Mohammad Mosaddek Hussain :
Needless to say that cultural trend in business is an important issue in our country that needs cultural fit in managing business properly. Consumers are aware of the product standard and its real use in the community and the business market. On the other side, style of management and business requires some components that fit with the cultural values and traditions of the customers and consumers. It is necessary to assess the propensity of the customer and consumer groups of different levels.
Similarly, doing business in other countries and international market needs are to adapt effectively to different cultures in different countries. Such adaptation requires an understanding of cultural diversity, perception, stereotypes, and values” as Hodgett and Luthans, suggested. To this end, it denotes “culture is acquired knowledge that people use to interpret experiences and generate social behaviour. This knowledge forms values, creates attitudes and influences how people act in the community and society as a whole.
The main features of culture may be understood as the scholars have defined it as follows:
Learned – Culture is obtained by learning, knowledge, practice, experience etc. rather than hereditary or instinct.
Shared – Culture is not only for particular person, it is about group of people, society or organization and form/through interactions.
Trans-generational – Culture endures from generation to generation.
Symbolic – Culture is based on symbols for example; Language can be an important aspect of culture that helps to represent different substances and facts.
Patterned – Culture is integrated and consistent within and across the people, respective changes in action that takes place if there needs to be changed.
Adaptive – Culture is adaptive, people adapt to new circumstances and environment to accommodate it.
As a variety of cultures do represent in the business world, for international management, the manager should know about the culture that they are cooperating with in managing business otherwise things might be in vain. A most important feature in culture is values of thoughts of people and consumers that is the key principle of an individual in relation to their thinking of what is correct and incorrect, good and bad, significant and insignificant, right and wrong. These are practiced in culture in countries where it has reflection on individual’s behaviour and hence due to differences in culture values can have different management systems in different regions and countries in reality.
It is important to understand properly how the culture affects management system and how it interferes in managing business or differs from management approach in countries to countries. In this regard the approaches should be considered in the light of the following components as well
Centralized vs. Decentralized – In some culture of a society, top-level managers take important decisions whereas others give empowerment to low, mid level managers or active participants to take decisions.
Safety vs. Risk – In some places, risks can be expected and uncertainties are handled while, others are completely unwilling to take risks and face problem if any uncertainty arises.
Individual vs. Group Rewards – In some places, individuals are given rewards on their appraisal while others consider group rewards.
Informal vs. Formal procedures – Some place follow formal procedures firmly whereas others get achievements with even informal procedures.
High vs. Low Organizational loyalty – In some place, people gets recognition or appreciation by their organizational prominence while some people in other place get to know as their professional label.
Cooperation vs. Competition – in some places, people are encouraged to be competitive with their colleagues whereas in some places they are meant to be cooperative.
Short term vs. Long term Horizons – In some place much focus is given on short-term profit and efficiency while in other places they think about long run goals.
Stability vs. Innovation – some cultures does retain their stabilities and do not accept changes but some do changes and accept new happenings and innovation.
Further it is necessary that iInternational managers need to understand that due to differences in national culture requires different management approaches and behaviours. And equally needs to have effective integration of different cultures and methods. They need to understand that such management that works in one country might not work into another in certain aspects. In order to understand work on cultural issues, some researchers have established models that are still used widely in management development procedure.
In this respect two well-known researchers – Greet Hofstede and Fons Trompenaars. Hofstede models describes about differences in behaviour in varied culture whereas, Trompenaars talks about how people relate to each other, about time and environment.
Culture is manifested to be inherent what people often take for granted from their domicile environment as Edensor, expressed. “The study of national culture gives a synoptic idea of local values/shared meanings, political system, religion/philosophical beliefs, economic prosperity, language and education system as a whole”.
Here, we discuss about the perception of natural culture of the people of Bangladesh. This countries situated in Southern Asia with an area of 144,000 sq km and is surrounded by Bay of Bengal in south, by India in north, west and east and by Myanmar in southeast. It was born as a free nation after Independence War in 1971, which the country still prides of and also about other values and beliefs, like Bengali New Year, Day, Martyr Day, International Language Day etc and the like. It has a rich culture of mixture of full music, dance, folks, drama, art, craft, literature, philosophy, religion, festivals, celebrations etc. The country does have population of around 160 millions consisting of various religions the Muslim, Hinduism, Buddhism, Christianity and others. It has parliamentary democratic government and the state language is Bangla, the second language English, which is widely used in different business sectors, education MNCs etc. At present the, the literacy rate is at over 60 percent with the agricultural production, natural resources, exports and imports business. As statistics shows that, Bangladesh has attained about 6% GDP growth rate. For the last couple of decades, labor force has increased even more due to rapid growth of population and has reached a total amount of 72.5 million and rate of people without job is 2.5% as Khan stated in 2010.
On the other hand, in Bangladesh, the business is usually set up with cross-cultural management and is maintained very traditionally and conservatively as a whole. Such management degree of formality and shows respect and treat with dignity to seniors, older people, someone from high authority or government officials who hold powers and authority. Hierarchical structure in management system is maintained more in public sectors than in private business for different management style and set-up. High ranking officials or top-level management have more privilege, i.e. according with Hofstede dimensions of culture managers have high power distance in many levels.
Further, it is observed that Bangladesh has a culture of low risk and low change tolerant. The intercultural capabilities and inclinations for uncertainty or risk are low. New plans are studied and analyzed with due consideration and awareness to make certain whatever risks they found are well defined and properly understood. In changing structure and belief regarding organization, the new proposals are supposed to be stabilized and accepted by the people. Intercultural understanding is significant for risk considerably influenced by the consequences of failure for both individual and organization.
As we experience in many organizations or businesses enterprises, generally, managers or someone from upper level or relatives of the top management level have paternalistic attitude towards their employees to some extent and they take decisions while the subordinates are meant to follow their orders. They have nothing to suggest and all orders are vested upon them to implement as the owners want. This is totally autocratic culture. Those are not supported by most employees. The culture here is somewhat towards autocratic approach. Top-level government officials of the country take decisions and handed over to the managers to execute the procedure. Usually, the decision makers seek advice from the experts before taking any step but not in every cases. They just inquire for subsequent information rather than looking for consensus. According to Hofstede’s model Bangladeshi’s managers are more individualistic rather than collectivistic as seen in many cases.
Moreover it is observed that Bangladeshi managers tend to consider long-term decision making rather than short-term. And also they have respects for culture, tradition and concern about communal responsibilities. Other issues like religion, language, locality and reciprocated of gifts are kept into consideration in such culture. In this respect, further as per Hofstsede’s model, Bangladeshi management is less long-term orientated and highly short-term oriented.
Managers of this country usually run their business depending on experiences and empirical data, while others believe in instinct, faith and opportunity. Generally, in such culture, emotional expressions are shown, always posses good nature to others, hide frustration or annoyance.
On the other hand, social dealings tend to be more demanding, authoritarian, paternalistic, autocratic, inequality decision making procedures, loyalty, motivation and controlling in management attitude. Comparatively, in the western countries, management styles tend to have consultative or equality decision-making procedures, self-interest, aggressive personality, competency, individualism in management attitude as a whole.
BV Ltd. is an offshore software development and Information Technology firm, since 2001 that has been producing quality business solutions for the global market. It is a joint venture company between BG, a stock market listed leading company from Denmark and MD Group IT company from Bangladesh. It develops software, desktop/web based products and applications and performs IT Consultancy in businesses in Europe and other parts of the world and hence it has established successful bonding with European clients by providing qualitative services. It defines itself by emphasizing central focus on providing best services to valued customers throughout the world.
The company is functioning with the state of art in Dhaka but is managed by permanent locally based European Chief Executive Officer. Since it has standing customers from Europe, BV believes in setting a tradition where the European way of dealing business will be a common thing. The company thinks that accomplishment can only be achieved when quality career opportunities along with facilities are made available to the employees. They give high preferences on Human Resources, extensive training by European experts, long-term employee partnership, Corporate Social Responsibility, both locally and internationally, during employments development process.
The management culture of the company is quite similar to western management style, i.e. the top-level management maintains friendly and professional relationship with the employee, preserve equality and assume them to be independent, proactive and self-motivated. It has a moderately comprehensive and decentralized management style with less hierarchical relationship and is expected to have mutual respect rather than one of fully dedicated individual loyalty. The employees always work together and believe in teamwork. Since they belong from high educational background and/or having previous experiences, it was quite easy to adapt such management style even though there were cultural differences with the top-level management.
This management style has been developed by the CEO in order to have close connections with the clients and tried not to have any hierarchical level in between so that works could roll on in fast pace. It ensures quick decision making, giving empowerment opportunities, effective while fulfilling client’s requirements and the CEO can have clear focus on subordinates’ tasks.
In this company employees expect and react to encouragement task related leadership with better performance and total satisfaction as they gain self-confidence and skill while manager moves forward within a democratic style. It is also worth mentioning that the CEO of BV pays attention and gives values to the Bangladeshi culture, tradition and behaviors and has achieved a better management even in a different culturally environment. Despite diversity in backgrounds, he has succeeded to work together effectively as a team.
According to Hofstede’s model, the CEO of BV follows the management style that is of Low Power Distance, Low Uncertainty Avoidance, Femininity, Collectivism and Long-term orientated characteristics.
In fine, it may be stated that Bangladeshi people are pretty much adaptable and sociable in any environment and in any culture and able to cope with the emerging situation. They know how to cooperate regardless of the fact that whether the company has flat or tall organizational structure, whether it has centralized or decentralized management. In Bangladesh, people follow fairly formal business etiquette. New generations learn cultural ethics and principles, religious values, language in the course of socialization with people, which in turn, help, to establish attitudes, develop passions and build awareness about their social individuality of being a Bangladeshi. Education also has major advantage in this aspect of building ones identity. Nevertheless, the new generations are the people who contribute in politics, development, entrepreneurships and prosperity of the country as a whole.
Considering the foregoing discussion, due importance would have to be given into all the sectors of business, government, institutions and entrepreneurship to boost local culture in business and its management approach for better achievement.
Needless to say that cultural trend in business is an important issue in our country that needs cultural fit in managing business properly. Consumers are aware of the product standard and its real use in the community and the business market. On the other side, style of management and business requires some components that fit with the cultural values and traditions of the customers and consumers. It is necessary to assess the propensity of the customer and consumer groups of different levels.
Similarly, doing business in other countries and international market needs are to adapt effectively to different cultures in different countries. Such adaptation requires an understanding of cultural diversity, perception, stereotypes, and values” as Hodgett and Luthans, suggested. To this end, it denotes “culture is acquired knowledge that people use to interpret experiences and generate social behaviour. This knowledge forms values, creates attitudes and influences how people act in the community and society as a whole.
The main features of culture may be understood as the scholars have defined it as follows:
Learned – Culture is obtained by learning, knowledge, practice, experience etc. rather than hereditary or instinct.
Shared – Culture is not only for particular person, it is about group of people, society or organization and form/through interactions.
Trans-generational – Culture endures from generation to generation.
Symbolic – Culture is based on symbols for example; Language can be an important aspect of culture that helps to represent different substances and facts.
Patterned – Culture is integrated and consistent within and across the people, respective changes in action that takes place if there needs to be changed.
Adaptive – Culture is adaptive, people adapt to new circumstances and environment to accommodate it.
As a variety of cultures do represent in the business world, for international management, the manager should know about the culture that they are cooperating with in managing business otherwise things might be in vain. A most important feature in culture is values of thoughts of people and consumers that is the key principle of an individual in relation to their thinking of what is correct and incorrect, good and bad, significant and insignificant, right and wrong. These are practiced in culture in countries where it has reflection on individual’s behaviour and hence due to differences in culture values can have different management systems in different regions and countries in reality.
It is important to understand properly how the culture affects management system and how it interferes in managing business or differs from management approach in countries to countries. In this regard the approaches should be considered in the light of the following components as well
Centralized vs. Decentralized – In some culture of a society, top-level managers take important decisions whereas others give empowerment to low, mid level managers or active participants to take decisions.
Safety vs. Risk – In some places, risks can be expected and uncertainties are handled while, others are completely unwilling to take risks and face problem if any uncertainty arises.
Individual vs. Group Rewards – In some places, individuals are given rewards on their appraisal while others consider group rewards.
Informal vs. Formal procedures – Some place follow formal procedures firmly whereas others get achievements with even informal procedures.
High vs. Low Organizational loyalty – In some place, people gets recognition or appreciation by their organizational prominence while some people in other place get to know as their professional label.
Cooperation vs. Competition – in some places, people are encouraged to be competitive with their colleagues whereas in some places they are meant to be cooperative.
Short term vs. Long term Horizons – In some place much focus is given on short-term profit and efficiency while in other places they think about long run goals.
Stability vs. Innovation – some cultures does retain their stabilities and do not accept changes but some do changes and accept new happenings and innovation.
Further it is necessary that iInternational managers need to understand that due to differences in national culture requires different management approaches and behaviours. And equally needs to have effective integration of different cultures and methods. They need to understand that such management that works in one country might not work into another in certain aspects. In order to understand work on cultural issues, some researchers have established models that are still used widely in management development procedure.
In this respect two well-known researchers – Greet Hofstede and Fons Trompenaars. Hofstede models describes about differences in behaviour in varied culture whereas, Trompenaars talks about how people relate to each other, about time and environment.
Culture is manifested to be inherent what people often take for granted from their domicile environment as Edensor, expressed. “The study of national culture gives a synoptic idea of local values/shared meanings, political system, religion/philosophical beliefs, economic prosperity, language and education system as a whole”.
Here, we discuss about the perception of natural culture of the people of Bangladesh. This countries situated in Southern Asia with an area of 144,000 sq km and is surrounded by Bay of Bengal in south, by India in north, west and east and by Myanmar in southeast. It was born as a free nation after Independence War in 1971, which the country still prides of and also about other values and beliefs, like Bengali New Year, Day, Martyr Day, International Language Day etc and the like. It has a rich culture of mixture of full music, dance, folks, drama, art, craft, literature, philosophy, religion, festivals, celebrations etc. The country does have population of around 160 millions consisting of various religions the Muslim, Hinduism, Buddhism, Christianity and others. It has parliamentary democratic government and the state language is Bangla, the second language English, which is widely used in different business sectors, education MNCs etc. At present the, the literacy rate is at over 60 percent with the agricultural production, natural resources, exports and imports business. As statistics shows that, Bangladesh has attained about 6% GDP growth rate. For the last couple of decades, labor force has increased even more due to rapid growth of population and has reached a total amount of 72.5 million and rate of people without job is 2.5% as Khan stated in 2010.
On the other hand, in Bangladesh, the business is usually set up with cross-cultural management and is maintained very traditionally and conservatively as a whole. Such management degree of formality and shows respect and treat with dignity to seniors, older people, someone from high authority or government officials who hold powers and authority. Hierarchical structure in management system is maintained more in public sectors than in private business for different management style and set-up. High ranking officials or top-level management have more privilege, i.e. according with Hofstede dimensions of culture managers have high power distance in many levels.
Further, it is observed that Bangladesh has a culture of low risk and low change tolerant. The intercultural capabilities and inclinations for uncertainty or risk are low. New plans are studied and analyzed with due consideration and awareness to make certain whatever risks they found are well defined and properly understood. In changing structure and belief regarding organization, the new proposals are supposed to be stabilized and accepted by the people. Intercultural understanding is significant for risk considerably influenced by the consequences of failure for both individual and organization.
As we experience in many organizations or businesses enterprises, generally, managers or someone from upper level or relatives of the top management level have paternalistic attitude towards their employees to some extent and they take decisions while the subordinates are meant to follow their orders. They have nothing to suggest and all orders are vested upon them to implement as the owners want. This is totally autocratic culture. Those are not supported by most employees. The culture here is somewhat towards autocratic approach. Top-level government officials of the country take decisions and handed over to the managers to execute the procedure. Usually, the decision makers seek advice from the experts before taking any step but not in every cases. They just inquire for subsequent information rather than looking for consensus. According to Hofstede’s model Bangladeshi’s managers are more individualistic rather than collectivistic as seen in many cases.
Moreover it is observed that Bangladeshi managers tend to consider long-term decision making rather than short-term. And also they have respects for culture, tradition and concern about communal responsibilities. Other issues like religion, language, locality and reciprocated of gifts are kept into consideration in such culture. In this respect, further as per Hofstsede’s model, Bangladeshi management is less long-term orientated and highly short-term oriented.
Managers of this country usually run their business depending on experiences and empirical data, while others believe in instinct, faith and opportunity. Generally, in such culture, emotional expressions are shown, always posses good nature to others, hide frustration or annoyance.
On the other hand, social dealings tend to be more demanding, authoritarian, paternalistic, autocratic, inequality decision making procedures, loyalty, motivation and controlling in management attitude. Comparatively, in the western countries, management styles tend to have consultative or equality decision-making procedures, self-interest, aggressive personality, competency, individualism in management attitude as a whole.
BV Ltd. is an offshore software development and Information Technology firm, since 2001 that has been producing quality business solutions for the global market. It is a joint venture company between BG, a stock market listed leading company from Denmark and MD Group IT company from Bangladesh. It develops software, desktop/web based products and applications and performs IT Consultancy in businesses in Europe and other parts of the world and hence it has established successful bonding with European clients by providing qualitative services. It defines itself by emphasizing central focus on providing best services to valued customers throughout the world.
The company is functioning with the state of art in Dhaka but is managed by permanent locally based European Chief Executive Officer. Since it has standing customers from Europe, BV believes in setting a tradition where the European way of dealing business will be a common thing. The company thinks that accomplishment can only be achieved when quality career opportunities along with facilities are made available to the employees. They give high preferences on Human Resources, extensive training by European experts, long-term employee partnership, Corporate Social Responsibility, both locally and internationally, during employments development process.
The management culture of the company is quite similar to western management style, i.e. the top-level management maintains friendly and professional relationship with the employee, preserve equality and assume them to be independent, proactive and self-motivated. It has a moderately comprehensive and decentralized management style with less hierarchical relationship and is expected to have mutual respect rather than one of fully dedicated individual loyalty. The employees always work together and believe in teamwork. Since they belong from high educational background and/or having previous experiences, it was quite easy to adapt such management style even though there were cultural differences with the top-level management.
This management style has been developed by the CEO in order to have close connections with the clients and tried not to have any hierarchical level in between so that works could roll on in fast pace. It ensures quick decision making, giving empowerment opportunities, effective while fulfilling client’s requirements and the CEO can have clear focus on subordinates’ tasks.
In this company employees expect and react to encouragement task related leadership with better performance and total satisfaction as they gain self-confidence and skill while manager moves forward within a democratic style. It is also worth mentioning that the CEO of BV pays attention and gives values to the Bangladeshi culture, tradition and behaviors and has achieved a better management even in a different culturally environment. Despite diversity in backgrounds, he has succeeded to work together effectively as a team.
According to Hofstede’s model, the CEO of BV follows the management style that is of Low Power Distance, Low Uncertainty Avoidance, Femininity, Collectivism and Long-term orientated characteristics.
In fine, it may be stated that Bangladeshi people are pretty much adaptable and sociable in any environment and in any culture and able to cope with the emerging situation. They know how to cooperate regardless of the fact that whether the company has flat or tall organizational structure, whether it has centralized or decentralized management. In Bangladesh, people follow fairly formal business etiquette. New generations learn cultural ethics and principles, religious values, language in the course of socialization with people, which in turn, help, to establish attitudes, develop passions and build awareness about their social individuality of being a Bangladeshi. Education also has major advantage in this aspect of building ones identity. Nevertheless, the new generations are the people who contribute in politics, development, entrepreneurships and prosperity of the country as a whole.
Considering the foregoing discussion, due importance would have to be given into all the sectors of business, government, institutions and entrepreneurship to boost local culture in business and its management approach for better achievement.
