culture at usa
DESCRIPTION
Its a report of cross culture and diversity management which explains the culture at USATRANSCRIPT
Group No. 1
FORE SCHOOL OF MANAGEMENT
GROUP 1AKANSHA JOHARI 073002
AMAN RAWAT 073004
ANKIT GOYAL 073005
HARMEET SINGH 073023
AMIT SHARMA 073026
VAIBHAV SHARMA 073056
INDEX
S.No. TOPICPage
No.
1 Introduction 2
2 Hofstede's n Trompenaar's Cultural dimension 3
3 History of USA Business 10
4 United States Appearance 11
5 United States Behavior 12
6 Attribute of Marketing, negotiation skills, HRM and Culture 13
7Stereotypes, myths, ethnicity becoming a barrier in cross cultural
relationships in Organizations19
8Communication, life style, demography, festival, religion etc. (which you
have already presented)22
9Case study to bring out the success or failure of business owing to cross
cultural dimensions.31
10 References 34
INTRODUCTION
Page | 1
United states of America (U.S.A.) commonly referred as United states, America, or The
states. It is 3th largest by population and 4th largest by area. It gained its independence on 4th
July 1776. It has 50 federal states. Capital is Washington D.C. National anthem is “Star
Spangled Banner”. It is most ethnically diverse and multicultural nation. It is product of large
scale immigration from various part of world. In 1860 there was a civil war that was fought
on the ideology of slavery vs everybody equal. Although slavery ended but racial
discrimination went for many decades that followed.
U.S is industrially very developed. Their currency is traded worldwide as acceptable
currency for trade and commerce. Their hegemony on world economy is unparalleled. They
are considered leaders in many part of world. Events like great depression, World wars and
9/11 have the impacted people’s mindset and thus influenced the culture.
Although now they don’t enjoy the leadership that they use to enjoy till recent time but still
they are quite powerful in international scenarios. They are the large importer and exporter.
They are largest consumers. Poverty is at 15.1 % and common religion practiced is
Christianity.
Various other things that are part of this country are Hollywood, Baseball, High rises
buildings, Space mission etc
Hofstede's Cultural dimension
Page | 2
Hofstede’s is one of the most widely considered cultural aspect indicator. We have compared
USA and India of following 6 parameters.
1. power Distance
2. Individualism
3. Masculinity
4. Uncertainty Avoidance
5. Pragmatism
6. Indulgence
Power dis-tance
Indivisualism Maculinity Uncertainity Avoidenece
Pragmatism Indulgence0
10
20
30
40
50
60
70
80
90
100
U.S.AINDIA
1. Power Distance:
Power distance is the extent to which the less powerful members of organizations and
institutions (like the family) accept and expect that power is distributed unequally."
Cultures that endorse low power distance expect and accept power relations that are
more consultative or democratic.
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India being high on power distance means that there are various form of factor that
divide Indian society. In case of USA there are not so many factors. Only work and
economic prosperity divides the society. Even then disparity is not very high. It is
common for subordinates within organizations to approach their bosses with ideas and
talk to them freely. Their say in working is considered equally important. Little
discrimination happens. Talent and performance drives the organization. Within
American organisations, hierarchy is established for convenience, superiors are
accessible and managers rely on individual employees and teams for their expertise.
Both managers and employees expect to be consulted and information is shared
frequently. At the same time, communication is informal, direct and participative to a
degree.
2. Individualism
It is defined as “The degree to which individuals are integrated into groups”. In
individualistic societies, the stress is put on personal achievements and individual
rights. People are expected to stand up for themselves and their immediate family, and
to choose their own affiliations. In contrast, in collectivist societies, individuals act
predominantly as members of a lifelong and cohesive group or organization. People
have large extended families, which are used as a protection in exchange for
unquestioning loyalty.
India is very collectivist society. In India especially in rural areas we tend to have
large families. USA on the other hand is the most individualistic society in world.
They tend to resemble even the organizations with the individuals. For eg: Steves Jobs
is equally powerful name as Apple. Same goes for Bill gates and Microsoft.
The society is loosely-knit in which the expectation is that people look after
themselves and their immediate families only and should not rely (too much) on
authorities for support.
There is also a high degree of geographical mobility in the United States. Americans
are the best joiners in the world; however it is often difficult, especially among men,
to develop deep friendships.
3. Masculinity :
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The score of the US on Masculinity is high at 63, and this can be seen in the typical
American behavioral patterns. This can be explained by the combination of a high
Masculinity drive together with the most individualistic drive in the world. In other
words, Americans, so to speak, all show their masculine drive individually. The
British, however, have the same culture in this respect. The question, therefore,
should be: is the same drive not normally to be seen on the surface? This difference is
a reflection of the higher score of the US on Uncertainty Avoidance than of the UK.
In other words, in both societies we find the same drive, but Americans show it up-
front whereas the British will take you by surprise.
This American combination reflects itself in the following:
Behavior in school, work, and play are based on the shared values that people
should “strive to be the best they can be” and that “the winner takes all”. As a
result, Americans will tend to display and talk freely about their “successes” and
achievements in life. Being successful per se is not the great motivator in
American society, but being able to show one’s success.
Many American assessment systems are based on precise target setting, by which
American employees can show how well a job they did.
There exists a “can-do” mentality which creates a lot of dynamism in the society,
as it is believed that there is always the possibility to do things in a better way.
Typically, Americans “live to work” so that they can obtain monetary rewards and
as a consequence attain higher status based on how good one can be. Many white
collar workers will move to a more fancy neighborhood after each and every
substantial promotion.
It is believed that a certain degree of conflict will bring out the best of people, as it
is the goal to be “the winner”. As a consequence, we see a lot of polarisation and
court cases. This mentality nowadays undermines the American premise of
“liberty and justice for all.” Rising inequality is endangering democracy, because
a widening gap among the classes may slowly push Power Distance up and
Individualism down.
4. Uncertainty avoidance index (UAI)
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It is defined as the society's tolerance for uncertainty and ambiguity. It reflects the
extent to which members of a society attempt to cope with anxiety by minimizing
uncertainty. People in cultures with high uncertainty avoidance tend to be
more emotional. They try to minimize the occurrence of unknown and unusual
circumstances and to proceed with careful changes step by step planning and by
implementing rules, laws and regulations. In contrast, low uncertainty avoidance
cultures accept and feel comfortable in unstructured situations or changeable
environments and try to have as few rules as possible. People in these cultures tend to
be more pragmatic, they are more tolerant of change.
The US scores well below average, with a low score of 37, on the Uncertainty
Avoidance dimension. . As a consequence, the perceived context in which Americans
find themselves will impact their behavior more than if the culture would have either
scored higher or lower. Thus, this cultural pattern reflects itself as follows:
There is a fair degree of acceptance for new ideas, innovative products and a
willingness to try something new or different, whether it pertains to technology,
business practices or food. Americans tend to be more tolerant of ideas or opinions
from anyone and allow the freedom of expression. At the same time, Americans do
not require a lot of rules and are less emotionally expressive than higher-scoring
cultures.
At the same time, 9/11 has created a lot of fear in the American society culminating in
the efforts of government to monitor everybody through the NSA and other security
organizations.
5. Pragmatism
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The United States scores normative on the fifth dimension with a low score of 21. This is
reflected by the following:
Americans are prone to analyse new information to check whether it is true. Thus,
the culture doesn’t make most Americans pragmatic, but this should not be
confused with the fact that Americans are very practical, being reflected by the
“can-do” mentality mentioned above.
The polarisation mentioned above is, so to speak, strengthened by the fact that
many Americans have very strong ideas about what is “good” and “evil”. This
may concern issues such as abortion, use of drugs, euthanasia, weapons or the size
and rights of the government versus the States and versus citizens.
The US is the one of the only “Caucasian” countries in the world where, since the
beginning of the 20th century, visiting church has increased. This increase is also
evident in some post-Soviet republics such as Russia.
American businesses measure their performance on a short-term basis, with profit
and loss statements being issued on a quarterly basis. This also drives individuals
to strive for quick results within the work place.
6 Indulgence
Work hard and play hard.
The States has waged a war against drugs and is still very busy in doing so, yet
drug addiction in the States is higher than in many other wealthy countries.
It is a prudish society yet even some well-known televangelists appear to be
immoral.
Trompenaars analysis
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Fons Trompenaars is another Dutch culturalist who is into international culture. Teamed with
Charles Hampden-Turner (a dilemma enthusiast), they talk these days not so much of
country stereotypes as the need to understand individuals.
Universalism vs. Particularism
Universalism is about finding broad and general rules. When no rules fit, it finds the best
rule.
Particularism is about finding exceptions. When no rules fit, it judges the case on its own
merits, rather than trying to force-fit an existing rule.
People in USA seems to be more Particular in their approach.
Analyzing vs. Integrating
Analyzing decomposes to find the detail. It assumes that God is in the details and that
decomposition is the way to success. It sees people who look at the big picture as being out
of touch with reality.
Integrating brings things together to build the big picture. It assumes that if you have your
head in the weeds you will miss the true understanding.
People in USA seem to have combination of these two.
Individualism vs. Communitarianism
Individualism is about the rights of the individual. It seeks to let each person grow or fail on
their own, and sees group-focus as denuding the individual of their inalienable rights.
Communitarianism is about the rights of the group or society. It seeks to put the family,
group, company and country before the individual. It sees individualism as selfish and short-
sighted.
USA is highly individualistic.
Inner-directed vs. Outer-directed
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Inner-directed is about thinking and personal judgement, ‘in our heads’. It assumes that
thinking is the most powerful tool and that considered ideas and intuitive approaches are the
best way.
Outer-directed is seeking data in the outer world. It assumes that we live in the 'real world'
and that is where we should look for our information and decisions.
USA seems to be Outer-directed.
Achieved status vs. Ascribed status
Achieved status is about gaining status through performance. It assumes individuals and
organisations earn and lose their status every day, and that other approaches are recipes for
failure.
Ascribed status is about gaining status through other means, such as seniority. It assumes
status is acquired by right rather than daily performance, which may be as much luck as
judgement. It finds order and security in knowing where status is and stays.
USA is highly Achieved status.
Equality vs. Hierarchy
Equality is about all people having equal status. It assumes we all have equal rights,
irrespective of birth or other gift.
Hierarchy is about people being superior to others. It assumes that order happens when few
are in charges and others obey through the scalar chain of command.
USA has equality in general.
History of USA business
Page | 9
Many years ago business was conducted predominantly by men. A woman's role was to
maintain the family and home responsibilities. Evening events and dinners were strictly for
social enjoying with family and friends. Social registers were maintained so only those in the
"proper" group would be included. A gentleman never carried his business cards to these
events, but a social card with just his name. Times have changed. Now, business is conducted
continuously (thanks to breakfast meetings, e-mail, and cellular phones); and, women are
now as significant in the business world as men.
The U. S. was founded on the work ethic that good, honest, hard work is rewarded. Because
of this work ethic, time is money and punctuality is highly regarded, so a cellular
phone can save the day when automobile traffic in a major city causes unexpected delays.
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United States Appearance
Business suit and tie are appropriate in all major cities. Wear dark colored business suits in classic
colors of gray and navy. For an important formal meeting, choose a white dress shirt, for less formal a
light blue shirt will still give you a conservative appearance.
Women should wear a suit or dress with jacket in major cities. Wearing classic clothing and classic
colors of navy, gray, ivory, and white will ensure you give a confident and conservative appearance.
Rural areas and areas with extremely warm summers have more informal wardrobe requirements.
Women may wear a business dress, or skirt and blouse, in rural areas.
Men may conduct business without wearing a jacket and/or tie in rural areas.
The formality of a meeting, even in rural areas, may dictate a sports jacket and tie for men. The
same formality will require a woman to wear a dress, possibly with a jacket.
Casual clothing is appropriate when not attending a work related meeting/dinner. Building a casual
wardrobe using classic lines and colors (navy, gray, camel, ivory and white) will give you a look that is
stylish and professional even when you are relaxing.
Clothing, whether formal or casual, should be clean and neat in appearance.
Men may generally wear jeans or khaki pants with a shirt for casual attire.
Women may wear comfortably fitting slacks with a casual shirt. Wearing jeans or shorts, even in a
casual setting, may be inappropriate for the city. It is better to err on the conservative side if you are not
sure.
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United States Behaviour
Business conversation may take place during meals. However, many times you will find more social
conversation taking place during the actual meal.
Business meetings may be arranged as breakfast meetings, luncheon meetings, or dinner meetings
depending on time schedules and necessity. Generally a dinner, even though for business purposes, is
treated as a social meal and a time to build rapport.
Gift giving is discouraged or limited by many US companies. A gracious written note is always
appropriate and acceptable.
If you do give a gift, it should not appear to be a bribe.
An invitation for a meal or a modest gift is usually acceptable.
If you are someplace with a line or queue, go to the end and wait your turn.
Do not use or chew on a toothpick in public.
Many public places and private homes do not allow smoking. In some areas laws have been passed
to prevent smoking in public places.
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Attribute of Marketing, Negotiation skills, HRM and Culture
International marketing is defined as ‘the performance of business activities designed to plan,
price, promote, and direct the flow of a company’s goods and services to consumer in more
than one nation for a profit.’ Marketing concepts and practices have mostly been developed
in the US and exported successfully to countries across the world.
Determinant attributes in marketing are those aspects about products and services that
determine why consumers buy products. These attributes may vary among different types of
products, depending on which industry a small company is in. All determinant attributes are
measurable within an organization. Small-business owners then use these data to make
business decisions and develop marketing strategies.
US marketers know the US standard of ethics. They often concentrate on the fundamentals.
In the business and marketing sense, the fundamentals are:
. Sound marketing strategy
. Professional marketing research
. World-class product development
. Effective pricing
. Motivating promotion
. Appropriate distribution
Focusing on the basics makes US success in competitive markets. In the USA, business
transactions revolve around the contract. The contract, most often a written document, spells
out the nature of the business relationship and the obligations of each party to the business
transaction(s) covered by the contract. While many transactions are conducted on an informal
or non-contractual basis, virtually any significant transaction will be based on a fairly detailed
contract to which and by which the parties are bound both legally and ethically. Contracts are
negotiated in between parties acting as advocates but in good faith. It is generally accepted
that commitments made will be honored to the letter if not the spirit of the agreement. The
contract becomes the a priori vehicle for resolving disputes. If the parties to the contract
cannot reach agreement, an arbitrator or other third party may be called on to interpret the
contract. In either case, however, the contract becomes the principal document governing the
relationship.
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Negotiation Skills
A good negotiator is defined as one having a quick mind but unlimited patience, who knows
how to dissemble without being a liar, inspire trust without trusting others, be modest but
assertive, charm others without succumbing to their charm, and possess plenty of money
while remaining indifferent to all temptation of riches.
- Fred Ikle in How Nations Negotiate (1964)
Negotiations are an integral component of a manager’s life. While it is difficult to
characterize any national or cultural approach to negotiation, generalizations are frequently
drawn. These generalizations are helpful to the extent that the reader remembers that they are
only guides, not recipes. Any generalization holds true or not depending on many contextual
factors including time, setting, situation, stakes, history between the parties, nature of the
issue, individual preferences, interpersonal dynamics and mood. As negotiators understand
that their counterparts may be seeing things very differently, they will be less likely to make
negative judgments and more likely to make progress in negotiations.
Two different orientations to time exist across the world: monchronic and
polychronic. Monochronic approaches to time are linear, sequential and involve focusing on
one thing at a time. These approaches are most common in United States.
Polychronic orientations to time involve simultaneous occurrences of many things and the
involvement of many people. The time it takes to complete an interaction is elastic, and more
important than any schedule.
Negotiators from polychronic cultures tend to
start and end meetings at flexible times,
take breaks when it seems appropriate,
be comfortable with a high flow of information,
expect to read each others' thoughts and minds,
sometimes overlap talk,
view start times as flexible and not take lateness personally.
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American Negotiators tend to
prefer prompt beginnings and endings,
schedule breaks,
deal with one agenda item at a time,
rely on specific, detailed, and explicit communication,
prefer to talk in sequence,
view lateness as devaluing or evidence of lack of respect.
Space orientations also differ across cultures. They have to do with territory, divisions
between private and public, comfortable personal distance, comfort or lack of comfort with
physical touch and contact, and expectations about where and how contact will take place. An
American etiquette manual advises this about personal space: "When you meet someone,
don't stand too close. (Remember the angry expression, "Stay out of my face!") An
uncomfortable closeness is very annoying to the other person, so keep your physical distance,
or he'll have to keep backing off from you. A minimum of two feet away from the other
person will do it." Space also relates to comfort with eye contact and attributions related to
eye contact or lack of eye contact. In United States culture, eye contact is taken as a sign of
reliability and trustworthiness.
Seating arrangements for negotiations should take norms for space into account. In general,
Americans tend to talk with people seated opposite them, or at an angle. For the Chinese,
these arrangements may lead them to feel alienated and uneasy. They may prefer to converse
while sitting side by side.
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U.S.
Approaches to Negotiation
Page | 16
AMERIC
AN
NEGOTIA
TORS
JAPANES
E
NEGOTIA
TORS
CHINESE
(TAIWAN
)
NEGOTIA
TORS
BRAZILI
AN
NEGOTIA
TORS
Preparatio
n and
planning
skill
Dedication
to job
Persistenc
e and
determinat
ion
Preparatio
n and
planning
skill
Thinking
under
pressure
Perceive
and exploit
power
Win
respect
and
confidence
Thinking
under
pressure
Judgment
and
intelligenc
e
Win
respect
and
confidence
Preparatio
n and
planning
skill
Judgment
and
intelligenc
e
Verbal
expressive
ness
IntegrityProduct
knowledge
Verbal
expressive
ness
Product
knowledge
Demonstra
te listening
skill
InterestingProduct
knowledge
Perceive
and exploit
power
Broad
perspectiv
e
Judgment
and
intelligenc
e
Perceive
and exploit
power
Integrity
Verbal
expressive
ness
Competitiv
eness
U.S. negotiators tend to rely on individualist values, imagining self and other as autonomous,
independent, and self-reliant. This does not mean that they don't consult, but the tendency to
see self as separate rather than as a member of a web or network means that more
independent initiative may be taken. American negotiators tend to:
be competitive in their approach to negotiations, including coming to the table with a
fall-back position but beginning with an unrealistic offer;
be energetic, confident, and persistent; they enjoy arguing their positions, and see
things universally -- i.e., they like to talk about broad applications of ideas;
concentrate on one problem at a time;
focus on areas of disagreement, not areas of commonality or agreement;
like closure and certainty rather than open-endedness or fuzziness.
Human Resource Management (HRM)
IHRM managers act as guardians of national difference, who have to manage a negotiated
balance between the application of global rule- sets to HR processes and the need for local
responsiveness to cultural imperatives. So, International HR professionals truly need to act
as the ‘caretakers’ of culture.
- Brewster et all
Since your workforce is your most valuable asset, you need to obtain the most optimal
performance, not be burdened with additional administrative overhead, and align
performance metrics with business goals. US economic prosperity has led to labor shortages,
which are pushing organizations to engage in creative recruitment and retention practices and
to employ workers from non-traditional sources, leading to a more diverse workforce. HR
professionals are realizing that they need to update their technological skills and develop
systems for managing more virtual organizations. Human resource (HR) is also trying to
become more of a strategic partner in firms. HR has the potential to create competitive
advantage for firms by successfully combining a reputation as being an employer of choice
with a high performance work system and an effective set of incentives.
Americans primarily tend to resemble local practices. More importantly, human resource
management is not a monolithic function, but consists of practices which differ in their
Page | 17
relative resemblance to local practices and to parent practices. Specific independent variables
have significant effects on HRM practices overall, with the most important being founding,
dependence upon the local environment for inputs, presence of expatriates, and frequency of
communication.
HRM practices are most strongly influenced by local isomorphism, it is found that marketing
and manufacturing practices also tend to resemble local practices, although to a distinctly
lesser degree than HRM, but that financial control practices more closely adhere to parent
practices, and are therefore shaped mainly by a need for internal consistency in the MNC.
United States is relatively less replete with HRM regulations than many other industrialized
countries for example, Germany, Sweden, and France, where there is at least as much
pressure for local isomorphism in other industrialized countries as that which we have found
in the United States.
Compared to MNCs in other countries, U.S. firms overall offer less paid time off and provide
a lower percentage of benefits, but have a higher proportion of women in management, than
firms from several other countries. Although institutional pressure and inertia surely make
rapid change difficult, managers in U.S. firms should at least be moved to question the
practices they often assume to be "normal," and, where appropriate, would do well to ask
whether the practices that prevail elsewhere could be of use to them.
According to the U.S. Department of Commerce, more than 5% of the labor force now works
for affiliates of foreign-based firms. In recent years, Americans have voiced ambivalence
about this trend and expressed concern about "working for foreign bosses".
Given the large and increasing number of Americans working for affiliates of foreign-based
M NCs, it is worthwhile to ask whether these affiliates tend to follow local practices when it
comes to paid time off, or whether they adhere to the practices of their parent. Data shows
that affiliates overwhelmingly follow local U.S. practices.
Page | 18
Stereotypes, myths, ethnicity becoming a barrier in cross cultural
relationships in Organisaitons
What are Stereotypes?
Stereotypes can be defined as “cognitive shortcuts” or generalizations that we use to make
sense of our complex social world. These shortcuts help us differentiate among different
groups of people and, in the case of gender stereotypes, between women and men. Gender
stereotypes are widely shared within our culture. This can be problematic as they tend to
over-simplify reality, especially when it comes to complex social behaviors. Gender
stereotypes emphasize “essential differences,” but the empirical literature tells us otherwise.
Through the extensive research on gender differences and similarities, we learn that women
and men are actually more similar than different and that there is more variation among
women and men than there is between women and men. By creating false perceptions that
women and men are “planets apart”, however, stereotyping results in women being
overlooked for the top jobs – no matter how strong their actual credentials.
Problems with Cultural Stereotypes
It is normal for people to categorize things, events and people because it helps them mentally
organize and make sense of the world around them. It also highlights differences between
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categories or groups of people. People use stereotypes to make decisions about coworkers,
managers and customers with little or no information about the person. A stereotyped person
is not seen for who she is and what she can contribute to the business.
Effects of Cultural Stereotypes
Cultural stereotypes limit management's ability to make best use of their employees' skills
and help them develop new skills. If a manager sees John as an Asian person who is good
with numbers but not people, he may never be given the opportunity to develop his people
skills and he may eventually leave the company due to lack of opportunities. Cultural
stereotypes affect employee morale and productivity. Employees are more likely to leave an
organization if they believe that stereotypes determine how they are treated. Stereotypes lead
to decreased productivity, dissatisfied customers and reduced revenues. They hinder open
communication and teamwork and lead to a perception of "us and them" or in-groups and
out-groups in which members guard information, using it as a form of power. Failing to
include diverse employee perspectives and skills limits the company's creativity, problem
solving and competitive abilities.
Stereotyping Signs and Symptoms
Diversity consultant Steve Robbins identified several situations that indicate the presence of
cultural stereotyping in the workplace. High employee turnover, absenteeism and poor
employee performance may be signs of stress, lack of opportunity or employee perceptions of
bias based on stereotypes. A business with a strong centralized structure and a dominant
decision-making style, such as "my way or the highway," is likely to engage in stereotyping
and will hire employees "like us." Occasionally offering diversity and inclusion workshops
may point to a inherent previous lack of ongoing commitment to cultural diversity. Finally,
tolerating racist, sexist, ageist or other inappropriate jokes, comments and images may be
signs that cultural stereotypes are present.
Addressing Cultural Stereotypes
Leadership is the driving force of workplace culture. Management sets the behavior standards
through their words and actions, along with policies and procedures. A business must pay
attention to the presence of stereotypes in its organization if it is to be successful and retain
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its most productive, knowledgeable employees. Regularly conducting cultural audits allows a
business to examine cultural stereotypes in the context of its mission and strategic objectives.
A cultural audit examines the company's attitude toward its employees, clients and
stakeholders; and the nature and effect of team work and communication; employee and
management responsibility, accountability, trust, inclusion and respect. It gathers feedback
from employees about their perceptions of inclusion and invites suggestions for changes.
Audit results identify areas for change and ongoing programs for employee awareness.
MYTHS about America
America Is A Democracy
In the current age, America and democracy are synonymous. Little do most Americans know
they don't actually live in a democracy. America was actually founded as a Constitutional
Republic, as stated in the Constitution and the Pledge of Allegiance.
The Founding Fathers Were Christian
This is both true and false. A large number of the Founding Fathers were associated with
various sects of the Christian church, like Protestantism and Lutheranism. However, many
still openly opposed organized religion. Thomas Jefferson practiced Deism, which contends
that reason and observation of the natural world are enough to determine the universe has a
creator without the need for organized religion.
It's A Free Country
There is a general belief that we can walk anywhere, rest anywhere or do whatever we need
to do to survive. Tell that to the homeless. Although courts struck down laws against
vagrancy years ago, sleeping on the streets or in public parks is still illegal, as is hitchhiking,
panhandling and other "freebies" broke people need to survive.
The Federal Reserve Is U.S. Owned & Operated
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The Fed conducts the nation's monetary policy, but faces no regulation from the government
aside from the appointment of its President and Board of Governors. Otherwise, the central
bank can do what it pleases.
Christopher Columbus Discovered America
The "Columbus discovered America" myth doesn't seem to be dying off. For starters, Native
Americans occupied the territory for centuries before his arrival. But the Scandinavians were
also here previously: their Vikings were known to have landed 500 years before Columbus
did, yet Columbus gets the credit as the man who discovered America during his Spanish
Empire-financed voyage in search of gold.
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United States Communications
Offer a firm handshake, lasting 3-5 seconds, upon greeting and leaving. Maintain good eye contact
during your handshake. If you are meeting several people at once, maintain eye contact with the person
you are shaking hands with, until you are moving on the next person.
Good eye contact during business and social conversations shows interest, sincerity and confidence.
Good friends may briefly embrace, although the larger the city, usually the more formal the
behavior.
Introductions include one's title if appropriate, or Mr., Ms, Mrs. and the full name.
Business cards are generally exchanged during introductions. However, they may be exchanged
when one party is leaving.
A smile is a sign of friendliness, and in rural areas you may be greeted with a "hello" rather than a
handshake.
Ask permission to smoke before lighting a cigarette or cigar. Due to health concerns, you may or
may not be given permission.
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U.S. COMMUNICATION STYLES
The following are some things to consider when trying to understand and enhance one's
cross-cultural communication skills.
Preferred topics. Americans, when talking casually with friends, engage in "small talk."
Small talk subjects can include the weather, sports, the latest movies, jobs and people one
knows. Politics and religion are considered controversial topics that Americans are taught to
avoid unless discussing them with people one knows very well.
Verbal interaction. Americans generally speak for short periods of time during a
conversation, encouraging others to participate in the conversation. It is considered impolite
to dominate conversations. Also, Americans do not like confrontation, but if it is
unavoidable, will do so in a restrained and controlled manner, using a conversational tone of
voice.
Depth of involvement. Americans will discuss personal topics with very close friends, and
perhaps someone they may never see again, like a seat mate on an airplane. Conversations,
generally, are kept on the superficial level; small talk.
Channels preferred. The ideal for Americans is to be verbally adept, speaking in a moderate
tone and avoiding the use of hand and arm gestures. Physical touching during a conversation
may include a touch on the arm or shoulder, although not everyone is comfortable with this.
Women touch more often, while men generally do not touch each other after they have
shaken hands. A comfortable space between individuals is an arm's length, unless one is a
close friend.
Nonverbal communication. When speaking to an individual, Americans look into the
listener's eyes and then slightly look away. When one is the listener, one will almost
constantly make direct eye contact with the speaker. Generally, Americans distrust persons
who do not look them in the eyes while talking to them.
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American Society and Culture
Diversity
America is ultimately a nation of immigrants and as a result is a cultural mish-mash in every
sense of the word. Not only is the country populated by people from foreign countries but all
Americans in one way or another trace their ancestry back to another culture, whether Irish,
German, Italian or Scottish. Looking around any major city one will notice the ‘melting-pot’
that it is.
Informal and Friendly
People tend to not wait to be introduced, will begin to speak with strangers as they stand in a
queue, sit next to each other at an event, etc. Visitors can often be surprised when people are
so informal to the point of being very direct or even rude.
Time is Money
The country that coined the phrase lives the phrase. In America, time is a very important
commodity. People 'save' time and 'spend' time as if it were money in the bank. Americans
ascribe personality characteristics and values based on how people use time. For example,
people who are on-time are considered to be good people, reliable people who others can
count on.
The Family
The family unit is generally considered the nuclear family, and is typically small (with
exceptions among certain ethnic groups). Extended family relatives live in their own homes,
often at great distances from their children. Individualism is prized, and this is reflected in the
family unit. People are proud of their individual accomplishments, initiative and success, and
may, or may not, share those sources of pride with their elders.
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USA Demographics
The U.S. Population: 317.56 Million.
(Including an approximate 11.2 million illegal immigrants)
The third most populous nation in the world, after China and India.
With a birth rate of 13 per 1,000, 35% below the world average, its population
growth rate is positive at 0.9%, significantly higher than those of many developed
nation.
About 82% of Americans live in urban areas (including suburbs); about half of those
reside in cities with populations over 50,000.
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Customs and Etiquette in the U.S.A
Meeting and Greeting
Greetings are casual.
A handshake, a smile, and a 'hello' are all that is needed.
Smile!
Use first names, and be sure to introduce everyone to each other.
Gift Giving Etiquette
Gift giving is not an elaborate event, except at Christmas.
When invited to someone's home for dinner, it is polite to bring a small box of good
chocolates, a bottle of wine, a potted plant or flowers for the hostess.
Gifts are normally opened when received.
Dining Etiquette
Arrive on time if invited for dinner; no more than 10 minutes later than invited to a
small gathering. If it is a large party, it is acceptable to arrive up to 30 minutes later
than invited.
Table manners are more relaxed in the U.S. than in many other countries.
Feel free to refuse specific foods or drinks without offering an explanation.
Festivals and holidays
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Religious holidays
Christmas (25th December)
A Christian holiday marking the birth of the Christ Child become traditions even for
many non-Christian Americans
Easter (A Sunday between march 22 and April 25)
A Christian holiday celebrating the resurrection of Jesus Christ. For Christians, Easter
is a day of religious services and the gathering of family. Many Americans follow old
traditions of colouring hard-boiled eggs and giving children baskets of candy. Sunday
church services and festive celebrations blend together during the Easter weekend.
National holidays
New year’s day (1st January)
On January first, Americans visit friends, relatives and neighbours. There is plenty to
eat and drink when you just drop in to wish your loved ones and friends the best for
the year ahead. Many families and friends watch television together enjoying the
Tournament of Roses parade preceding the Rose Bowl football game in Pasadena
California. In most cultures, people promise to better themselves in the following
year. Americans have inherited the tradition and even write down their New Year's
resolutions.
Martin Luther king day (Third Monday in January)
The reverend Martin Luther King, Jr. was an African-American clergyman wanted to
win civil rights for all people through nonviolent means. “I have a dream... I have a
dream that one day little black boys and black girls will be able to join hands with
little white boys and white girls as sisters and brothers I have a dream today” It is a
time to remember his fight for the freedom, equality, and dignity of all races and
peoples. A time to remember the message of change through nonviolence
President’s day (third Monday in February)
To honour the legacy of all past presidents of the United States. Also to honour two of
the greatest presidents, Abraham Lincoln and George Washington.
Flag day (June 14)
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It is a day for all Americans to celebrate and show respect for the flag, its designers
and makers. The flag is representative of the independence and unity as a
nation.....one nation, under God, indivisible. The flag has a proud and glorious
history. It was at the lead of every battle fought by Americans.
Thanksgiving (4th Thursday in november)
It is a joyous family festival celebrated with lot of enthusiasm in US, Canada and
several other countries. It is festival commemorates the feast held by the Pilgrim
colonists and members of the Wampanoag people at Plymouth in 1621. On this day
people express gratitude to God for his blessings and give thanks to dear ones for their
love & support. Feasting with family is an integral & most delightful part of
Thanksgiving Day celebrations.
Fun days
Valentine ’s Day (14th February)
It is the traditional day on which lovers express their love for each other; sending
Valentine's cards or candy. It is very common to present flowers on Valentine's Day.
The holiday is named after two men, both Christian martyrs among the numerous
Early Christian martyrs named Valentine. The day became associated with romantic
love in the circle of Geoffrey Chaucer in High Middle Ages, when the tradition of
courtly love flourished.
April fool’s day (1st April)
Americans play small tricks on friends and strangers on the first of April.
Halloween (31st October)
Dozens of children are dressed in costumes. Pirates and princesses, ghosts and
popular heroes of the day all hold bags open to catch the candy.
Ethnic and regional holiday
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St. Patrick’s Day (17th March)
Many people who immigrated to the United States have come from Ireland. More
than one-half of the soldiers who fought in the Revolutionary War had Irish ancestors.
Today, it is said, Irish descendants in the United States put on a noisier and bigger St.
Patrick's Day celebration than the people in Ireland. Every year on March 17 or the
preceding Saturday, cities with a large population of Irish Americans have parades.
Green is one of the national colours of Ireland and also one of the signs of spring.
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Food
Traditional American cuisine uses indigenous ingredients, such as turkey, venison,
potatoes, sweet potatoes, corn, squash, and maple syrup, which were consumed by
Native Americans and early European settlers.
Slow-cooked pork and beef barbecue, crab cakes, potato chips, and chocolate chip
cookies are distinctively American foods.
Characteristic dishes such as apple pie, fried chicken, pizza, hamburgers, and hot dogs
derive from the recipes of various immigrants.
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CASE ON CULTURAL DIFFERENCES BETWEEN AMERICA & GERMANY
- How Culture ended the Daimler-Benz Chrysler Merger
Company Chrysler (American company):
In the mid-1990s, Chrysler Corporation was the most profitable automotive producer in
World. Buoyed by record light truck, van, and large sedan sales, revenues were at an all-time
high. Chrysler had taken a risk in producing vehicles that captured the bold and pioneering
American spirit when imports dominated the market.
Company Daimler-Benz (German company):
Daimler-Benz, meanwhile, was looking for a soul-mate. Despite a booming U.S. economy,
its luxury vehicles had captured less than 1% of the American market. Its vehicle production
method was particularly labour intensive - requiring nearly twice as many workers per unit
produced over Toyota's Lexus division. It recognized that it could benefit from an economy
of scale in this capital-intensive industry. With $2.8 billion in annual profits, remarkable
efficiency, low design costs, and an extensive American dealership network, Chrysler
appeared to be the perfect match.
Daimler-Benz Chrysler Merger:
On 7 May, 1998, Eaton, CEO of Chrysler announced that Chrysler would merge with
Daimler-Benz. Daimler-Benz CEO Jürgen Schrempp hailed the union as "a merger of equals,
a merger of growth, and a merger of unprecedented strength". The new company, with
442,000 employees and a market capitalization approaching $100 billion Eaton predicted,
"Within five years, we'll be among the Big Three automotive companies in the world.
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After effects of Daimler-Benz Chrysler Merger:
Three years later DaimlerChrysler's market capitalization stands at $44 billion, roughly equal
to the value of Daimler-Benz before the merger. Its stock has been banished from the S&P
500, and Chrysler Group's share value has declined by one-third relative to pre-merger
values.
Final Impact of the Merger:
Daimler-Chrysler’s share’s prices between 1998 and 2002
Why the Merger Failed:
Analysts agree that the cultural gap in corporate cultures was one of the main reasons for the
Daimler-Chrysler failure. Daimler was a German company which could be described as
“conservative, efficient and safe”, while Chrysler was known as “daring, diverse and
creating”. If one looks closely, they will find numerous manifestations of these differences in
the corporate culture. Following were the issues that were being faced by the Merger:
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Firstly, the attitude to hierarchy was quite different. Daimler was a very hierarchical company
with a clear chain of command and respect for authority. They were high in power distance
whereas Chrysler, on the other cultural hand, favoured a more team-oriented and egalitarian
approach. They were comparatively low in power distance.
The other cultural difference lay in what the companies valued in terms of their clients.
Chrysler valued reliability and achieving the highest levels of quality, while Benz was
placing its bets on catchy designs and offering their cars for competitive prices.
These two factors resulted in conflicting orders and goals in different departments. American
and German managers had different values which drove and directed their work. Different
departments were heading in opposing directions. .
Apart from differences in corporate culture there was also an issue of trust. Employees on
both sides felt reluctant to work with each other. Mainly this was caused by the realization
that the agreed term “merger of the equals" was pretty far from reality. During the initial
stages of organisational integration, huge bulks of Chrysler’s key executives either resigned
or were replaced by Germans counterparts. .
Moreover, Daimler was much more imposing and tried to dictate the terms on which the new
company should work. Such a situation didn’t inspire trust in Chrysler’s employees and
raised some serious communication challenges.
So to summarise the cultural factors in play here:
differences in corporate cultures and values
lack of coordination
severe lack of trust among the employees
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REFERENCES
Cross- Cultural Management Concepts and Cases By Shobhana Madhavan
Brewster, Chris, Paul Sparrow, and Guy Vernon, “International Human Resource
Management”, Universal Press, Hyderabad, 2008.
Alison M. Konrad, John Deckop, (2001) "Human resource management trends in the
USA - Challenges in the midst of prosperity", International Journal of Manpower, Vol. 22
Iss: 3, pp.269 – 278
Negotiating with the Americans. Disseminated by James T. Felicita, head of contract
systems for NASA Systems Division, Hughes Aircraft Co. March 1983.
Bartlett,C hristopherA . & SumantraG hoshal. 1989. Managing a cross borders: The
transnational solution. Boston: Harvard Business School Press.
Brooke,M ichaelZ . & H. Lee Remmers.1 970. The strategy of multinational enterprise:
Organization and finance. London: Longman.
Graham, Sano, and March. Negotiating Behaviors in Ten Foreign Cultures. Management
Science. Vol. 40(1), January 1994.
Nakanishi, Masayuki and Kenneth M. Johnson. Implications of Self-Disclosure on
Conversational Logics, Perceived Communication, Communication Competence, and
Social Attraction. A Comparison of Japanese and American Cultures. In Wiseman et all.
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