Answer

Introduction

            Culture refers to the specific beliefs, rules, techniques, institutions, and even artifacts which characterize human populations. Individual groups tend to have their own culture which distinguishes them from the rest. For example, the Japanese have a tendency of being very polite while the Australians are characteristically blunt. In addition, the color red may be used to symbolize danger in British culture, death in Turkey, and good fortune in China. These patterns of global diversity and the implications brought about by these differences have been studied by scholars in many fields. From a business perspective, understanding these differences is very important for the international managers who will at one point have to deal with various cultures. Some cultures may have some similarities, but in most cases the differences outdo the similarities. To assess the similarities and differences in managerial processes and organizational culture which the international manager can expect to encounter, this paper will consider two countries: South Korea and the United States. Dealing with national cultural differences needs more than adequate knowledge on behaviors. It is important to have a deeper understanding of the assumptions and values which will shed more light on why some behaviors are more appropriate than others. To achieve this, the paper will use Hofstede’s cultural dimensions which will help in categorizing the two national cultures.

Cultural Differences between South Korea and the United States

            The cultural differences such as beliefs, rules, techniques, may trigger different styles of communication and interaction. These factors may in turn trigger workplace misunderstandings, poor interpersonal and intergroup relationships, employee inefficiency and higher operating costs. In the United States, for instance, managers tend to be highly assertive and performance oriented compared to managers from other countries such as South Korea. The interaction style is characteristically direct in the U.S. and they tend to use facts and figures to determine steps towards a measurable outcome. In South Korea, on the other hand, societies are highly gender-differentiated. The male dominate the decision-making, which also leads to more face-to face communication. To compare these two cultures on a deeper level, it is important to first understand Hofstede’s cultural dimensions.

            Hofstede’s first four dimensions were developed from his studies of various employees located in different countries. They include; Power Distance, Uncertainty Avoidance, individualism versus Collectivism, and Masculinity versus Femininity. The fifth cultural dimension was not introduced until later when it was noted that none of the other four represented East African Countries in relation to national economic growth. Therefore, the Confucian Dynamism was introduced, followed shortly by Indulgence versus Restraint. The figure below (Figure 1) displays the scores of the U.S. and South Korea of Hofstede’s dimensions.

Figure 1: Dimensional Scores (Source: The Hofstede Centre)

Power Distance

            This dimension may be defined as “the extent to which the less powerful members of institutions and organizations accept that power is distributed unequally” (Yuan & Zhou 2015, p. 990). The power distance of South Korea scored 60, a number which represents a high level compared to the United States which scored 40 (Yuan & Zhou 2015, p. 994). Even though this level is not extremely high, South Korea is still more of a hierarchical country.  This is because people are assigned their place in society. The companies in this country also represent great centralization with innate inequalities. The employees always depend on orders from above, but their ideal ruler is an individual who is kindhearted.

The U.S. scored a low power distance due to specific reasons. First, the country always advocated for equal individual rights (Sheng-Min & Jian-Qiao 2013, p. 1750). This was after the country experienced a series of negative events resulting due to unequal rights. Each and every individual has become accustomed to the statement “liberty and justice for all,” which makes it clear on how every individual should be treated fairly. American companies tend to have hierarchy just for convenience and for the good of the employees. However, even if there is hierarchy, individuals from all levels can still easily approach each other (Sheng-Min & Jian-Qiao 2013, p. 1752). Also, they depend on each other, unlike the South Korean companies where employees have to wait for orders. This free interaction and an absence of barriers enable the superiors and the employees to share opinions and involve each other in decision making processes (Hoppe 2004, p. 73). In addition, their communication is very casual, engaged and straightforward.

Uncertainty Avoidance

            Hofstede defines this as “the extent to which people feel threatened by ambiguous situations, and have created beliefs and institutions that try to avoid in such situations” (Minkov, & Hofstede 2014, p. 169). In this dimension, South Korea scored 85, a level which is really high. It is among the top countries which prefer to avoid uncertainties. Due to this, it has beliefs and orders which are strict and should not be compromised. They also do not appreciate any unusual ideas and concepts as they perceive these as possible risks (Ndubisi et al., 2012, p. 325). In this society, there is a strong desire to have rules and regulations to ensure strict boundaries are observed. Koreans value their time as rules indicate that one must be busy and hardworking at all times. Also, when communicating, one is expected to be precise and straight to the point. Therefore, innovation and imagination are not welcomed. One factor which motivates the South Koreans is that they want to be secured in the society.

            The uncertainty avoidance level for the United States is 46. However, it tends to vary basing on specific factors. For example, when it is about trying out innovative products or new foods, the Americans are accepting of the unknown (Signorini Wiesemes & Murphy 2009, p. 255). Also, they are more open-minded and are willing to listen to the ideas of others, and even embrace their emotions. Rules are limited, which is why there are a few expressions when compared to South Korea. However, after the impact of 9/11, the society was greatly damaged, leading to boost up of security all over the country. The government also took greater control over the people.

Individualism versus Collectivism

            Individualism may be defined as “a situation in which people are supposed to look after themselves and their immediate family only”, while collectivism refers to, “a situation in which people belong to in-group or collectivities, which are supposed to look after them, in exchange for loyalty” (Manrai & Manrai 2011, p. 26). In relation to individualism, South Korea Scored 18, a level which is very low. This, therefore, implies that it is a collectivist society. This low score may be attributed to the fact that South Koreans are more group-focused. As such, they tend to commit to long-distance relationship, where strong ties are experienced between family members to extended relationships. The most important factor in such a culture is loyalty (Manrai & Manrai 2011, p. 28). This alone, is given more attention than any other rules in South Korea. For instance, in an organization, when a single employee makes a mistake, the whole team will take responsibility due to the strong connections they tend to have. Unfortunately, this misdemeanor brings shame, humiliation and even loss of respect where it should not even be (Marcus & Le 2013 p. 828). Other factors which show how collective this country is may be noted from how the organizations tend to have close bonds between employer and employee and how a group is responsible for decision making.

            The United States scored 91 on individualism, making it one of the most individualistic cultures. The society itself reflects individualism since the only expectation is for one to take care of himself and close family members. As such, they rarely rely on authorities for help and support, unless there is really a need to, like in the event of natural disasters. In addition, the citizens tend to exhibit high measures of migration, making it difficult for them to actually form collectivist relationships. Businesses also expect their employees to be self reliant and self-motivated. Therefore, the process of hiring and promoting is done based on qualifications and performance of an individual.

Masculinity versus Femininity

Masculinity refers to “a situation in which the dominant values of society are success, money, and property” while femininity is defined as “a situation in which the dominant values of a society are caring for others and quality of life” (Kim & Kim 2010, p. 485). South Korea scored 39, meaning that it is a feminist society. Here, the people work in order to live. The upper management of the organizations aims at promoting harmony within the community, while the employees seek unity and a high quality in work. In case of conflicts, those involved immediately try to solve by offering an agreement or compromise. In addition, the employees prefer flexibility and other forms of benefit rather than attaining financial success (Kim & Kim 2010, p. 487). Basically, they are looking out for their wellbeing, which is why they prefer superiors who give them support and involve them in decisions.

            The United States, on the other hand, scored 62 implying that it is a masculine society. When combined with high individualistic score, it provides a reflection of American ways. Individuals in this society have a masculine drive. Therefore, even those in their tender ages have already adapted to this perspective of success and always wanting to stand out as the best (Mustafa & Lines 2013, p. 27). Americans have a liking of talking openly about their life achievements so as to prove success. In addition, most evaluation programs require one to showcase their success in various areas. Unlike the case in South Korea, Americans live to work since they hold a belief that having more money gives a higher status in terms of success. This is the reason why, after being promoted, they also look for better neighborhoods. However, this culture promotes conflict which causes a division amongst the individuals.

Long Term versus Short Term Orientation

            Confucian Dynamism may also be referred to as long-term versus short-term orientation. This is a unique dimension which focuses on Asian values such as time orientation, the hard work ethics, and even making connections (The Hofstede Centre, n.d).South Korea scored 100, meaning that is among the most pragmatic societies. These citizens live life based on virtues and tend to show good morals. Instead of looking for quick profits, they tend to seek a steady market share. Therefore, they hope to give back to the society for a long time, meaning that they work even for their grandchildren’s children (Tavakoli, Keenan & Crnjak-Karanovic 2003, p. 57).

The United States, on the other hand, scored 26. This means that it is a short term oriented society. In all Caucasian groups of countries, the US is the only one which has experienced an increase in church going individuals. Many people are now turning to the belief of only one God, and they have string opinions of good and evil based on old traditions. This is why there are great debate on issues such as abortion, drugs, and even separation of powers. The businesses also follow a similar trend where companies give statements of profit and loss every quarter of the year. This drives the urge of quick short term results.

Indulgence versus Restraint

This latest dimension features indulgence versus restraint. Indulgence defines a society that “allows relatively free gratification of basic and natural human drives related to enjoying life and having fun”, and Restraint features a society that “suppresses gratification of needs and regulates it by means of strict social norms” (Boonghee, Donthu & Lenartowicz 2011, p.194).

South Korea scored 29 on indulgence, which is why it is considered a restraint society. The society is motivated by self-interests, and will mostly see the negative of every situation. They do not have time for leisure and instead hold on to their desires for pleasure. This society thinks this is normal and they always think it’s wrong to enjoy the simple things in life. The United States, on the other hand, scored 68 which mean that it is an indulgent society. Citizens of this country word very hard, but also play hard at the same time (The Hofstede Centre, n.d). They know how to adjust in terms of seriousness and when to relieve stress. At times individuals end up enjoying through negative ways such as taking drugs, which is why such issues are still controversial in the country.

How the National Culture Affects International Business

            The dimensions of the two countries discussed above have the capability of impacting international business in various ways. This is because these two countries have turned out to have two completely different national cultures. Therefore, an international business involving the two countries may present quite a challenge for the international manager as well as the employees involved.

Individualism versus Group Orientation

            The national culture of a country tends to determine whether the employee of an organization will perform well in a team of other employees. Most businesses tend to advocate for team work as it tends to improve productivity and encourage organizational success. South Korea is a country which focuses more on collectivism while the United States is more individualistic. In such a case, the international business may be affected when the team of international employees is having problems in making the team effective (Manrai & Manrai 2011, p. 28). The US employee may be unwilling to work towards the group set goals, and in turn try to outdo the rest of the members. This is because US has a culture of competitiveness and success, while South Korea simply places focus on relationships with the team members. The US employee will rarely give more attention to relationships with others, but will try to seek ways that will make him look more superior to the rest.

Communication

            For an international business to prosper there must be effective communication amongst all the members. Hofstede’s dimensions highlighted how communication tends to differ in these two countries. For instance, the US has a culture that encourages small talk while South Korea has a culture of being straight to the point. The US employees, therefore, are straightforward and will often communicate casually. This may cause conflict and misunderstanding when such an employee is expected to work with the others who are more official in communication and prefer straight to the point kind of approach (Sheng-Min & Jian-Qiao 2013, p. 1752). Also, if the manager is a South Korean, the employee may feel undermined when he tries to pitch an idea and he gets shut down. Therefore, the difference in national culture may impact how communication takes place within the international business. If not managed properly, it may trigger conflicts and misunderstanding which will eventually lead to reduced employee productivity and organizational success.

Decision Making

            The national culture of South Korea tends to feature employees who are loyal and always submissive to their superior (Yuan & Zhou 2015, p. 994). They always await instructions and cannot take an extra step without obtaining authority. Therefore, they rarely get involved in decision making processes. On the other hand, the national culture of the US encourages them to be more innovative. They are also engaged continuously in business processes and decision making. Therefore, an international business may face a challenge in managing these two groups of employees as there are those who are used to being involved in decision making, while others prefer to be inactive in this process. The International manager may cause misunderstanding when an employee wants to raise an issue concerning a decision, but he is not given the chance. This employee may end up feeling less valued, hence leading to loss of interest in the position within the organization. Therefore, a balance is required to ensure all employees are satisfied with their jobs. Although it may be challenging to find a balance, it is a requirement if at all the internal business is to prosper.

Conclusion

            It is evident that these two countries have distinct cultures. An international manager needs to understand these differences as it will enable him to know how to treat the employees so as to avoid any misunderstandings and miscommunications, as well as determine the management approach to use. How the cultures impact business cultures has also been mentioned. Therefore, by having knowledge of what is acceptable and not, the international manager will employ the most effect managerial practices and communications practices which will trigger the best impact. It has become clear that Americans are more accepting of change and tend not to be too serious even in the workplace; they seek individual success. The South Koreans, on the other hand, are more collective which is why they seek group goals. They tend to be serious and unreceptive of new changes which they perceive as risks.