Introduction
With the advent of globalization, the workplace has become more and more diverse in context of different cultural teams, workforce and demographic characteristics. The global minds of multinational corporations have been confronted with the cultural difference and its related issues at one or the other point. There is heavy relaxation of international borders in business due to globalization thus enabling large and profitable domestic firms from one nation to pursue their business interests in other markets and nations without compromising the domestic business. It has become normality in the today’s world to for various large multinational companies to operate different parts of the world (Zaidman & Holmes, 2009).
Culture can be regarded as a complex and multi-dimensional concept proving to be crucial and critical for conducting business at the global levels. The cultural beliefs, principals, values and symbols are so embedded in the concerned area and amongst its people that one can suggest that business should adopt a pragmatic and polycentric approach in order to fit with the area instead of trying any kind of dictation or imposition of self on the particular culture, especially when entering the new market. There is a huge impact of cultural implications on longevity and reception to the new brand that is launched in a market regardless of the experience, size or products and services of the organization (Zaidman & Holmes, 2009).
The paper focuses on the differences in cultures in the business community with further discussion of importance of multicultural companies and the differences between Eastern and Western cultures and its implications for conducting business in the global arena.
Cultural differences in the business communication
Nowadays, there is presence of an array of communication devices that are present at the disposal of business executives, such as video conferences, e-mails, etc. that see daily improvement in the communication industry so as to give the communication products a state of the art technology. In the current globalized economy, it is essential for business partners to communicate effectively in a given language. Along-with the good linguistic knowledge, it is also necessary to have the knowledge of the culture that is beneath that language. It is the pre-requisite for a culturally competent communication i.e. the ability to communicate cross culturally (Baumann, 2007).
In the world of business, cross cultural negotiations have always proved to be a challenge for any business executive because of negotiations being influenced by the national culture and of the parties involved in the negotiation. It is also fascinating to understand the differences that can be found among various cultures in regards of their respective view of what a business meeting is held for. For instance, business executives from Asian cultures consider that the major role of any meeting is to gather information, presenting ideas or making them evaluated in the meeting, thus looking for obtaining consensus. On the other side, business executives from America can regard and view meetings as a form of opportunity for brainstorming ideas and examining them as they emerge while the meeting is carried on (Baumann, 2007).
The style of communication also seems to vary and depend on the culture of the negotiators. It is more likely that the American business executives focus on confrontational and a direct approach with the habit of challenging or questioning whatever information or idea is being presented. On the other hand, it is the tendency of Asian executives to listen more and they usually make any kind of inquiry outside the meeting room when having lunch or during the break (Moll, 2012).
Another cultural difference can be observed when companies have to decide what number of participants will take part in the process of negotiation. For instance, Chinese and American companies are likely to send only one or two people to a particular business meeting. At the same time, Korean and Japanese companies give consideration to sending a team or a group of people and consider it more appropriate. This pattern of cultural difference is present because of the underlying belief of Japanese and Korean executives that a single individual does not possess all the knowledge and expertise required for the intended purpose. Therefore, a team that comprises of experts from different areas make the negotiation process and business meetings more productive (Khan & Khan, 2012).
Failure to understand cultural nuances has proved to be detrimental to growth of international business for MNCs. For instance, Wal-Mart acquired two companies in Germany as part of its international expansion. However, cultural differences between two nations led to failure of the company. Germans looked down to the practice of spying on co-workers and reporting misconduct while it is considered a fair business practice in USA. Feedback from lower level employees was also ignored by the company which was not part of German culture. It led to frustration and annoyance, thus affecting the company business (Kneer, 2009).
The multicultural phenomenon
In the era of growth of multinational and global companies in the world, presence of multicultural workforce seems to be a normal phenomenon. In such workforce, there is a wide range of cultural differences that exist among members of the organization. The level of multiculturalism is identified by the differences in age, gender, race, ethnicity, etc. Heterogeneous employees depict the importance of diversity management in the organization. Multicultural companies have to include cultural awareness programs and education along-with giving sensitivity training as core elements of diversity management. Leaders of multinational companies have recognized that in order to reap benefits from a culturally diverse workforce and to avoid common challenges, their employees must be taught to accept and gain tolerance for their differences (Tomalin & Nicks, 2007).
The impact of multiculturalism in the workplace is widely evident. Organizations need to learn to function in a multicultural workplace that comprise of people with backgrounds that are widely differing. Reflecting on the type of culture, there are low context and high context cultures. Individuals who are raised in low context cultures are likely to possess the characteristic of being very literal i.e. they focus on the spoken word (Tomalin & Nicks, 2007).
Also, they are more action oriented and analytical in nature. Furthermore, employees from such culture tend to be linear in their work i.e. moving from point A to point B and so on. Business managers from such low context cultures keep on striving to be efficient and professional in their work with treating time as very limited item. Examples of such low context cultures are North America and Western Europe (Tomalin & Nicks, 2007).
On the other side, high context cultures are intuitive and at the same time more contemplative. People who are raised in this culture have the tendency to treat time as endless resource. They work according to spiral logic as they circle around a topic in indirect manner with giving consideration to it from all the viewpoints. Examples of such cultures include Middle Eastern, Far Eastern and Hispanic cultures (Tomalin & Nicks, 2007).
In the multicultural workplace, people from both the low context and the high context cultures are interacting with each other like never before. As it is likely that people are affected in both visible and invisible forms by their respective cultures, any inevitable misunderstanding can result in conflict. For instance, employees hailing from high context cultures, such as Mexico, China and Japan can prefer to say no with the use of their body language rather speaking the word straight away.
Americans and Canadians, who hail from literal cultural patterns, may overlook these subtle implications of body language quite often, thus failing to understand the intended response from their fellow employees. In order to overcome such multicultural misunderstandings, business managers should take time to learn and understand differing cultures that are represented within their workplace. It is also necessary that employees from different cultures are trained in regards to how to communicate in the best manner with one another on the job (Timmons et al, 2004).
There are various cultural awareness techniques that are employed by business managers in the multicultural workplace. The first technique is increasing the cultural knowledge. Searching the internet over the matter and using other accessible sources such as books prove to be useful. It helps in making better relations with colleagues as well as international clients. Putting the cultural knowledge to use breaks down the multicultural barriers and co-workers appreciate the efforts. Effective listening and overcoming stereotypes are other techniques that employees can use themselves to better understand cultural differences in their workplace (Jinsoo, 2007).
Google Inc. is globally recognized organization for its diverse workforce and diversity management. The inclusive culture of Google make its employees feel free and comfortable while working. It celebrates the culture of diversity by organizing many celebrations such as Hispanic Heritage Month, Black History Month, Veteran’s Day, LGBT Pride, and so on. These celebrations of traditions among Googlers make them more culturally aware and tolerable to underlying cultural differences (Diversity & Inclusion in our Culture, 2013).
Conclusion
Differences in culture are a part of the global business environment. Employees from different parts of the world work together in the same workplace. Businesses too have to deal with multiculturalism while they expand to other parts of the world. There are significant differences in Asian and Western culture including Europe and America. In order to avoid conflict and make people work together in a coherent manner, it is essential for multinational companies to apply diversity management in the workplace.
Without understanding the role and impact of multiculturalism on business operations and on morale of coworkers, employees from diverse cultural backgrounds cannot give their 100 percent in the productivity. Multiculturalism is a normal phenomenon in the global economy and differences in cultures are required to be understood well. When business managers understand the key differences in cultures, they are able to carry on their business tasks with efficiency and effectiveness, thus contributing to the attainment of organizational goals and objectives.
References
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Jinsoo, T. (2007). Motivating a multicultural workforce. Industrial and Commercial Training, 39( 1), 59-64.
Khan, M. & Khan, M.E. 2012. Achieving Success through Effective Business Communication. Information and Knowledge Management, 2(2).
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Moll, M. 2012. The Quintessence of Intercultural Business Communication. Springer.
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Tomalin, B. & Nicks, M. (2007). The World's Business Cultures and how to Unlock Them. Thorogood Publishing.
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