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1 Lecture Cultural dimension: Yesterday, now or later? Luis San Andres Mast-Childs Tribology Professor Texas A&M University

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Presentation on theme: "1 Lecture Cultural dimension: Yesterday, now or later? Luis San Andres Mast-Childs Tribology Professor Texas A&M University"— Presentation transcript:

1 1 Lecture Cultural dimension: Yesterday, now or later? Luis San Andres Mast-Childs Tribology Professor Texas A&M University April 26, 2011 ME 489 Practices of Modern Engineering

2 2 Lecture Date: Today Cultural dimensions Long 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….

3 3 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 18 th 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?

4 4 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 In 2009, China surpassed Germany to become the world’s largest exporter. In 2 nd 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 China will be twice as large as the US economy in Source: The Economist

5 5 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 balance USA: -605 $Bn (Jul 2010) (3.0% GDP Q2) China: +179 $Bn (Aug 2010) (10.3% GDP)

6 6 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

7 7 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

8 8 Cultural dimensions Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede 1.Power Distance 2.Individualism / Collectivism 3.Masculine / Feminine 4.Uncertainty Avoidance More equal than others I, We, They He, She, (S)he What is different is dangerous A 5 th dimension appears from a Chinese Values Survey. (Uncertainty Avoidance has no equivalent in CVS) Explains differences In thinking b/w East and West

9 9 Cultures and Organizations: Software of the Mind By 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 organizations 3.Virtuous behavior: do no treat others as one would not like to be treated oneself 4.Virtue derives from education, hard working, not spending more than needed, being patient and persevering Confucius, C. philosopher (~500 B.C.)

10 10 Cultures and Organizations: Software of the Mind By 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 obligations Respect and obedience Protection and consideration

11 11 Cultures and Organizations: Software of the Mind By 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.

12 12 Cultures and Organizations: Software of the Mind By 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

13 13 Long Term Orientation (LTO) Cultures and Organizations: Software of the Mind By 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

14 14 Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede dimensions Long Term Orientation Map

15 15 Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede 39 countries Country SCORE RANK Past & present, Future rewards Country SCORE RANK Most Asian countries have high LTO scores Long Term Orientation (LTO)

16 16 Cultures and Organizations: Software of the Mind By 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)

17 17 Key Differences LTO General norm Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede Short-Term O Long-Term O

18 18 Key Differences LTO Family Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede Short-Term O Long-Term O

19 19 Key Differences LTO School Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede Short-Term O Long-Term O Remember “Tiger Mom” & US STORM

20 20 Key Differences LTO Business & Economics Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede Short-Term O Long-Term O

21 21 Key Differences LTO Religion & Way of Thinking Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede Short-Term O Long-Term O

22 22 Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede LTO GNP/capita Short-termLong term Long Term Orientation vs GNP growth Growth RATE Note the emergence of East Asian Countries (S Korea, Taiwan, Singapore, Japan)

23 23 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 Mind By Geert Hofstede and Gert Jan Hofstede

24 24 Guanxi example Singapore, Straits Times, October 20, 2009 guanxi! (See Corruptions Perceptions Index)

25 25 GUANXI In China Huanlin Zhu April 21

26 26 Guanxi ---- ?---- Relationship Ignores the culture implications Guanxi

27 27 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

28 28 Guanxi

29 29 Fundamental element is family Two phrases Renqing / Personal favors Lianmian / face Guanxi

30 30 Personal favors important to maintain a good “Guanxi” Guanxi

31 31 Face “puff oneself up to one's own cost” Guanxi

32 32 Establish Guanxi through Gift giving Mutual help. Guanxi comes along with expectations and obligations. Guanxi

33 33 Better Guanxi, Higher chance to get promotion, admission, or … Guanxi

34 34 Practices of Modern Engineering © Luis San Andres Texas A&M University 2011

35 35 Questions? Next lecture

36 36 World Values Map

37 37 (not used) the importance of education

38 38 Satisfaction with life index

39 39 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


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