I Am Not Sure

Culture plays an important part of the decision-making process. Managers, especially those working within an international industry must know that decision-making is not only produced based on collective patterns, but also on value systems and can affect each individual perception of the decision-making situation. One key difference between cultures that affect the decision-making process is whether it is an objective or subjective approach. Most Western nationalities take on a rational, objective approach. Managers tend to be aware of the different perceptions and alternative solutions to the problem, based off objective information. However, countries such as Latin America tend to be more subjective and base their decisions on emotion. A second major cultural influence on decision-making is the level of risk tolerance a decision-maker can take on. Countries such as Belgium, Germany, and Austria have a low tolerance for risk, while the Netherlands and Japan have a higher tolerance. Of course, US managers have the highest tolerance for risk. A third important cultural influence is the manager’s perception of the locus of control. Some managers tend to believe that there are problems and decisions that cannot be solved and it is out of their control. Their belief is that outside forces such as fate, God, and nature are in control of the decision-making. On the other hand, most cultures and businesspersons believe that they are in control, can plan on different outcomes, and can change the problem or situation in order to achieve the best decision and solution.

Deresky, H. (2010). International Management: Managing Across Border and Cultures (7th ed.). Pearson Prentice Hall. ISBN: 0-13-609867-3.