Features of An Order
Features of An Order
Ans: Simply, Order placement refers to the process of placing a trade order. Trade Order means
various types of orders which can be placed on stock exchanges for financial assets like stocks
and futures contracts. It consists of instructions to a broker/brokerage firm to purchase a financial
asset on behalf of investors. Complete trade consists of at least two orders which means one
person places an order to buy financial security and another person places an order to sell the
same security. Whether the order is a ‘buy’ order or a ‘sell’ order that should be specified. If a
trade is entered with a buy order, it will be an exit with a sell order and vice-versa.
Features of an Order:
Market Order: Market Order refers to a trade order to purchase or sell a stock at the current
market price. In Market Order, the price is set by the market which means the individual does not
control the amount paid for the buying or selling of stock. It possesses a higher slippage risk.
Slippage risk means a risk of price moving in an unfavourable direction after the order
placement. It is used when an individual wants the order to be processed as quickly as possible.
Example: A trader places a market order to buy a stock when the price is Rs.450. In the seconds
between the order is placed and it is executed, the price increased to Rs.452. Now, the trader who
placed a market order will pay more for the stock.
Limit Order: A limit order is an order to purchase or sell a stock at a specific set price or price
better than a set price. This limit order prevents investors from purchasing or selling stocks at a
price that they don’t want which means above the limit set by them. In a limit order, the trade
order will be executed only when the market price is in line with the limit order. Limit orders
only get filled at the price trader expects or better price than expected. A limit order can be a Buy
Limit Order or Sell Limit Order.
Example: The stock price of XYZ stock is Rs. 70. If a trader puts the limit order to buy the stock
at Rs. 60, the stock will be purchased only if the price falls to Rs. 60 or lower than that. This
limit order gives a guarantee to the buyer of paying Rs.60 or less according to the stock price
movement. This means he is not required to pay more as the price is guaranteed. Though, it does
not give a guarantee of fulfilment of the order.
Buy Limit Order: It is used by buyers. It specifies that the buyer will not pay more than Rs. X
per share with the Rs. X being the limit order set by the buyer.
Example: The stock price of ABC stock is Rs.50. An individual sets a limit order to purchase
100 shares at Rs. 45. In this case, the trade will be executed only when the price drop to Rs.45 or
lower.
Sell Limit Order: It is used by the seller. It specifies that the seller will not sell a share below
the price X per share with Rs. X being the limit order set by the seller.
Example: The stock price of ABC stock is Rs. 50. An investor sets a limit order to sell 100
shares at Rs. 55. In this case, the trade will be executed only when the price moves to Rs.55 or
more.
Fill or Kill Order: Fill or Kill Order is a conditional order. This order instructs a trader/broker to
execute the transaction either immediately and completely or not at all. This trade order is often
used by active traders and for large quantity stock. A Fill or Kill order is directed to execute
immediately at either market or specific price or cancel if not filled.
Example: An individual wants to sell 25000 shares at Rs.50 per share or better. He placed a Fill
or Kill Order. If the share price drops below Rs.50 by any extent, the order cannot be filled, and
it will be cancelled automatically. If the share price was Rs.50 or more, the order would have
been filled automatically.
Placing orders has become part and parcel of every individual’s life in today’s world. Everyone
who is tech-savvy, including children, have become a pro in purchasing whatever they need
online. This is easy as all that is required is a smartphone, an internet connection and a facility
for online banking. On the contrary, if you are a business owner or a sales executive, you will
have to write letters or emails to place orders for bulk purchases. This article on order letter
format will help you understand how to write order letters and give you sample letters for your
reference.
Table of Contents
The main purpose of writing an order letter is to inform the buyer/seller about the details of the
items bought/sold. It also serves as documentation for further reference and record keeping. An
order letter format is like the format of a formal letter. It must contain the following details:
Check out different types of Letter Writing including Formal Letter, Informal Letter and sample
letters.
Sender’s Address
_____________
_____________
_____________
Date
Receiver’s Address
____________
____________
____________
Subject: ________________________________
Dear Sir/Ma’am,
Paragraph 2 – List of items required with the quantity in bullet points or tabular columns.
Paragraph 3 – Concluding paragraph stating when you expect the delivery of items and thanking
them for their service.
Have a look at the following order letter samples to get an idea of how to write order letters.
23/108, G K N M Street,
Sivananda Colony
Coimbatore – 641026
The Manager
Town Hall
Coimbatore – 641033
Dear Sir/Ma’am,
I am writing to you to place an order for CBSE textbooks. As per our discussions yesterday, we
are glad to have you as our distributor.
The prices for the books were discussed in the meeting, and we have received a quotation that is
feasible. The manager has promised to deliver all the books within 7 working days. I would also
like to order some books for the library once I receive these books.
Kindly find attached the cheque (cheque number: 356xxxxxxxxxxxx652) dated 03/01/2022 for
Rs. 5,000 as an advance payment for the order. Please feel free to contact us in case of any
clarifications.
Thanking you
Sincerely,
Signature of the sender
SOORAJ SANTHOSH
12 B, HSR Layout
Koramangala Phase II
Bangalore – 560003
Craft Cottage
Saibaba Colony
Coimbatore – 641021
Dear Sir/Ma’am,
I have received the items you sent on 10th December 2021. I appreciate the prompt and hassle-
free delivery. All the items are in good condition. I would like to order a few more items that I
had missed mentioning during my previous purchase.
Sincerely,
ANCY LIJO
Sample Order Letter – Response to the Order Letter from the Buyer
Craft Cottage
Saibaba Colony
Coimbatore – 641021
19/12/2021
Ancy Lijo
12 B, HSR Layout
Koramangala Phase II
Bangalore – 560003
Dear Ma’am,
We thank you for your purchase of Order No. 1492, dated December 18, 2021, for different
stationery supplies. We have received your payment. The order is being packed and will be
dispatched on the 19th of December 2021, as per your request. We have carefully packed every
item separately and hope that it will reach you latest by the 22nd of December 2021.
The bill and shipping details of your order have been attached to this letter. We thank you for
trusting us and look forward to serving you in the future.
Yours sincerely,
SUDHI RANJITH
Sales Manager
Craft Cottage
Contact information
Phone: 12345
Email: name.1245@email.com
Frequently Asked Questions
An order letter is a formal letter written to confirm the list of items you would like to purchase.
The purpose of an order letter is to provide the manufacturer or distributor with instructions in
detail.
What is the format of an order letter?
An order letter should contain the terms and conditions of the purchase. It is important to provide
the products required, all the specifications of the product and the quantity. If it is a response
letter or a confirmation of the order, the price details of the various products, the date of delivery
and the billing information, to be included.
Q.2 “Communication can be the key to an organization's success or failure”. Discuss the
statement in detail with examples.
Ans: Communication can be the key to an organization's success or failure
Communication Is the Key to Success - and Failure!
I've talked many times about how important great communication is with your clients. But... it's
too easy to forget that it's EXTREMELY important with your team members, too! That includes
contractors, subs, assistants, architects and anyone else working on the project with you. One
miscommunication can literally stop your fab project in its tracks! (UGH!) So here are some tips
for successful communication!
1. Set a Schedule
Set a schedule for yourself - and any team members in your office - for when you will reach out
to clients, contractors, and others on the project. You want to email them consistently with
updates, but also schedule regular in-person meetings. Having a schedule helps you stay on track
with updates and keeps everyone on the same page.
3. Write It Down
We all have those on-the-fly meetings - sometimes by text. And while that can move things
along, those sorts of quick decisions and discussions can muddle up communication. It can create
BIG misunderstandings about what was said. So be sure you write down everything that's agreed
to on the phone or in a text. Send an email update with those notes to everyone who needs it.
That way you have a record later of what was said and what was changed.
4. Be Consistent
You want to be sure that you are consistent with your communication plan - on every single
project! Get a process in place and stick to it. If you can do that, it will soon just come naturally
to you. Consistency also means that you should always do what you say you're going to. You
want all your team members to be able to trust your leadership and know that when they ask for
something from you, it will get done!
Our ability to communicate with others effectively is key to improving our professional
relationships and results in the workplace. A good communicator can encourage two-way
dialogue, discuss critical issues, exchange information, build trust, and engage people in the
mission of the business.
While most people understand the benefits of good communication, it can still be a difficult skill
to use masterfully in practice. Many of us develop bad habits that get in the way of effective
communication. These communication roadblocks must be actively unlearned and replaced with
effective communication practices. This kind of change requires commitment and practice.
How to Improve Communication Skills in the Workplace
1. Listen to the Other Person
First, we must improve our ability to really listen to and clearly understand the other person’s
message. There are many barriers to effective listening. High performers are repeatedly rewarded
for finding solutions, but moving into a “fix-it” mode before fully understanding the issue can
lead to communication mishaps.
While we engage in conversations with others every day, some people have never learned or
practiced the skills required for effective communication.
Whether you are a leader or an individual contributor, the ability to interact with and understand
others is the key to healthy and productive relationships. Situations that require you to
communicate effectively come in all shapes and sizes. Whether you’re communicating your
vision to executives, or finding solutions in a team setting, you must be able to connect with
many kinds of people.
Effective communicators can discuss critical issues that the business is facing and engage people
in fulfilling their commitments.
Our Communication Essentials course will improve your ability to share information, solve
complex problems, make quality decisions, and exchange ideas, enabling you to build strong
relationships inside and outside of the organization.
Communication plays an important role in innovation, and open communication can lead to
innovation and new ideas in several ways (Scott & Bruce, 1994). Employees who understand
what is important to their organizations can focus on making improvements and identifying
opportunities for innovation that can help further success rather than simply just doing the bare
minimum required by their job descriptions.
When employees know that their ideas will be valued and that company leaders will have open
minds and are responsive to their feedback, they are more likely to share their ideas. Numerous
studies have found that organizations with good communication are also more innovative (e.g.,
Macedo, Porum, & Andreo, 2014).
In addition, communication and interaction between the personnel in R&D, marketing and
production were related to innovation. Furthermore, interaction with clients and other firms
increased the likelihood that a company would have more patents (Kivimäki et al., 2000).
Organizational communication in safety critical environments can be a matter of life and
death
There have been many situations where failure to communicate has led to errors or oversights,
and some of these have had serious consequences. In 2003, the American space shuttle Columbia
was disintegrated upon re-entering Earth's atmosphere, killing all seven crew members due to
defects in the design.
In an interview, Rodney Rocha, NASA engineer, can be seen explaining why he didn’t speak up
during the Columbia mission (Refer to the NASA case study for more information):
“I just couldn’t do it [speak up in a meeting about the foam risk]. She [senior manager Linda
Ham] was way up here [gestures with hand overhead] and I was way down here [gestures with
low hand].”
In this case, the disparity between Mr. Rocha and his boss, combined with a hierarchical culture
at NASA, made it very difficult for Mr. Rocha to speak up.
In one instance, a nurse failed to tell a surgeon that a patient experienced abdominal pain and a
drop in the level of red blood cells after the operation. These are signs that the patient may have
internal bleeding. The patient later died of a haemorrhage due to internal bleeding.
In another case, a generalist doctor referred a patient to a lung specialist but failed to mention lab
results signalling possible early congestive heart failure, assuming that the specialist would see
the results in the electronic medical record. Nine days later, the patient was rushed to the
emergency room and died after his lungs filled with fluid.
These deaths, among 1742 others, could have likely been prevented with better communication
between healthcare personnel. In these cases, communication is literally a matter of life and
death.
Despite this possible advantage, not all senior members in organizations are receptive to
suggestions from employees at junior levels. Information delivered from subordinates to leaders
allows leaders to have sufficient knowledge to make good decisions and to keep a close eye on
emerging issues (Dutton & Ashford, 1993).
Employee silence about organizational problems, from medical errors to process improvements,
can have an adverse effect on organizational improvements (Edmondson, 2002; Weick &
Ashford, 2001). Regardless of positive organizational effects of communication about
improvements, individuals are generally reluctant to speak up at work due to a variety of social
and psychological forces (Kish-Gephart, Detert, Trevino, & Edmondson, 2009).
Edmondson was interested in how members of teams had to coordinate action the uncertain, fast-
paced environment of cardiac surgery. She wanted to understand the extent to which they are
comfortable speaking up with observations, questions, and concerns – and how that would
influence learning and patient outcomes.
In the past, one cardiac surgeon essentially ran the entire operation with other staff playing a
purely supportive role. The benefits of good team functioning in a MICS operation was that the
patient could have a shorter recovery time and better outcome.
All MICS team members have to perform on the same high level
The cardiac surgeons were the “leaders” of these new MICS teams, but it was critical that each
member of the operating team (from the techs to the nurses and anaesthesiologists) performed at
the same level. They had to know exactly what to do at all times and to exchange the right
information at the right time.
However, every patient was different, and the complexity was high. They all had to work
together and learn this new technology effectively, in order to flexibly adjust to each patient. It
was important that they communicated about how to work together more effectively and
minimized their learning curve.
Leaders who helped teams learn by communicating openly improved team performance
Edmondson analysed what leaders of teams did to promote communication in 16 separate
hospital teams learning the new MICS technology. She found that team leader coaching and ease
of communication were associated with successful learning of the new technology. Leaders who
were the most effective helped teams learn by communicating openly and allowing the team to
communicate back without judgement.
Additionally, organizational learning is much more likely to take place in an environment where
communication is open and free of judgement. Last, safety is highly dependent on proper
communication between members of an organization in industries ranging from healthcare to
aerospace.
Communication is critical for an organization to function well, and leaders should work to
remove barriers that stifle communication for an organization to flourish.
Q.3 Prioritize technological communications modes and explain the reasons for stated priorities
with examples.
Ans: Types of electronic communications
Electronic communication is any form of communication that’s broadcast, transmitted, stored or
viewed using electronic media, such as computers, phones, email and video. But each has
specific uses and is better suited for certain scenarios.
1. Email
In an email stats report covering 2021 to 2025, research firm Radiate predicts that businesses and
consumers’ total number of emails sent and received per day will surpass 319 billion by the end
of 2021. With so many emails flying in and out and no clear prioritization, the risk of losing vital
intel is high.
Although it’s not the most efficient for workplace communication, especially in highly
collaborative environments, email has its uses:
If you don’t have an effective email organization strategy in place, you’re wasting precious time
searching through your inbox, separating junk mail from high-priority and digging for
conversation strings.
Instant messaging (IM) refers to the real-time or instantaneous transmission of messages via the
internet or an internal network or server.
IM tools such as Slack and Facebook Messenger reduce, and often eliminate, the unnecessary
and time-consuming back-and-forth of phone calls and emails. IM also lets you immediately
raise and address issues that could otherwise languish unnoticed for days or weeks.
Live chat is similar to IM in that participants can send one another messages in real time. Both
parties usually need to be in each other’s “friends” or “connections” list with IM. To use live
chat, you don’t have to be friends with someone. It’s similar to live-chat apps on websites where
customers can chat with a service rep. Live chats are also session-based. Unlike open-ended IM
chat, you need to initiate another session after terminating the first one.
According to a 2021 post by online statistics portal Statista, there are 1.88 billion websites. Of
this number, e-commerce platform Oberle found that approximately 600 million have blogs.
Research by Top Design Firms also found that 28% of U.S. small businesses still do not have a
website.
Unless potential customers know your brand well, they won’t know you’re in business without a
website. Most people research a company or product before they visit a store or make a purchase,
and often prefer transacting with businesses online. Market intelligence firm eMarketer expects
online grocery shopping to surpass $100 billion in 2021.
Even if you don’t have a home website, blogs can solidify your reputation as a go-to industry
expert—provided you consistently publish insights that address your audience’s pain points.
4. SMS/text messaging
According to a recently published Pew Research study, 97% of Americans “now own a cellphone
of some kind.” Additionally, 85% of Americans now have a smartphone compared to just 35% in
2011 when Pew first surveyed smartphone ownership. Worldwide, Statista found that active
smartphone subscriptions stand at more than 6 billion in 2021, and projects they’ll surpass 7.5
billion in 2026.
This means things will continue to look up for companies taking advantage of the power of short
message service (SMS) and text messaging for customer communications. Here’s why:
With most business communication now happening via mobile and desktop apps or cloud-based
platforms, it’s easy to forget the old-school phone system. Customer behavior may have evolved
in response to technology, but there’s still a need for a personal touch.
Voicemail systems have come a long way too. Modern voicemail services take messages and
send them as text (voicemail to text) or email (voicemail to email).
But you don’t have to have a phone system to make calls. With more audio communications
happening over the cloud, Slack has a built-in calling feature for making voice calls. Slack also
supports adding guest roles to your workspace for temporary contacts (contractors, vendors,
clients or interns).
6. Video
Explainer videos are short videos that highlight the features of a product or service. They’re
particularly helpful for potential customers researching a product or current customers trying to
understand how one functions. Explainer videos can also be used for online advertising.
Video conferencing platforms have multiple uses besides organizing conferences or conducting
meetings:
HR and recruitment initiatives, such as interviewing job candidates and onboarding new
employees
On-demand training and live, instructor-led courses
Employee engagement through remote team-building activities, such as virtual happy hours
or personal fact guessing games
With email, response times can vary between a few minutes to days or weeks. But if you need to
connect in real time, use video conferencing software (or phone or softphone). You can also fire
up your Slack app and send an instant message or launch a video chat.
Pro: Enables various communication flow types
Face-to-face communication gives added context from nonverbal cues. A shrug can indicate
indecision. A frown can signal disapproval. And silence might mean you have more explaining to
do.
Nonverbal communication lets you read the room and change tack if needed. Email messages are
open to interpretation. Things like sarcasm, especially without emoji, can be hard to detect in
written communication.
Outages are disruptive and costly if you rely on electronic communication to support business
activities, particularly email or softphones. Data compiled by Atlassian found that significant IT
downtime can cost companies anywhere from $137 to $9,000 per minute and up to $1 million an
hour.
Cater the tone of your message to the recipient. If it’s your boss or the CEO, being professional is
critical. If it’s a colleague you banter with, an informal tone can inspire a more positive work
environment.
One of the tenets of sound email marketing is to grab attention right out of the gate because:
4. Be brief
Keep your texts and chats to the point. When sending emails, stick to one subject whenever
possible. Get to the bottom line right away.
Before hitting send, proofread. Poorly worded messages or texts peppered with punctuation,
spelling and grammar errors look unprofessional. Even if you have an unsend option, the time
window is usually only a few seconds.
6. Be polite
No matter the medium, never use offensive language. Digital messages create a paper trail.
Anybody could see what you send. Don’t put anything in writing you wouldn’t want someone to
see.
Getting everyone on the same page is the critical first step for businesses to hit their goals
consistently. Take advantage of the wealth of electronic communication channels available today
and use them wisely. Using an all-in-one platform like Slack that integrates with your current
tools is the most efficient way to manage your communications. Harness the power of Slack’s
strategically organized channels, efficient real-time (and offline) chat, cloud-based
documentation and easy automation tools to dramatically streamline your workflows and
radically boost productivity.
1. Email
In an email stats report covering 2021 to 2025, research firm Radicati predicts that businesses
and consumers’ total number of emails sent and received per day will surpass 319 billion by the
end of 2021. With so many emails flying in and out and no clear prioritization, the risk of losing
vital intel is high.
Although it’s not the most efficient for workplace communication, especially in highly
collaborative environments, email has its uses:
If you don’t have an effective email organization strategy in place, you’re wasting precious time
searching through your inbox, separating junk mail from high-priority and digging for
conversation strings.
Instant messaging (IM) refers to the real-time or instantaneous transmission of messages via the
internet or an internal network or server.
IM tools such as Slack and Facebook Messenger reduce, and often eliminate, the unnecessary
and time-consuming back-and-forth of phone calls and emails. IM also lets you immediately
raise and address issues that could otherwise languish unnoticed for days or weeks.
Live chat is similar to IM in that participants can send one another messages in real time. Both
parties usually need to be in each other’s “friends” or “connections” list with IM. To use live
chat, you don’t have to be friends with someone. It’s similar to live-chat apps on websites where
customers can chat with a service rep. Live chats are also session-based. Unlike open-ended IM
chat, you need to initiate another session after terminating the first one.
According to a 2021 post by online statistics portal Statista, there are 1.88 billion websites. Of
this number, e-commerce platform Oberle found that approximately 600 million have blogs.
Research by Top Design Firms also found that 28% of U.S. small businesses still do not have a
website.
Unless potential customers know your brand well, they won’t know you’re in business without a
website. Most people research a company or product before they visit a store or make a purchase,
and often prefer transacting with businesses online. Market intelligence firm eMarketer expects
online grocery shopping to surpass $100 billion in 2021.
Even if you don’t have a home website, blogs can solidify your reputation as a go-to industry
expert—provided you consistently publish insights that address your audience’s pain points.
4. SMS/text messaging
According to a recently published Pew Research study, 97% of Americans “now own a
Cellphone of some kind.” Additionally, 85% of Americans now have a smartphone compared to
just 35% in 2011 when Pew first surveyed smartphone ownership. Worldwide, Statista found that
active smartphone subscriptions stand at more than 6 billion in 2021, and projects they’ll surpass
7.5 billion in 2026.
This means things will continue to look up for companies taking advantage of the power of short
message service (SMS) and text messaging for customer communications. Here’s why:
With most business communication now happening via mobile and desktop apps or cloud-based
platforms, it’s easy to forget the old-school phone system. Customer behaviour may have
evolved in response to technology, but there’s still a need for a personal touch.
Voicemail systems have come a long way too. Modern voicemail services take messages and
send them as text (voicemail to text) or email (voicemail to email).
But you don’t have to have a phone system to make calls. With more audio communications
happening over the cloud, Slack has a built-in calling feature for making voice calls. Slack also
supports adding guest roles to your workspace for temporary contacts (contractors, vendors,
clients or interns).
6. Video
Explainer videos are short videos that highlight the features of a product or service. They’re
particularly helpful for potential customers researching a product or current customers trying to
understand how one functions. Explainer videos can also be used for online advertising.
Video conferencing platforms have multiple uses besides organizing conferences or conducting
meetings:
HR and recruitment initiatives, such as interviewing job candidates and onboarding new
employees
On-demand training and live, instructor-led courses
Employee engagement through remote team-building activities, such as virtual happy hours
or personal fact guessing games
Pros and cons of electronic communications
With email, response times can vary between a few minutes to days or weeks. But if you need to
connect in real time, use video conferencing software (or phone or softphone). You can also fire
up your Slack app and send an instant message or launch a video chat.
Face-to-face communication gives added context from nonverbal cues. A shrug can indicate
indecision. A frown can signal disapproval. And silence might mean you have more explaining to
do.
Nonverbal communication lets you read the room and change tack if needed. Email messages are
open to interpretation. Things like sarcasm, especially without emoji, can be hard to detect in
written communication.
Outages are disruptive and costly if you rely on electronic communication to support business
activities, particularly email or softphones. Data compiled by Atlassian found that significant IT
downtime can cost companies anywhere from $137 to $9,000 per minute and up to $1 million an
hour.
What type of message are you conveying? To which audience? An announcement on your
website or a press release might be the best way to reach consumers. If you want quick answers
and you work remotely, use a messaging platform like Slack.
Cater the tone of your message to the recipient. If it’s your boss or the CEO, being professional is
critical. If it’s a colleague you banter with, an informal tone can inspire a more positive work
environment.
One of the tenets of sound email marketing is to grab attention right out of the gate because:
4. Be brief
Keep your texts and chats to the point. When sending emails, stick to one subject whenever
possible. Get to the bottom line right away.
5. Check grammar, punctuation and spelling
Before hitting send, proofread. Poorly worded messages or texts peppered with punctuation,
spelling and grammar errors look unprofessional. Even if you have an unsend option, the time
window is usually only a few seconds.
6. Be polite
No matter the medium, never use offensive language. Digital messages create a paper trail.
Anybody could see what you send. Don’t put anything in writing you wouldn’t want someone to
see.
Getting everyone on the same page is the critical first step for businesses to hit their goals
consistently. Take advantage of the wealth of electronic communication channels available today
and use them wisely. Using an all-in-one platform like Slack that integrates with your current
tools is the most efficient way to manage your communications. Harness the power of Slack’s
strategically organized channels, efficient real-time (and offline) chat, cloud-based
documentation and easy automation tools to dramatically streamline your workflows and
radically boost productivity.
Ans:
Q.5 a) Explain the contents of effective employee progress reports with examples.
Ans: Writing project management (PM) progress reports is one of the most effective ways of
measuring business growth and fostering productivity in the workplace. PM reports provide
project managers with detailed information about the outcome of different stages of a project,
which incremental goals you've met and where you can make improvements. To write an
effective report, it's essential to understand what they are and their benefits. In this article, we
define what progress reports are and how to write them effectively.
What are progress reports?
Progress reports are documents that include up-to-date details of the progress made towards the
completion of a project. A wide range of businesses and organisations use PM reports, and
they're an effective management tool outlining all the activities completed and targets achieved.
You submit PM reports to a supervisor, team leader or client and include:
Time
A culture’s use of time can communicate differences more profoundly than words. Three
orientations to time can be seen across cultures. The first is past orientation, where high value is
placed on continuance of traditions. In these cultures, changes and plans are judged according to
their fit with history and customs. The second is present orientation, which is a short-term
orientation aimed at quick results. In these cultures, changes and plans are judged on fast pay-off.
Finally, future-orientation includes a willingness to trade short-term gains for long-term results.
In these cultures, changes and plans are judged on expected future benefit.
Action
Cultures, like individuals, can be oriented towards activity or passivity. The first type is a doing
culture, where value is placed on action, accomplishments, achieving personal goals and
improving one’s standard of living. These cultures follow external standards of measurement and
are motivated by promotions, raises, bonuses and recognition.
Conversely, in being cultures, value is placed on working for the moment, release from stress,
and experience rather than accomplishment. These cultures put emphasis on job satisfaction and
are not motivated by promises of future rewards.
There are two variables that exist across cultures- high-context/low-context and formal/informal-
that deal more directly with the way we send messages back and forth when we interact. The first
variable pertains to how much meaning is conveyed through the context surrounding verbal
communication. In low-context cultures, information is given primarily in words and meaning is
expressed explicitly. In other words, you are expected to say what you mean and mean what you
say. Conversely in high-context cultures, information is transmitted not just in words but also
through a variety of contexts, such as voice tone, body language, facial expressions, eye contact,
speech patterns, use of silence, past interactions, status, common friends, etc. Members of high-
context cultures might not say something directly as they may assume other group members will
understand the indirect meaning.
The second pertains to how important it is to formally or informally follow rules for self-
presentation and for behaviour in organizations and social situations. In formal-communication
cultures, importance is given to following protocol and social customs. In informal-
communication cultures, people feel more comfortable doing business in a more casual way
without lots of rituals and ceremonies.
Space
Cultures also differ in regard to how they perceive and use physical spaces, specifically private
and public space. In private-space cultures, personal space is valued, and clear borders and
boundaries exist between one space and another. Ownership of space is important. Doors are to
be closed, and knocking before entering is expected. In public-space cultures, the boundaries
between personal and public spaces are weaker and more flexible. Space is shared rather than
owned. Doors are to be kept open, and access is free.
Power Distance
The power variable pertains to how much the less powerful members of a society expect and
accept that power is distributed unequally. In high-power distance cultures, also referred to as
hierarchy cultures, inequality is accepted. Structures are defined and differences in status are
seen as normal. This type of culture satisfies a need for dependence and security. In professional
settings, members of high-power distance cultures usually prefer groups where clear roles are
assigned and there is a designated leader.
Individualism vs Collectivism: The slogan “If my smoking bothers you- don’t breathe”
highlights the difference between individualistic and collectivist orientations. Individualistic
cultures place a high concern on the self, whereas collectivist cultures are concerned about the
group. In a collectivist cultures, people usually do not engage in behaviors that would bother
others, such as smoking or playing loud disruptive music.
Individualism and collectivism pertain to the extent to which countries elevate the role of the
individual over the group. In individualistic cultures, the bonds between individual members are
relatively loose. People are independent and expected to take care of themselves, or at most, the
nuclear family. Guilt and fear of loss of self-respect are central to social control. The “I”
predominates over the “We.” Individual identity is key, and speaking one’s mind is a sign of
honesty. Individualist cultures emphasize individual expression and personal responsibility.
In collectivist cultures, individual interests are placed second to group interests. Groups protect
their members in exchange for loyalty and obedience. Social control is based on the fear of
losing face and the possibility of shame. Identity is therefore based on the social network to
which a person belongs. Harmony, rather than speaking one’s mind, is a key value. Laws and
rights differ from group to group, and political power is held by interest groups.
Competitiveness pertains to how much achievement and success dominate over caring for others
and quality of life. In competitive cultures, achievement, assertiveness and competition are
reinforced. In these cultures, social and gender roles also tend to be distinct. Men are expected to
be assertive, tough, and driven by material success. Women, on the other hand, are expected to
be modest, nurturing, and concerned mainly with the quality of life. When competitiveness is
valued, the culture is predominantly materialistic, with an emphasis on assertiveness and
acquisition of money, property, goods, etc. High value is placed on ambition, decisiveness,
performance, speed and size.
Cooperativeness characterizes cultures in which social and gender roles overlap. Everyone is
expected to demonstrate modesty, nurturing, and a concern for the quality of life. Being
sympathetic to one’s fellow human beings is important with an emphasis on relationships. High
value is placed on consensus and intuition. In a competitive culture, people live to work. In a
cooperative culture, people work to live.