4. Cross-cultural literacy is an understanding of how
cultural differences across and within nations can affect
the way in which business is practiced
5. Culture is a system of values and norms that are shared
among a group of people and that when taken together
constitute a design for living.
6. o Values are abstract ideas about what a group
believes to be good, right, and desirable
o Norms are the social rules and guidelines that
prescribe appropriate behavior in particular situations
7. Society refers to a group of people who share a common
set of values and norms
8. o Folkways - the routine conventions of everyday life
o Mores - norms that are seen as central to the
functioning of a society and to its social life
9. The relationship between a society and a nation state is
not strictly one-to-one
Nation-states are political creations
o can contain one or more cultures
A culture can embrace several nations
15. o The Protestant work ethic (Max Weber,
1804)
• hard work, wealth creation, and frugality is the
driving force of capitalism
16. o The world’s second largest religion
o extends the underlying roots of Christianity to an all-
embracing way of life that governs one's being
o Islamic fundamentalism is associated in the Western
media with militants, terrorists, and violent upheavals,
but in fact Islam teaches peace, justice, and tolerance
17. o Practiced primarily on the Indian sub- continent. About
750 millions people follow it.
o Focuses on the importance of achieving spiritual growth
and development.
o Believes in reincarnation or rebirth into a different body
after death.
18. o About 350 millions people follow it.
o Does not emphasize wealth creation.
o Entrepreneurial behavior is not stressed.
19. o Confucianism build up a comprehensive ethical code
that set down guidelines for relationships with other.
o Its performing personal salvation through right-action.
o Three main techniques of Confucianism is Loyalty,
Reciprocal obligations and Honesty.
20. Hofstede’s work has been criticized because
o One-to-one relationship between culture and the
nation-state
o study may have been culturally bound
21. o Used IBM as sole source of information
o Culture is not static – it evolves
22. It is important to develop cross-cultural literacy
There is a connection between culture and national
competitive advantage
23. A group is an association of two or more people who
have a shared sense of identity and who interact with
each other in structured ways on the basis of a common
set of expectations about each other’s behavior
Individualism: This kind of people are emphasis own
their achievement.
24. In Western societies, there is a focus on the
individual
o individual achievement is common
o dynamism of the U.S. economy
o high level of entrepreneurship
> But creates a lack of company loyalty and failure
to gain company specific knowledge
25. In many Asian societies, the group is the primary
unit of social organization
o discourages job switching between firms
o encourages lifetime employment systems
But might also suppress individual creativity
intitative
26. Formal education is the medium through which
individuals learn many of the language, conceptual, and
mathematical skills that are indispensable in a modern
society
27. Management processes and practices must be
adapted to culturally-determined work-related values
Geert Hofstede identified four dimensions of culture
1. Power distance - how a society deals with the fact
that people are unequal in physical and intellectual
capabilities
2. Individualism versus collectivism - the relationship
between the individual and his fellows
3. Uncertainty avoidance - the extent to which different
cultures socialize their members into accepting
ambiguous situations and tolerating ambiguity
4. Masculinity versus femininity -the relationship
between gender and work roles