culture business.ppt

8/19/2019 culture business.ppt

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McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Righs


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CHAPTER

Differences in Culture

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Key Issues

• What is “culture”?• Substantial differences among societies arise from cultural

differences

• Culture differences are related to social structure, religion,

language, education, economic and political philosophy• “Culture” and worplace !alues are related

• Culture changes o!er time "

" influenced by economic ad!ancement, technological

change, globali#ation• $ifferences in national culture influence the conduct of

business internationally


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What is culture?

• Culture is a society%s &or group%s' system ofshared, learned !alues and norms( as a whole,these !alues and norms are the society%s &orgroup%s' design for li!ing

) *alues+ abstract ideas about the good , the right , thedesirable

) orms+ social rules and guidelines( determineappropriate beha!ior in specific situations

• -olways+ norms of little moral significance ) dress code( table manners( timeliness

• .ores+ norms central to functioning of social life

) bring serious retribution+ thie!ery, adultery, alcohol

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ational culture

• “ation”+ is a useful way to define the boundariesof a society ) similarity among people a cause // and effect // of

national boundaries

• “ation”+ is a useful way to bound and measureculture for conduct of business ) culture is a ey characteristic of society and can differ

significantly across national borders

• Can also !ary significantly within national borders ) culture is both a cause and an effect of economic and

political factors that !ary across national borders

) laws are established along national lines

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Social Structure and Culture

• Societies !ary based on whether the unit of socialorgani#ation is the indi!idual or the group

• Society is often stratified into classes or castes• 0igh/low stratification

• 0igh/low mobility between strata

• 1he indi!idual is the building bloc of many

Western societies

) 2ntrepreneurship ) Social, geographical and inter/organi#ational mobility

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7/20McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Righs

Indi!idual !s 3roup Societal

Characteristics• Indi!idual

) .anagerial mobility between companies

) 2conomic dynamism,inno!ation

) 3ood general sills

) 1eam wor difficult,non/collaborati!e

) 24posure to different waysof doing business

) e5g5, 65S5 companies

• 3roup ) 7oyalty and commitment to

company

) In/depth nowledge ofcompany

) Specialist sills

) 2asy to build teams,collaboration

) 2motional identificationwith group or company

) e5g5, 8apanese companies

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9eligion, 2thics and Culture

• 9eligion+ system of shared beliefs about the sacred• 2thical systems+ moral principles or !alues that shape

and guide beha!ior( often products of religion

• .a:or religious groups and some economic implications

) Christianity protestant wor ethic

) Islam Islamic fundamentalism

) 0induism anti/materialistic, socially stratified

) ;uddhismanti/materialistic, social e



7anguage and Culture

• 7anguage, spoen ) “pri!ate” does not e4ist as a word in many languages

) 2simos+ => words for snow

) Words which describe moral concepts uni


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2ducation and Culture

• 2ducation

) .edium through which people are acculturated

) 7anguage, “myths,” !alues, norms taught

) 1eaches personal achie!ement and competition

• 2ducation is a critical element of national

competiti!e ad!antage

• 2ducation system itself may be a cultural

outcome

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Culture and the Worplace &0ofstede'

• 0ofstede groups national cultures along dimensionsmeaningful to business+

) Wor related !alues not uni!ersal

) ational !alues may persist o!er .C efforts to create

culture

) 7ocal !alues used to determine 0A policies

) .C may create unnecessary morale problems if itinsists on uniform moral norms

• Starting point for understanding of business situationsacross/cultures

• 2ffecti!e international managers .6S1 understand ownculture $ other culture&s'

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0ofstedeBs dimensions• ower $istance+

) degree of social ine



0ofstedeBs dimensions

• Indi!idualism !ersus Collecti!ism+

) degree to which people in a country preferto act as indi!iduals rather than in groups

) the relations between the indi!idual and

his@her fellows

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• 6ncertainty !oidance+ ) more or less need to a!oid uncertainty about the

future

) degree of preference for structured !ersus

unstructured situations

) structured situations+ ha!e tight rules may or may

not be written down &high conte4t society?'

) high uncertainty a!oidance+ people with more

ner!ous energy &!s easy going', rigid society, Dwhatis different is dangerous5D

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• .asculinity !ersus -emininity+

) di!ision of roles and !alues in a society ) .asculine !alues pre!ail+ asserti!eness,

success, competition

) -eminine !alues pre!ail+




• Confucian $ynamism &or long/term orientation'

) ttitudes towards time

) ersistence

) Erdering by status

) rotection of “face”

) 9espect for tradition ) 9eciprocation of gifts and fa!ors



0ofstede 9esearch+ Some Issues

• 0ofstedeBs methodology+ Study based on I;.+ F> national subsidiaries, GGF,HHH worers &not :ust

managers', three world regions

9eports a!erages( does not describe e4act indi!idual situations

Is !alid for broader groups not indi!iduals

• I;. !alues may o!erwhelm national !alues et, if I;. culture so o!erwhelming, differences across countries may be

attributable to “national” culture555

• ri!ileged group• 9esearcher bias? Western stereotypes and culturally biased

conclusions?

• .any recent studies !alidate 0ofstede%s dimensions

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Cultural $istance

• 3eographic and cultural &or psychic' distance

between two countries may not be e


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Cultural $ifference 9econciliation

• 2thnocentrism !s olycentrism

• .ust a company adapt to localcultures or can corporate culture// often home/country dominated // pre!ail?

• Cross/cultural literacy essential

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culture business.ppt

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