International Business_Chapter 3_Differences in Culture_Charles W. Hill
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This document discusses culture and its impact on business. It defines culture as shared values and norms that constitute a design for living within a group. Culture has various components, including values, norms, folkways and mores. It also examines Hofstede's model of cultural dimensions and how culture influences aspects of society and business practices. Key determinants of culture are discussed as social structure, religion, language, education and economic/political philosophies. The implications of understanding differences in culture for international management are also covered.
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International Business_Chapter 3_Differences in Culture_Charles W. Hill
- 2. 3-2 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.” McGraw-Hill/Irwin International Business, 5/e Hofstede, Namenwirth and Weber © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
- 3. 3-3 Different components of culture Values and Norms Folkways and mores McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
- 4. 3-4 Values and norms 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 McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
- 5. 3-5 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: Norms central to the functioning of society and its social life Greater significance than folkways Violation can bring serious retribution Theft, adultery, incest and cannibalism McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
- 6. 3-6 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 Many cultures can co-exist within a nation state McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
- 7. 3-7 Determinants of culture Fig: 3.1 Social structure Religion Language Education Economic philosophy Political philosophy McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
- 8. 3-8 Social structure Two dimensions The extent to which society is group or individually oriented Degree of stratification into castes or classes Social mobility Significance to business Other influences Political philosophy Economic philosophy McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
- 9. 3-9 Religious and ethical systems Christianity Economic implications Hinduism Economic implications Islam Economic implications Buddhism Economic implications Confucianism Economic implications McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
- 10. 3-10 Language Fig: 3.2 Spoken Verbal cues Language structures perception of world Unspoken Body language Personal space McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
- 11. 3-11 Education Education can be a source of competitive advantage Example India Malaysia Singapore McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
- 12. 3-12 Culture and the workplace Study on the relationship between culture and the workplace by Geert Hofstede 1967-73 40 countries 100,000 individuals McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
- 13. 3-13 Hofstede’s cultural dimensions Four dimensions of culture Power distance Individualism versus collectivism Uncertainty avoidance Masculinity versus femininity McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
- 14. 3-14 Power distance Cultures are ranked high or low on this dimensions based on the particular society’s ability to deal with inequalities McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
- 15. 3-15 Individualism versus collectivism This dimension focuses on the relationship between the individual and his/her fellows within a culture Individualistic societies: loose ties individual achievement and freedom highly valued Collectivist societies tight ties tend to be more relationship oriented McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
- 16. 3-16 Uncertainty avoidance This dimension measures the extent to which a culture socializes its members into accepting ambiguous situations and tolerating uncertainty McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
- 17. 3-17 Masculinity versus femininity This dimension looks at the relationship between gender and work roles McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
- 18. 3-18 Work related values for twenty countries McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
- 19. 3-19 Problems with Hofstede’s findings Assumes one-to-one relationship between culture and the nation-state His research may have been culturally bound. Survey respondents were from a single industry (computer) and a single company (IBM) McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
- 20. 3-20 Cultural change Culture is not a constant; it evolves over time Since 1960s American values toward the role of women are changing. Japan moves toward greater individualism in the workplace Effects of globalization McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
- 21. 3-21 Managerial implications Cross cultural literacy Culture and competitive advantage Culture and business ethics McGraw-Hill/Irwin International Business, 5/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.