NORTH AMERICA

North America is the third largest continent in the world. It compounds the Caribbean, Central America countries, Canada, Mexico, the United States and Greenland.
According to the class presentation we can focus on the most developed North American countries like Canada and the United States.



similarities:

both have an individualistic western culture and low context form of communication.
Although Canadians feel that it their own culture and sometimes feel that to be called American is an insult.

Canada

Proclaims Not be Americans adding to this they try to avoid flashy displays of status or wealth, instructively avoiding material possession that would seem an attempt to be better than others.
Nevertheless Canada is a multicultural country, where converge many cultures from everywhere, it is mainly because Canadians are more open minded than others. The main characteristic there is they have a good appreciation to foreign cultures.

The United States

It is characterized by individualism that is reflected on the American Football in this way they have a metaphor which is the manner to practice business by Americans as equal as playing football, like the constant movement, the high degree of specialization, the consistent aggressiveness, and the intense competition in football: typify the American culture.

Huddle: means “How offensive teams gather together before each play to call a certain plan into action”. It is typically used in most American groups and organizations in order to handle their problems and achieve their objective.

DREAM: is The American cultural code for America and also of the explorers, the entrepreneurs, the immigrants, the new explorers. An example is the Constitution that is a dream: to achieve a better society. American primarily mission, to keep the dream alive. In order to this there are some philosophies for Americans:

Work and Money

They believed that:

1. They are what they do in their jobs.


2. Unemployed = nobody.


3. Work hard to get something.

Quality and Perfection
The American culture Code of Quality is IT WORKS: A simple and clear quality demand for products:

1. They need to work.
2. They don’t expect anyone to make the perfect product; they expect them to break down.
3. They expect problems to be resolved quickly and with a minimum of disruption.
4. For Americans great service is more important than great quality.
   

CASE STUDY: "The HP Way"*
The proposed case study for this module illustrates the importance of organizational culture in the context of the USA. It also enables the reader to understand the strong relationship between national and organizational culture.
Based on the class presentations and the assigned case study, please answer the following questions:

1. List and explain 3 strategies used by HP in order to develop and sustain a strong organizational culture - "The HP Way".

Hewlett Packard has developed over the years the 'HP way' that is a very specific and carefully defined management philosophy. It is a rather unique and effective way of working with people. HP Way effectively represents a formal statement of Hewlett Packard's corporate culture which the company's corporate objectives were described at the time as being ‘somewhat similar to the US Constitution’. The HP Way involved a participative management style that supported individual freedom and the initiative while emphasizing unity of purpose and teamwork.
HP’s culture has also operated as a control device, although by providing a framework of values that encourage self-directed employees to develop personal autonomy, goal setting, self-learning and self-discipline.

STRATEGIES:
1. The selection of new recruits: who either share or can easily adapt to the company's values. HP has always been very selective in considering job applicants and has used a variety of techniques as part of its selection process (the thick screening processes). There is clearly an emphasis on adaptability and cultural ‘fit’ with HP and, once employed by the company, all employees were offered some degree of job security.
2. The telling of company stories: These help to clarify as well as communicate the values and attitudes that are important within the company. Stories can also have an important symbolic function when describing important historical moments in the company history or exemplifying company role models and ‘heroes’ - remarkable individuals who personify the values of the culture (Forster et al,1999).
3. To employees' actions being guided by the company's values: the day to- day activities of HP employees have been primarily directed by a system of management by objectives (MBO). This was introduced in the early 1950s to ‘provide a well-defined objective, give the person as much freedom as possible in working towards that objective....’ The MBO system has also been the main control system over the product divisions particularly as managers are set divisional targets as their personal objectives.

2. By 2001, Carly Fiorina was facing a huge dilemma in terms of organizational culture. "Should Fiorina try to revitalize the HP way or attempt to replace it with a “better” culture than the one established by Dave Packard and Bill Hewlett in the 1940’s?” Explain your answer.

I strongly believe that Carly Fiorina should attempt to replace the traditional HP way that was created by Dave Packard and Bill Hewlett in the 1940’s, because everything needs a change within she looked forwards innovation in technology and improvement rather than employees benefits which could be the cause that the ‘better’ change for the company failed. Because of the fear of change, and the belief that everything works better following tradition rather innovation, nevertheless all innovation does not mean improvement but it worth when people try to make a difference.

REFERENCES

• Rapaille, Clotaire. 2006. “Working for a living: the codes of work and money”. In: The Culture Code New York: Broadway.


• *Forster, Nick. 2002. “Managing excellence through corporate culture: the HP way” The Management Case Study Journal 2(1): 13-25.


• http://www.blogdetecnologia.com/wp-content/uploads/hp-logo.jpg


• http://www.consciousasset.com/uploaded_images/Flags-of-usa-and-canada.jpg
  
  
  
  
  
  
  
  

MIDDLE EAST

MIDDLE EAST: ISLAMIC BANKING

Today, Islamic banking appears as a growing and successful industry, not only in the Middle East but also in some western countries.


1. Explain what Islamic Banking is and its background.

The Islamic banking is a system and activity that follows the Islamic principles, which prohibit the acceptance and payment of riba (interest charges), and forbid other activities that are against Islamic main beliefs. (Institute of Islamic Banking and insurance, 2010) The word "Riba" means excess, increase or addition, which correctly interpreted according to Shariah terminology, implies any excess compensation without due consideration (consideration does not include time value of money)[1].

The philosophy of the contemporary Islamic banking system started since the beginning of the Islam, when the Islamic partnerships were used in the business world and the concept of interest was little applied. During a period of time from the mid 1940s until de end of 1960s many authors explained the need of a commercial banking system reorganization of banking on the basis of profit sharing rather than interest that gives importance to profits and loss sharing and not to interests. These ideas resulted in the creation of the first Islamic banking in the early 1970s. (Ökte, 2010). The earliest references to the are found in Anwar Qureshi (1946), Naiem Siddiqi (1948) and Mahmud Ahmad (1952), followed by a more elaborate exposition by Mawdudi in 1950 (1961).2 Muhammad Hamidullah’s 1944, 1955, 1957 and 1962 writings should be included in this category. They have all recognized the need for commercial banks and the evil of interest in that enterprise, and have proposed a banking system based on the concept of Mudarabha - profit and loss sharing.


2. What are the key principles of Islamic banking?

Islamic banks loan with no interest or additional amount of money over the lent; also, Islamic banks invest and lend money and become a partner by sharing profits, risks and losses; in addition, financial transactions have to avoid uncertainty, risk and speculation, because business parties need to have a perfect knowledge of the monetary values; and finally, The Islamic banking system can invest only in activities that are not forbidden by the Islam. (Ökte, 2010)

3. Islamic law forbids institutions from charging interests on loans. How do they make profits when lending money?

For the Islam, profits are obtained after an entrepreneurial effort and not with an interest rate:

Islamic banks create a partnership with its investors and lenders and both business parties agree the proportion of profits that will share after a period of time. For example, when an investor provides capital to an Islamic bank who at the same time manages the funds, both share profits. (Institute of Islamic Banking and insurance, 2010) another example Islamic Development Bank (also known as IsDB), the main functions of the Bank are to participate in equity capital and grant loans for productive projects and enterprises besides providing financial assistance to member countries in other forms for economic and social development. The Bank tries to foster the economic development and social progress of member countries and Muslim communities in non-member countries individually as well as jointly in accordance with the principles of Shari'ah or Islamic jurisprudence[2].

4. Explain the concept of ethical investments under Islamic law. Who is to determine whether an activity is allowed or not?

The concept of ethical investment under the Islamic law seeks for financial sustainability investing and making activities that benefits the society and the environment, because of the importance of equity and fairness in the money distribution. The Islamic banks benefit the society because allow to people who are in need the opportunity to access to loans and share its profits and losses. Islamic banks also compensate companies that show social responsibility. (Saidi, 2009).
There are additional prohibitions that are monitored by a Shari´ah Supervisory Board (SSB) who are religious advisors who are in almost every Islamic bank and determine whether an activity is allowed or not. (Ökte, 2010).

5. How does Islamic banking influence the economy in the Middle East?

The Islamic banking motivate the development of Islamic economy due to the philosophy of create a partnership, which makes savings and loans more attractive because give the opportunity to share profits and losses. This system in the Middle East is helping to solve key problems of underdevelopment, by giving the opportunity to people with needs, to access into the financial market. (Ökte, 2010).

6. Based on the research and knowledge about this topic, what is the future of Islamic Banking in terms of global expansion and growth?

According to the success and fast growing of Islamic banks in the world during the past three decades, not only in the Muslim world, but also in countries as Britain, France, United States and Japan (Siddiqi, 2008). I think Islamic Banking will achieve more expansion and growing into non-Islamic countries, because it is important for the economic development of every country to give financial participation to all the people, with fairness and equity.

REFERENCES

• http://www.abc.net.au/rn/backgroundbriefing/


• Institute of Islamic Banking and insurance, “Islamic banking” [Online] Permanent URL: http://www.islamic-banking.com/islamic_banking.aspx. Last accessed: April 12, 2010


• http://robertbonnett.files.wordpress.com/2009/03/islamic-bank.jpg


• Ökte, M. K. S. (2010). Fundamentals of Islamic economy and finance: theory and practice. Retrieved April 10, 2010, from EbscoHost Database: http://search.ebscohost.com.ezproxy.eafit.edu.co/login.aspx?direct=true&db=a9h&AN=48722879&loginpage=Login.asp&lang=es&site=ehost-live.


• Siddiqi, M. (2008, March). Islamic Banking. Retrieved April 10, 2010, from EbscoHost Database: http://search.ebscohost.com.ezproxy.eafit.edu.co/login.aspx?direct=true&db=a9h&AN=35405415&loginpage=Login.asp&lang=es&site=ehost-live


• Saidi, T. A. (2009, March). Relationship between ethical and Islamic banking systems and its business management implications. Retrieved April 10, 2010, from EbscoHost Database: http://search.ebscohost.com.ezproxy.eafit.edu.co/login.aspx?direct=true&db=f5h&AN=36674737&loginpage=Login.asp&lang=es&site=ehost-live
  
  
  [1] http://en.wikipedia.org/wiki/Islamic_banking
  [2] Taylor & Francis Group and Dean, 2003, p. 1328.

EUROPE

EUROPE: MULTICULTURAL EUROPEAN COMMUNITY

It has currently 27 member countries adding three more countries for the EU membership: Turkey, Croatia and the Former Yugoslavia Republic of Macedonia.
The European Union started as a consequence of the Second World War.

Facts:

1950 the European Coal and steel community made a union between European countries economically and politically. The main founders are Belgium, France, Germany, Italy, Luxembourg and the Netherlands.
1970 EU adopted its first plan for a single currency to maintain monetary stability. Euro is the official currency but not for all of them. The following map shows the member States using the Euro in red color and those that do not in blue color.

Map taken from the official website of European Union

1973 The six become nine when Denmark, Ireland and the United Kingdom formally enter the EU. Orange color: Member States: Germany, France, Italy, the Netherlands, Belgium and Luxembourg. Yellow color: New Member States: Denmark, Ireland and the United Kingdom.
Map taken from the official website of the European Union

1981 Greece joined to the EU.
1986 Spain and Portugal enter the EU, bringing membership to 12.
1992 The Treaty on European Union is signed in Maastricht, setting clear rules for the future single currency as well as for foreign and security policy and closer cooperation in justice and home affairs. Under the treaty, the name ‘European Union’ officially replaces ‘European Community’.
1993 it was established the free movement of goods, services, people and money.
1995 new member states: Austria, Finland and Sweden.
2004 new member states: Czech Republic, Cyprus, Estonia, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia.

In accordance of ideas the European Union has diversity in their cultures due to the membership into it. And each of them has different strategies to apply in business and different cultures that make them unique not matter if they belong to the same economic alliance. The clear example is the failed presence of Wal-mart in Germany, because one of Wal-mart strategy is the use of customer service in order to offer and aid to customers, they did not consider important to know that Germans do not like being helped just do the things by themselves, though.

CO-DETERMINISM PRINCIPLE IN GERMANY

Nowadays there is a current discussion around the existence of the co-determinism principle in Germany. It consists according to the Euro found in Germany on to two distinct levels and forms of employee participation:

• Co-determination at establishment level by the works council


• Co-determination above establishment level

It means that workers are well represented in the board, influencing company decisions. At this level, co-determination is regulated by three statutes for different sectors of the economy and sizes of company and gives a lot of importance to workers in organizations. Co-determinism was born in Germany in the steel, coal and iron industry in the 1950´s.

Following the co-determinism principle in Germany, there are some arguments in favor and some against it.

Three arguments in favor:

1. The quality of decisions, it is explained as decisions in the company can be made by owners and workers in the same time in accordance to this both will be benefited.


2. Co-determinism makes workers and owners are motivated to work in order to welfare of the company, such as result promoting integration in the company.


3. Giving participation to workers in important decision makes High possibility to achieve innovation and creativity.

Three arguments against:

1. It is considered as a bureaucratic monster, because nowadays it is considered as an old fashion and not competitive principle for modern companies, due to it was created many years ago, which makes it is seen as a routine.



2. Co-determinism damages the interests of shareholders, because their main interest is profit, but the main interests of workers are like benefits to the society, to their family, among others that are not considering profit.


3. The belief that the German industry is sufficiently strong and stable and does not need to apply this concept in order to be more competitive.
   
   

REFERENCES

• Piette, Jean-Jacques. 2004. “Understanding management German style”. Les Amis de L’ecole de Paris.


• The official website of the European Union: http://europa.eu/about-eu/27-member-countries/index_en.htm


• EuropeanFound:http://www.eurofound.europa.eu/emire/GERMANY/CODETERMINATION-DE.htm

AUSTRALIA

Based on the film “Rabbit Proof Fence” (2002)

1. When removed from their families, the children were prepared for “a better life”, how is that true or false when considering different perspectives?

That statement is false, due to when the children were catch aggressively by the white man they did not want to go away from their mom and grandma. For them the better life was to live close to their aboriginal family, they did not know anything what was happening though.

The protector of Western Australian Aborigines Mr. Neville sent to one of his men to removed them from their families because they were half- castes, and those aboriginal people represented a treat for the community, so they had to leave their families to go to the camp, where was managed by some nuns, and children were educated but many of them were almost the same age. Those three girls did not feel protected there; they felt that the better place to live was going back to their town Jigalong. Additionally when the three girls were staying at the camp, the oldest figured out that the main reason that they were there was because until certain age they would be taught to be servants and slaves for the white people from Australia. After that she decided to go back to her mom carrying the other two with her. They walked a lot of miles away evading an aboriginal man that was sent to catch them, but at the end one of the girls was recaptured and the other two could finally find their family following the fence as a reference to go back home.

This film was made on 2002 based on a true story during 1930s but only in 2008 the government of Australia decided to offer lots of apologies to the community. "We apologize for the laws and policies of successive parliaments and governments that have inflicted profound grief, suffering and loss on these our fellow Australians," the Prime Minister Kevin Rudd said. Source BBC news 2008.

Although many of the aboriginals said that those apologies must accompany with compensation plans for all of the victims and also they ask for recognition and inclusion to the community, solving some differences between whites and blacks.

I strongly believe that this issue concerns nothing more than racist policies created by the Australian government that with those facts has discriminated these Aboriginal people from the community that only after more that five decades the government is being aware of the damaged occasioned to them.

US Professor of human rights law James Anaya says that ‘Medical staff and social workers were also deployed as part of the intervention, in an attempt to combat violence and the rampant abuse of children in some Aboriginal communities’. Source BBC News August, 27th 2009.

RAP Reconciliation Action Plans in Australia

RAP is a program implemented for many organizations in Australia to make inclusion of Indigenous people that were affected by the issue of Aborigines Discrimination.

It helps to give a format to organizations that implement it for exploring how reconciliation can advance and improve their business. Also, this program makes awareness on those people that adapt it committing them to contribute in the aim of the indigenous people. The program also includes a creative blend of relationships, respect to others no matter being indigenous or not and opportunities as well.

RAP provides an organization a framework for the future. As we saw in the class, presented by some classmates exposed a case ANZ Banking Group. This Banking group adopted RAP that was introduced in 2007.

The main objectives are:

• Employment



• Cultural recognition (make part of the society)



• Construction of capabilities (in order to help aborigines)



• Inclusion and financial education

Results:

• The inclusion and active participation of Indigenous communities to work.



• Economic interest and intellectual management.

References:

• Baird, Kevin. 2007. The culture of Australian organizations and its relation with strategy. “International Journal Of Business Studies, 15(1).



• BBC NEWS http://news.bbc.co.uk/2/hi/7241965.stm



• Reconciliation Australia: http://www.reconciliation.org.au/home/reconciliation-action-plans/what-is-a-rap

Images:
http://www.shareourpride.org.au/media/RA_RAP_logo2.jpg
http://www.faithinterface.com.au/wp-content/uploads/2009/08/aborigine1.jpg