How Does Business Cultures Work?
I tell my students that all human beings operate on a set of assumptions. Our assumptions are usually framed by our worldview, which is framed by culture. This is true in business as well. How a business is ordered will determine how it functions, its values and its expectations. Here is a set of questions to test your business assumptions:
1. What is more important (a) the TASK or (b) the RELATIONSHIP in your work environment?
2. Do you or your employees find satisfaction with (a) the TIME put into the job or (b) just BEING a part of the job?
3. Would you think your employees work more on (a) the PIECE of the product (and take pride in it) or find satisfaction in (b) the COMPLETED product?
4. Would you say your organization is geared more toward (a) INDIVIUAL risk or (b) COLLECTIVE risk?
Generally, if your answers lean toward the first answer your company assumptions are based on an individualism, which I call “franchisers.” Those who see their company through the lens of the second answer is more group oriented, which I describe as “kingdoms.”
Western businesses are typically “franchisers. “ They operate, even in a highly structured work environment, with self-interest, i.e. their job, their pay, their sense of well-being. To them the work they do is a specific task (hopefully well), which means they put in their time, concentrate on their piece of the project or product and will take risk if it meets their individual goals.
Non-Western companies typically function with a group “kingdom” mentality. Think of the Saudi royal family, the Indian extended family or the Japanese corporate family and you will have a sense of companies that function with a high group structure. All the “b” categories -- relationships, being a part of the team, taking pride in the final product (holism), never taking risk that would jeopardize the company for personal gain and you have a high group business environment.
So what are the implications? First, understanding different assumptions, Western companies and non-Western companies alike, will reveal the tensions of working cross-culturally. Non-Western companies want the same as Western companies, to make a profit, to contribute to the bottom line. However, non-Western companies will take risks collectively. Western businessmen get frustrated with the speed (or the lack thereof) with non-Western decision-making process because it takes longer to build consensus. Why do they move so slowly? Because they operate with a group mentality, not as a "franchiser."
Second, though Western businesses like to talk up the concept, real “teams” are in high group social environments. Companies in China or Thailand truly to ascribe to the motto if the business fails we fail together, whereas those in the U.S. the mentality is that if my business fails then I will look for another job. If we succeed, I will get a bonus.
Culture and business is intertwined. Those who study business cultures will be more effective in this world of globalization, whether they are “franchisers,” or “kingdoms.”
1. What is more important (a) the TASK or (b) the RELATIONSHIP in your work environment?
2. Do you or your employees find satisfaction with (a) the TIME put into the job or (b) just BEING a part of the job?
3. Would you think your employees work more on (a) the PIECE of the product (and take pride in it) or find satisfaction in (b) the COMPLETED product?
4. Would you say your organization is geared more toward (a) INDIVIUAL risk or (b) COLLECTIVE risk?
Generally, if your answers lean toward the first answer your company assumptions are based on an individualism, which I call “franchisers.” Those who see their company through the lens of the second answer is more group oriented, which I describe as “kingdoms.”
Western businesses are typically “franchisers. “ They operate, even in a highly structured work environment, with self-interest, i.e. their job, their pay, their sense of well-being. To them the work they do is a specific task (hopefully well), which means they put in their time, concentrate on their piece of the project or product and will take risk if it meets their individual goals.
Non-Western companies typically function with a group “kingdom” mentality. Think of the Saudi royal family, the Indian extended family or the Japanese corporate family and you will have a sense of companies that function with a high group structure. All the “b” categories -- relationships, being a part of the team, taking pride in the final product (holism), never taking risk that would jeopardize the company for personal gain and you have a high group business environment.
So what are the implications? First, understanding different assumptions, Western companies and non-Western companies alike, will reveal the tensions of working cross-culturally. Non-Western companies want the same as Western companies, to make a profit, to contribute to the bottom line. However, non-Western companies will take risks collectively. Western businessmen get frustrated with the speed (or the lack thereof) with non-Western decision-making process because it takes longer to build consensus. Why do they move so slowly? Because they operate with a group mentality, not as a "franchiser."
Second, though Western businesses like to talk up the concept, real “teams” are in high group social environments. Companies in China or Thailand truly to ascribe to the motto if the business fails we fail together, whereas those in the U.S. the mentality is that if my business fails then I will look for another job. If we succeed, I will get a bonus.
Culture and business is intertwined. Those who study business cultures will be more effective in this world of globalization, whether they are “franchisers,” or “kingdoms.”
posted by RG Lewis at 10:25 AM
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