Discuss about the Globalization Cultural Diversity and Organizational.
The aim of the paper is to reflect areas of the potential cross-cultural miscommunication that can be faced by any business. The paper is based on the Case scenario of Mary, who owns a small home business manufacturing along with the small factory in Wagga Wagga. Mary is now willing to expand their business in the market of China due to which she decided to meet Mr. Lau a fifty-five-year-old Chinese man. She has decided to expand the business in the China market because there are few organic products that are produced by her are popular in Chinese market due to which she is looking for expansion. Though, this is the fact that Mary is not so certain about how to conduct business with the Chinese. Thus, this is important for Mary to get the details related to the potential of the cross-cultural miscommunication through Hofstede’s cultural dimensions.
Hofstede’s Culture dimension theory is a major framework that is essential for the cross-cultural communication and this framework is developed by Geert Hofstede (Beugelsdijk, Kostova & Roth, 2017). This theory represents the effects of a society’s culture on the values of its member and also how these values are related to the behavior using a structure derives from the factor analysis. There are 6 dimensions that are involved in the Hofstede’s culture dimension.
Power Distance: – This dimension reflects the fact that all the entities in the societies are not same. It reflects the attitude of the culture towards these inequalities. China contains highest ranking of PDI that reflects that the society of the country believes in the inequalities among the people (Alberici, 2016). The relationship between the superior and subordinate is divided in China which leads to the communication gap which leads to miscommunication. In addition, the superior abuse the power they have and there is no defense against it. Individuals of the country are influenced by the formal authority as they believe that the superior on the post have the skills of the leadership and has taken the right decision for the company. This reflects the lack of communication among the employees and superiors.
This power distance can affect the Mary as in Australia the power distance dimension is very less than China. This reflects that the communication in Australia is done directly ad in an informal way. Therefore, at the time of the meeting, Mary will face the issue as Chinese supervisor don’t get involved in the direct communication which might lead to cross culture miscommunication issues. At that point in time, she had to make some of the changes which will help her and leads to the success of the deal.
Individualism: – This dimension talks about the degree of the interdependence that is maintained by the society among its members. China is a highly collectivist culture where the people act in the interests of the group, not for themselves (Hofstede Insights, 2018). This reflects that hiring of the people in the organization is affected by the closer groups as companies give preference to their family members which helps the Mary because the culture of Australia is individualism, that reflects that people are more concern about themselves and their families.
According to the analysis, at the time of meeting both the parties can give preference their family members. Moreover, the Mary will think for their personal benefit (increase in revenue) and on other Mr.Lau will think for the betterment of their business or group.
Masculine: – This dimension shows that the society of the country is driven by competitors or by the values of quality of life (Baptista & Oliveira, 2015). In China, there is the implementation of the masculine society which reflects that they give priority to work as they are much focus on the success. Similarly, in Australia people business give priority to work. The analysis depicts that while performing the meeting both the parties will be focused on the success of the expansion which is one of the advantages of the business meeting to both the parties. In the meeting both the Mary and Mr.Lau can focus on the work and with this objective the meeting might get successful.
Uncertainty avoidance: – This dimension reflects that society always deals with the fact the future is never be known to anyone. China has a low score on the uncertainty avoidance which states that Chinese people are comfortable with the ambiguity which is the language they use. This language is difficult to be followed for the people. Mary obeys Chinese ambiguity and should respect which is one of the effective ways through which they can smoothly conduct the business meetings. Moreover, Chinese are adaptable so they can easily accept the offer of the Mary.
Long-term orientation: – Long-term orientation is one of the important dimension that reflects how the society maintains the links with their past while dealing with present and future. The society of China is pragmatic which reflects that people believe in the truth that relies on situation, time and context. This shows that the company is capable enough to adapt the traditions when the situation fluctuates. On the other hand, in Australia people follow the normative culture which is they rely more on truth irrespective of the situation. There is a vast culture different between Australia and China when considering the point of long-term orientation (Hofstede Insights, 2018).
Considering the analysis, Mary can win the trust of Chinese businessman by accepting the truth considering the change in the situation as this is the only way through which they can agree to the deal. This is one of the important adjustment which may lead to the deal to the success. If in case they get involved in the debate of truth and lie then they won’t be able to make the deal effectively. It is essential to have the mutual agreement while forming the deal. Along with this, the business deals always rely on trust and truth.
Indulgence: – This dimension shows the control of the desires and impulses of the people in the society based on the way they were raised. China is a Restrained society define no as such control of the desire and leisure time but they follow the perception that their actions are restrained by the social norms which make them feel like that they are getting involved in something wrong. In simple words, it can be said that these people give importance to their social norms according to which they don’t perform some activities which are restricted (Vitell, et.al, 2016). On the other hand, in Australia, most of the people possess a positive attitude related to their desire and enjoyment. This society is focused on the leisure time and spends money according to their willingness. According to the analysis, Mary needs to obey and respect the social norms of the Chinese society as this is the effective way through which they can leave their impression on them.
The analysis of Hofstede’s Culture dimension theory reflects the difference between the two countries due to which cross-cultural miscommunication might take place (Wood & Wilberger, 2015). It is essential for any business to analysis the business etiquette. Similarly, there is need to understand the Chinese business etiquette which helps them at the time of the meeting. Greetings are one of the major aspects as the official meeting starts with a handshake with greetings. Chinese people will appreciate if they heard any Chinese word at the time of greeting. Over here, the owner has to ensure that they can take a language translator person with them or she herself can learn few words and can use them with exact meaning. In addition, at meetings, Chinese people like to address the people with their titles followed by their surname (Asialink Business, 2018). Mary needs to adjust this while conducting the meeting with Mr. Lau.
Moreover, in the introduction of the meeting, they exchange their business cards and they check how the people treat the business card as for Chinese business card should be treated carefully (Cao, 2018). While sharing the card the Chinese people accept the business card with both hands and look at it very carefully. Additionally, according to the analysis, the Chinese people start the conversation with the small talk in the meetings and they prefer the English language the most while speaking to the cross-culture people (Asialink Business, 2018). These are the few things which represent the meeting etiquette of the Chinese people.
The successful business expansion is totally depended on the meeting among both the parties. Considering the complete analysis, the owner of a business in Australian, Mary will take a step that helps her in understanding the Chinese business etiquette which helps in the success of the expansion of the business in the market of China.
References
Alberici, C. (2016) China in respect to Hofstede’s Cultural dimensions model, lesson 10 [Online]. Available from: https://sites.psu.edu/global/2016/10/29/china-in-respect-to-hofstedes-cultural-dimensions-model-lesson-10/ [Accessed on 12th April 2018]
Asialink Business (2018) Chinese business culture and etiquette [Online]. Available from: https://asialinkbusiness.com.au/china/conducting-business-in-china/chinese-business-culture [Accessed on 12th April 2018]
Baptista, G., & Oliveira, T. (2015). Understanding mobile banking: The unified theory of acceptance and use of technology combined with cultural moderators. Computers in Human Behavior, 50, 418-430.
Beugelsdijk, S., Kostova, T., & Roth, K. (2017). An overview of Hofstede-inspired country-level culture research in international business since 2006. Journal of International Business Studies, 48(1), 30-47.
Cao, J. (2018) 12 Tips for Chinese Business Etiquette and Culture [Online]. Available from: https://www.digmandarin.com/chinese-business-culture-etiquette.html [Accessed on 12th April 2018]
Hofstede Insights (2018) Australia [Online]. Available from: https://www.hofstede-insights.com/country-comparison/australia/ [Accessed on 12th April 2018]
Hofstede Insights (2018) China [Online]. Available from: https://www.hofstede-insights.com/country-comparison/china/ [Accessed on 12th April 2018]
Manrai, L. A., & Manrai, A. (2011). Hofstede’s cultural dimensions and tourist behaviors: A review and conceptual framework.
Today Translations (2018) Doing business in China [Online]. Available from: https://www.todaytranslations.com/doing-business-in-china [Accessed on 12th April 2018]
Vitell, S. J., King, R. A., Howie, K., Toti, J. F., Albert, L., Hidalgo, E. R., & Yacout, O. (2016). Spirituality, moral identity, and consumer ethics: A multi-cultural study. Journal of business ethics, 139(1), 147-160.
Wood, V. R., & Wilberger, J. S. (2015). Globalization, cultural diversity and organizational commitment: Theoretical underpinnings. World, 6(2), 154-171.
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