1 Lecture Cultural dimension: Yesterday, now or later? Luis San Andres Mast-Childs Tribology...

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LectureCultural dimension:

Yesterday, now or later?

Luis San AndresMast-Childs Tribology Professor

Texas A&M University

http://rotorlab.tamu.edu/me489

April 26, 2011

ME 489 Practices of Modern Engineering

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Lecture

Date:

Today Cultural dimensionsLong Term orientation – yesterday, Now or Later? Differences in thinking between the East and West

China is shrinking the idea of the West!

Assignments & reading:

Be ready to party on Thursday!

Other: complete ONE MINUTE PAPER – complete rankings of team members

Last Pick presents….

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China

A country with a long-long-long history: dynasties and empires, a peasant revolution and communism, opened to global market in early 1980s’

Chinese firsts: block printing, gun powder & rocketry, compass and watches, etc. Until 18th century more advanced technologically than the West. China did not have an industrial revolution.

For centuries Chinese culture (way of thinking) has influenced greatly the Far East (Japan, Korea, Taiwan, Hong-Kong, Singapore, etc).

What way of thinking?

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A little about China’s economic growth

2009 GDP US 14 Trillion, China: 4.91 Trillion

China overtook Britain and France in 2005 and Germany in 2007. In 2009, China surpassed Germany to become the world’s largest exporter. In 2nd quarter 2010, China surpassed Japan as the world’s second largest economy.

Growth averaged over 10 % for the last 30 years.

The per capita GDP in China is $3.6k in 2009, one 14th of the $46.k per person output in the US. Hard currency reserves 2 Trillion

China will surpass the US becoming the world’s largest economy in 2027. China will be twice as large as the US economy in 2050

http://factsanddetails.com/china.php?itemid=376&catid=9&subcatid=58#04

Source: The Economist

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Team Alpha reports

2011 GDP US 14 Trillion, China: 9.8 Trillion

Growth remains at 10 %

Average wages GDP $7.4 k (up from $ 5k in 2006).

Largest exporter of goods at ~$1.5 trillion dollars worth of goods and services with ~20% going to the USA

Why the fastest growth on earth?

Low manufacturing

costs + huge internal market

(1.5 billion)+ technology

The Economist

Trade balanceUSA: -605 $Bn (Jul 2010) (3.0% GDP Q2)China: +179 $Bn (Aug 2010) (10.3% GDP)

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China economy generates jobs elsewhere

China does not only EXPORT stuff!

It also imports technology and services.

The US has a + trade in particular services (know

how)

Source: The Economist

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The decline of Western science & technology?

GERD: % of GDP on R&D # technical papers

Asian countries (S Korea and China) are becoming not just more productive but also developing more technology. In 2011, China will have more patents than Japan!

A worry!

Source: The Economist

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Cultural dimensions

Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede

1.Power Distance2.Individualism / Collectivism3.Masculine / Feminine4.Uncertainty Avoidance

More equal than others

I, We, They

He, She, (S)he

What is different is dangerous

A 5th dimension appears from a Chinese Values Survey. (Uncertainty Avoidance has no equivalent in CVS)

Explains differencesIn thinking b/w East and West

9Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede

Pragmatic rules for daily life

Teachings of Confucius

1. Society stability is based on unequal relationships between people

2. Family is prototype of all social organizations3. Virtuous behavior: do no treat others as one would not

like to be treated oneself4. Virtue derives from education, hard working, not

spending more than needed, being patient and persevering

Confucius, C. philosopher (~500 B.C.)

10Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede

Teachings of Confucius

1.Society stability is based on unequal relationships between people

Must accept differences in status

Basic relationships father-son, brother-younger brother,

husband-wife, senior friend-junior friend

Mutual & complimentary obligationsRespect and obedience

Protection and consideration

11Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede

Teachings of Confucius

2. Family is prototype of all social organizations

A person is NOT an individual, he/she is a member of a family.

HARMONY is found when everyone maintains face in the sense of dignity, self-respect and prestige.

Losing dignity (face) is like losing a nose, etc.

12Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede

Teachings of Confucius

3. Virtuous behavior: do no treat others as one would not like to be treated oneself.Keep one’s place, respect authority.

The Golden rule in Western Values: Treat others as one would like to be treated

4. Virtue derives from education, hard working, not spending more than needed, being patient and persevering.

Everything must be done in moderation

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Long Term Orientation (LTO)

Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede

The fostering of virtues oriented towards future rewards – in particular perseverance and thrift.

The opposite pole (Short TO) fosters virtues related to the past and present, in particular respect for tradition, preservation of face, and fulfilling social obligations

14Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede

http://www.clearlycultural.com/geert-hofstede-cultural-dimensions

Long Term Orientation

Map

15Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede

39 countries Country SCORE RANK

Past & present,

Futurerewards

Country SCORE RANK

Most Asian countries

have high LTO scores

Long Term Orientation (LTO)

16Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede

Explains the difference in thinking between the East and West.

Long term orientation- persistence- ordering relationships by status and observing this order- thrift- having a sense of shame

Short term orientation- personal steadiness and stability- protecting your ‘face’- respect for tradition- reciprocation of greetings, favors, and gifts

Long Term Orientation (LTO)

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Key Differences

LTOGeneral norm

Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede

Short-Term O Long-Term O

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Key Differences

LTOFamily

Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede

Short-Term O Long-Term O

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Key Differences

LTO

School

Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede

Short-Term O Long-Term O

Remember “Tiger

Mom” & US STORM

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Key Differences

LTO

Business &Economics

Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede

Short-Term O Long-Term O

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Key Differences

LTO

Religion&

Way of Thinking

Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede

Short-Term O Long-Term O

22Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede

LTO

GN

P/c

apit

a

Short-term Long term

Long Term Orientation vs GNP growth

GrowthRATE

Note the emergence of

East AsianCountries(S Korea,

Taiwan, Singapore,

Japan)

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Understanding China

Guanxi Ability to forge solid relationships for mutual benefit and

understanding = BLOOD IS THICKER THAN WATER

Benefits & obligations extend beyond the realm of contracts and business.

Guanxi links family sphere to the business sphere. In high LTO societies, having one’s personal network of acquaintances is essential for success. One’s capital of guanxi lasts a lifetime, and would not want to damage it for short-term bottom-line reasons.

Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede

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Guanxi example

Singapore, Straits Times, October 20, 2009

guanxi!

(See Corruptions Perceptions Index)

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GUANXI In China

Huanlin Zhu

April 21

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• Guanxi ---- ?---- Relationship

Ignores the culture implications

Guanxi

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Guanxi

• China -------- originates from agriculture

Tools, Techniques are from parents

• Wars from time to time

Government and society are not stable in the long history

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Guanxi

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• Fundamental element is family

• Two phrases

Renqing / Personal favors

Lianmian / face

Guanxi

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Personal

favors

important to

maintain a good

“Guanxi”

Guanxi

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Face “puff

oneself up to one's own cost”

Guanxi

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• Establish Guanxi through

Gift giving

Mutual help.

• Guanxi comes along with expectations and obligations.

Guanxi

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• Better Guanxi, Higher chance to get promotion, admission, or…

Guanxi

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Practices of Modern

Engineering© Luis San AndresTexas A&M University2011

http://rotorlab.tamu.edu/me489

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Questions?Next lecture

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World Values Map

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(not used)

the importance of education

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Satisfaction with life index

http://en.wikipedia.org/wiki/Satisfaction_with_Life_Indexhttp://www.squarecirclez.com/blog/database-of-happiness/1080

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GINI Coefficient

A measure of income inequality, the most unequal society will be one in which a single person receives 100% of the total income and the remaining people receive none (G=1); and the most equal society will be one in which every person receives the same income (G=0).

World CIA Report 2009