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Chapter 3

Differencesin Culture

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Copyright 2011 McGraw-Hill/Irwin 3-2

What Is Cross-Cultural Literacy?

Cross-cultural literacy is anunderstanding of how cultural differencesacross and within nations can affect the wayin which business is practicedA relationship may exist between cultureand the costs of doing business in a countryor region

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What Is Culture?

Culture is a system of values and norms that areshared among a group of people and that whentaken together constitute a design for living

wherevalues are abstract ideas about what a group believesto be good, right, and desirablenorms are the social rules and guidelines that prescribeappropriate behavior in particular situations

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What Are Values And Norms?

Values provide the context within which asocietys norms are established and justifiedand form the bedrock of a cultureNorms include

folkways - the routine conventions of everydaylifemores - norms that are seen as central to thefunctioning of a society and to its social life

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Society - a group of people who share acommon set of values and normsThere is not a strict one-to-onecorrespondence between a society and anation-state

nation- states are political creations that cancontain a single culture or several cultures

some cultures embrace several nations

How Are Culture, Society,

And The Nation-State Related?

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What Are TheDeterminants Of Culture?

The values and norms of a culture evolveover timeDeterminants include

religionpolitical and economic philosophieseducationlanguagesocial structure

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The Determinants of Culture

Figure 3.1: The Determinants of Culture

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What Is A Social Structure?

Social structure refers to a societys basicsocial organizationConsider

the degree to which the basic unit of socialorganization is the individual, as opposed to thegroup

the degree to which a society is stratified intoclasses or castes

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How Are Individuals And Groups Different?

A group is an association of two or more people who havea shared sense of identity and who interact with each otherin structured ways on the basis of a common set ofexpectations about each others behavior

In Western societies, there is a focus on the individual individual achievement is common dynamism of the U.S. economy high level of entrepreneurship

But, creates a lack of company loyalty and failure to gaincompany specific knowledge

competition between individuals in a company instead of thanteam building

less ability to develop a strong network of contacts within a firm

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How Are Individuals And Groups Different?

In many Asian societies, the group is theprimary unit of social organization

discourages job switching between firmsencourages lifetime employment systemsleads to cooperation in solving businessproblems

But, might also suppress individualcreativity and initiative

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What Is Social Stratification?All societies are stratified on a hierarchical basis intosocial categories, or social strataUsually defined by characteristics such as family background,occupation, and income

Must consider

1. The degree of social mobility - the extent to which individualscan move out of the strata into which they are borncaste system - closed system of stratification in which socialposition is determined by the family into which a person is born

change is usually not possible during an individual's lifetimeclass system - form of open social stratification

position a person has by birth can be changed through achievement orluck

2. The significance attached to social strata in business contactsClass consciousness is a condition where people tend to perceivethemselves in terms of their class background, and this shapes theirrelationships with others

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How Do Religious And Ethical Systems Differ?

Religion is a system of shared beliefs and rituals that areconcerned with the realm of the sacredReligion and ethics are often closely intertwinedFour religions dominate society

1. Christianity2. Islam3. Hinduism4. Buddhism

Confucianism is also important in influencing behaviorand culture in many parts of AsiaEthical systems are a set of moral principles, or values,that are used to guide and shape behavior

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How Do Religious And Ethical Systems Differ?

World Religions

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What Is Christianity?

Christianity the worlds largest religion found throughout Europe, the Americas, andother countries settled by Europeansthe Protestant work ethic (Max Weber, 1804)

hard work, wealth creation, and frugality is the

driving force of capitalism

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What Is Islam?

Islamthe worlds second largest religion extends the underlying roots of Christianity to an all-embracingway of life that governs one's being

Islamic fundamentalism is associated in the Western media withmilitants, terrorists, and violent upheavals, but in fact Islam teachespeace, justice, and tolerancefundamentalists, who demand rigid commitment to religiousbeliefs and rituals, have gained political power in many Muslimcountries, and blame the West for many social problems

people do not own property, but only act as stewards for Godpeople must take care of that which they have been entrusted with

supportive of business, but the way business is practiced isprescribed

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What Is Hinduism?

Hinduismpracticed primarily on the Indian sub-continentfocuses on the importance of achieving spiritual

growth and development, which may requirematerial and physical self-denialHindus are valued by their spiritual rather thanmaterial achievements

promotion and adding new responsibilities maynot be important, or may be infeasible due tothe employee's caste

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What Is Buddhism?

Buddhismhas about 350 millions followersstresses spiritual growth and the afterlife,rather than achievement while in this worlddoes not emphasize wealth creationentrepreneurial behavior is not stressed

does not support the caste system, individualsdo have some mobility and can work withindividuals from different classes

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What Is Confucianism?

Confucianismideology practiced mainly in Chinateaches the importance of attaining personal

salvation through right actionhigh morals, ethical conduct, and loyalty toothers are stressedthree key teachings of Confucianism - loyalty,reciprocal obligations, and honesty - may alllead to a lowering of the cost of doing businessin Confucian societies

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What Is The RoleOf Education In Culture?

Formal education is the medium throughwhich individuals learn many of thelanguage, conceptual, and mathematical

skills that are indispensable in a modernsocietyimportant in determining a nations competitiveadvantagegeneral education levels can be a good index forthe kinds of products that might sell in acountry

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How Does CultureImpact The Workplace?

Management processes and practices must be adapted toculturally-determined work-related valuesGeert Hofstede identified four dimensions of culture

1. Power distance - how a society deals with the fact that

people are unequal in physical and intellectualcapabilities2. Uncertainty avoidance - the extent to which different

cultures socialize their members into acceptingambiguous situations and tolerating ambiguity

3. Individualism versus collectivism - the relationshipbetween the individual and his fellows4. Masculinity versus femininity -the relationship

between gender and work roles

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How Does CultureImpact The Workplace?

Work-Related Values for 20 Countries

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Was Hofstede Right?Hofstede later expanded added a fifth dimension calledConfucian dynamism

captures attitudes toward time, persistence, ordering by status,protection of face, respect for tradition, and reciprocation of giftsand favors

Hofstedes work has been criticized because made the assumption there is a one-to-one relationship betweenculture and the nation-statestudy may have been culturally boundused IBM as sole source of informationculture is not static it evolves

But, it is a starting point for understanding how culturesdiffer, and the implications of those differences formanagers

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Does Culture Change?

Culture evolves over timechanges in value systems can be slow andpainful for a society

Social turmoil - an inevitable outcome ofcultural change

as countries become economically stronger,

cultural change is particularly common

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