Importance of Knowledge of Culture to Business Managers - Essay Example

Importance of Knowledge of Culture to Business Managers The current globalization trends means that organizations are becoming more global. The business environment has also become more global and as a result, the workplaces are becoming more diverse in terms of the backgrounds of those in the environment. This therefore means that it is necessary that one has the understanding of those from different cultures to enable the business transactions and interactions to be effective and efficient. The knowledge of cultural differences across nations is especially important to business managers especially in cases where they have to directly deal with the diverse cultures. The knowledge of the differences in the cultural dynamics is important to the business managers as it helps in the interaction process among the business organizations. For one to understand the impact that cultural differences have on the business organizations, it is important to understand what the concept of culture entails. Culture can be said to consist of the patterned thinking processes and ways in which different human groups acquire and transmit symbols. It also involves the ways in which the different groups react, and their values and ideas. Culture is also said to be a subjective perception of the environment in which one is living. This environment includes the social stimuli, roles, beliefs, and the value system that is shared by the members of the group. Language and religion are said to play a great role in culture. It is important to note therefore that any given organization exists within a given culture and are therefore influenced by the cultures in which they exist (Simms 18). The elimination of trade barriers and the increasing ease of penetration of national boundaries have led to the increase in the need to transfer knowledge and skills between the subsidiaries of the various multinational organizations. This means that the work places in these organizations have become multinational and in the process created a new challenge for the business managers in the management of the workplace as they have to ensure that the new employees who are from different nationality and cultural background have been able to transfer the skills and knowledge that they possess. The knowledge of the differences in culture by the business managers is important as it will help in the facilitation of knowledge transfer. Knowledge transfer involves the attempt by a given entity to copy and apply a specific knowledge or practice from another entity. Knowledge transfer involves ensuring that the efforts that are put in place are effective and that the new knowledge that was being learnt or acquired from a different organization has been learnt to the extent that it becomes embodies to the practices of the organization. In the transfer of knowledge, the business managers are often faced with the challenge of cultural hindrances in the transfer process. There are some instances in which because of their cultural backgrounds, those involved in are unable to transfer the knowledge in such a way that it contributes to the desired outcome. This is because the knowledge to be passed is embedded in the individuals and therefore can only be transferred by interacting with the individual. The knowledge also has a social dimension to it in that it has been acquired through a process of socialization and as such can only be transferred through socialization. People of different cultures socialize in different ways and it is therefore important for a business manager to be aware how the particular culture interacts. This will help him in facilitating the interactions necessary for the transfer of knowledge to take place (Pauleen 223). It is also important for the business managers to have knowledge on the difference between the individualistic and the collective cultures. This will help them in the process of ensuring knowledge transfer. It is important for a business manager to know the extent to which group interest supersedes the individual interests (Mockler 260). This is because such knowledge is an important factor in the determination of where knowledge is transferred and who gains the knowledge or to whom it is transferred. In an individualistic culture, there are loose ties among individuals, and the people are driven by their self interests as opposed to group interests. Collectivist cultures on the other hand emphasize on group interest as opposed to individual interest. It is therefore important for a business manager to have the relevant knowledge of culture to identify the knowledge and practices that are transferable from one culture to another and those that are not (Mockler 260). Another reason that the managers should have an understanding of cross cultural knowledge is that it will help them in effectively communicating with the people from different cultural backgrounds. This is because different cultures communicate differently and language is used differently by the different cultures. While it is common place for business managers to assert that people should learn English and use it as the medium of communication in business transactions, it is important for them (business managers) to learn the other non verbal aspects of communication to avoid misinterpretation. The knowledge of culture is important to business managers as culture is core in the communication process and therefore understanding the cultural differences as well as the cultural similarities will help ease the communication process. The understanding of the way communication in different cultural contexts is also important to the business managers as it can provide them with an opportunity to exploit new markets and new business ventures. This is because the knowledge of how communication takes place in a given culture will help the manager in tailoring the information about their products to the target market in the given culture. Effective communication will ensure that more people buy into the product. it will also ensure that the desired objectives are met through effective communication. Different cultures also take different approaches in their cooperation with the authority. It is important for the business managers to know how people of different cultures relate to authority, and how they cooperate within themselves. This will help him in interacting and managing a diverse group of employees and business associates. The eastern cultures for example do not put much emphasis on the importance of contracts as they believe that the contracts can be modified should the need arise conflict (Trompenaars and Hampden-Turner 183). The cultures place emphasis on the relationships in the workplace and building cooperation as opposed to contractual obligations. The western cultures however place most emphasis on contractual obligations and safeguards as opposed to relationships. This is because in the western culture, there is a tendency to focus on the individual goals. The knowledge of the different approaches will therefore be important to the business manager as he can creatively strike a balance between people of the different cultures in the workplace. Understanding the cultural differences will help the manager in determining the capacity for the business associates or of the employees to take risks. People from certain cultures especially the Eastern cultures have a tendency to avoid taking risks both in their businesses and in their jobs. This knowledge is important to a manager as it will help him in making decisions on the allocation of duties and projects, and in making the decision to partner with other organizations. Business managers often find themselves in position where they have to resolve various types of conflict that may occur in the job places and in business transactions. When such conflicts involve people of different cultures, the knowledge of how each culture solves conflict will be important to the business manager in helping him to come up with a speedy resolution to the conflict (Trompenaars and Hampden-Turner 183). Cultures such as the Asian cultures emphasis direct relationships and therefore much effort is put in trying to avoid conflicts. In cases where conflict has occurred, people engage in indirect and lengthy negotiations to come to a solution that will ensure that relationships are not damaged in the process. In the western culture however, problems are confronted directly and issues are discussed in the open. There is little regard for relationships and therefore direct confrontation is preferred. It is therefore important for the business managers to understand the different approaches used so as to effectively manage any form of conflict which may occur (Trompenaars and Hampden-Turner 183). In multinational organizations, the knowledge of culture is important as in will help in the alignment of the organizations goals and processes. The cultural values are different in different nations and as such, the natural culture may have an impact on the way that a given organization performs (Trompenaars and Hampden-Turner 183). Understanding the culture is important in such organizations as the employees in the organization will bring their cultural values into the workplace therefore influencing their performance. The expectations of the customers will also be different in the different national cultures and understanding the culture will therefore help in understanding and meeting the demands of the customers (Hoecklin 146) The knowledge of different cultures and cultural practices is important to business managers as it will help them in getting an understanding of the work group characteristics among people of different cultures (Mann and Gotz 307). Cultures that are relationship oriented place more emphasis on group cooperation and value members that are perceived as belonging to the ‘in-groups’ as opposed to those perceived to belong to the ‘out-group’. The other cultures will however emphasize on getting the task done rather than focusing on the relationship aspect. People from such cultures do not believe that it is necessary to form interpersonal relationships so as to get the job done. Such knowledge is therefore important as it will help the business leaders and business managers in the formation of a distinct culture within the organization (Mann and Gotz 307). Knowledge of how the different people relate to their work is important to the business manager as it will help him to manage a diverse workforce. The knowledge of the cultural differences is also important to the managers as it will help them in the creation of trust within the team considering that different cultures have different methods of creating trust (Mockler 262). It is important for the business managers to have the awareness of the cultural differences that are at work as if ignored, cultural differences can be a major source of conflict in a multicultural organization or in a multicultural team setting. It is important for the business managers to understand the specific cultural differences that are at work in the organization so as to effectively create a positive working environment (Mockler 262). Understanding the differences between different cultures is also important to the business manager as it can help him in the creation of a diverse workforce. A diverse workforce ensures that opposites are integrated which has the effect of making the organization stronger and more powerful (Mockler 262) Works cited Hoecklin, Lisa. Managing Cultural Differences: Strategies for Competitive Advantage. Wokingham: Addison-Wesley, 1995. Print. Mann, Clarence and Gotz, Klaus. Borderless business: Managing the far-flung enterprise. Westport, CT. Greenwood Publishing Group, 2006. Print Mockler, Robert. Multinational strategic management: an integrative entrepreneurial context-specific process. Binghamton, NY. International Business Press, 2002. Print Pauleen, David. Cross-cultural perspectives on knowledge management. Westport, CT: Libraries Unlimited, 2007. Print Simms, Helen. Human Resource Planning. Hertfordshire: Select Knowledge Limited, 2005. Print. Trompenaars, Fons and Hampden-Turner, Charles. Riding the Waves of Culture: Understanding Diversity in Global Business, 2nd ed. Burr Ridge, IL: Irwin, 1998. Print. Read More