Mgnt4670 Ch 3 Differences In CulturePresentation Transcript
Differences in Culture CHAPTER 3
What is Culture?
“ A system of values and norms that are shared among a group of people and that when taken together constitute a design for living.” - Hofstede, Namenwirth and Weber
“ Different countries, different customs.”
- Peachy , The Man Who Would Be King.
The Cultural Iceberg
Figure 3.2 Hodge, Sheila. Global Smarts, New York: Wiley & Sons, 2000, page 32
COMPONENTS OF CULTURE
Values: abstract ideas/assumptions about what a group believes to be good, right, and desirable.
Norms: social rules and guidelines that prescribe appropriate behavior in particular situations.
DIFFERENT TYPES of NORMS
Folkways: Routine conventions of everyday life.
Little moral significance
General social conventions such as dress codes, manners, and attitude towards time.
Mores: serious standards of behavior, usually tending to address appropriate behaviors in areas such as sex, religion, family, etc.
norms central to the functioning of society and social life
Greater significance than folkways
Violation can bring serious retribution; negative mores are “taboos”
e.g. Theft, adultery, incest and cannibalism
Culture, society and nation states
Society is a group of people who share a common culture.
No one-to-one correspondence between society and a nation state.
Nation states are political creations (“imaginary lines drawn on the earth”)
Many cultures can co-exist within one nation state.
Determinants of culture
Fig. 3.1 p 93
Extent to which society is group or individually oriented
Degree of stratification into castes or classes
Significance to business
Social Structure: Individual vs. Group Orientation
Individual societies tend to view individual attributes and achievements as being more important than group membership.
Emphasis on individual performance can be both beneficial and harmful:
Can lead to high degree of managerial mobility
Group societies see groups as the primary unit of social organization
Often form deep emotional attachments
See group membership as all important
Emphasis on the group can be both beneficial and harmful:
Strong group identification creates pressure for mutual self-help and collective action
Discourages managers and workers from moving from company to company
Social Structure: Social Stratification
Social stratification refers to the fact that all societies are stratified on a hierarchical basis of social categories.
Strata are typically defined on the basis of characteristics such as family background, occupation, and income.
Societies are all stratified to some degree but they differ in two related ways:
Social mobility refers to the extent to which individuals can move out of the strata into which they are born
Class consciousness refers to a condition where people tend to perceive themselves in terms of their class background and this shapes their interaction and relationship with others.
Religious and Ethical Systems
Religion: a system of shared beliefs and rituals that are concerned with the realm of the sacred
Ethical systems: a set of moral principles, or values, that are used to guide and shape behavior
Most of the world’s ethical systems are the product of religions
Christianity (1.7 billion)
Economic implications: Protestant “work ethic” considered
one of the foundations of capitalism; emphasis on individual religious freedom a possible force in development of concepts of individual economic and political freedom.
Islam ( Inshallah- if God is willing) (1 billion)
Economic implications: pro-free enterprise but it must be done in a righteous, socially beneficial and prudent way.
Special case: the riba (interest) not permitted; employ other techniques of mudarabah (sharing ownership) or murabaha (the bank buys the product and sells it to the firm for a price having a mark-up).
Religious and Ethical Systems
Hinduism (750 million )
Economic implications: focuses on importance of achieving spiritual growth and development (progression to nirvana), so sources of motivation may be different. Residual ideas of caste concept may remain in older employees.
Buddhism (350 million)
Economic implications: focuses on spiritual growth, following the Noble Eightfold Path, and the afterlife, so sources of motivation may be different.
Confucianism (200 million)
Economic implications: principles of loyalty, reciprocal obligations, and honesty may lead to reduction of business costs in Confucian societies.
World Religions Map 3.1 p 99
Other components of Culture
Political philosophy: democracy vs. totalitarianism
Economic philosophy: Market economy vs. Command economy
Spoken – Written
Language structures one’s perception of the world
Hill, Charles. International Business, 5 th edition
In some cultures, the words convey most of the meaning of a message; in other cultures, language only partially convey the meaning.
Good communication is critical to success in international business
Cateora, Philip R. International Marketing. Homewood, Illinois: Richard Irwin, 1983, page 135. Meaning less direct; subject to more interpretation Meaning more direct; subject to less interpretation
SPOKEN LANGUAGE- Do you speak English?
Sink the slipper
Ring me up.
Bonnet of the car
“ Fancy a cuppa and a bit of a chin-wag?”
Newly arrived immigrant
To kick someone when they are down
Give me a call.
Hood of the car
“ Would you like to have a cup of tea and talk a bit?
Spoken and Written
Spoken: If you are not sure that you understand or are being understood:
Test understanding of other person
Spoken and Written
Written: Verify the quality of written messages, especially in contracts and advertising.
Use qualified translators
Test the meaning of written communications through:
Unspoken (“the silent language”)*
Body language : gestures, eye contact
Space : Physical distance required to maintain psychological distance
public, social, personal spaces vary considerably among different cultures.
*Concept pioneered by E.T. Hall
Time : Time is one concept that is highly culturally bound. Different cultures view time differently. Time is: 1) actual time
2) Timing (“right moment”) 3) Tempo (rate or pace)
e.g. -U.S.: “Time is money.”
-Mexico: manana is “tomorrow, or sometime soon
-Arabic speaking countries bukara is “tomorrow or
some time in the future.”
-Nigeria: “The clock did not invent man.”
-France: “Before the time, it is not yet the time; after the
time, it’s too late.”
How a culture values time affects its business conduct. e.g. Punctuality in appointments, timeframes and deadlines for getting things done, delivery dates, etc.
Sequential vs. Synchronous Time
Sequential time perspective views time as a giant cosmic clock ticking away.
Synchronous views time as recurrent or cyclical time, good timing.
SOURCE: Charles Hampden-Tirner and Fons
Trompenaars, BUILDING CROSS-CULTURAL
COMPETENCE. New Haven, Conn: Yale University
Press, 2000. page 316
Education can be a source of competitive advantage if a country can offer skilled or training employees. e.g. India, Singapore, Malaysia
Schools are a part of the social structure of any society. Norms and Values are reinforced in formal education.
Formal education plays a key role in a society
Formal education: the medium through which individuals learn many of the language, conceptual, and mathematical skills that are indispensable in a modern society.
Also supplements the family’s role in socializing the young into the values and norms of a society.
Schools teach basic facts about the social and political nature of a society, as well as focusing on the fundamental obligations of citizenship.
Cultural norms are also taught indirectly at school
Examples include: respect for others, obedience to authority, honesty, neatness, being on time
Part of the “hidden curriculum”
Adult Literacy Rates Hill, Charles. International Business, 5th edition
CULTURE and the WORKPLACE
Study of the relationship between culture and the workplace: Geert Hofstede 1967-73
HOFSTEDE’S: CULTURAL DIMENSION
Four dimensions of culture
Individualism versus collectivism
Masculinity versus femininity
Power Distance Individualism vs. collectivism
Cultures are ranked high or low on this dimensions based on that society’s ability to deal with inequalities, power, authority.
Cultures are ranked on their orientation towards intersocietal relationships:
Individualistic societies: loose ties, individual achievement and freedom
Collectivist societies: tight ties, tend to be more relationship-oriented
Assumes one-to-one relationship between culture and the nation-state.
Research may have been culturally bound.
Survey respondents were from a single industry (company) and a single company (IBM)
Hofstede eventually added a fifth dimension: Confucian dynamism (short vs. long-term orientation).
Culture is not a constant; it evolves over time.
Examples: role of women in U.S.
rise of individualism in Japan
e.g. Matsushita’s changing employment policies
Effects of globalization: merging of cultures.
Changing values Fig: 3.2 SHIFT TOWARDS SECULAR/RATIONAL VALUES AND MOVE FROM SURVIVAL VALUES TO WELL-BEING VALUES. P 115
Cross cultural literacy : understanding how the culture of a country affects the way business is practiced in this country. Cross cultural literacy is required to counter ethnocentrism (belief in superiority of one’s own culture).
Relationship of Culture and Competitive Advantage : the values and norms of a country can influence the competitiveness of that country.
Impacts attractiveness of a country
Impacts potential costs of investment
Culture is an important factor which influences the decisions made by multinational businesses to conduct international trade and foreign direct investment.
Culture and business ethics
Cultural Issues affect Business Decisions
Cultural issues can cost money, time, and resources
Solutions may not always be complete; research and careful consideration are required to manage cultural issues.