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8/19/2019 culture business.ppt
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McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Righs
8/19/2019 culture business.ppt
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McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Righs
CHAPTER
Differences in Culture
33
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McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Righs
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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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
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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
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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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0ofstedeBs dimensions
• 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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0ofstedeBs dimensions
• .asculinity !ersus -emininity+
) di!ision of roles and !alues in a society ) .asculine !alues pre!ail+ asserti!eness,
success, competition
) -eminine !alues pre!ail+
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0ofstedeBs dimensions
• 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
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0ofstede 9esearch+ Some Issues
• 0ofstedeBs methodology+ Study based on I;.+ F> national subsidiaries, GGF,HHH worers ¬ :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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