American Business Culture

1.
Background to Business in The USA

For a century or more the US has led the way in banking and finance, high-tech, computing
and pharmaceuticals.
US business methodologies
- Have led growth and innovation in a way rarely seen in the history of the world
and an understanding of how things work in the States is essential for anybody who
works internationally.
- More than any other industrialized country, the United States has adopted what could be
labeled a scientific approach to business. Every aspect of commercial life is
studied and analyzed and this scientific approach is both respected and acted upon. In
the States everything is quantified and assessed. All processes, even down to such
issues as HR and Training are analysed in a detailed manner and the results of this
analysis carry weight with decision makers. Far more resource is available in the US for
the study of the methodology of business than in any other country and most new
management theory and doctrines have their origins in the States.
- This scientific approach - the constant search for better, more effective methods - has
led to a business environment typified by the presence of change as a constant
factor -> realignment of the organisation and -> produced a work force in a state of
constant flux: People leave, are fired or made redundant and then reappear in another
organisation.
This sense of employee mobility should not, however, be equated with a lack of loyalty
to the employer for whom you are currently working. Whilst working for the company you
put everything into the job and are totally committed.
2. USA business structure
Business structures in the USA are incredibly varied but tend to have several characteristics in
common.
Firstly, influenced by high Individualism ranking (91) the company in USA is an entity in
its own right and exists independently from its employees. Members come and go, perform
necessary tasks at particular points in the life cycle of the company and then leave when no
longer required for the wellbeing of the organisation. People are more careers conscious and
are honest towards their profession rather than the company in which they are working. In-fact,
they use the present company as a stepping stone for the advancement of their career. The
relationship between employer and employee is a transactional one - where relationship and
sentiment are a luxury which cannot be justified. Americans are the best joiners in the world;
however it is often difficult, especially among men, to develop deep friendships. Americans are
accustomed to doing business or interacting with people they don’t know well. Current economic
conditions and the increasing influence of technology-based communication methodologies
have only increased this disconnect between the employee and long-term, stable employment
conditions. In a country where job-mobility and virtual working are increasing, transferable skills
become the key to future success.
In the USA, teams as another reflection of high Individualism are expected to be transitory in
nature.
Teams are groups of individuals brought together for the moment to complete a given task or
project.
When the project is complete, the team will rapidly dissipate; its members moving on to the next
task with equanimity. To break up a team in the fluid employment environment of the USA is
less traumatic than in other group-oriented cultures where identity is subsumed to the group.
Secondly, the CEO of an American organisation holds great sway within the company.
Senior management is more embedded in the personality at the top than in some other
countries such as Germany where senior management is collegiate in approach. Although the
company will have a Board of Directors, the Board is highly unlikely to have any input on the
day-to-day running of the company which is left very much in the hands of the CEO who stands
or falls on results. This can be seen as a high risk, high reward approach - it can bring great
success but also spectacular failure.
Thirdly, accountability within the company tends to be vertical and easily observable.
Americans like to know exactly where they stand on a particular issue, what their responsibilities
are and to whom they report. When job security is weak you would really like to understand the
extent of your liability on any particular issue.
3. Management Style
American Style in USA is heavily influenced by its high Individualism (IDV) ranking (91)
American management style can be described as individualistic in approach in so far as
managers are accountable for the decisions made within their areas of responsibility despite
fairly low score on Power Distance (40)
- Within American organizations, hierarchy is established for convenience, superiors are
accessible and managers rely on individual employees and teams for their expertise. As
a result, process of decision making is quite fast and it is undertaken on individual
basis. Decisions are taken at different levels of management by the people or superiors
operating at these levels.
- Unlike other low PDI countries, where there is a more extensive distribution of decision-
making responsibility throughout the entire organization, in America, although important
decisions might be discussed in an open forum, the ultimate responsibility for the
consequences of the decision lies with the boss - support or seeming consensus will
evaporate when things go wrong. The up side of this accountability is, of course, the
American dream that outstanding success will inevitably bring outstanding rewards.
American managers are more likely to disregard the opinions of subordinates than
managers in other, more consensus or compromise- oriented cultures. This can
obviously lead to frustrations, which can sometimes seem to boil over in meeting
situations.
- Promotions in American companies are based on individual performances. Annual
performance evaluation is undertaken select the most efficient workers. As America
have high Masculinity Individualism Score, it is clear that their Masculine drive
individually. This figure is quite similar with those of British country. How ever, higher
score of of the US on Uncertainty Avoidance makes Americans show it up-front whereas
the British will take you by surprise. Americans will tend to display and talk freely about
their “successes” and achievements in life. Many American assessment systems are
based on precise target setting, by which American employees can show how well a job
they did. Typically, Americans “live to work” so that they can obtain monetary rewards
and as a consequence attain higher status based on how good one can be. Many white
collar workers will move to a more fancy neighborhood after each and every substantial
promotion. (so sanh voi british)
- Titles can be very confusing within American organisations with a bewildering array
of enormously important-sounding job descriptors on offer (Executive Vice- President
etc.). Titles, in any case, tend to be a poor reflection of the relative importance of an
individual within a company. Importance is linked to power, which could be determined
by a number of factors such as head-count responsibility, profitability of sector or
strategic importance to the organisation at that point in time.
- Great leadership is expected at the top of an organisation rather than competent
management but it can be difficult to define what great leadership actually is – and a US
definition may not mean much in other parts of the world.
4. Gender working equality
The next highest Hofstede Dimension is Masculinity (MAS) with a ranking of 62, compared with
a world average of 50. This indicates the country experiences a higher degree of gender
differentiation of roles. The male dominates a significant portion of the society and power
structure. This situation generates a female population that becomes more assertive and
competitive, with women shifting toward the male role model and away from their female role.
Women started 49% of new businesses in the US in 2021, up from 28% in 2019, according to a
new study. According to American Express, since 2014 the number of women-owned
businesses grew by 21% to nearly 13 million in 2019. That’s 42% of all companies at least 51%
owned, controlled, and managed by one or more females.n

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1.

Background to Business in The USA

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