do business abroad.

All environmental factors are interrelated. «The interconnectedness of environmental factors — is the power level at which a change in one factor affects the other factors. As well as a change in any of the internal variable can affect the other, a change in one factor may cause the change in the environment of others. «

One of the most important environmental factors are cultural differences. Each culture was formed and developed on its own. Any culture involves a complex set of values. Each value generates a set of beliefs, expectations and customs, the totality of which is called a system of values. In other words, every culture has its own system of values. The differences between cultures are shown in the style of everyday life, a mismatch at the power plants, the value of work, the role of women in society, a willingness to take risks and even color preferences.

It is the system of values has a direct impact on the communication, ways of doing things, the possibility distribution of the goods or services offered by any particular firm. However, no one knows what the values themselves in most cultures. It’s not easy to identify the values that are the foundation of most beliefs, expectations and practices. But the study habits much easier. Therefore, before starting work in another country managers should explore possible customs of the target country, as well as the national language of the country, especially of doing business and competition and accordingly change the behavior in interpersonal contacts, and change the style and business practices and leadership.

2. Language differences

Language — the main component of culture, as well as the most important means ofcommunication. When doing business abroad, usually one of the most pressing problems is the problem of communication. Of course, when doing business in another country representatives of the companies use the services of interpreters. Yet it is difficult to work with interpreters. First of all, the translators are familiar with the language, but do not know the specific terminology. Similarly, there is a possibility that you will not be sure that you know exactly what was said. And one more note — the translation is always something lost, something might be mistranslated and therefore misunderstood. In different countries, there may be a mismatch of sign language when the same gestures have completely different meanings.

The ideal situation would be training people from their country language of the target country, because after that it will be better able to understand all the subtleties and communication between the two countries. Being trained in his native country in the native language and business practices, and in the target country — the language of the country and its national circumstances, this person will become a valuable resource for the work of the company in another country.

3. Temporary differences

This factor also has a great influence on the activity of the firm. First of all, it is possible that the target of the country and the firm are separated by several time zones. This creates a big problem in communication. The consequence of this is that the relationship should be maintained with the help of mail or through the use of electronic communication. Although at first glance this seems like a minor inconvenience, though temporary differences are some problem for communication between business partners or between the company and its subsidiaries.

4. Political conditions

Before starting work in a different country every company needs to take into account the type of political system in this country and its stability, because the domestic market of each country is influenced by the political situation. Social tensions could disrupt the production or restrict sales. Political demonstrations against the government and regime change mean more uncertainty for the exporter or foreign investor and may be doomed to failure. In addition, political stability affects the state of society as a whole. The consequence of the unstable political system is unemployment, poverty, population and other factors that may cause the failure of the firm.

Political factors should be evaluated before investing capital or making a commitment to marketing. As new information and study the circumstances necessary to adjust the corresponding forecasts.

A company that has the intention to establish a branch or subsidiary company abroad, must first answer the following questions:

What are the effects typical of external factors on the political situation in the target country;

What are the power structures of the country (the government, political parties and other important groups); evaluate internal factors, including inter-regional and ethnic conflicts, economic factors affecting the stability of the political situation in the country.

5. Economic stability

Political situation in the country is always complements the economic situation.

Firms operating at the international level, should always analyze economic conditions and trends and to observe the economies of the countries in which they do or intend to do business. Analysis of the economic situation improves the efficiency of decision — making and planning.

The most important factors affecting the business in the arc of the country, are the level of wages, transport costs, exchange rate, inflation and bank interest rates, taxation and the overall level of economic development. There are also other factors relating to the international economic environment, though not of a purely economic nature: population, levels of literacy and professional training, quality and quantity of natural resources, the level of technology.

Can probability of separating the issues of political and economic stability as the first to be considered by the firm’s management in solving problems of accommodation businesses in another country.

Some economic conditions, usually considered as negative for a particular company can be positive. To a large extent it depends on the company, what it produces and it is ready to invest in the economy of the country.

6. Differences in methods of doing business

These differences are largely dependent on the culture. If the managers of the company are not fluent in the cultural characteristics of the target country’s business practices adopted in it, their work will be ineffective.

In order to better understand the impact that differences in the methods of doing business, consider these differences as an example of American and Russian managers.

First of all, the two sides are different form the structure of the problem. As a rule, the Russian leader sees a problem with the position of head of production, while the American manager — from the standpoint of strategic manager, which operates markets, strategic production units. And also different view of the markets. American director extends to the Russian reality his vision of the market, simply imposing our conditions American reality. However, the current situation of transition defies classification, and simple transfer of his experience leading foreign businessman to build a false picture and, therefore, most likely — to failure. In a similar situation is and the Russian manager who knows the market is still very little and has no idea of the complexity and subtlety of the mechanisms of regulation and self-regulation.

There is, moreover, the difference in time horizons decision. In most cases, the U. S. participants explore the possibility of forming a strong partnership that would later gain a stable position on the Russian market. For them it is a strategic decision that is associated with long-term (5−10 years) obligations of the firm. But Russian participants with a few exceptions operate with shorter — range planning, as in the conditions of economic chaos and uncertainty tend to get a result from the cooperation as soon as possible.

The above differences are most typical in this situation, but there are many differences in the way of doing things, and not only between the U. S. and Russian managers. Any differences should be explored as much as possible to avoid problems in the interaction with foreign partners.

7. The difference in sales

Differences in sales is one of the most important factors affecting the success or failure of the firm in a foreign market.

It is interesting to look at the history of some U. S. companies trying to penetrate foreign markets, without taking before this attempt to examine the current situation on the market, sales differences and the social conditions that created a big problem for them. For example, a U. S. firm — a major food manufacturer in the United States — has attempted to penetrate the Japanese market by organizing a sale of mixtures for baking cupcakes. But this product is almost no one bought. The company’s management has been misled as to why this product in Japan do not buy.

No one had the idea to reflect on the fact that in most Japanese homes are no oven and why the Japanese do not bake cupcakes.

Minor problems of this type are constantly put pressure on the company as it exits the international market. To avoid this as much as possible, to know the company habits and tastes of the users requirements for their range of products, appearance and quality of the product, packaging and labeling process, the use of a trademark. You also need to know the applicable technical standards in the target country, geographical and climatic conditions which may have an impact on the increased demand for one type of product and the minimum — on the other. For example, for machinery and electrical products accounted for the climatic conditions of the importing country, requiring the use of special lubricants and insulating materials, paints and varnishes, designed for a specific temperature and humidity. For consumer products, the requirements of customers to design, color, style, size, pictures.

For equipment, petroleum products, steel and other products used in the country are taken into account technical standards.

8. Nationalism

The problem of nationalism in some degree connected with the political aspect. Before you start to do business in a country, try to answer the following questions: whether the country is strongly nationalistic, whether in her religion that encourages and requires a strong nationalistic spirit? That is, you must decide not will the existing nationalism in the country to the failure of the organization. This option is possible because of the highly nationalistic country may not wish to purchase products that are created in a different country.

9. Economic law

Companies acting in the international markets, are forced to reckon with the many laws and regulatory acts in force in each country in which they operate. These issues include: taxation, patents, labor relations, the standards for finished products. In many countries, there are significant differences in these laws. On commercial law, for example, need to pay attention at the conclusion of international agreements. Especially as different laws pertaining to the relationship between employers and employees.

These may include working conditions, rates of pay, the provision of certain benefits. In some countries, the laws governing the relationship between employers and employees, are developed in detail so that they can fight off the desire to run a business. Example of the impact of legislation on conducting business abroad can serve as a law on unfair competition in Germany, which prohibits businesses use promotional coupons and tear-off tab in the packaging of goods in order to promote the product on the market. American companies also make extensive use of such funds in the domestic market, but for the German market, they have to develop other ways to attract customers.

Legislation — an area in which the manager must give the most attention in the evaluation of another country as a potential space for the production company, sales representative or branch office.

10. Taxes

If the company does business internationally, it can be taxed (including income tax) in your own and other country. Therefore necessary to thoroughly examine the tax system in his country and the target. In many cases, there are programs of tax credits that allow companies to avoid paying so much or do not pay taxes on income generated abroad. This situation is different from taxes in different countries and it should be good to know before you organize the company.

11. The risks of uncertainty

Ownership of firms operating internationally, threaten the diverse risks. The society creates a number of threats, when a person does not know what should happen. Especially increases the uncertainty and adds new dangers interventions in countries and regions with unstable conditions. In addition, there is a danger of the unknown and just because it is a part of life. In relation to this, we can take some precautions, but will never be able to control them completely.

Risks in general can be divided into several groups (although these groups do not coincide with the classification adopted in the insurance business):

Natural (natural disasters, loss of ships and aircraft on weather factors)

output of oil and gas wells out of control

Fires caused by lightning or hot, dry weather

Technical (the majority of fires)

errors in the construction, design

breakdown of machines and equipment, vehicle collisions

the loss of ships, aircraft and other modes of transport on the technical

reasons

explosions plants and other industrial accidents

social (non-payment of debts, confiscation, nationalization or other action of the authorities)

fluctuations in currency exchange rates

fluctuations in demand and prices

war

strike

riots

The company has three principal possibilities to protect themselves against these risks: it eliminates or reduces them by taking precautionary security measures, creates its own reserve funds to cover damage (self-insurance) uses the «outside» reserves of insurance companies, paying the insurance premium (premium). For the development and implementation of such events is a special service — risk management. It is carried out within the company, as one of the management functions, or can be ordered as a service in a specialized professional firm, or is part of an additional service of the insurance company.

Business goes far beyond national boundaries, drawing into its orbit increasing number of people from different cultural outlook. As a result of cultural differences begin to play an increasingly important role in organizations and stronger influence on the marginal efficiency of business operations. Hence, there are cross — cultural issues in international business — the contradictions at work in the new social and cultural conditions due to differences in thinking patterns between groups of people. Formation of the human mind is influenced by the knowledge, belief, art, morals, law, custom and any other capabilities and habits acquired by the company in its development process. Feel these differences can only be merged with the new company — an excellent carrier of culture. Cultural differences between countries are the basis for the different corporate cultures. Today’s enterprises are increasingly becoming part of an international character, which means the need to consider the differences in national cultures.

3. The globalization of the world economy and the role of cross — cultural relations in the management

The scale and importance of international business communication problems forced to look for new methods of modeling and optimal management of cross — cultural negotiations, involving the methodology of this problem a number of related disciplines, the achievement of modern information technology.

Under negotiation means — together with the partner activity and involves the relationship in the «subject — subject» and aimed at resolving some of the common problems faced by the parties. Negotiations are conducted because the interests of the parties overlap 3. In today’s business world is the dominant approach to the negotiations as a mutually beneficial process. When negotiating partners belong to the same national culture, such negotiations are called monoculture. If negotiators belong to different cultures — negotiations are called cross-cultural. The present work is devoted to the analysis of the characteristics and organization of effective management of cross-cultural negotiation. There is a trend complicating negotiations, one of the reasons for this is that the modern world is becoming more integrated and holistic, and part of it — more and more interdependent. The paper deals with the modeling of the business manager and his style of management approach (human social element) with the system organization and modern methods of performance management specialists, united network customized to the problem of communication model (system unit). The internationalization and globalization of the economy, more determined, and rebuild the character of modern international business. More and more goods and services produced by large transnational corporations (TNCs), a joint venture. And all the more difficult to determine the nationality of goods and services: the product is made in one country and another technology with experts third country, is sold in many other countries. competition and cross — cultural communication in the context of globalization. The continuing globalization of the economy, the inability to escape from the general strategic direction of global development confront Russia new challenges and new tasks of socio — managerial circle, open up new avenues to evaluate a number of familiar concepts and control algorithms. Globalization changes the existing views of the rational organization of cross-cultural communication and negotiation, changes the focus of methodology of comparative management.

In the context of global change is one of the key market concepts — the concept of competition. If in the classical competition was seen as a struggle for manufacturers market, today more and more manifest the competition of countries and greater economic union for the mass (national) markets. This competition by:

highest tax burden;

the level of security of the country and its citizens;

Safeguards to protect property rights;

on the attractiveness of the business environment;

Development of economic freedom

on the effectiveness of the judicial system in relation to non-residents;

to protect the rights of foreign investors and the attractiveness of the investment climate;

on the skill of cross-cultural managers to work with the investor (technology IR);

the quality of public institutions;

the degree of corruption of power (its influence on the national culture);

the degree of protection to businesses of Russians (individuals and businesses) abroad.

The competition began to take on political overtones and demanded not only management algorithms as political — oriented algorithms associated with representative sociological surveys of the population and with deep sociological research, as well as to the quality of the actual legislation.

Themselves cross — cultural negotiations were perceived many serious: the result of important negotiations can be a big change in society. They are directly related to the standard of living of the population of entire countries.

More work is needed to predict the consequences of such decisions, particularly on the public perception of the forecast of those decisions, the search for new approaches to the management of change in society. And it will require the expertise — social scientists to predict the behavior, acceptance or rejection of the consequences of the negotiations with a view to developing proposals for the management of these variables. communication Russia’s role as a bridge between east and west, between north and south is extremely high. Globalization causes intense competition in the field of geopolitics, if we understand by the term leadership role in the management of the territory of the communication and transaction processes. Rapid unfolding competition for investment in information networks and transport links. O. S. Vikhansky defines a new competition rather peculiar «Competitive country — one in which you want to live.» He sees competition as a business process and highlights the stakeholders — is the owner (employer), the employee, the consumer state. The owner — a profit, the employee — a good salary, Consumer — satisfying his product, the state — taxes and spending wisely, and business competitive. There is a lower limit of the price competitiveness of organizations. It was determined from the condition: The employer has no right to transfer social care to their employees on the shoulders of the state, the state gradually adjusts the minimum wage of the working population, determining that the level of national profitability, completely eliminating any kind of parasitism by the employer to its employees.

Such a way, all these examples of globalization and integration show that the role of multinational negotiations greatly increases.

When planning your foreign economic activity of the enterprise, its marketing activities necessary to analyze not only the national but also the international environment: economic factors, competitive factors, political, statutory regulation, legal, socio-cultural factors.

4. Cross — cultural issues in International Management

The internationalization of business and the economy in all its attendant benefits, however, has turned into a global problem. Enterprises are increasingly becoming international, and business schools are increasingly emphasizing the requirement to internationalize the views of managers. In respect of existing organizations, this means the need to consider differences in national cultures.

Business goes far beyond national boundaries, drawing into its orbit increasing number of people from different cultural outlook. As a result of cultural differences begin to play an increasingly important role in organizations and stronger influence on the marginal efficiency of business operations. Hence, there are cross — cultural issues in international business — the contradictions at work in the new social and cultural conditions due to differences in thinking patterns between groups of people. Formation of the human mind is influenced by the knowledge, belief, art, morals, law, custom and any other capabilities and habits acquired by the company in its development process. Feel these differences can only be merged with the new company — an excellent carrier of culture.

In international business, cultural environment factors create the greatest difficulties. That is why the correct assessment of the differences of national cultures and their adequate records are becoming more and more important. Take into account the factors of the cultural environment also makes a complex and multi-level structure of a culture that determines the diversity of its functions in the life of every society. Distinguished informational, cognitive, normative, symbolic function and value of culture.

Information function of culture is that culture is a complex system of signs, stands the only means of conveying social experience from generation to generation, from age to age, from one country to another. It is no accident culture is considered a social memory of humanity.

Cognitive function are closely related to the first and, in a sense, follows from it. Culture, concentrated in itself the best social experience of many generations of people, acquires the ability to accumulate a wealth of knowledge about the world and thereby create opportunities for his learning and development. It can be argued that the public intellectual as much as the rich use the knowledge contained in the cultural gene pool of humanity. All types of society significantly differ primarily on the basis of. Some of them have demonstrated a remarkable ability through culture, through culture to take the best that has been accumulated by people and put himself at the service. They (Japan, for example) show the enormous dynamism in many areas of science, technology and production. Others are not able to use the cognitive functions of culture, still inventing «the wheel», and thus doom themselves to social retardation and anemia.

The regulatory function is primarily concerned with the definition of the various parties, the types of public and private activities of people. In the world of work, life and interpersonal relationships culture somehow influences on people’s behavior and regulate their behavior, actions, and even a selection of some of the material and spiritual values. This feature is supported by such cultural normative systems as morality and law.

Sign function of culture is the most important in the culture system. Representing a system of signs, culture involves knowing its possession. Without studying the relevant sign systems capture the benefits of culture is not possible. Thus, the language (oral or written) is a means of communication between people. Literary language acts as a vital means of mastering the national culture. Specific knowledge of languages?? necessary for the special world of music, art and theater.

Value — function reflects the fundamental condition of the goods of culture. Culture as a certain system of values?? forms of human well-defined needs and value orientation. According to their level and quality of people often judge the degree of culture of a particular person.

Thus, the culture — is a multifunctional phenomenon. But all functions anyway sent to one — to the human development.

Any business related to the system of relations between people and to succeed in the international market, which is primarily made?? up of people, we must learn to understand the process of formation of the human person, that is, the process of «entering «into culture, assimilation of knowledge, skills, norms, communication, social experience. Knowing this, you can understand many things at the market.

In terms of geographical, spatial, the international market, the largest in the world, as there is an opportunity to sell products and services in many countries. The territorial boundaries do not play any role, much more important than cultural boundaries that divide the world. You can sell the same goods and services in the vast territory, but it is important in this case consider the significant differences between users of different cultural areas. That is why it is important to first understand the structure of cross — cultural issues, that is, to characterize the variables that shape the cultural environment of international business. This will provide a degree of visibility — a clear understanding of cross — cultural issues and ways to improve the international management.

The word culture is perceived in different ways: at the level of ordinary consciousness — as a set of manners and customs, and among sociologists and cultural studies, in accordance with the definition of culture as «a specific mode of organization and development of human life represented by the products of material and mental labor in the system social norms and institutions, spiritual values, combined relationship of people to nature, to each other and to ourselves. «

To understand the essence of culture is possible only through the prism of human activities, the peoples of the planet. Culture does not exist outside of man. It was originally associated with a person and is generated by the fact that he is constantly striving to look for the meaning of his life and work and, on the contrary, there is no society or social group, or a person without culture, without culture. In a culture reveals the spiritual world, his «essential powers» (abilities, needs, outlook, knowledge, skills, social feelings, etc.). Thereby culture acts as a measure of the implementation and development of the human nature in the course of its social activities, «as the measure of man.» By creating a product material or spiritual, man objectified in it himself, and not only its social nature, but to some extent their individuality.

Anyone coming and living in this world, first of all masters of the culture that has been created before it, and thereby develops a social experience gained by his predecessors. Culture, its values lie necessarily on a particular person’s personality, his character, mental makeup, temperament and mentality. But at the same time a person contributes to the cultural layer and, therefore, enriches, fertilizes, improves it.

Culture — is a very difficult, multi-tiered system.

For professionals involved in its structuring, there are many difficult problems, many of which have not been overcome yet. Probably all of this was the basis for the structure of culture to count one of the most difficult. On the one hand, it is accumulated by society’s material and spiritual values, the layering of eras, ages and nations, fused together. On the other — it is a «living» human activity, based on the legacy left by generations of our family in 1200, fertilizing and transmit this heritage to those who will replace the currently living.

Nevertheless, the structuring of culture, sound and logically reconciled, perhaps. For this reason it is important to identify such a division. Today is usually classified according to its culture medium. Depending on this, quite rightly, above all to identify global and national culture. World culture is a synthesis of the best achievements of all national cultures of the peoples of our planet.

National culture, in turn, supports the synthesis of cultures of different strata and groups of the society. The peculiarity of the national culture, its uniqueness and originality known as manifested in the spiritual (language, literature, music, art, religion), and in the material (especially economic system, economic management, tradition of labor and production) spheres of life and activity.

Using these criteria were examined 40 countries and found eight cultural regions: north, English-speaking, German-, romanoyazychny more developed and less developed romanoyazychny, more developed Asian, less developed Asia, the Middle East. For example, the northern region is characterized by a short hierarchical ladder, high Masculinity, high degree of individualism and high degree of uncertainty. For the German-speaking group is characterized by the great length of the hierarchy, the high degree of uncertainty and masculinism and several lesser degree of individualism. In developing countries shows the great length of the hierarchy, masculinism high and low values of individualism and uncertainty.

However, such structuring of culture is difficult to apply directly to the international business where cultural differences are interesting sections on the one hand, the development of correct behavior executors of business software in the market, and on the other, to build a behavioral model of aggregate consumer as the end point of the movement of any explanation. To detect the interaction between culture and business look detailed and specific list of variables cross — cultural issues (Figure 1), which is situated between in the relationship and sometimes intersecting, nevertheless make it possible to structure the vast amount of material describing the cultural section of each local market. Such variables include the language, religion, social organization of society, its values and relationships, education, technology, law and politics, geography and art.

Language is, of course, the basis for the formation of human groups, as a means of expressing thoughts and feelings, a means of communication.

Accepted provide verbal and non-verbal language. The former include a system of graphic signs, organized respectively in speech or writing. Not only Latin American Spanish versions differ from that in Spain, but also different languages of the United States, Canada, Australia, the language of the United Kingdom. Ignoring this fact can lead at best to a misunderstanding.

Figure 1. Variable cross-cultural issues of international business.

Conclusion

Culture — is an integral part of human life. Culture organizes human life. In the culture of life is largely performs the same function, which performs in the lives of animals genetically programmed behavior. It is culture that distinguishes humans from all other creatures. Personality bears the stamp of a particular culture and a particular society. In addition, the company creates the conditions for mass use of cultural values ??, and therefore gives rise to the need to reproduce culture. That’s why people react to changing environmental conditions and culture in particular.

In the individual values of the culture are transformed into behavior, culture lives in the personal behavior of the person. The Company creates the conditions for this, and they can, to varying degrees as a match, and did not comply with the transformation of cultural values in the acts of a person’s behavior. The Company is developing in the search mode, all the more favorable conditions for the formation of the individual as an active subject of culture, as the creator and bearer of valuable crop.

Culture has a pervasive influence on the encoding and decoding of verbal and non-verbal signals. Because of this influence in intercultural communication are inevitable conflicts and misunderstandings.

To overcome these obstacles, researchers have proposed a model of personal growth, which focuses on the regulation of emotion and thoughtfulness. Individuals who can tap into these processes, are able to increase their cross-cultural sensitivity, to create a new mental category, to respect cultural differences, to be open to them and to show empathy (the ability of a person to present yourself in the place of another person) in relation to other people.

Cross — cultural studies (cross cultural studies) — kind of a comparative study, the object and the object is sticking culture. First began to hold their representatives of social and cultural anthropology. Served the purpose of figuring out how the same cultural artifact (the marriage ceremony, the kinship system) operating in different cultures. They are also interested in why something in one culture is considered the norm, and in the other — a deviation.

At present, cross — cultural studies are also conducted in the different branches of psychology: general psychology studies the characteristics of perception, memory, thinking, industrial psychology — the problem of the organization of labor and management, psychology — child-rearing practices in different nations. A special place is occupied by social psychology, as compared are not only of the behavior of people, due to their inclusion in the ethnic communities, but also the psychological characteristics of these very communities. Cultural differences between countries are an important area of?? corporate culture.

The key features of categorization theory of culture, is the theory of Hofstede, which has allocated 4 features:

power distance

uncertainty avoidance

collectivism — individualism

masculinity — femininity

In addition to these symptoms is sometimes singled out as the fifth sign of the so-called. Confucian dynamics.

Formation of the human mind is influenced by the knowledge, belief, art, morals, law, custom and any other capabilities and habits acquired by the company in its development process. From here there are cultural differences between the countries. Feel these differences can only be merged with the new company — an excellent carrier of culture. Cultural differences between countries are the basis for the different corporate cultures. Today’s enterprises are increasingly becoming part of an international character, which means the need to consider the differences in national cultures.

Business goes far beyond national boundaries, drawing into its orbit increasing number of people from different cultural outlook. As a result of cultural differences begin to play an increasingly important role in organizations and stronger influence on the efficiency of business operations.

It becomes the cause of cross-cultural issues in international business — the contradictions at work in the new social and cultural contexts associated with different patterns of thinking between different groups of people.

Based on the analysis of cultures on the classification of G. Hofstede, it can be concluded that the culture focused more on tradition and culture, open to change, on closer examination have a lot in common.

You can sell the same goods and services in the vast territory, but it is important in this case consider the significant differences between users of different cultural areas. That is why it is important, first of all, to understand the structure of cross — cultural issues, that is, to characterize the variables that shape the cultural environment of international business. This provides a degree of visibility — a clear understanding of cross — cultural issues and ways to improve the international management.

In the human resources policy in international business cultural environment factors create the greatest difficulties. That is why the correct assessment of the differences of national cultures and their adequate records are becoming more and more important. Take into account the factors of the cultural environment also makes a complex and multi-level structure of a culture that determines the diversity of its functions in the life of every society.

For the formation and development of the culture of international firms use specific tools specific to international business.

Culture — is an integral part of human life. Culture organizes human life. In the culture of life is largely performs the same function, which performs in the lives of animals genetically programmed behavior. It is culture that distinguishes humans from all other creatures. Personality bears the stamp of a particular culture and a particular society. In addition, the company creates the conditions for mass use of cultural values ??, and therefore gives rise to the need to reproduce culture. That’s why people react to changing environmental conditions and culture in particular.

In the individual values of the culture are transformed into behavior, culture lives in the personal behavior of the person. The Company creates the conditions for this, and they can, to varying degrees as a match, and did not comply with the transformation of cultural values in the acts of a person’s behavior. The Company is developing in the search mode, all the more favorable conditions for the formation of the individual as an active subject of culture, as the creator and bearer of valuable crop.

Culture has a pervasive influence on the encoding and decoding of verbal and non-verbal signals. Because of this influence in intercultural communication are inevitable conflicts and misunderstandings.

To overcome these obstacles, researchers have proposed a model of personal growth, which focuses on the regulation of emotion and thoughtfulness. Individuals who can tap into these processes, are able to increase their cross-cultural sensitivity, to create a new mental category, to respect cultural differences, to be open to them and to show empathy (the ability of a person to present yourself in the place of another person) in relation to other people.

Cross — cultural studies (cross cultural studies) — kind of a comparative study, the object and the object is sticking culture. First began to hold their representatives of social and cultural anthropology. Served the purpose of figuring out how the same cultural artifact (the marriage ceremony, the kinship system) operating in different cultures. They are also interested in why something in one culture is considered the norm, and in the other — a deviation.

At present, cross — cultural studies are also conducted in the different branches of psychology: general psychology studies the characteristics of perception, memory, thinking, industrial psychology — the problem of the organization of labor and management, psychology — child-rearing practices in different nations. A special place is occupied by social psychology, as compared are not only of the behavior of people, due to their inclusion in the ethnic communities, but also the psychological characteristics of these very communities. Cultural differences between countries are an important area of corporate culture.

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