Chap003

Editor's Notes

1. Managers must be sensitive to trends in the evolution of a culture in order to maintain their effectiveness in the workplace.
2. While culture is a characteristic of society as a whole, it shapes individual behavior by identifying appropriate and inappropriate forms of human interaction. In a sense culture is the collective programming of the mind which distinguishes the members of one human group from another.
3. Folkways are the routines conventions of everyday life, but generally have little moral significance. Examples would be dress, eating habits, and social graces. An outsider can easily be forgiven for being ignorant of a folkway. Timeliness is a good example. (One way to reinforce the understanding of this concept is to ask individuals in the class what time they would choose to arrive at a party if the party invitation specified that the party starts at 8pm. It is not uncommon for different individuals in the class to have widely varying positions on the “right” time to arrive for an 8pm party. ) Mores are serious standards of behavior. The term comes from the Latin mos (customs), and although mores are fewer in number than folkways, they are more coercive. Negative mores are taboos, usually supported by religious or philosophical sanctions. Whereas folkways guide human conduct in the more mundane areas of life, mores tend to control those aspects connected with sex, the family, or religion. Mores can vary greatly between countries: what in one country may be viewed as an innocent flirt in another may constitute a serious affront to someone's dignity or even harassment. While it is acceptable, and even expected, to consume alcohol with business associates in Japan, where evening business contacts often border on drunkenness, such actions would be disallowed in the United Arab Emirates.
4. The answer is b.
5. The answer is c.
6. While in earlier times the group was usually the family or the village, today the group may be a work team or business organization. In a social setting, Asian employees may often say they work for Sony, while a Western employee may say he/she is an electrical engineer. In Asia, the worth of an individual is more linked to the success of the group rather than individual achievement.
7. The answer is a.
8. The answer is b.
9. The class of a person may be very important in some hiring and promotion decisions, particularly in sales organizations where the person will be dealing with customers that may also come from a particular class.
10. Why is social stratification important? The social stratification of a society is significant if it affects the operation of business organizations In cultures where there is a great deal of consciousness over the class of others, the way individuals from different classes work together (i.e. management and labor) may be very prescribed and strained in some cultures (i.e. Britain), or have almost no significance in others (i.e. Japan) Class consciousness is a condition where people tend to perceive themselves in terms of their class background, and this shapes their relationships with others The mobility permitted by culture affects whether individuals can move up in strata, and can limit the types of jobs and education available. In the US individuals are very mobile ("anyone can become president"), in Britain there is less mobility, and the caste system in India used to limit mobility. Despite the laws against it, the effects of the caste system in India still exist today, and are especially prevalent certain rural areas.
11. Country Focus Islamic Capitalism in Turkey Summary This feature examines the business environment in Turkey. Turkey, a Muslim state, wants to join the European Union, a move many critics believe would not work. Discussion of the feature can revolve around the following questions: 1. Why are critics concerned about the possible entry of Turkey to the European Un ion? Do you agree? Why or why not? Discussion Points: Critics worry that Western-style capitalism and Islam do not mix. Supporters however, claim that this notion may be incorrect. They point out that Kayseri, a city in Central Turkey, is often referred to as the “Anatolian Tiger” to recognize the number of thriving multinational enterprises it has produced. Local business leaders feel that the success of the region is due in part to the entrepreneurial spirit that has emerged.
12. At the turn of the century Weber suggested that it was the Protestant work ethic (focus on hard work, wealth creation, and frugality) that was the driving force of capitalism. This is the most widely practiced religion in the world, approximately 20% of the world’s people identify themselves as Christians. Christianity grew out of Judaism and has monotheistic beliefs. Christianity can be subdivided into three separate organizations: The Orthodox church The Roman Catholic church Protestants which is an umbrella for several denominations Several sociologists have argued that protestants have made a significant economic impact Max Weber commented That business leaders and owners of capital, as well as the higher grades of skilled labor, and even more the higher technically and commercially trained personnel of modern enterprises, are overwhelmingly Protestant. That Protestant ethics emphasize the importance of hard work and wealth creation (for the glory of God) and frugality (abstinence from worldly pleasures). That the combination of hard work and the accumulation of capital, which could be used to finance investment and expansion, paved the way for the development of capitalism in Western Europe and subsequently in the United States.
13. The central principle of Islam is that there is but the one true omnipotent God. Islam requires unconditional acceptance of the uniqueness, power, and authority of God and the understanding that the objective of life is to fulfill the dictates of his will in the hope of admission to paradise According to Islam, worldly gain and temporal power are an illusion. Other major principles of Islam include: Honoring and respecting parents Respecting the rights of others Being generous but not a squanderer Avoiding killing except for justifiable causes Not committing adultery Dealing justly and equitably with others Being of pure heart and mind Safeguarding the possessions of orphans Being humble and unpretentious The Koran establishes some explicit economic principles, many of which are pro-free enterprise The Koran speaks approvingly of free enterprise and of earning legitimate profit through trade and commerce (the prophet Mohammed was once a trader) The protection of the right to private property is also embedded within Islam Islam is critical of those who earn profit through the exploitation of others Given the Islamic proclivity to favor market-based systems, Muslim countries are likely to be receptive to international businesses as long as those businesses behave in a manner that is consistent with Islamic ethics.
14. Management Focus: McDonald’s and Hindu Culture Summary This feature describes the unique challenges faced by McDonald’s in India. The cow is considered sacred in India’s Hindu culture prompting McDonald’s to alter its menu to offer mutton and chicken alternatives to its traditional beef burgers. However, the company recently made news when it was discovered that its French fries were cooked in oil that contained beef extract. Suggested Discussion Questions 1. How did McDonald’s change its product line to meet the needs of the Indian market? Does the Indian version of McDonald’s still maintain the company’s identity? Discussion Points: In response to the needs of the Indian market, McDonald’s changed its menu to include mutton and chicken products rather than the beef based products that are featured in its regular menu. Most students will probably suggest that even with the changes, the company remained true to its identity because it used names similar to traditional names to describe the new products, and built its restaurants following the traditional American style. 2. Did McDonald’s handle the revelation that its French fries contained beef extract well? What would you have done differently? Discussion Points: The lawsuit against McDonald’s over the presence of beef extract in its French fries caught the company off-guard. McDonald’s quickly acknowledged its mistake, and settled the lawsuit. The company also made a public apology and vowed to be more accurate in its food labeling in the future. However, many students will probably argue that the company failed to adequately reassure consumers in India, where angry Hindus protested in the streets. Students might suggest that the company should have responded not only to the Indians located in the United States who prompted the lawsuit, but also to the citizens of India, and other Hindu customers. Another Perspective: Students can learn more about McDonald’s India at the company’s website in India at { http://www.mcdonaldsindia.com/home.html }.
15. The close ties between Japanese auto companies and their suppliers, called keiretsus, have been an important ingredient in the Japanese success in the auto industry. They have facilitated loyalty, reciprocal obligations, and honesty. In countries where these relationships are more adversarial and not bound by these same values, the costs of doing business are probably higher.
16. The language of a society allows it to communicate but also directs the attention of people towards certain features of the world and human interactions. A good example is how the Inuit have 24 words for snow, but no word for the overall concept. Language helps describe how different people see the world differently.
17. The answer is d.
18. EduThe knowledge base, training, and educational opportunities available to a country's citizens can also give it a competitive advantage in the market and make it a more or less attractive place for expanding business It is easier to start operations in a nation with a trained workforce, than in nation where time-consuming and costly training is necessary.
19. How does a society's culture impact on the values found in the workplace?
20. The answer is a.
21. For example, economic advancement is often accompanied by a shift away from collectivism towards individualism.
22. One of the biggest dangers for firms expanding abroad is being ill-informed. One way to bring more knowledge of the local culture into the firm is to hire local managers. Management Focus: Cross-Cultural Illiteracy Summary This feature describes the debacle resulting from the publication of a print ad depicting a helicopter hovering above a mosque with soldiers being lowered to the roof and a tag line stating “It descends from the heavens, ironically it unleashes hell…Consider it a gift from above.” The ad was commissioned by the aircraft makers, Boeing and Bell Helicopter, and was originally published in the Armed Forces Journal. The ad was seen as conveying the message that the war on terror was really a war on Islam. The two companies withdrew the ad immediately, but not before it was also printed in the National Journal. The two companies publicly apologized for the ad. Suggested Discussion Questions 1. What message was the ad trying to convey? How was the ad interpreted? Discussion Points: Students will probably agree that the ad was designed to promote the power of the helicopter, and its potential as a part of a military campaign. However, the ad backfired when people interpreted it as having religious connotations, and that it was a message that the war on terror was actually a war on Islam. 2. What lesson can companies learn from the Boeing and Bell Helicopter incident? How can companies prevent similar misunderstandings? Discussion Points: The Boeing and Bell Helicopter incident clearly demonstrates the need for companies to carefully review their promotional materials to ensure that they are not misinterpreted. To prevent mistakes like this one, companies can use techniques such as back translation. Some students may also recommend that given the fact that at least in this particular situation, the use of culturally diverse focus groups to prescreen materials could have been beneficial. Another Perspective: Students may want to explore the International Business and Etiquette web site at { http://www.international-business-etiquette.com /}. The site contains cultural information on a number of different countries.