UNDERSTANDING THE DIFFERENCES IN CULTURE FOR INTERNATIONAL BUSINESS PRESENTED BY SHRIYA BUPATH ELBY LAZAR RAKESH SHARMA SIVAKUMAR KRISHNA PRASAD
Prof. Geert Hofstede“Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster.”
Understanding culture and its effect oninternational business provides a foundation for working in the global community.Understanding cultural differences can help promote good global business.
CULTURE The set of beliefs, customs, and attitudes of a distinct group of people. SUBCULTUREA smaller group or subset within a larger culture
UNDERSTANDING THE CULTURE• Each level of culture—national, regional, or local—has an impact on the lives of people who live on that level.
UNDERSTANDING THE CULTURESucceeding in the world of international businessrequires three things. 1 2 3 Understanding Understanding Participating and adjusting Culture in culture to culture
Elements of CultureValues Norms Four Elements of CultureRoles Folkways and Mores
VALUES, NORMS AND ROLES• 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• ROLES : The part a person plays in a social situation
FOLKWAYS AND MORES• FOLKWAYS: Routine conventions of everyday life. – Little moral significance – Generally, social conventions such as dress codes, social manners, and neighborly behavior• MORES – Greater significance than folkways – Violation can bring serious retribution • Theft, adultery, incest and cannibalism
HOFSTEDE’S CULTURAL DIMENSIONSFour dimensions of culture – Power distance – Individualism versus collectivism – Uncertainty avoidance – Masculinity versus femininity
POWER DISTANCE• Cultures are ranked high or low based on the particular society’s ability to deal with inequalities• Distance between individuals at different levels of a hierarchy• Scale is from equal (small power distance) to extremely unequal (large power distance)
INDIVIDUALISM Vs COLLECTIVISMINDIVIDUALISTIC SOCIETIES :– Degree to which people in a country prefer to act as individuals rather than in groups– Individual achievement and freedom highly valued.COLLECTIVIST SOCIETIES :– The relations between the individual and his/her fellows.– Tend to be more relationship oriented
UNCERTAINTY AVOIDANCE– More or less need to avoid uncertainty about the future– Degree of preference for structured versus unstructured situations– Structured situations: have tight rules may or may not be written down (high context society?)– High uncertainty avoidance: people with more nervous energy (vs easy going), rigid society, "what is different is dangerous."
MASCULINITY Vs FEMININITY– Division of roles and values in a society– This dimension looks at the relationship between gender and work roles.– Masculine values prevail: assertiveness, success, competition– Feminine values prevail: quality of life, maintenance of warm personal relationships, service, care for the weak, solidarity
CULTURE IN INTERNATIONAL BUSINESS• The cultures of two trading partners can affect a business relationship.• Understanding culture difference is the foundation, or basis, of understanding every other aspect of conducting international business.
BOOKS Some of the famous Books by Prof. Geert Hofstede that helps to understand more about culture :• Cultures and Organizations• Cultures Consequences• Uncommon Sense about Organizations• Exploring Culture