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<title>human capital</title>
<link>http://www.bizcovering.com/tags/human capital</link>
<description>New posts about human capital</description>
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<title>Forces That are Affecting the Business Environment</title>
<link>http://www.bizcovering.com/Business/Forces-That-are-Affecting-the-Business-Environment.248517</link>
<description>
<![CDATA[<p>The business landscape is changing rapidly. Companies must continuously adapt to the evolution of the business environment for them to survive. Business managers must be responsive to these changes to protect the existence of their organization. These changes in the business landscape maybe considered as threat or opportunity to the company.</p>
<p>Listed below are some of these forces that are changing the business setting.</p>
<ol>
<li><strong>Technological Innovations.</strong> Internet, microprocessors, automation, information hi-way,  etc., these are some of the technological innovations that are penetrating the  business community and are affecting the way companies compete. For instance,  more and more companies are focusing on online marketing models to sell their  products or services. </li>
<li><strong>Globalization.</strong> Local companies feel that they already saturated their local market and  the only way for them to grow is to tap the market of other countries. The world  economy is becoming a single market place resulting to intense competition  among multinational and local companies.</li>
<li><strong>New Breeds of Workforce.</strong> Due to globalization, employees from all sorts of race and  nationality are moving to and from these multinational companies. Diversity of  the workforce is changing how companies are being managed. </li>
<li><strong>Deregulation.</strong> Government regulations are changing the way business operates. The  protectionist policies of the government are now being dismantled from one  country to another. Affected companies must beef up their operations since their  respective government will no longer be there to guard their turf.</li>
<li><strong>Emphasis on Human Capital.</strong> More companies are producing more services than  tangible products. Even manufacturing firms are adding value added services to  their physical products. The growing importance of services led to the emphasis  on education and human capital. Companies are relying more and more on the  skills and creativity of their employees. As such, they are investing more capital  on &amp;ldquo;knowledge workers&amp;rdquo;.</li>
</ol>
<p>These mentioned forces are changing the way companies compete with each other. The new business landscape is becoming more and more merciless to organizations that are unprepared to meet these challenges. Companies who are not committed to the doing even more than their best will probably die and become food for the worms.</p><a href="http://www.pheedo.com/click.phdo?x=&u=http%3A%2F%2Fwww.bizcovering.com%2FBusiness%2FForces-That-are-Affecting-the-Business-Environment.248517"><img src="http://www.pheedo.com/img.phdo?x=&u=http%3A%2F%2Fwww.bizcovering.com%2FBusiness%2FForces-That-are-Affecting-the-Business-Environment.248517" border="0"/></a>]]></description>
<pubDate>Wed, 10 Sep 2008 07:52:23 PST</pubDate></item>
<item>
<title>Cultural Barriers in Business</title>
<link>http://www.bizcovering.com/International-Business-and-Trade/Cultural-Barriers-in-Business.120874</link>
<description>
<![CDATA[<p>Nowadays, in almost every field of life there is evidence of cultures interacting. Cultural barriers between cultures often cause much frustration, annoyance, and lead to problems. What are these "cultural" barriers and where do they originate?</p>
 
<p>In culture studies, culture is seen as mental programming, where patterns of thinking, feeling, and acting are seen as mental programmes analogous to computer programming. Upbringing plays a major role here, and culture is generally considered learned and not inherited. The sources of an individual's mental programming lie within the familial and social environment in which he/she grew up as well as the individual's collected life experiences. Significantly "culture" refers to the process of socialization, which encompasses all the rules, regulations, assumptions, mindsets, world-view of the family/environment/society in which the individual lives and grows up. Culture enables individuals to play a normal role in society by teaching and shaping human behaviour in accordance with the values and norms that are accepted in that community.</p>
 
<p>Cross-Cultural studies build on the conviction gained from different fields like social anthropology, sociology, or organisational psychology that all societies, traditional or modern, face the same basic problems; only their approaches at finding answers differ. The "Onion" diagram or the "Iceberg" model, try to explore cultures at different levels of depth. Different theorists like Hoffstede, Trompenaars, or <a href="http://www.indiana.edu/%7ewanthro/theory_pages/Geertz.htm" target="_blank">Geertz</a> try to understand differences among cultures through value differences along quantifiable dimensions.</p>
 
<p>Though they are very valuable tools for understanding cultural differences, identifying barriers, and finding ways of working around them, they suffer from some shortcomings.</p>
 
<p>Firstly, the concepts of ethnicity and nation-state are considered to be equivalent, which is not often the case in real life nowadays.  Not all German or French citizens are ethnic Germans or French and diversity creates complexity in behaviour patterns.</p>
 
<p>Secondly, scholars like Nigel Holden criticize the concept of "culture" as a 19th century concept based on culture as difference.</p>
 
<p>Thirdly, much of cross-cultural literature present these "dimensions" e.g., Hofstede dimensions uncritically as fact rather than theories with significant inherent limitations.</p>
 
<p>Last but not the least, the role of the particular industry/field and the organisation is not given due importance, though it might sometimes override ethnic cultural "dimensions". In spite of having very different cultural "dimensions", a German software designer might have more in common with a Russian software designer rather than with a German investment banker.</p>
 
<p>In a business context, two other dimensions complicate the picture. The culture of the profession/field and the organization play a major role in the success of organisational socialization, or how the newcomer successfully integrates and functions in the organisation. The behavioural/mindset expectations that newcomers must acquire in order to become investment bankers are very different from the behavioural/mindset expectations of DJs in the music industry. A 150 year old multinational in the steel industry, which still runs as a family business, is an entirely different world from a website graphics design startup business with 25 year olds.</p>
 
<p>Another aspect that these "cultural dimensions" measure somewhat sketchily is mindsets or world-view (Weltanshaung as the Germans call it). Scandinavians often believe that the Nordic model of welfare state is the supreme achievement of mankind and all other societal models are somehow inferior. Scandinavian society is often extremely arrogant when the question of recognizing an immigrant's educational and professional qualification comes up, especially if the immigrant has not been trained locally or at an elite Western educational establishment like Oxford University or Harvard.  A very qualified surgeon from China or Brazil with 20 years experience might be required to take basic courses to "bring her/his qualifications up to the local level". This might cause very much resentment possibly affecting work commitment.</p>
 
<p>Typically the cultural barriers that are encountered in the business world originate from inadequate knowledge about:</p>
 
<ul>
<li> How different orientation to time and space affects behaviour</li>
 
<li> Do people from different cultures have different expectations about induction and socialization from the firm and colleagues?</li>
 
<li> Differences in communication methods (e.g., do they like to physically meet and discuss face to face or think over things alone and then e-mail own comments, do they signify dissent bluntly or keep silent)</li>
 
<li> How people process information (do they take notes silently or air their views dramatically during presentations etc)</li>
 
<li> What does it mean if the organisation is hierarchical and not flat</li>
 
<li> Differences in how managers delegate, supervise and follow-up tasks</li>
 
<li> How managers and subordinates see each others roles</li>
 
<li> What different areas corporate social responsibility is seen to encompass (the Indians or the Japanese see the role of managers and the company very differently from the Finns or the Danes) </li>
 
<li> How are Career and Performance Management implemented?</li>
 
<li> Do employees from different cultural backgrounds have different concepts of getting and giving respect?</li>
 
<li> How do the special characteristics of the field/industry affect daily behaviour?</li>
 
<li> How important it is to learn the particular organisational culture of the firm?</li>
 
<li> How does the equation of human capital, cultural capital, social capital as well as spiritual capital work for each person? </li>
 
</ul>
<p>An organization's strategy for dealing with cultural barriers should entail the following steps:</p>
 
<ul>
<li> Identifying precise nature, location and origin of barriers</li>
 
<li> Deciding the aims of intervention - why and to what degree that particular barrier needs to be removed</li>
 
<li> Choosing the method of intervention - is training the preferred method, should it be individual or group training, one time or repeated, self-learning or group learning etc</li>
 
<li> Ways of securing commitment to change - people involved should know why changes are desired and what are the benefits for them</li>
 
<li> Damage control strategies - what to do when things go wrong with interventions</li>
 
<li> Follow-up mechanisms to prevent relapses, support learning, reward achievements and monitor overall success </li>
 
</ul><a href="http://www.pheedo.com/click.phdo?x=&u=http%3A%2F%2Fwww.bizcovering.com%2FInternational-Business-and-Trade%2FCultural-Barriers-in-Business.120874"><img src="http://www.pheedo.com/img.phdo?x=&u=http%3A%2F%2Fwww.bizcovering.com%2FInternational-Business-and-Trade%2FCultural-Barriers-in-Business.120874" border="0"/></a>]]></description>
<pubDate>Wed, 07 May 2008 09:07:19 PST</pubDate></item>
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