1. Cultural Dynamics

2. British Airways

3. I was meeting with a group of Japanese businessmen in Tokyo, and our morning discussions had not gone well. For lunch my hosts rented a private room in a restaurant. As is the custom, they took off their shoes. I was wearing my dress cowboy boots and removed them. No sooner had we sat cross-legged on the dining mats than I began to receive the first smiles and laughter of the day. I was puzzled until one man said, "Mickey Mouse," pointing to my socks. My children had packed this footwear, which they had given me for my birthday. Not realizing I would be taking off my boots, I wore the socks. That moment in the restaurant was the turning point of the trip, and before I left Japan we had an agreement. Take off the shoes to win

4. National Differences in Culture F What is CULTURE? –shared system of values and norms that offer a design for living u Values: abstract ideas about what is good, right and desirable u Norms: social rules and guidelines that prescribe appropriate behavior in particular situations

5. Culture Quiz http://www.branchor.com/culturequiz.htm

6. U.S. multinationals learn importance of culture USA Today 3/1/98

7. Theoretical Frameworks to Understand Culture

8. Reading Quiz 1. Name one of the cultural researchers in the readings. 2. Name the other cultural researcher in the readings. 3. What are the Silent Languages? 1._______________ 2._______________ 3._______________ 4. What the the dimensions of culture? 1._______________ 2._______________ 3._______________ 4._______________ 5. What was the survey designed to measure?

9. Categorization of Cultures J Low Context vs. High Context J Hofstede’s Dimensions of Culture Masculine/ Feminine Risk Avoidance Power Distance Individualism/ Collectivism

11. I. High and Low Context Cultures F High Context Cultures (Japan, Saudi Arabia) –Meaning of individual behavior and speed changes depending on the situation –Nonverbal messages full of important and intended meanings, subtle –Important to “read between the lines”

12. I. High and Low Context Cultures F Low Context Cultures (USA) –Intentions are expressed verbally, directly –Situation is not allowed to change the meaning of words and behavior –Straight talk

15. Silent Languages F Five different silent languages –Time –Space –Material possessions –Friendship patterns (reciprocity) –Agreements (emphasis on legal contracts) F All have important economic implications

16. II. Hofstede’s Model F Power Distance: tolerance of inequalities of intellectual and physical capabilities F Individualism versus collectivism: relationship between individual and his or her fellows

17. II. Hofstede’s Model F Uncertainty avoidance: acceptance of ambiguous situations and tolerance of uncertainty. F Masculinity versus femininity: identification of gender and work roles (Japan - HI; Sweden - LO) F Confucian Dynamics: long term vs short term orientation

18. Individualism and Power Distance Figure 3-5 Source: G. Hofstede, “The Cultural Relativity of Organizational Practices and Theories,” Journal of International Business Studies 14 (Fall 1983), pp. 75-89. 12 18 24 30 36 42 48 54 60 66 72 79 85 91 11 28 44 61 77 94 111 Small power distance Low individualism COS PAK TAL COL PER KOR THA CHL PHL EAF HOK MEX YUG WAF SIN EQA VEN IDO POR GUA PAN PHI MAL JAM URU GRE TUR BRA ARA IND JPN ARG SPA SAF FRA BEL ITA FIN GER SWI SWE IRE NOR AUT ISR DEN NZL CAN NET GBR USA AUL Small power distance High individualism Large power distance Low individualism Large power distance High individualism Power Distance Index (PDI) SAL ira

19. Uncertainty Avoidance and Masculinity Figure 3-6 Source: G. Hofstede, “The Cultural Relativity of Organizational Practices and Theories,” Journal of International Business Studies 14 (Fall 1983), pp. 75-89. DEN NOR SWE NET FIN SIN HOK MAL JAM IRE GBR IND PHI SAF AUL USA NZL CAN IDO EAF WAF IRA THA ARA PAK TAI SWI GER AUT MEX VEN BEL ARG COL ITA JPN GRE CHL COS YUG ISR BRA POR GUA URU SAL PER PAN TUR SPA FRA KOR Weak uncertainty avoidance Feminine Weak uncertainty avoidance Masculine Strong uncertainty avoidance Feminine Strong uncertainty avoidance Masculine 8 16 24 32 40 48 56 64 72 80 88 96 104 110 5 23 41 59 77 95 Masculinity Index (MAS)

20. Hofstede’s Classification of Triad Countries