Essay: Culture in organisations

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  • Published on: August 12, 2017
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  • Culture in organisations
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Globalization makes the world smaller. Since the actual territory is not matter as much as it was in the past, from this reason it changes how to do business internationally. Even though people can do their business easier, there are some barriers for them to do that. “Liability of foreignness” is one of the distinctive factors that international business need to consider. It is defined as “…The additional costs a firm operating in a market overseas incurs that a local firm would not incur…” (จากสไลด์อาจารย์หน้า 6). Liability of foreignness can raise from many issues but one of the most important issues is “The Culture liability of foreignness”. Edward Taylor (1924) provides the definition of culture as

“Culture is that complex whole which includes knowledge, beliefs, art, morals, law, customs and

any other capabilities and habits acquired by man as a member of society.” (งานอาจารย์หน้า1)

Since there are many cultures in the society, the need of understanding of its differences is required especially when if those culture are seen to have huge differences. Some of them can be noticed through the lens of Edward T Hall’s theoretical views. He pointed out the main 2 characteristics of culture which are “Low – context cultures” and “High- context cultures”. In low-context cultures, mostly seen in the countries in Northern Europe and Northern America, people tend to be more straightforward in communication and the information is profound (Cavusgil et al., 2014)

which means that when people in low-context culture state or provide some information, they literally mean what they say. In addition, expertise and performance is significant component and in order to make a deal or contract, law is considered seriously as seen typically in the American business culture (Cavusgil et al., 2014)

On the contrary, high-context culture, communication is usually used as the method to build relationship and trust which is valuable in this culture. (Cavusgil et al., 2014)

Therefore, it takes more time to make a deal or agreement in this culture as the process of building relationship take some time. In addition, the message they deliver are indirect and not as much elaborate as in Low- context culture. This characteristic can be generally found in East Asian countries like China and Japan (Cavusgil et al., 2014).

The second theoretical framework is 5 dimension of Geert……

1.Individualism versus collectivism “This dichotomy refer to the relationship between an individual and a group to which that person belongs”(บทความNatCulture หน้า 175diQ). Individualists focus their own interests more than Collectivists. Collectivists emphasize group interest prior individual interest. Collectivism is found in South East Asia such as Korea and Japan while Individualism is found in the countries for example, Canada and the United States”(บทความNatCulture)

2. Power-distance relationship.

Regarding high power-distance, people in this relationship are more acceptable with the unequal power between high level and low level position in institution and organisation such as in Australia. In contrast, Low power distance culture believe in equality of power which can be found in the countries where hierarchical structure is being used such as Japan. (บทความNatCulture)

3.Masculinity and femininity

The different between this two is masculinity emphasize the achievement in performance especially “material success” (บทความNatCulture175),which mean that to achieve in money or goal are important in this culture. High masculinity is very common to be seen Japan while femininity interests in people relationships and the equality is concerned in terms of people position and consensus. (สไลด์อาจารย์) This can be seen in Norway and Sweden where the fluidity of role of woman and men are high.

4.Uncertainty avoidance

In terms of high uncertainty avoidance, people in this society tends to the clear structure of their organization and formal form of instruction and rules is expected((บทความNatCulture) as they tend to avoid the unstable situation or risk as much as they can.

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