Busienss Culture in the West

Two approaches to multiculturism

• Increase in
immigration
• Bring values
• Acculturation
• Melting pot or
Salad Bowl
 EU
• Historically second world war
• Council of Europe
• 6 Western Countries for coal and steel
• 1991 Maastricht treaty
• EEC became the EU
• 27 countries (now)
• Schengen agreement
• Euro currency (18)
• EU: united now or in past?
• Fedual system
Western Europe
• Greece
• No long term planning
• Financial crisis
• Latin Europe
• Roman influence
• More hierarchy
• Boss is boss
• Bypass through interpersonal/family relationships
• Managers lack legitimacy
• Exploiters
• Latin Europe
• Italy
• Two business leaders (external contact vs traditional managers)
• Time spent outside on info gathering or internal overseeing
• France
• Leader is alone at top
• Culture of Power and Status
• 18th century: French revolution (universal value of liberty, equality, fraternity)
• France vision: monocultural or multicultural?
• More cultural diversity and immigration
• Decline in state owned and public jobs
• Cluster has low humane orientation (tolerance etc) and self-interest is high
• Cluster shows high consideration for family
• Nordic Europe
• Vikings cultural influence
• Self-sufficiency, fairness, egalitarian, democratic
• Boss is team leader and facilitator
• Employee express opinions freely and are considered
• Approach to Authority (less power distance)
• Face up to them
• Question them
• Be consulted on issues
• Germanic Europe
• Less power distance like Nordic
• Emphasis on teamwork
• Respectful formality prevails in hierarchical position in org.
• High uncertainty avoidance
• Long term orientation
• GB
• Anglo-Saxon style of management
• Pragmatic (Action oriented, how vs. why)
• Bureaucracy is common form of management but still pragmatic
• Less power distance and less uncertainty avoidance
• Do not invest in long term training
• More individualistic and ambitious
• Joined EU in 1973 but Brexit in 2020
• Eastern and Central Europe
• Eastern Europe
• Communist countries (autocracy, centralized, high bureaucracy, obsessed with state
planning)
• While Western Europe influenced by style individualism, risk taking and business
orientation
• Nowadays this gap has narrowed
• Transition is difficult
• Russia
• Soviet Union collapse and 15 republics resulted
• Is Russia really European?
• Geographically vs economically
• Part of BRICS
• High power distance (small ppl make quick decisions)
• Russia (cont)
• Social networking called blat (sharing and caring)
• Relationships built over time, mutual trust and common understanding that is
reciprocated
• People more tolerant of corruption and bribery
• Turkey
• Bridge between Europe and Asia
• Capital?
• Associate member of EU, wants to become a full member
• Is Turkey European or not?
• Two views
American and Australasian
• USA
• 13 British colonies, revolutionary war and creation of USA
• Central government based on principle of equalitu
• Balance of power between centre and states
• President, Congress and Supreme Court
• Constitution (interpreted and meanings are disputed)
• Right to liberty
• Pursuit of happiness
• Founding Fathers: WASP
• Max Webers Protestant work ethic
• Hard work and the American Dream
• Strict rules and procedures in business env
• Hirerachy but can be questioned
• Strong competition
• Time is money
American and Australasian
• USA
• After 1960s more immigrants from Latin America
• Now more Asian immigrants
• Mexican immigrants are still assimilating (downward and upward)
• Close proximity and cultural ties to motherland
• Latin American companies (banks, TV stations, construction companies)
entereing USA
• US federal and state agencies have to deal with Latin American way of doing business
American and Australasian
• Canada
• Originally territory of Indians and Inuits
• French colony in Quebec
• Treaty of Paris 1763 British took over Canada
• Thus French and Anglo Saxon identities
• Bilingual
• Plurality of cultures due to immigration
• Do Canadians feel they are just like Americans? What do the Americans assume?
• Pierre Trudeau :
“ Americans should never underestimate the constant pressure on Canada which the mere
presence of the United States has produced. We’re different people from you and we’re
different people because of you. Living next to you is in some ways like sleeping with an
elephant. No matter how friendly and even-tempered is the beast, if I can call it that, one is
effected [sic] by every twitch and grunt. It should not therefore be expected that this kind of
nation, this Canada, should project itself as a mirror image of the United States. “
American and Australasian
• Canada
• Style of management is less formal, more collectivist, conservative in fiscal issues
• Australia and NZ
• Colonies of UK
• European settlers were first convicts and then free immigrants
• More immigrants from SE Asia in Australia recently
• NZ is predominantly European
• Both are geographically isolated and have free trade agreement with SE Asian
Pacific countries
• Business culture is Anglo Saxon but more collaborative than US or UK
• Hierarchies exist, but authority is distrusted
• More direct and critical than British
• Humor and teasing is imp ingredient of communication
Latin America
• Colonists from Spain and Portugal
• Language and other cultural and religious similarities exist to date
• Term Latin devised by French
• Distinguish between the Anglo saxon in North America and the Spanish/Portugese
in Central/South America
• Thus France (also Latin country) claimed a bigger role there
• Deeply divided continent
• Internal conflicts
• Attempts to foster unity such as CELAC
• Cultural values are shared (strong catholics), distinct gender roles, authoritarian and
centralistic regimes
• Collectivist culture but socities are stratifies (gulf between rich and poor)
• But middle class is rising due to poverty reduction and educational policies
Latin America
• Brazil (founding member of BRICS in 2003)
• Authoritarian nature of business
• Patron exerts power, has high status, commands complete loyalty and is
assertive and aggressive
• Less delegation and team work
• This style of leadership comes from the colonists