FORMAL VS INFORMAL BUSINESS CULTURE:

Status, Hierarchies, Power and Respect

ERMAN ŞAHİN & DENİZ ASLANTURKEY

Business Culture, sometimes called Organizational or Corporate Culture, is a composite of the common values, attitudes, standarts and policies, performance and actions of management and employees. It deals with building relations with your clients, customers and colleagues. There are two fundementals of business culture.

- Formal Business Culture

-Informal Business Culture

a. Formal Business CultureFormal cultures tend to be organized in steep hierarchies

that reflect major differences in status and power. Formal business deals with how serious and formal the behaviour of costumers or employees must be to the owner or employer Formal organizational culture is purposefully planned. Examples include the corporate hierarchical structure, written company policies and basic operating procedures.

b. Informal Business CultureInformal Cultures value more egalitarian organizations

with smaller differences in statu and power unlike Formal Cultures. Informality is all about statu equality. Hierarchy is absent and mostly managers discuss decisions with colleagues and take feedback from employees. Adressing each other is in a casual way.

VERY INFORMAL CULTURESAUSTRALİADENMARK

USA, CANADANORWAY, SWEDEN

NEW ZEALAND

FORMAL CULTURESMOST OF EUROPE AND ASIA

MEDITERRANEAN REGION AND THE ARAB WORLD

LATIN AMERICA

Business Culture in Germany

In many aspects, Germans can be considered the masters of planning because careful planning, one’s business and personal life, provides a sense of security.

Business is viewed as being very serious, and Germans do not appreciate humour in a business context.

German counterparts do not need or expect to be compliment.

Germans do not like surprises, especially sudden changes in business transactions.

Business Culture in Latin America

Social Courtesy and formality are more important in Latin America than the United States.

It is so common for Latin American managers to call employees ‘señorita’ or ‘señor’ and they tend to use (usted) the formal ‘you’ rather than (tú) the informal ‘you’, when addressing others.

It would generally be considered inappropriate and disrespectful in Latin America for an employee to correct a supervisor or make a suggestion.

Business in Sweden

Informal BusinessAn unique balance of team playing and individual

responsibility.Non-hierarchical workplacesAddressing each other in a casual way.

Business Culture in USA They are mostly focused on the informility

business cultureShaking hands in business cultureRelaxed in manner but serious in contentBeing direct is a virtue. ‘Yes’ means yes, ‘No’

means no.Being on time is important in business meeting.

https://www.youtube.com/watch?v=Tu89jEVQXGE

Business Cuture in Turkey

Business in Turkey requires understanding people.

Shake hands firmly.Calling men by his first name followed by ‘Bey’,

for women, by ‘Hanım’.Turks are proud of their country and history.

Thank you very much

For your attention