ASSIGNMENT AHS-548B(UNIT3)

ANTHROPOLOGICAL PRACTICE
IN BUSINESS

SUBMIT TO :-

DR. A.K. SINHA

SUBMITTED BY :-
SAKSHI GARG
M.Sc. (hons.) 4th
semester
Department of
Anthropology
  THE RANGE OF ANTHROPOLOGY
Can the researchers studying faith-healing ceremonies of Himalayan and Siberian
shamansbe useful for the marketing strategies of multinational business targeting
the sophisticated Western European consumers? Can a scholar of body language
and symbolic gestures in the tribal cultures of North African nomads help to
improve the management of human resources in a North American company with
manufacturing base in Southeast Asia? Is an expert in Oriental religions helpful to
draw strategies for export-oriented North Italian small and medium enterprises?
What about the role of a specialist of ethnic and folk medicines in an urban
regeneration project or in the management of a natural reserve or park?
Business-people and administrators may wonder how anthropology can be helpful
to contemporary problems. But the anthropologists believe that their knowledge,
skills and perspectives have considerable value for the comprehension,
interpretation and guidance in the affairs of business and governance. Indeed
anthropologists have been hired as high levelconsultants by various institutions and
organizations including many government departments,international bodies (such
as United Nations agencies, The World Bank, Asian Development Bank) and non-
governmental organizations (NGOs). There are also a few cases of anthropologists
who served as consultants for the big business (e.g. Procter & Gamble, Royal
Dutch/Shell, Westinghouse, Campbell Soup, Union Carbide, Philips, Apple
Computers, General Motors, Xerox, Sprint Communication Ventures, US West,
NYNEX, etc.).
Today’s business climate is characterized by the globalization of economy, intense
Competition and extremely complex and demanding market. For knowingwhat the
anthropologists can do for business and how do they do it, first we must have a
clear picture of what is anthropology.

Anthropology is basically qualitative information, in contrast to the quantitative

informationof social statistics or economics. It is the information regarding
peoples, their habitats, communities, institutions, values, habits and aspirations.
And information is always power - however subjective or objective, partisan or
impartial, fragmented or complete it may be. Analysis of the sociocultural
qualitative information supported by some quantitative data (statistics) can be
crucial in the decision-making process. The qualitative socioculturalinformation
consists of worldviews, interactions and organizations. The implicit patterns
andtraditional values underlying behaviour and organizations do not emerge from
the conventional social science studies (e.g. sociology and economics).
Applied anthropology tries to turn the implicit into explicit, values and patterns
into operative elements. There are two ways in which the anthropological
knowledge is applied. One is through the use of anthropological information of
public domain. Concerned people and organizations may wish to undertake in-
depth studies of particular territory, community or topics of their interest. And they
may improve their understanding through the available literature, audio-visual
documentaries, orientation courses, seminars, etc. of anthropology. The other way
is through specific advisory and support service of anthropologists hired for a
period (e.g. in many NGOs, business organizations and administrative institutions)
or as permanent in-house experts (e.g. in the UN agencies, The World Bank, Asian
Development Bank and some companies).
The scope of applied anthropology is very wide. Any organization dealing directly
or indirectly with the human beings - as groups, communities, institutions, staff,
consumers, clients, partners, taxpayers, beneficiaries, interlocutors, target, etc. –
cannot afford to ignore the complexity underlying human behaviourand
organization. Today nobody doubts the fact that human behaviour is not just the
linear chain of stimulus and response. Behaviour and organizations are shaped by
the interplay of interpersonal interactions, biophysical endowments, material
situation, social factors and interior dynamism such as values and conscience. It is
the totality of external and internal impulses arranged as a huge blueprint for the
individual and collectivebehaviour. Its ramifications are to be found in business
culture and organizational culture. No other social science is so well equipped as
anthropology to deal with that. As the scope of applied anthropology is very wide
so are the chances of its misuse, inappropriate and fruitless applications. Following
the trend or fashion of anthropological consultancy many organizations may
simply hire an anthropologist as a showpiece without really providing him/her
sufficient resources and logistic support to conduct a serious research or simply
ignoring his/her findings and recommendations.
Today, most of the business affairs involve more nation-states and governments.
The globalization, migratory movements and close interdependence among
governments, industries and communities across the geographical and political
boundaries have made the business multidimensional and complex. This is the
intercultural dimension. More than one language, religion, ethnicity and culture
are involved in today’s affairs. Therefore businesses, governments, inter-
governmental agencies and non-governmental organizations must combine
interdisciplinary thinking with the intercultural approach in order to create a
common comprehensive operational ground. It is necessary to work out common
intelligibility in concept, method and procedure, roles and relations, accountability
and safety, etc. in order to insure smooth functioning and better output.
Anthropologists can help in analyzing and shaping the organizational and business
cultures.

Towards a Business Anthropology

In the early colonial times, in 19th and early 20th centuries, the Western
anthropologistswillingly served the politics of subjugation and the business of
control and exploitation by the Europeans and by the New World settlers of
European origin in the rest of the world (Foster, 1969). Anthropologists
consciously and voluntarily helped the colonial administrations and economic
organizations through their comprehension of indigenous languages and cultures to
create efficient systems of control. That was applied anthropology - however
politically incorrect it may seem today.
In the years of Soviet communist empire, the anthropology encouraged and helped
by the political power centers to study the Central Asian, Siberian and other
peoples and cultures. Soviet anthropologists also helped to design education,
legislation, institutional infrastructure and economic development in order to make
the communist “revolution” successful across the ethnic and national frontiers.
Knowledge of sociocultural structures and an ability to manipulate them in favour
of the power establishment helped even some tiny regimes of faraway lands. All
that was applied anthropology.
In the period following decolonization, many anthropologists in India, China and
other countries came forward to help the new institutional build up process.
Meanwhile the Westernanthropologists remained more or less skeptical about the
use of anthropology. They feared themisuse or, probably, felt a sense of guilt for
their past. The majority of Western anthropologistsadvocated an extremely
cautious approach in relation with the world of governance and business fearing
the abuse of anthropology and manipulations of sociocultural realities (Belshaw,
1976). Anthropological thinking underwent severe self-criticism and soul-
searching during the 1960s and 1970s. Only a few anthropologists showed interest
in the affairs of public policy, business and industry.
During 1960s and ‘70s, the majority of anthropologists resisted the idea of
collaborating with the industry and business. Indeed very little was done in that
period. Now, at the threshold of a new millennium, things have taken a different
turn. New pressures such as global presence of multinational companies, changes
in workforce diversity, spread of industrialization in non- Western societies and
many far reaching technological innovations have created conditions for the
anthropologists to participate in the business world.
Another important factor for the interaction between business world and
anthropology has been the shift in the subject-matter of study. The so called
“primitives” are too few andMost of the traditional contexts are undergoing rapid
transition. And, the modernized and complex industrialized societies are proving to
be much more “exotic” and underexplored than what generally supposed.
At present, the globalization of business is creating new and unique situations
involving personalities, generations, political and administrative set-ups, legal
frameworks, organizations, communities and cultures. It means new opportunities
to observe, analyze and interpret human dynamics in different circumstances.
Today business is a main topic for modernized societies, for it permeates life of
everyone. A number of sessions dedicated to specific business-relatedtopics at the
American Anthropological Association have demonstrated the growing interest of
anthropologists in business. In the USA, there is a National Association of
PracticingAnthropologists (NAPA) associated with the American Anthropological
Association which has shown considerable interest in the business applications of
anthropology. On the other side, the business world is also showing some interest
in anthropology. The relations between anthropology and business seem quite
profitable for both - new scientific and cultural opportunities for the
anthropologists, and, better insight, an increased ability and new skills for the
business-people.

BUSINESS ANTHRPOLOGY
Business anthropology refers to the implementationof ideas and
techniques from the field of applied anthropology to accomplish
objectives primarily for businesses run for profit and attain
competitive advantage. The present business world is not just
characterized by profitability but also sustainability.
Anthropological principles not only help businesses to achieve
higher profits but also sustain them in the long run. It is further
defined as a practically oriented scholastic field in which
anthropological theories and methods are applied to identify and
solve real business problems. In other words, the foremost
objective of business anthropology is to resolve operational and
organizational glitches. The application of the discipline to the
field of business is worth exploring. This branch of anthropology
becamepopular in the late nineteenth century when itwas first
applied to business (Baba 2012).
The decades since the late 1980s have witnessed a spurt in
growth of the field and its application to a plethora of contexts in
business. Hence, the term“business anthropology” is being used
more generically to refer any application of anthropology to
business management. Changes inthe global business arena,
such as technological advances and integration, have not only
altered the way business is steered but also modified the way
people perceive business and business activities. All of this has
led to tremendous competition and, hence, business leaders
today need to reexamine what they offer, how they do business,
who could be new collaborators to deliver new products and
services, and so on. To cater for the multifaceted, ever-changing
customer demands and to attract new customer groups there is a
strong need to diversify the product line and do so at a fast pace.
Many companies like Procter & Gamble (P&G) and Hindustan
Unilever haveincreased their product offerings by diversifying in
varied product categories and anticipating future customer
demand.
More specifically, business anthropology entails helping
organizations to manage demographic disparities such as cultural
and ethnic differences. In some cases, business anthropologists
act as an interface between management and the workforce
(Trice 1993). Anthropology as a discipline can also contribute
toward promoting “best practices” which are ethical and are
framed keeping in mind the interests of the consumer and society
at large.
Today, in the globalized world, there is a significant need for
anthropologists in business consulting, organizational behavior,
human resources management, competitive intelligence,
globalization, product design and development,marketing, and
consumer behavior studies(Denny and Sunderland 2014; Jordan
2010, Tian, Van Marrewjik, and Lillis 2013). Jordan (2010)
proposes that business anthropology is of three types, namely:
(1) organizational anthropology (the study of complex
organizations to include their cultures, work processes, and
change directives); (2) anthropology of marketing and consumer
behavior; and (3) design anthropology (product and services
design).
In addition to Jordan’s breakdown, there are two other fields that
scholars have suggested, namely: (1) anthropology of competitive
intelligence and knowledge management; and (2) international
and cross-cultural business (Tian, Van Marrewijk, and Lillis 2013).
Although business anthropology is like any other applied field of
anthropology, there is a fundamental difference based on the
methods used. Gwynne (2003) has advocated that the distinction
between business anthropology and other subfields of business
studies is based on techniques and procedures used. This is
because the investigations conducted by business anthropologists
revolve around attempts to help organizations derive profits. All
this leads to openness of results, publishing actual findings, and
ethical considerations. There are innumerable contributions that
anthropology can make to business and its rolein the present
century is even more noteworthy (Denny and Sunderland 2014).
 What can anthropology do to helpthe
business world?
Business anthropology can make major contributionsto the
business arena through the following channels: corporate
cultures, knowledge management, cultural audits, organizational
changes, product design, marketing, international business, and
consumer behavior (Jordan 2010).
Anthropologists look at business organizations as not just
structural institutions but also as mini societies in themselves,
accommodating people from diverse ethnic and educational
backgrounds. Other differences, such as gender, age group, and
economic status, also exist. Hence, anthropologists can contribute
to businesses by helping them to fathom the convolutions of their
cultures and how these affect organizational functioning.
Managing knowledge is a crucial component of any business and
anthropologists can contribute in an important way to this
process. Knowledge exists in many forms in every organization
and can be categorized as implicit and explicit knowledge. Explicit
knowledge is managed through various well-known procedures
and methods but managing and leveraging implicit knowledge,
which is generally covert and difficult to communicate, is where
the anthropologists can assist organizations (Burke 1998).
Anthropologists’ work helps in converting this implicit knowledge
into explicit knowledge andin enhancing business proficiency. For
example, Baba (1986) proposes that the knowledge within a
group that includes experienced employees who have worked in
the organization for a long time can sometimes be “captured” and
taught to new employees.
With the continuing shifts in the globaleconomy, organizations are
also experiencing tremendous changes not only in their structures
but also in the ways they operate. To succeed in this rapidly
evolving world, organizations need to be well equipped to cope
with and adapt to the changes quickly. Anthropology can be a
great facilitator in this process of adaptation.
Anthropology can also contribute immensely to the process of
designing new products and product presentation as well as
service development. Companies nowadays employ
anthropologists to study internal and external factors so as to
understand and anticipate new opportunities and also to deal with
current and potential threats. According to McDonough and
Braungart (2002), anthropologists find answers to problems such
as, for example: how to design office environments that
encourage group working and collaboration; how to design
websites that fit the “mental model” and usage patterns of their
target audiences; and how to design museum exhibits that
maximize the engagement between visitors and displays.
Marketing research is another area in which anthropologists can
intervene to enhance the profitability of business. Anthropological
studies deliver understandings of the cultural patterns/ trends and
ethnic factors that affect consumer behavior. As market
researchers, they try to determine the motivations behind the
behaviors of consumers in different contexts. Ethnographical
research is the most popular technique used to study the values,
opinions, likes, and dislikes of customers (Gwynne 2003).

Relevance of business anthropologyto

contemporary business
Business anthropology has been used increasinglyin different
industries to investigate a wide variety of real-time business
problems. For example, anthropology has been used in
theconsumer goods industry where technological advances have
stimulated rapid growth. The changing business environment
poses challenges such as integrating the fragmented consumer
markets so as to fit them to the emerging business models. This
in turn requires novel approaches to existing products and
services that will satisfy the ever-shifting customer requirements.
This scenario calls for increased interaction between producers
and consumers,which iswhere anthropologists have a major role
to play (Tian 2007; Tian andWalle 2009).

Another example of the application of business anthropology was

a quantitative survey conducted by Tian et al. (2014) using
anthropological techniques such as participant observation and
in-depth interviews to investigate the quality of food-service
operations at a Chinese university. According to the researchers,
the utility of anthropological investigation in such a case is
because the quality of the food service has a significant impact on
the satisfaction level of students (thecustomers). They
consequently recommendedthe inclusion of this parameter in the
overall evaluation of the universities, which would in turn enhance
the quality of food service delivered. Anthropological intervention
thereby helped gauge the importance of consumer behavior and
what factors affect satisfaction levels.
Business giants like Google and P&G have realized the
importance of anthropology to promote their products and
services in new markets and to capture new customers. Google
uses ethnographic methods to cognize the needs of the
consumers, including capturing video footage ofpeople searching
on the web. An example of this, in a Chinese context, is that the
people of China were finding it difficult to search the web and get
the optimum results because of the language barrier. This led
Google to create “Google Suggest,”which would initiate pop-up
search suggestions so that users could take a cue while typing.
The “Did you Mean?” service is an example. As a result, Google’s
offerings earned appreciation from the users. These innovations
were a result of Google’s consumer observation, understanding,
and insight-gathering methods, which are nothing but
anthropological techniques.
P&G used similar techniques to counter many product failures in
1980s. The detergent it launched for lower-income groups was a
failure so the company started the “Living-In” program, also
known as “immersion research,” to understand the aspirations,
desires, and needs of the particular customer segment. This led
P&G to gather consumer or partner insight into the not-so-evident
but crucial needs of the consumers. The executives realized that
the target customers, who were primarily manual laborers, were
very sensitive to perspiration odors and gained satisfaction in
cleaning their clothes whenseeing their detergent foam—the
feature thatthe new detergents lacked. Customer
observationthrough living-in immersion and/or video observations
have thus become vital tools used by present-day organizations.
Researchers also work as anthropologists with a diverse range of
commitments in organizations. For example, Dr. Bonnie Nardi
works as an anthropologist at American Telephone and Telegraph
(AT&T)where her job is to help researchers invent new technology
for the next generation product requirements by scrutinizing
consumers’behavior in the home or office (Hafner 1999).
Bennett (1996) rightly points out that applied forms anthropology,
in this case business anthropology, translate cultural relativism
into conservation of local ways and adaptation to make sure that
change is not overly punishing or that any induced change has a
beneficial effect. Although business anthropology has applications
in a plethora of areas of business, there are many practical issues
still to be resolved, which practitioners encounter only when the
actual research is conducted. The following section details the
contingencies faced by anthropologists while applying
anthropological principles to business problems.

Summary and conclusion

The increasing complexity of the global economyhas led to the
unification of diverse cultures throughout the world and business
practices that were once locale specific are today
glocal(global+local) in nature. This has given rise to an incessant
need to understand people more and more in context of business.
Anthropologystudies society as a unit of individuals and groups of
individuals and answers questions of societal concern often left
unanswered by other disciplines. Business anthropology appears
to be one tool that has come to the rescue of organizations trying
to come to terms with human beings and their idiosyncrasies.
Applying anthropological principles to business is bound to help
organizations achieve sustained competence and efficacy.
Though the application of anthropological principles to real-life
contexts in business may not have been completely recognized
by academia, applying them more widely would definitely lead
them to improved chances of success. This entry looks at the
issues involved in anthropological research in the business arena.
It discusses the contribution of anthropology to different areas
ofmanagement and illustrates how it helps in solving a variety of
different issues in business.
Business anthropology has been expanding and research is being
conducted in multiple countries and with multiple organizations. It
can satisfy varying business needs and contribute a great deal to
the real business world. Anthropologists have been working
outside academia in organizations, consulting firms, design
studios, and marketing agencies. Some of the areas business
anthropologists have forged a presence in are corporate cultures,
knowledge management, cultural audit, organizational change,
product design and development, marketing, and consumer
behavior. This presence will continue tobroaden and grow.
Business anthropologists can also offer their assistance to other
areas, such as competitive intelligence, international business,
human resources management, and operations. Many countries,
such as the United States, China, Japan, Australia, Denmark, and
the Netherlands, are sponsoring anthropologists to work on issues
in organizations, design, and consumer behavior studies. Business
anthropology is a global field and associations with researchers
around the world can consolidate this area of research and
practice. There has been rising international interest in business
anthropology through research, student training, and consulting.
In short, the contributions that business anthropologists can make
to the existing business world areimmense and it would be
realistic to anticipate business anthropology becoming one of the
most in-demand disciplines in the world in the near future.

Thank you