United States versus Foreign Business Cultures

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United States versus Foreign Business Cultures
An excellent website to visit on this topic is www.worldbusinessculture.com. There you may select any country in the world and check out how business culture varies in that country vs. other lands. To compete successfully in world markets, U.S. managers must obtain a better knowledge of historical, cultural, and religious forces that motivate and drive people in other countries. In Japan, for example, business relations operate within the context of Wa, which stresses group harmony and social cohesion. In China, business behavior revolves around guanxi, or personal relations. In South Korea, activities involve concern for inhwa, or harmony  based on respect of hierarchical relationships, including obedience to authority

In Europe, it is generally true that the farther north on the continent, the more participatory the management style. Most European workers are unionized and enjoy more frequent  vacations and holidays than U.S. workers. A 90-minute lunch break plus 20-minute morning and afternoon breaks are common in European firms. Guaranteed permanent employment is typically a part of employment contracts in Europe. In socialist countries such as France, Belgium, and the United Kingdom, the only grounds for immediate dismissal from work is a criminal offense. A six-month trial period at the beginning of employment is usually part of the contract with a European firm. Many Europeans resent pay-for-performance, commission salaries, and objective measurement and reward systems. This is true especially of workers in southern Europe. Many Europeans also find the notion of team spirit difficult to grasp because the unionized environment has dichotomized worker management relations throughout Europe

A weakness of some U.S. firms in competing with Pacific Rim firms is a lack of understanding of Asian cultures, including how Asians think and behave. Spoken Chinese, for example, has more in common with spoken English than with spoken Japanese or Korean. U.S. managers consistently put more weight on being friendly and liked, whereas Asian and European managers often exercise authority without this concern. Americans tend to use first names instantly in business dealings with foreigners, but foreigners find this presumptuous. In Japan, for example, first names are used only among family members and intimate friends; even longtime business associates and coworkers shy away from the use of first names.

U.S. managers have a low tolerance for silence, whereas Asian managers view extended periods of silence as important for organizing and evaluating one’s thoughts. U.S. managers are much more action-oriented than their counterparts around the world; they rush to appointments, conferences, and meetings and then feel the day has been productive. But for many foreign managers, resting, listening, meditating, and thinking is considered productive. Sitting through a conference without talking is unproductive in the United States, but it is viewed as positive in Japan if one’s silence helps preserve unity.

U.S. managers place greater emphasis on short-term results than foreign managers. In marketing, for example, Japanese managers strive to achieve “everlasting customers,” whereas many Americans strive to make a onetime sale. Marketing managers in Japan see making a sale U.S. managers place greater emphasis on short-term results than foreign managers. In marketing for example, Japanese managers strive to achieve “everlasting customers,” whereasmany Americans strive to make a onetime sale. Marketing managers in Japan see making a sale


Cultural Pitfalls That May Help You Be a Better Manager

•  Waving is a serious insult in Greece and Nigeria, particularly if the hand is near someone’s face
• Making a “good-bye” wave in Europe can mean “No,” but it means “Come here” in Peru
•  In China, last names are written first.
•  A man named Carlos Lopez-Garcia should be addressed as Mr. Lopez in Latin America but as Mr. Garcia in Brazil
•  Breakfast meetings are considered uncivilized in most foreign countries
•  Latin Americans are on average 20 minutes late to business appointments.
• Direct eye contact is impolite in Japan
•  Do not cross your legs in any Arab or many Asian countries it is rude to show the soleof your shoe
•  In Brazil, touching your thumb and first fingeran American “Okay” sign is the equivalent of raising your middle finger
•  Nodding or tossing your head back in southern Italy, Malta, Greece, and Tunisia means“No.” In India, this body motion means “Yes.”
• Snapping your fingers is vulgar in France and Belgium.
• Folding your arms across your chest is a sign of annoyance in Finland.
• In China, leave some food on your plate to show that your host was so generous that you could not finish.
• Do not eat with your left hand when dining with clients from Malaysia or India.
• One form of communication works the same worldwide. It is the smile so take that along wherever you go.

As the beginning, not the end, of the selling process. This is an important distinction.
Japanese managers often criticize U.S. managers for worrying more about shareholders, whom they
do not know, than employees, whom they do know. Americans refer to “hourly employees,”
whereas many Japanese companies still refer to “lifetime employees.”
Rose Knotts recently summarized some important cultural differences between U.S. and
foreign managers.3 Awareness and consideration of these differences can enable a manager to be
more effective, regardless of his or her own nationality.

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