Cultural Diversity in the Global World – Term Paper

Md. Chair has Acknowledgement Firstly, I would like to thank all mighty Allah who provides me knowledge, energy & skills to get opportunities & to increase my knowledge & experience by completing this project. Secondly, especially thank to our course instructor Muhammad Shin Amah, Who guides me at every step & every aspect of this report, so theses competed successfully. I also wish to thank to those persons who encourages and cooperate with me in preparing this report.

Executive Summary With the economic globalization and the frequent business contacts, culture differences seem to be very important, otherwise they could cause unnecessary misunderstanding even affect the result of the business negotiation. This means it is very important to know the different culture in different countries and the ways to avoid the culture conflicts in the international business. The paper begins with exploring the meaning of culture, concepts related to it and the role of culture in finding global opportunities.

It analyses the causes of culture diversity, and then from the various aspects explain the impacts of culture diversity on international business. It will also show the cultural comparisons beјen different countries. Finally it analyses how to deal with the problem of the cultural differences correctly. TABLE OF CONTENTS Name of contents page 5 Introduction: 1. Background of the Paper: 2. Origin of the Assignment 3. Objectives: 4. Data Collection: 5.

Limitations of the study: -8 Definition of Culture, cultural diversity 9 Role of Culture 10 Dimension of diversity 11-12 The Differences in Culture and the Effects of Global Business 13-14 Cultural Diversity in Business Communication 15-16 The effects of socio-culture on business 17-18 Comparative Study of Diversity in different Countries 18-21 International Negotiation 22 Compare the different work cultures 23-24 Consequences of Failing to Consider Culture in Localization Projects 24-25 If endings 25 Conclusion and Recommendation 26 References Introduction 1. Background of the Paper: The emerging trend towards liberalized global policies coupled with suitable form processes throughout the globe have drastically changed the business environment for the firms. This leaves the managers in organizations of all sizes and types around the world with the opportunities and challenges of operating in the global market.

The immediate issue to be addressed is configuration of human resource that is diverse in culture and geographic proximity especially in global business organizations. We know that every person has a unique personality. An individual’s personality is a set of relatively permanent and stable traits. Our personality influences the way we act and interact with others. When we describe someone as warm, open, relaxed, or conservative, were describing personality traits.

An organization too has a personality, which we call its culture. 1. 2 Origin of the Paper: The Term paper “Cultural diversity in the global world: A critical analysis of the impact of culture on business” is prepared as a part of academic course requirement under the course instructor of Muhammad Shin Amah, Lecturer, Department of International Business, Faculty of Business Studies, and University of Dacha. 1. 3 Objectives: There are a lot Of Objectives behind Of this study.

We are to fulfill the objectives. The objectives of our study are given below: To know about culture and its diversity To know it’s effects on global business To understand it’s opportunities and threats on international Business sectors To know about the cultural differences among countries 1. 4 Data Collection: Secondary Data: Almost all of the data required for this Assignment will be from secondary source I. E. Wisped, Cultural diversity related Articles, Websites etc. 1. Limitations of the study: None goes in the world with perfect motion; by this we have few limitations of preparing our assigned topic “Cultural diversity in the global world”. The list of imitations are given below- Very few related articles Insufficient information in Websites. Insufficient knowledge as well as time constraints Definition of Culture: Culture is comprised of many different elements that have been passed down for generations, including knowledge, belief systems, experiences, values, attitudes, religion, art, ideas, laws, morals, customs and ways of perceiving the world.

Some aspects of culture are visible, such as the way people dress or the food that they eat, while other elements of culture are invisible, such as the importance of religion, beliefs surrounding the role of family in a society, r the way people think and feel about certain issues. While the visible aspects of culture are often easy to spot, it usually takes much more time and effort to understand and appreciate the importance of the invisible.

However, it is usually the invisible elements of culture that have the most impact on the way people view the world, and as a result, how they view your marketing strategies and whether or not they accept or reject your product or service. Cultural diversity: Culture is an important dimension of group diversity that influences communication. Culture is the integrated system of beliefs, values, behaviors ND communication patterns that are shared by those socialized within the same social group. Cultural diversity is the mixture of societies or cultures in a specific region. It is also referred to multiculturalism within an organization . Obvious cultural differences exist between people, such as language, attitudes, traditions, clothing or dress. There are also significant variations in the way culture or society organizes itself, in its shared morality conception, and in the behavior they interact with their environment. Role of Culture: Universal needs create strong pressure for a global strategy. Universal needs exist when the tastes and preferences of consumers in different countries with regard to a product are similar. Products that serve universal needs require little adoption across national markets; thus, global integration is facilitated.

The role of culture plays an important role in this context. In many ways, cultural issues represent the most elusive aspect of international business. In an era when modern transportation and communication technologies have created a “global village”, it is easy to forget how deep and enduring the differences among nations actually can be. The act that people everywhere drink Coke, wear blue jeans, and drive Toyota doesn’t mean we are all becoming alike. Each country is unique for reasons rooted in history, culture, language, geography, social conditions, race and religion.

These differences complicate any international activities, and represent the fundamental issues that inform and guide how an organization should conduct business across borders. Managers who ignore culture put their organizations at a great disadvantage in the global marketplace. Because each culture has its own norms, customs, and expectations for behavior, success in an international organization upends on one’s ability to understand the cross-cultural issues especially those concerning the integration of diverse workforce. Age One important dimension of diversity in any organization is age distribution of workers.

Birth rate and health and medical care are the factors contributing to this pattern. Gender As more and more women have entered the workforce, organizations have subsequently experienced changes in relative proportion of male and female employees. Many organizations today also face a major gender related problem called glass ceiling. The glass ceiling describes a barrier that keeps omen from advancing to top management positions in many organizations. This ceiling is a real barrier that is difficult to break, but it is also so subtle as to be hard to see.

Ethnicity A third major dimension of cultural diversity in organization is ethnicity. Ethnicity refers to ethnic composition of a group or organization. Issues of right and wrong get blurred as we move from one culture to another, and actions that may be normal and customary in one setting may be unethical- even illegal- In another. To safeguard against ethical problems, companies have established codes of conduct. The codes lay out precisely what kinds of actions are permissible, and provide procedure and support systems that organizations can use in ambiguous situations.

Other dimensions In addition to age, gender and ethnicity, organizations are also confronting other dimensions of diversity. Country of national origin is a dimension of diversity that can be especially important for global organizations. This dimension can be particularly important when different languages are involved. Handicapped and physically challenging employees are increasingly important in many organizations. Single parents, dual career couples, gays ND lesbians, people with special dietary preferences and people with different political ideologies and viewpoints also present major dimensions of diversity in today’s organizations.

Egger Hefted has identified four dimensions along which managers in international organizations tend to view cultural differences: Power distance: the extent to which a society accepts the fact that power in organizations is distributed unequally. Individualism/collectivism: the extent to which people act on their own or as a part of a group. Uncertainty avoidance: the extent to which people in a society feel threatened by uncertain and ambiguous situations. Masculinity. The extent to which a society values quantity of life (e. G. Accomplishment, money) over quality of life (e. G. Compassion, beauty). The Differences in Culture and the Effects of Global Business When your small business does business globally, you encounter more than just larger markets. You must confront differences in values, tastes and expectations. Ignoring these differences can harm your business and diminish your effectiveness. Before you try to apply methods that have worked at home, consider some roadblocks you may encounter abroad. HER Practices Recruiting and retaining employees can become a challenge in a global market.

For example, you may not find advanced skills in the region where you most need them. You could have to persuade employees from the home office to work abroad or at least make extended visits. This will require your human resources department to provide training and support to employees who may not be able to travel back home frequently. In addition, human resources must provide relocation for expatriates, as well as instruction in cultural differences the employee may encounter. Marketing Practices Not all marketing methods translate to other countries.

You may be accustomed to appealing to customers based on fear or greed, only to learn hat in some countries those emotions are frowned upon and therefore become ineffective marketing tools. In addition, you must take care to understand nuances of language so that your marketing messages carry the meaning you intend and do not offend. Management Styles If you open foreign branches, you may find that some countries have management styles that differ from what you may be used to at home. For example, Asian employees often respond favorably to a team or community approach.

An approach that emphasizes individual responsibility may fall flat in such an environment. From discipline to rewards, you must understand hat motivates employees in various locales. Stereotypes Not only should you avoid stereotypes about an entire nationality, you should avoid assuming that local customs are the same as those in the country at large. As you enter global markets, seek out information about the actual locales where you will be doing business. You may find factions, values and traditions that do not exist elsewhere in the country.

World Business Culture Globalization has helped create a world business culture. Certain practices, such as transparency, respect for local customs and social responsibility have come expectations for any company doing global business. Any company that harms the environment of the host country where it does business can expect the world business community to protest. You must start thinking in terms of world citizenship when your small business goes global. Cultural diversity in business communication plays a vital role towards the success of specific ventures.

Few people are aware of this and if you are planning to establish your business, you need to know some of the information concerning this aspect. Business Communication Arts Business communication arts have transformed some businesses nowadays. There are already some businesses that have incorporated some cultures as well as traditions in the making of their businesses. In connection with this, these businesses have also left some traces to other places wherever they go. They say that the cultural diversity impact is having widespread implications. These impacts are noticeable from break rooms of employees up to corporate boardrooms.

Fortunately, many businesses will definitely gain benefits from knowing the cultures’ eccentrics. Workplace Communication Based from Stephen Dahl, the prime factors influencing languages are the variances when it comes to indigenous cultures. This implies that there are many meaning and expressions in every word that one utters depending from the people having different backgrounds. So when it comes to the employees at this point in time, they must be careful enough when It comes to the choice of words and how they are dealing with their other workmates.

Definitely, there are differences when it comes to social issues, political issues spiritual biases and other conversations that you might open with your workmate. So now, the greatest challenge for employees is that they must find a common communicating ground with the people around them. Because of the right grounds of communication, possible conflicts will be resolved and it will be prevented. Written Communication There is already shift when it comes to written communication which is intended to accommodate some foreign speakers.

There are already several communication courses tattoo might see offered in prestigious universities. Once you are able to deliver your thoughts and idea via written communication, it will show your mastery to your legalese or in other words, business research’s complex language. International Business Communication Way back before, the practice of using the best communication tactics has en very much evident to managers as they are dealing with their customers as well as partners in business.