Cross cultural management 3rd chapter 3 (14) business cultures in the western world

Slide 3.1

Chapter 3
Business cultures
in the Western world

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Slide 3.2

Concept 3.1 : European cultures
• Europe’s identity never clearly established culturally,
politically or geographically.
• a much more united Europe existed in the Middle
Ages.
• Most recent development:
– creation of the European union (EU):
• common economic, socio-cultural and political bodies.

• Council of Europe:
– aims to promote fundamental values, e.g. human
rights.

• Clear cultural differences in Europe still survive.
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Slide 3.3

The European Union

Figure 3.1

The European Union

Source: The European Commission ©.
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Slide 3.4

Western Europe
• Greece
– Not possible to talk about Europe without mentioning
Greece.
• Latin Europe
– Influence of Roman Empire
– Highly developed bureaucracies
– ‘Rule-bending’ through family and personal
relationships
– Latin European cluster characterised as being ‘low in
humane orientation practices’. (House et al. 2004)

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Slide 3.5

Western Europe (Continued)
• Nordic Europe

– Viking heritage:
•

self-sufficiency, fairness, egalitarianism and democracy

– Face up to authority, question it and expect to be
consulted
– Differences between the Scandinavian countries on a
socio-economic level.
• Germanic Europe
– Longer term perspective when managing uncertainty
– Assertive behaviour, explicit communication
– Emphasis on results rather than relationships.
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Slide 3.6

Western Europe (Continued)
• Great Britain
– United Kingdom of Great Britain:
•

England, Wales, Scotland and Northern Ireland

– Common history with Europe and relationship with EU
– Anglo-Saxon style of management:
•

Pragmatic (practical) and relaxed approach

– Organisation:
•

a market in which people negotiate what has to be done

– Individualistic:
•

individual in selection procedure.

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Slide 3.7

Eastern Europe
• Emergent economies
– Economies of the Eastern and Central European countries
– Russia and Turkey, have some similarities with other
countries around the world.
– ‘emerging markets’.:
– Poland, Czech Republic, Hungary and Romania:

• East and Central Europe
– Transition from bureaucratic, centralised economy to
market-oriented economies with more democratic features.

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Slide 3.8

Eastern Europe (Continued)
• Russia, a BRIC country
– European emergent market
– one of the BRIC countries
– largest of the former Soviet Union republic
– ‘Blat’, a Soviet form of social networking
– still flourishes to help cope with uncertainties of
new society.

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Slide 3.9

Eastern Europe (Continued)
• Turkey
– straddles the border between Europe and Asia
– Candidate for membership of EU, but its right to
be a member disputed:
– Turkey seen by some as not being European
culturally, socially or geographically. But what does
‘European’ mean?
– Others see Turkey as European through its influential
role in Europe over four centuries.

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Slide 3.10

Concept 3.2
American and Australasian cultures

• We move from the ‘European Old World’ to the
‘New World’.
• Areas where immigrants from European peoples
set up home and business.
• Concept examines:
– Anglo-Saxon approach to business
– The strong values of the Latin Europe as reflected
in Latin America.

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Slide 3.11

United States of America
– Originally 13 British colonies which would become the
USA
– Constitution based on the principle of equality
– Many immigrants adopted the Protestant work ethic
– Indicator of success for US businesses is the ‘bottomline’
– Difference between British and American businesses:
- the way they look at the future
• The ‘new’ immigrants
– Latin American and Asian immigrants

– Recent immigrants (Mexican) are still undergoing the
process of assimilation.
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Slide 3.12

Canada
• Canadians
– More a ‘mosaic’ (variety) than a ‘melting-pot’ society
– Respect for cultural diversity and cultural pluralism
– Canadian style of management contrasts to that of
the USA:
• less formalised
• less driven by individual goals
• more aware of society as a whole.

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Slide 3.13

Australia and New Zealand
• Australians and New Zealanders
– Increasing cultural diversity, despite Anglo-Saxon
foundations
– Business culture remains Anglo-Saxon in nature,
but more collaborative, distrust of authority.

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Slide 3.14

Latin America
• Despite differences between countries of
Central and South America, cultural values are
shared:
– Strong belief in Catholic religion
•

reflecting importance of families and distinct
male/female roles
• values implanted by immigrants from Iberian peninsula

– Role of ‘patron’:
•

authoritarian behaviour expected and respect shown

• Rise of middle class in Brazil is shared with
other BRICS countries.
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