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8/3/2019 Cultural Dimensions of Global is at Ion
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CULTURAL DIMENSIONS OF
GLOBALISATION
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Dimensions of Globalization
Economic dimension: Globalization is the processwhereby the world economies are becomingincreasingly integrated and interdependent, market-
oriented approaches to development are spreading,the notion of state provision of privatization andderegulation are being withdrawn, trade andinvestment are being liberalized, and increased
penetration of transnational corporations in life isbeing encouraged.
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Dimensions of Globalization
Technological dimension: Globalization is theprocess of rapid innovation and increasing inter-connectivity, particularly for information and
communication services, and biotechnologies. This isthe process in which knowledge is the mostimportant factor determining the standard of living,more than capital or labour. Today's most
technologically advanced economies are trulyknowledge based (World Bank, 1998).
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Dimensions of Globalization
Political dimension: Globalization is the new processof shifting the power from national governments indirecting and influencing their economies, to globalinstitutions, such as the World Bank, the European
Union, the European Central Bank, the World TradeOrganization, the World Health Organization, andthe World Tourism Organization. In order to survive,national governments that can no longer manage
their national economies must increasingly managenational politics by adapting them to the pressures oftransnational market forces.
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Dimensions of Globalization
Sociological Dimension: Globalization is the processof incorporating people into a single world society.The world is becoming a global village
Environmental dimension: Globalization is theprocess of increasing inter-linkages betweenecosystems, accelerating biological invasions,simplifying and homogenizing natural systems, and
intensifying pressure on global commons.
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Dimensions of Globalization
Cultural dimension: Globalization is the process ofincreasing homogeneity of lifestyles and aspirations
via media, TV, films, tourism, etc., combined withthe rapid spread of different views and greateropportunities for marginalized voices to be heard.
Cultural globalisation refers to the emergence of aspecific set of values and beliefs that are largely
shared around the planet (Castells, 2009, p. 117).
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INDIVIDUALISM VERSUS COLLECTIVISM
In an individualist culture, the interest of the individualprevails over the interests of the group. Ties betweenindividuals are loose. People look after themselves andtheir immediate families. Masakazu (1994) defines
modern individualism as a view of humanity thatjustifies inner beliefs and unilateral self-assertion, as wellas competition based on these
In a collectivist culture, the interest of the group prevailsover the interest of the individual. People are integrated
into strong, cohesive in-groups that continue throughouta lifetime to protect in exchange for unquestioningloyalty (Hofstede, 1997).
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INDIVIDUALISM VERSUS COLLECTIVISM
In individualist cultures, goals are set with minimalconsideration given to groups other than perhaps
your immediate family.
In collectivist cultures, other groups are taken intoaccount in a major way when goals are set.
Individualist cultures are loosely integrated.
Collectivist cultures are tightly integrated.
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STYLES OF COMMUNICATION
The styles of communication is the extent to which speakers revealintentions through explicit verbal communication.
In the direct style, associated with individualism, the wants, needs, anddesires of the speaker are embodied in the spoken message.
In the indirect style, associated with collectivism, the wants, needs, and
goals of the speaker are not obvious in the spoken message. Rojjanaprapayon (1997), for example, demonstrated specific
communication strategies in Thai communication: Thais do not usespecific names when they express negative feelings; Thais tend to usewords and phrases expressing probability, such as maybe, probably,sometimes, likely, and I would say so, but I am not sure; Thais donot show their feelings if doing so would make the other person feelbad; and Thais also use indirect nonverbal communication by havingless or avoiding eye contact and keeping greater personal distance.
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MASCULINITY VERSUS FEMININITY
Hofstede (1980) found that womens social rolevaried less from culture to culture than mens. Helabelled as masculine cultures those that strive formaximal distinction between what women and men
are expected to do. Cultures that place high values onmasculine traits stress assertiveness, competition,and material success. Those labelled as femininecultures are those that permit more overlapping
social roles for the sexes. Cultures that place highvalue on feminine traits stress quality of life,interpersonal relationships, and concern for the
weak.
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POWER DISTANCE
Hofstede (1997) defines power distance as the extent towhich less powerful members of institutions andorganizations within a country expect and accept that power isdistributed unequally (p. 28).
Power distance also refers to the extent to which power,
prestige, and wealth are distributed within a culture. Cultureswith high power distance have power and influenceconcentrated in the hands of a few rather than distributedthroughout the population. These cultural environments tendto be more authoritarian and may communicate in a way tolimit interaction and reinforce the differences between people.
In the high power distance workplace, superiors andsubordinates consider each other existentially unequal. Poweris centralized, and there is a wide salary gap between the topand bottom of the organization.
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UNCERTAINTY AVOIDANCE
Uncertainty avoidance is the extent to which peoplein a culture feel threatened by uncertain or unknownsituations.
Cultures strong in uncertainty avoidance are active,aggressive, emotional, compulsive, security seeking,and intolerant; cultures weak in uncertaintyavoidance are contemplative, less aggressive,
unemotional, relaxed, accepting of personal risks,and relatively tolerant
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DIVERSITY AND INNOVATION
As innovation processes depend on harnessingcreativity, and while dynamic as well as supportivesystems of management can elicit the best from staff,like-minded people will usually produce like-mindedresults. Diversity in the workforce can, however, helpcompanies to break this mould and the cycle oflimited unilateral thinking and, in so doing, set them
free to discover new products, markets, and ways ofdoing or leading business
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DIVERSITY
Diversity can be defined from a policy and legalperspective across six clear demographic strands:gender, age, race & ethnicity, sexual orientation,religion & beliefs, and disability.
Diversity considers the learning styles and attributesof individuals and even communities includedifferent knowledge acquisition, and communication
styles, educational history, personal skills,professional abilities and functional expertise.
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CULTURAL DIVERSITY
Cultural diversity distinguishes between supplieddiversity and consumed diversity (Eaton and
Lipsey, 1989; Van Cuilenburg and Van der Wurf,2001).
Supplied diversity corresponds to the diversity ofwhat is made available.
Consumed diversity refers to diversity as it is actually
consumed, thus depending on both consumer tastesand supplied diversity.
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PRODUCT, PRODUCER AND CONSUMER DIVERSITY
Product diversity refers to the diversity of thecharacteristics of products that can be goods or services,either supplied or consumed
Producer diversity means diversity of manufacturers ororganisations at every stage of the production, operationand distribution process.
Consumer diversity consists of the diversity of the peoplewho obtain and consume products. Consumers aretargeted by producers who encourage them to consumetheir products. Consumer diversity should not beconfused with demanded diversity. While the latter is aneconomic concept that relies on the assumption of stablepreferences that are independent of the nature and levelof supply, the former aims to reflect the diversity ofconsumer tastes.
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INNOVATION
Innovation, is a multidimensional term, displayingsubjective and objective traits.
Subjective traits of innovation include the processes ofcreativity and original thinking, the communication ofcreative and original thinking to others, and the uptake of
those ideas by others. Here thinking relates to all areas ofcompany activity, including everyday operations andproblems, through the research and development of new orexisting products, to the sourcing of new suppliers andexpansion into new markets.
Objective traits of innovation include the structures withinwhich such ideas are thought about, transmitted to, and takenup by others, and the output and outcome in terms ofdefinable benefits.
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INNOVATION
Creativity is the mental and social processfuelled byconscious or unconscious insightof generating ideas,concepts, and associations. Innovation is the successfulexploitation of new ideas: it is a profitable outcome of thecreative process, which involves generating and applying
in a specific context products, services, procedures, andprocesses that are desirable and viable Innovation is best defined as the generation and
introduction of new ideas, which lead to the developmentof new products and services, processes, and systems in
all areas of business activity. The ability of diverse individuals to communicate
creative and original thinking to others, and thewillingness of those others to listen and respond to suchideas.
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TYPES AND SOURCES OF INNOVATION
Product innovations, service innovations, andorganizational (procedural or process) innovations.
Peter Drucker identified seven sources of innovation:
(i) unexpected occurrences, (ii) incongruities ofvarious kinds, (iii) process needs, (iv) changes in anindustry or market, (v) demographic changes, (vi)changes in perceptions, and (vii) new knowledge.
Innovation can be classified depending on the degreeof their impact, viz., incremental, radical, or systemic
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LINK BETWEEN DIVERSITY AND INNOVATION
Adler (2002) notes that diversity in multicultural teams isassociated with positive group outcomes such as increasedlevels of innovation, creativity and problem solving.
Hennessey & Amabile (1998) suggest that diversity, whencombined with an understanding of individual strengths and
weaknesses, and working relationships that are founded uponsensitivity and trust, enhances creativity and problem solvingcapability.
Niebuhr (2006) found higher levels of research anddevelopment and innovation in regions of Germany that hadhigher levels of cultural diversity than regions with lowerlevels of diversity.
In a most comprehensive study of 1000 international teams,Gratton (2007) found that innovation was positivelycorrelated with equal gender ratio within work teams andnegatively correlated with an unequal ratio.
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LINK BETWEEN DIVERSITY AND INNOVATION
Flexibility, creativity, and the ability to innovate are enhanced bythe existence of dissimilar mind sets, that is to say that like-mindedpeople make like-minded decisions, [limiting] the breadth anddepth of innovative and creative thinking (Ozbilgin 2208).
While situations where individuals and groups find their existingmindsets, beliefs and knowledge sets challenged will produce
effective learning, this is more likely to happen when there is diversemix of participants and an environment in which all individuals feeltheir views are valued.
Diversity can contribute to more effective decision-making andproblem solving capability by providing a diverse range ofperspectives, a broader spectrum of expertise, and more robust
critical evaluation (Bassett-Jones, 2005). Teams characterised by diversity have the capability to access
broader networks of relationships, cultural capital and biculturalcompetence and bring these assets into the innovation process.Increased productivity, innovation, and creativity are about makingeffective use of this capacity.
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THE INNOVATION CULTURE TABLE
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THE INNOVATION CYCLE
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THE INNOVATION CYCLE
Need finding is a process of looking for newopportunities. When researchers want to understandthe customers experience, they want to know it ascustomers themselves experience it.
Framing is the next step in the innovation cycle. Itswhat happens when you gather a set of observationsand look for the important patterns. The term
framing refers to the process of choosing the mostuseful frame, as in framework, through which tointerpret the customers experience.
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THE INNOVATION CYCLE
creative combination, which happens when need findingand framing come together, when the images andimpressions are gathered together and the discussionturns to creating the best options to address theidentified needs and the conceptualized frames. Here the
innovation process moves beyond individual efforts tobroader teams, because when talking through the optionsa group of people almost always achieves betteroutcomes than when individuals try to sort it out alone.
Diversity in these teams is important, because testing
ideas against many different points of view will result inmore robust concepts and solutions, leading to strongerbusiness opportunities.
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THE INNOVATION CYCLE
Prototype is created as quickly as possible so that thelearning process can be accelerated, and you find outas quickly as possible that either its an idea worthmore investment, or one that should be shelved.
Every idea worthy of further development will findits way through the cycle many times, as progressiverefinement comes through many iterations of
thought, design, and testing.