International Business Management - Lecture No 04

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2. Lecture No: 04
Course Facilitator: Khurshid Alam Swati
University of Swat, Swat
Email your query to:
Khurshidalamswati@yahoo.com
Cultural Influences on
International Business -
Importance of culture

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11. Culture
Shared values, traditions, belief and general ways of
doing things is called culture – Broader perspective
It influence the actions of organization members –
Organizational perspective
“that complex whole which includes knowledge,
belief, art, morals, law, custom, and any other
capabilities and habits acquired by man as a member
of society”
The commonly held standards of what is acceptable
or unacceptable, important or unimportant, right or
wrong, workable or unworkable, etc., in a community
or society refers to values
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12. Diverse Definitions
Topical:
Culture consists of everything on a list of topics, or categories, such
as social organization, religion, or economy
Historical:
Culture is social heritage, or tradition, that is passed on to future
generations
Behavioral: Culture is shared, learned human behavior, a way of life
Normative: Culture is ideals, values, or rules for living
Functional:
Culture is the way humans solve problems of adapting to the
environment or living together
Mental:
Culture is a complex of ideas, or learned habits, that inhibit impulses
and distinguish people from animals
Structural:
Culture consists of patterned and interrelated ideas, symbols, or
behaviors
Symbolic:
Culture is based on arbitrarily assigned meanings that are shared by a
society
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13. Cross-cultural Values
Freedom
Independence
Self-reliance & Social
loafing
Equality
Individualism
Competition
Efficiency
Time
Belonging
Group harmony
Collectiveness
Age/seniority
Group consciousness
Cooperation
Quality
Patience
Pakistan/ Americans Japanese
Elashmawi &
Harris 1993
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14. Pakistani culture - Overview
Pakistani culture is very distinct due to its Islamic
nature and rich historical background. it has the
following characteristics:
 Islamic values and traditions - Religious Uniformity
 National and regional languages
 Mixed culture – Pashtoon, Balooch, Sindhi Culture
 Rich literature
 Male dominated society
 Variety of Dresses
 Fairs and Festivals
 Sports
 Handicrafts
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16. Organizational Culture
Personality of the organization
Organizational culture is the behavior of
humans who are part of an organization and
the meanings that the people attach to their
actions
 E.g. Organization values, visions, norms, working
language, systems, symbols, beliefs and habits
The way we see and do things around here is
culture
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17. How employees learn organization
Culture..???
Socialization - the process of adopting culture of an
organization, 1st step in orientation
Codes of ethics and decision rules
Top Management leadership and commitment
Shared stories – Ex-Employees
Material Symbols –T-shirts, boxes, walls, stores,
bumper stickers
Language - Jargons
Rituals – Routine work of an organization
Organization current mission , customs, traditions
and general ways of doing things
Cultural audit
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18. Culture Types
Strong Culture
 Values are widely shared to all people
Weak Culture
 Values are limited to few people
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Forces Shaping Individual Culture
Personal
Culture
Values
World-views
Beliefs
Behaviours
Urbanization
- City
Migration
Minority
Experience
Cross-
cultural
Adjustments
Profession
Gender Language
Education
Industrialization
Social
background
Ethnic
background
Religion
Nationalism Rural
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