Revised chapter 3 (14) business cultures in the western world

• a much more united Europe existed in the Middle Ages.. • Council of Europe: – aims to promote fundamental values, e.g... Western Europe• Greece – Not possible to talk about Europe wit

Chapter 3

Business cultures

in the Western world

• Europe’s identity never clearly established culturally, politically or geographically.

• a much more united Europe existed in the Middle

Ages.

• Most recent development:

– creation of the European union (EU):

• common economic, socio-cultural and political bodies.

• Council of Europe:

– aims to promote fundamental values, e.g human

rights.

The European Union

Source: The European Commission ©.

Western Europe

• Greece

– Not possible to talk about Europe without mentioning Greece.

• Latin Europe

– Influence of Roman Empire

– Highly developed bureaucracies

– ‘Rule-bending’ through family and personal

relationships – Latin European cluster characterised as being ‘low in

humane orientation practices’ (House et al 2004)

• Nordic Europe

– Viking heritage:

• self-sufficiency, fairness, egalitarianism and democracy

– Face up to authority, question it and expect to be

consulted – Differences between the Scandinavian countries on a socio-economic level.

• Germanic Europe

– Longer term perspective when managing uncertainty

– Assertive behaviour, explicit communication

– Emphasis on results rather than relationships.

Western Europe (Continued)

• Great Britain

– United Kingdom of Great Britain:

• England, Wales, Scotland and Northern Ireland

– Common history with Europe and relationship with EU

– Anglo-Saxon style of management:

• Pragmatic (practical) and relaxed approach

– Organisation:

• a market in which people negotiate what has to be done

– Individualistic:

• individual in selection procedure.

Western Europe (Continued)

• Emergent economies

– Economies of the Eastern and Central European countries – Russia and Turkey, have some similarities with other

countries around the world.

– ‘emerging markets’.:

– Poland, Czech Republic, Hungary and Romania:

• East and Central Europe

– Transition from bureaucratic, centralised economy to

market-oriented economies with more democratic features.

Eastern Europe

• Russia, a BRIC country

– European emergent market

– one of the BRIC countries

– largest of the former Soviet Union republic

– ‘Blat’, a Soviet form of social networking

– still flourishes to help cope with uncertainties of new society.

Eastern Europe (Continued)

Eastern Europe (Continued)

• Turkey

– straddles the border between Europe and Asia

– Candidate for membership of EU, but its right to

be a member disputed:

– Turkey seen by some as not being European culturally, socially or geographically But what does

‘European’ mean?

– Others see Turkey as European through its influential role in Europe over four centuries.

American and Australasian cultures

• We move from the ‘European Old World’ to the

‘New World’.

• Areas where immigrants from European peoples set up home and business.

• Concept examines:

– Anglo-Saxon approach to business

– The strong values of the Latin Europe as reflected

in Latin America

– Originally 13 British colonies which would become the USA

– Constitution based on the principle of equality

– Many immigrants adopted the Protestant work ethic

– Indicator of success for US businesses is the ‘bottom-line’

– Difference between British and American businesses:

- the way they look at the future

• The ‘new’ immigrants

– Latin American and Asian immigrants

– Recent immigrants (Mexican) are still undergoing the process of assimilation.

United States of America

• Canadians

– More a ‘mosaic’ (variety) than a ‘melting-pot’ society – Respect for cultural diversity and cultural pluralism – Canadian style of management contrasts to that of the USA:

• less formalised

• less driven by individual goals

• more aware of society as a whole.

Canada

• Australians and New Zealanders

– Increasing cultural diversity, despite Anglo-Saxon foundations

– Business culture remains Anglo-Saxon in nature, but more collaborative, distrust of authority.

Australia and New Zealand

Latin America

• Despite differences between countries of

Central and South America, cultural values are

shared:

– Strong belief in Catholic religion

• reflecting importance of families and distinct male/female roles

• values implanted by immigrants from Iberian peninsula

– Role of ‘patron’:

• authoritarian behaviour expected and respect shown

• Rise of middle class in Brazil is shared with

other BRICS countries