Cultural Dynamics What is culture? Cultural values - Hofstede
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1 Cultural Dynamics What is culture? Cultural values - Hofstede Business customs - adapting to culture
2 What is culture? the total range of activities and people. the combination of learned meanings, values, norms and customs shared by a society
3 How do we get culture? learned through the process of socialization social learning results in shared expectations, normsnorms are used to evaluate objects, people and eventsCultures & subcultures
4 Context Cultures High-context culture Low-context culture social context affects the meaning of the message; context is as important (or more important) as what is said.Examples: Japan and Saudi ArabiaLow-context cultureis where the meaning of the message is explicitly expressed by the words; social context has less effect.Example: North America
5 Factual vs. Experiential Knowledge Factual Knowledge -- facts & statisticsExperiential Knowledge -- nuances surrounding facts & statistics; interpreted within the context of the culture
6 Elements of Culture Elements Language verbal non-verbal Religion & Belief systemsValues and AttitudesManners and CustomsMaterial ElementsAestheticsEducationSocial Institutions
7 Cultural Values - Hofstede’s Research Individualism/CollectivismPower DistanceUncertainty AvoidanceMasculinity/FemininityNeed Gratification
8 Individualism/Collectivism Extent to which a country values independence of self vs. loyalty to othersExample:Japan: Collectivist – important to know one’s place; don’t shame family, avoid standing outU.S.: Individualist – express yourself (Cingular Wireless) & your opinions; show status (American Express); be an individual (Dr. Pepper)
9 Power DistanceHigh PD: A society’s expectation that power/status is distributed unequallyExample:India: High PD, caste system, hierarchy; strong dependence of lower social classes on higher classes; respect for authorityU.S.: Low PD, people are created equal; ok to question or even defy authority
10 Masculinity/Femininity Values for achievement/success (masculinity) vs. values for caring & quality of life (femininity)Examples:Scandinavian countries: feminine – not supposed to hurt feelings; respect the loser, or underdogU.S.: masculine – winning important, in your face; competition and aggressiveness count
11 Uncertainty Avoidance The extent to which uncertainty and ambiguity are considered threateningExamples:Germany: high uncertainty avoidance – a structured education system with lots of rules, experts specialize in distinct areas with recognized qualificationsU.S.: low uncertainty avoidance – liberal arts and general business degrees are valued; anyone can be an expert because there are no rules to define expertise
12 Long-term Orientation The extent to which a country exhibits pragmatic planning for future vs. “live for the moment” short term perspectiveExamples:China: LT orientation – values perseverance, thrift, respect for traditionU.S.: ST orientation – values immediate gratification; initiative and entrepreneurship; innovation
13 Hofstede’s Cultural Dimensions U.S. ValuesIndividualism: IndependenceLow power distance: Equal opportunityMasculinity: Power, success, winningLow uncertainty avoidance: Obsession with change; new & betterShort term orientation: Credit card cultureJapanese ValuesCollectivist: group harmonyHigh power distance: status, loyalty to superiorsMasculinity: power, success (but don’t flaunt it)High uncertainty avoidance: structure, job hierarchyLong term orientation: cash cultureDe Mooij, Marieke (1998). Global marketing and advertising: Understanding Cultural Paradoxes. Thousand Oaks, CA: Sage.
14 Cultural Sensitivity & Adaptation Levels of AdaptationImperatives - customs that must be recognized and accommodatedAdiaphora - customs that are optional but still appreciatedExclusives - customs that outsiders should not attempt to adopt
15 Methods of Doing Business Different cultures have different approaches to these concepts.Level of authorityManagement outlookCommunicationsTime and tempo
16 AcculturationAdjusting or adapting to a specific culture other than one’s own … and “one of the keys to success in international operations.
17 Success and Culture Embrace local culture. Build relationships. Employ locals to gain cultural knowledge.Help employees understand you.Adapt products and processes to local markets.Coordinate by region.