Examining the meaning of culture, its impact on management and analysis the dangers of Self Reference Criteria (SRC)

Essay by ohuaUniversity, Bachelor'sC+, July 2004

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Business has so rapidly developed globally, management is no longer restricted to the domestic territory, but has gone beyond national borders and constantly confronts cultural diversity. Culture has gradually come to play an increasingly prominent role in the international business over the last couple of decades. Being aware of the differences that exist between cultures and knowing how to respond to when we encounter puzzling cross-cultural situations are important skills. People around the world share the same basic wants and needs, but they differ in the manner that they try to fulfill them even between individual members of the same society. These cultural differences can and do impact on behavior and understanding. If we know more about the different cultural beliefs, values, and attitudes of our global neighbours, we could dispel the barriers to tolerance, understanding and good communications. James Lee states that "the unconscious reference to ones own cultural values is the root cause of most business problems abroad."

The purpose of this paper is to discuss James' statement made by examining the meaning of culture, its impact on management within overseas markets, and analysis the dangers of Self Reference Criteria (SRC) as well as how can they be avoid. Examples will be used to support the management practice which may keep reducing the impact of SRC.

The "hot topics" for the 21st century would seem to be globalisation, team working and diversity. It provides a background to considering issues relating to development and performance of international management teams. In a global context the management and development of people inevitably leads to considerations of diversity and related challenges. Bartlett and Goshal(1998) discuss the challenges facing organizations which are intending to work effectively across borders. They identify the major challenges as being able to develop practices which balance global competitiveness,