Download - Chapter 4 - Culture Environment
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Culture Environment
National Differences
FTU Foreign Trade University
Dr. Nguyen Hai Ninh
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Perceptions of each other
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Telling the truth
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Queuing
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Transportation
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Child
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Seniors daily life
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Noise level inside a restaurant
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Connections and Contacts
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Punctuality
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Boss
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and many others.
EAST - WEST
CULTURAL DIFFERENCES
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Culture is more often a source of conflict than of
synergy. Cultural differences are a nuisance at best and
often a disaster
Prof. Geert Hosftede
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WHAT IS CULTURE?
is the system of
Values
Norms
and Beliefs
being shared among group of people
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ELEMENTS OF CULTURE- Religion
- Language
- Aesthetic- Political - economic philosophies
- Education
- Social structure
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3,000 languages and as many as 10,000 dialects worldwide
LANGUAGE
Language can be a competitive weapon
Language serves at the window to the culture of a society
Verbal or non-verbal is a very important skill for Business people
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4 Main religious: Christianity, Islam, Hinduism, Buddhism
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Master Kong: 551 478 BC
Confucianism is not a religion, but influences behavior and
shapes culture in many parts of Asia
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Activity 1
Give some examples of cultural differences in the interpretationof body language. What is the role of such nonverbal
communication in business relationships?
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WORKING IN CROSS CULTURAL WORKPLACE
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Power distanceThe extent to which the less
powerful members of institutionsand organizations within a country
expect and accept that power is
distributed unequally
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High power distance
Minimize the inequalities among people
Interdependence between less and
more powerful people Flat hierarchy pyramid
Power decentralization
Narrow salary range
Subordinated expect to be consulted
The ideal boss is a resourceful democrat
Privileges and status are disapproved
Inequalities among people are both
expected and desired
Less powerful people should bedepended on the more powerful
Slope hierarchy pyramid
Power centralization
Wide salary range
Subordinated expect to be told what to
do
The ideal boss is a benevolent autocrat or
good father
Privileges and status are both expected
and popular
Low power distance
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High
Low
Orientationtoward
sauthority
Viet NamMalaysia
Arab Countries
Mexico
India
France
ItalyJapan
Spain
Argentina
US
Germany
UKDenmark
Israel
Austria
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Example
A company from Austria (low power distance) is considering entering the
Vietnam (high power distance) market.
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Austria Viet Nam
Po
werDistanceIndex
Communication tips for the Austrian manager:
1) Give clear and explicit directions to those working with him
2) Deadlines should be highlighted and stressed
3) Do not expect subordinates to take initiative
4) Be more authoritarian in his management style
5) Show respect and deference to those higher up the ladder
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Uncertainty avoidance The extent to which members of a
society feel threaten by uncertain
or unknown situations
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Uncertainty: normal feature of life and
each day is accepted as it comes
Low stress subjective feeling of well-being
Aggression and emotions must not be
shown
Comfortable in ambiguous situations
and with unfamiliar risk
There should not be more rules than
necessary
Precision and punctuality have to be
learned
Tolerance to innovation
Motivation by achievement
Uncertainty : continuous threat that
must be fought
High stress subjective feeling ofanxiety
Aggression and emotions may be
shown at proper times
Fear of ambiguous situations and of
unfamiliar risk
Emotional need for rules, even if they
never work
Precision and punctuality come
naturally
Resistance to innovation
Motivation by security
Weak uncertainty avoidance Strong uncertainty avoidance
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High
Low
Desire
forstability
VietNam
Greece
Japan
France
Korea
Arab CountriesGermany
Australia
Canada
US
UK
IndiaDenmark
Singapore
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Example
A company from France (high uncertainty avoidance) is considering investing in
Denmark (low uncertainty avoidance)
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Un
certaintyAvoidanc
eIndex
Communication tips for the French manager:
1) Try to be moreflexible oropen in his approach to new ideas than he may be used to
2) Be prepared to push through agreed plans quickly as they would be expected to be
realized as soon as possible
3) Allow employees the autonomyand space to execute their tasks on their own; only
guidelines and resources will be expected of him
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IndividualismThe tendency of people to look
after themselves and their
immediate family and neglect the
needs ofsociety
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High individualism
Individuals learn to think in terms of
we
Diplomas provide entry to higherstatus groups
Relationship employer- employee is
perceived in moral terms, like a family
Hiring and promotion decisions take
employees ingroup into account
Management is management of
groups
Relationship prevails over task
Individuals learn to think in terms of
I
Diplomas increase economic worthand/or self- respect
Relationship employer-employee is a
contract based on mutual advantage
Hiring and promotion are supposed
to be based on skills and rules only
Management is management of
individuals
Task prevails over relationship
Low individualism
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High
Low
Australia
US
UK
Canada
FranceGermany
Spain
Japan
Mexico
Italy
Korea
Singapore
l
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Example
A company from UK (high individualism) is considering investing in Mexico
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ndividualismIndex
Communication tips for the UK manager:
1) Note that individuals have a strong sense ofresponsibility for their family
2) Remember that praise should be directed to a team rather than individuals
3) Understand thatrewards depend upon seniorityand experience
4) Be aware that the decision making process will be rather slow, as many members
across the hierarchy need to be consulted
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MasculinityThe tendency within a society to
emphasize traditional gender
roles
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High masculinity
Dominant values: caring for others
and preservation
People and warm relationships are
important
Sympathy for the weak
In family, both fathers and mothers
deal with facts and feelings
Stress on equality, solidarity , and
quality of work life
Managers use intuition and strive
for consensus
Resolution of conflicts by
compromise and negotiation
Dominant values: material success
and progress
Money and things are important
Sympathy for the strong
In family, fathers deal with facts and
mothers with feelings
Stress on equity, competition among
colleagues and performance
Managers are expected to be
decisive and assertive
Resolution of conflicts by fighting
them out
Low masculinity
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High
Low
Japan
Mexico
Germany
UKUS
Arabia
France
Korea
Portugal
DenmarkSweden
Example
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Example
A company from Denmark ( low masculinity) is considering investing in Mexico
(high masculinity)
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linityIndex
Communication tips for the Danish manager :
1) Be aware that people will discuss business anytime, even at social gatherings
2) Avoid asking personal questions in business situations
3) Take into account that people are not interested in developing closer friendships
4) Communicate directly, unemotionally and concisely
5) In order to assess others use professional identity, not family or contacts
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Long- term orientationA basic orientation towards time
that valuespatience
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Long-term orientation
Respect for traditions
Little money available for
investment
Quick results expected
Respect for social and status
obligations regardless of cost
Concern with possessing the Truth
Adaptation of traditions to a
modern context
Funds available for investment
Perseverance towards slow results
Respect for social and status
obligations within limits
Concern with respecting the
demands of Virtue
Short- term orientation
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Activity 2
Assumed that your corporation intend to open your business inAmerica and Japan, from your own research about their culture,
point out the culture differences and specialties. Give some
recommendations for your boss?