Cultural concepts and variables:-

1. Why Cultural Issues are critical for businessList 5 cultural concepts family system. What are implications on business organizationincluding behavioral dynamics?

2. Cultural concepts:-A. Protestant work ethicsB. Family structure, joint family vs. nuclear familyC. Individualism vs. group orientationsD. Ascription vs. achievementE. Work motives and importance of occupationF. Concept of trustG. Proxemics & Kinesics

Theoretical framework3. Dimensions of Kluckhon and Strodtbeck: A. Time orientationB. Activity orientationC. Human relationship with nature. (2)D. Interrelationship between human.

4. Sitaram and Codgdell relative importance of values.5. Allport, Vernon and Lidzey Individual values.

Hofstede dimensions:-6. Hofstede Hermes study define its four original dimensions and enumerate five business relevance.FonTrompenaars dimensions:- Individualism and collectivism Universalism and Particularism

7. Human resource management issue:-A. CompensationB. Training // (Training for international positions)C. Recruitment and offshore job post. // Staffing models (ethnocentrism) & international recruitment.

8. DefineA. Universalism vs. Particulaism of FonsTrompenaarsB. Cultural shock (2) & entry reentry adjustmentsC. Dilemma between ethics, law and profit for a business entity.D. Implications of high context low context communication style in the international negotiations. (Edward Hall) culture concept (3)9. Ethics is related to morality than with legal system. Morality is contextual different interpretation in different culture. So ethics in international business is misnomer.10. Expat manager 4 critical factors. Length of stay, job novelty, cultural novelty and degree of interactions with locals.11. Protestant work ethics. Modern religion more economic prosperity.12. Eastern cultural concept fatalism or karma have reflection in West locus of control.13. Silence language in international business.14. India is ascription oriented society. But in business we tend to be achievement oriented.15. Joint family oriented society have pyramid type hierarchy. Centralize decision making and less market diversity and less occupational mobility.

Class notes:-

ManifestationsEffect

Value, Belief, Attitude, Stereotypes, Individual

Culture and Family type, Equality,

social milieuSpace orientations, Hierarchy of occupation, Stratifications

Lifestyle, Aspirations Best jobs

Proxemics, KinesicsOrganizations structure

Haptic, Relations

ChemonicesWork ethics, values

LanguagesDecision making

Behaviors, Ascription

FatalismIndividualistic vs group orientations

Social manifestationsTrust negotiation, delegations, interpersonal relations

Communications,Work motives motivation, economic gains

EtiquetteManagement style

ArtifactsCommunication content and context. Silent language

ReligionFatalism attribution of success and failure

Time management Punctuality and polychromic

Space privacy. Official status

Attitude towards profit / business

Market dynamics

CONCEPTUAL FRAMEWORK:-III

CULTURAL UNIVERSALKLUCKHON AND STRODTBECK

GEORGE MUNDOCKA. Related with nature Master, worship

81 VAIABLESB. Time orientation past decisions, future orientation

GREETING ETCC. Basic human nature all are necessary good and evil

D. Activity orientations ideas addition, write article, control

E. Concept of space private, public and mix

F. Human relationship individual, group status, hierarchy

IIIIV

ALL PORT, VERNON AND LINDEY - VALUESITARAM & COGDELL VALUE PRIORITIES

Six dimension to human being5 possible groups- Black, East, West, Africa, Islam

What value predominant over timeEast is karma oriented, Gratitude; West is aggressive

Theoretical, Economic, Aesthetic, Social, Political, Religious, Spiritual

Hofstede Dimensions:-Power Distance

High India, MalaysiaEffect on politics, Govt., Labor Union, Social mobility, Social change, Learning, Delegation, Organization structure, Wage difference, Management style

PD refers to degree of inequality that exists and is accepted among the people with and without power. High PD means society accepts an unequal distribution of power and people understands their place in system.Low PD means that power is shared and well dispersed. This also means that the society members view themselves as equal.

Hi PDCentralized companies, Strong hierarchies, Large gaps in compensation, authority and respect.TIPS: Acknowledge a leaders power. Be aware you need to go Top for answers.

Lo PDFlatter organizations, Supervisor and employees are considered equals.TIPS: Use teamwork. Involve as many as people for decision making.

CollectivismIndividualism (IDV)

Central America Panama Guatemala Effect on Political power, press freedom, Income equality, Labor union, Occupational mobility, Work, Ethics, Time usage, Joint family, We, Security, Social network

IDV refers to strength of ties people have to others within the community.

Hi IDVThis indicates loose connection between people. Little sharing of responsibility between people beyond family & few close friends. High valuation on people time & need for freedomRespect privacy. Enjoy challenges and expectation for reward for hardwork.Tips: Acknowledge accomplishment. Dont ask for too much personal information. Encourage debate and expression of own idea.

Lo IDVStrong group cohesion, large loyalty & people take more responsibility of well-being of each other. Emphasis on team building skills, work for intrinsic rewards, Harmony more important than honesty.Tips: Shows respect for age and wisdom. Suppress feelings and emotions to work in harmony. Respect tradition and introduce change slowly.

Masculinity

High JapanSize of company, career priorities, Conflict resolution, Notion of gender, religious affinity, Family structure, Materialism, School Priority, Performance, Job gender, segregation

This refers to how much society sticks to traditional male and female roles.

Hi MAS JAPANMen expected to be tough. Dont expect women managers.People are strong and assertive.Defined distinction between men and women work

Lo MAS SwedenRoles are blurred. Men & women work equally. Tips: Ensure no gender discrimination. Equal treatment.

Uncertainty avoidance

High Japan, GermanyLow BritainSize of company, Political structure, Dependency on government, Tolerance to dissent, Managers age, Specialist, Theoretical knowledge, Notion of stress, Aggressiveness, Generation gaps, Fear of failure, Older democracy style

This relates to degree of anxiety society members feel in uncertain situations.

Hi UAThey are governs by laws and seek collective truth.Formal business conduct with lot of rules and policies.Need and expect structure.Tips: Be clear and concise about your expectations. Express your emotions through hands and gesture.

Lo UAFew rules and people find truth themselvesInformal business attitude. More concern with long term strategy than with daily basis. Accept change and risk.Low uncertainty avoidance cultures accept and feel comfortable in unstructured situations or changeable environments and try to have as few rules as possible.Tips: Do not impose rules and structure unnecessarily. Minimize your emotional response.

Long term orientation

Confucius dynamism, Hierarchy of relationships, Family as prototype of all organization, Knowledge, Order, Hardwork, Thrift, Perseverance, Harmony, Patriotism, Face saving, Respect tradition, True friendship, Optimism

Refers to how much society values long standing as compared to short term.

Indulgence vs. restraints

Control over life, importance to leisure, thriftiness, discipline, personality, optimism, effect on CVD, Birth rate, Decision, Social network, Gender role, smiling suspected.

FIVE TYPES OF RELATIONSHIPS IN CHINA:-1. Father son2. Teacher student3. Master servant4. Elder younger brotherCompetitive Advantage of different cultural profiles in international competition:-SMALLLARGER

POWER DISTANCEAcceptance of responsibilityMore discipline

UNCERTANITY AVOIDANCEGood in innovationPrecision

COLLECTIVISMEmployee commitment highManagement mobility high for individualistic society

FeminityPersonal service, Custom made product, agriculture, More discipline

Short coming of Hofstede models:-1. Biased sample IBM employees only participated in survey. All do not represent national culture. Sample size and matching is key.2. Instruments: Proper language translations, equivalence of scaling, 3. Administration Research setting, stimuli, Biased

Tons Trompenaars Dimensions:-

Universalism/ Particularism What is more important, rules or relationships?

Individualism/ CollectivismsDo we function in a group or as individuals?

Neutral / emotionalDo we display our emotions? Express disagreements openly.

Specific/ DiffuseHow separate we keep our private and working lives?

Achievement/ AscriptionDo we have to prove ourselves to receive status or is it given to us?Respect expertise & pay for performance. Age & gender is no bar.

Synchronic/ Sequential Do we do things one at a time or several things at once?

External- InternalLocus of control.Do we control our environment or are we controlled by it?

Universalism: Belief that ideas and practice can be applied anywhere in the world without modification. More focus on formal rules.Particularism: Belief that circumstances governs if ideas and practice can be applied everywhere.This focus on relationships

Specific: Culture in which people have larger public space which they readily share with others and smaller private space which they guard closely. So these groups maintain separate private and public life, People are open & extrovert.Diffuse: Culture in which public and private life space is equal. People are introvert & close.

Cross culture research

1. EthnocentricHome theories

2. PolycentricX,Y, Z

3. ComparativeManagement style different

4. GeocentricFront/ top loader machine

5. SynergisticCulture specific pattern Hofstede

Ethics in international businesses

Conventional wisdom

Sources of ethical norms of an individual

Sources of ethical norms of a corporate entity

PROFIT/ LAW/ ETHICS

Theory of ethics& ethics in international business:-

UnilateralismOnly ends matter. Employment not child rights

RightsLegal (Law Kasab case), Moral (ND Tiwari case), Positive (Friend harness u help), Negative rights (Private matter)

Justice Fair for all (Luxury tax)

EgoismWhats for me

Ethical absolutism vs. relativism

PCN (parent country national, Home country national and third country national.

HR in international business:-Recruitment

Effect of ascription and achievement

Meaning of equal opportunity

Restriction on expat

Question on personal information

Interpretation and importance of value, personality, attitude and aspiration

Interpretation of nonverbal cues.

Expat assignment

Culture shock 4-stages of culture shock

Culture novelty

Degree of interface

Job novelty

Length of stay0-6 months; 1 year; 3 years;

Stages of culture shock

Re-entry

BrownoutsIneffective completion. Brownout vs. Expat failure

Expat failureNot to complete assignment

Expat compensation parityEvaluation

Cross culture training CCTImmersion approach, orientation

1. Approach to tip of ice berg

IssuesEthnocentric training, Content delivery, Learning style, Learning climate, Respect to trainer, Ceremonies Indian training example based, lot of case studies

Performance evaluation

EvaluationDefinition of performance, objective of the system

Standardization vs. localization

Methodology (person vs. issues)

Compensation benefitsBasis of determination

Parity

Comparability

Competitiveness

Internal and external

Relative cost of local vs. expat vs. outsourced

Labor relations

Cost of labor

Degree of unionization

Union management relations-conflict-trust-power

Degree of state interface political ideology

International pressure groups

Labor conditions

Communication and Negotiation

VerbalHall and Hall High-low context/ content

Direct indirect : Richard lewis

1. Linear active 2. Reactive & 3. Multi active

Formal Informal

Non verbalProxemics, Kinesics, Haptic

Chemonics, Clothing, Appearance, Posture (slouch),

Head, hand & eye movement. Facial expressions.

Sound (laugh), Way of talking (introvert)

Negotiation

Persuade, Concede

Form of agreement Legal, Specific, Onboard,

Negotiation tacticsThreat, Promise, questions, interrupt, disclose, offer, warn, appeal,

PloysStall, escalate, good guys, bad guys, we are poor, friends, silence, no,

Sensitivity of time

Team or loner

Use of interpreter

ProxemicsGiven by Edward Hall, it is subcategory of nonverbal communication; it is defined as the study of spatial distance between individuals in different cultures.

Public space: 12 to 25 feet: For embracing, touching or whispering.

Social space: 4 to 10 feet: For interactions among acquaintances.

Personal space: 2 to 4 feet: For interactions among good friends or family members.

Intimate space: Upto 1 foot: For embracing, touching or whispering.

Personal territory can be vary based on the culture.

Saudi Arabia: Maintain close distance. Appear to be pushy.

Netherland: You would be going chasing them, as their personal space is equal to our social space.

USA: In public transport, people try to maintain gap even with their elbows and knees & dont even look each other. In japan which is very cramp country, in train people share seats till they are packed together tight.

ChronemicsIt is study of time in nonverbal communication. The way that an individual would perceive and value time, structure our time and react to time is a powerful communication tool, and helps set the stage for the communication process.

Time perceptions include punctuality, willingness to wait, and interactions.

Monochronic time systemIt means that one thing is done at a time and time is segmented into precise, small units. Under this system time is scheduled, arranged and managed.Examples: United States, Germany, the United Kingdom, Turkey, South Korea, Japan, Jamaica, Canada, Switzerland.

Polychronic TimeA polychronic time system is a system where several things can be done at once, and a more fluid approach is taken to scheduling time.Examples:Latin American, African, Asian and Arab cultures.Saudi Arabia, Egypt, China, Mexico, New Orleans, the Philippines, Pakistan, India, and many in Africa.

Monochronic PeoplePolychronic People

Do one thing at a timeDo many things at once

Concentrate on the jobAre highly distractible and subject to interruptions

Take time commitments (deadlines, schedules) seriouslyConsider an objective to be achieved, if possible

Are low-context and need informationAre high-context and already have information

Committed to the jobAre committed to people and human relationships

Adhere religiously to plansChange plans often and easily

Are concerned about not disturbing others; follow rules of privacy and considerationAre more concerned with those who are closely related than with privacy

Show great respect for private property; seldom borrow or lendBorrow and lend things often and easily

Emphasize promptnessBase promptness on the relationship

Are accustomed to short-term relationshipsHave strong tendency to build lifetime relationships

KinesicsKinesics is the nonverbal communication which is interpretation of body language such as facial expressions, posture, stance, movement and gestures or whole/ part of body.

HapticsHapticsis any form of nonverbal communication involving touch

Latin America, people greet each other with one kiss on the cheek, for example in Argentina. In Spain, people greet each other with two kisses on the cheek. In Colombia, shaking hands or verbal greeting is common and probably without hugging.

Purpose of CC M1. Increase effectiveness2. Understand issues

Characteristics of culture1. Learned2. Shared3. Trans-generational4. Pattern5. Adaptive6. Symbolic

The Protestant work ethic is a concept in which emphasizes hard work, frugality and diligence.Existential: Non conformailty, seek autonomous, loyal to selfPragmatic: Ambitious, Hardwork

Cultural universalism is an element, pattern, trait, or institution that is common to all human cultures worldwide.

Universals of Culture by George P. Murdock American Anthropologist, 1945 compendium From: Consilience, E.O. Wilson, 1998. p.147 age-grading athletic sports bodily adornment calendar cleanliness training community organization cooking cooperative labor cosmology courtship dancing decorative art divination division of labor dream interpretation education eschatology ethics ethnobotany etiquette faith healing family feasting fire making folklore food taboos funeral rites games gestures gift giving government greetings hair styles hospitality housing hygiene incest taboos inheritance rules joking kin groups kinship nomenclature language law luck superstitions magic marriage mealtimes medicine obstetrics penal sanctions personal names population policy postnatal care pregnancy usages property rights propitiation of supernatural beings puberty customs religious ritual residence rules sexual restrictions soul concepts status differentiation surgery tool making trade visiting weaving weather control

Ethnocentrism is judging another culture solely by the values and standards of one's own culture. Ethnocentric individuals judge other groups relative to their own ethnic group or culture, especially with concern for language, behavior, customs, and religion.

Culture shock is the personal disorientation a person might feel when experiencing an unfamiliar way of life due to immigration or a visit to a new country.The most common problems include: information overload, language barrier, generation gap, technology gap, skill interdependence, formulation dependency, homesickness (cultural), infinite regress (homesickness), boredom (job dependency), response ability.

Honeymoon phaseDuring this period, the differences between the old and new culture are seen in a romantic light. For example, in moving to a new country, an individual might love the new food, the pace of life, and the locals' habits. During the first few weeks, most people are fascinated by the new culture.

Negotiation phaseAfter some time (usually around three months, depending on the individual), differences between the old and new culture become apparent and may create anxiety. Excitement may eventually give way to unpleasant feelings of frustration and anger as one continues to experience unfavorable events that may be perceived as strange and offensive to one's cultural attitude.

Adjustment phaseAgain, after some time (usually 6 to 12 months), one grows accustomed to the new culture and develops routines. One knows what to expect in most situations and the host country no longer feels all that new. One becomes concerned with basic living again, and things become more "normal". One starts to develop problem-solving skills for dealing with the culture and begins to accept the culture's ways with a positive attitude.

Mastery phaseIn the mastery stage individuals are able to participate fully and comfortably in the host culture. Mastery does not mean total conversion; people often keep many traits from their earlier culture, such as accents and languages.

Reverse Culture Shock ("Re-entry Shock", or "own culture shock") may take place returning to one's home culture after growing accustomed to a new one can produce the same effects as described above. These are results from the psychosomatic and psychological consequences of the readjustment process to the primary culture.

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