There are many differences in the way business is done across the globe, and processes that managers go through to make decisions are representative of this. Western managers are often motivated to increase profit margins as much as possible, and their effectiveness as managers is sometimes judged by this. Managers in eastern cultures are not as fully motivated by profits alone, but to maintain a stable and lasting business model. This kind of thinking instills different thinking processes in managers. Western managers think that they must take action as quickly as possible, without taking into account of other factors that may be affected my hasty action. Eastern managers make sure they understand all the implications that an action will have in the long run, and not blinded by the tempting sight of short term gain, while there could be long term loss. Cultural boundaries also greatly affect the way that businesspeople interact. In some countries, it is the social norm to give a potential business partner a gift when you first meet them. There are many other traditions like this, which range from greetings to the types of meals eaten, that all affect the way that business is done in different cultures.
Cross Cultural Business
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With these differences, how do you think it works when Western and Eastern managers work together?
I think the reason western and eastern business styles vary so much is because the type of culture each tends to be. Western society follows more of an individualistic approach, focusing on our own achievement and goals. The eastern hemisphere tends to be more collectivist, focusing on what is best for the group. I think a lot of this originates from the type of government that was dominant in each of the regions historically, but nonetheless, this a very interesting topic.
I agree with the styles that you represented for the western and eastern nations. It was pretty interesting to look at it like that. In order for western and eastern managers to work together that have to both be open to the other persons' perspective and respect it!
I have seen first hand in retail the idea of Western managers making hasty business decisions. For example, some of my managers that I've had in the past would hire someone who had shown up in a jeans and t-shirt just because they were so desperate (that person ended up leaving after 2 weeks). I also have seen people from the East who live here make decisions based on long term effects (I have a friend East of the United States who lives here) even though they are not in business.
I like the points that you have made in pointing out the differences between Eastern and Western managerial styles. I too have learned about these differences and how each culture needs to be respected and their norms valued. I wonder if Eastern cultures are taught the same thing. It often seems that maybe it is a Western ideal to increase profit and for this reason it may be that only Western cultures seek to educate their managers so that they can gain the business of Eastern managers. I don't know though, this is just me thinking aloud.
I find your post interesting and tied a lot with social psychology.I remember in one class, a professor showed that Easterners tend to take into account contexts much while westerners tend to focus much on a central thing. I believe this difference is much visible in business world today. As our world is experiencing rapid globalization and there tend to more and more cross-cultural businesses in future, I think it is important for us to be aware of cultural differences.
I mentioned this in my blog posts as well. I find that paying attention to cultural differences, especially in decision making, is extremely important with looking to do business on a global scale.
We actually had a unit on global business in my Contemporary Management class, and it went over a lot of these things! Super interesting topic! One of the tools we used in the class was Geert Hofstede Analysis, and you can do it for every country! (http://geert-hofstede.com/united-states.html)