WHY CULTURE IN BUSINESS MATTERS?
Introduction – Culture in Business
The term culture means different things to different people. This is simply because people come from different backgrounds, different countries, speak different languages, have different accents, behave or react differently to different situations and have very different perspectives based on their own environment. Culture varies depending on religious values, beliefs, traditions and the immediate environment of individuals and groups of people. Culture could be defined as,
“Culture illustrates the accepted norms and values and traditional behaviour of a group. The culture of each country has its own beliefs, values and activities. In other words, culture can be defined as an evolving set of collective beliefs, values and attitudes.”
Why Culture in Business matters?
Issues related to culture in business are generally grouped into two important elements. The first relates to business culture. Business culture is all about how a company functions and interacts with its employees and its stakeholders. The second, cultural diversity within an organisation, is the main focus of this article.
Cultural Diversity – Culture in Business
Cultural diversity is a far more complex issue and is an extremely important factor for large corporations that have operations across the globe. It is also important for companies that have staff from very diverse backgrounds. As mentioned earlier, culture describes the accepted norms of a group of people in a particular region. But what happens when you have people working for you in many countries and they all come from different cultural backgrounds? Accepted behaviours within a particular country or region or group can be totally different in other countries or groups. This could lead to different perspectives, misunderstandings, inefficiencies and conflicts.
When you are doing business internationally or working with people of different nationalities, business etiquette too will have its own diverse and widely varying characteristics. This makes it vital for every company which is spread across many continents to be culturally sensitive and accept, recognise and appreciate these differences. Let us look at the various ways in which cultural diversities in business can be programmed into a company’s operations and how this can enhance the capabilities of the employees of the company and eventually benefit the company.
Acceptance – Culture in Business
The first and most important step is to accept that people from varied backgrounds will respond differently to the same situations. This is natural and a company must ensure that through various training programmes, any misunderstandings are eliminated.
Communication
Efficient and effective communication is very important in business. It becomes even more crucial when working across international borders. Training in communications can be a very useful tool in bringing people together and getting work done faster. It is also important to understand that due to cultural issues, many people may not always be open and forthright. For example, in Asia, the culture is never to be very frank or say no as this is considered to be rude. In Europe, it is the exact opposite where people just speak their mind.
Hierarchy
This is another vital cultural issue. In almost everywhere in Asia, hierarchy is commonly accepted and the bosses are always shown respect and addressed formally. In contrast, in most western countries, there are no hierarchies, organisations are flat and people call each other by their first names. Understanding hierarchies and respecting the cultural aspects behind such traditions is vital to building good professional relationships.
Business Etiquette
Etiquette at the workplace is another essential cultural issue. The old saying “When in Rome, do as the Romans do” is very relevant here. When you are in a foreign country working with colleagues with a different culture, try not to make them uncomfortable in the office with behaviours that may not be well accepted in that particular environment.
Cross-Cultural Training
Cross-cultural training should be an integral part of any company that operates globally. This helps to bring employees from various cultural backgrounds together, understand and respect each other’s cultures, and helps in team building and create a friendlier environment.
Conclusion
The significance of cultural differences and any business environment cannot be ignored. It is imperative that all companies that operate in multi-cultural environments take the differences seriously, make a sincere effort to understand these cultural issues and sensitise the management as well as the employees through training programmes and other positive actions to create a healthy and happy business environment which in turn will lead to greater efficiency, professionalism and profitability.
About the Author
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VIJAY KUMAR VADDADI, India Entry & International Affairs
Mr. Vijay Kumar is an Industrial Economist with 35+ years of experience in Economic Analysis, Trade & Investment Promotion, International Business Strategy & Cross-Cultural Impact. A Post-Graduate in Economics with specialization in Industrial Economics and Economics of Transportation, Public Utilities & Social Infrastructure from the University of Bombay (1982). In 1984, he joined the Consulate General of the Netherlands in Mumbai as an Economic & Commercial Officer and continued his association with the Netherlands Government (NBSO) for over 30 years. At SAS Partners, he heads the Trade and Investment Promotion activities, supports organising programmes for international business delegations, curates knowledge reports, and market studies and also helps our international clients in understanding the Indian business landscape better. More articles authored by him can be accessed here. |
