WHAT IS CULTURE? F Culture is the pervasive and shared beliefs, norms, values, and symbols that guide everyday life F Transmitted by symbols, stories and rituals F Often taken-for-granted

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TWO DIAGNOSTIC MODELS TO UNDERSTAND CULTURAL DIFFERENCES F Value Orientations Model F Hofstede’s Model of National Culture

HIGH POWER DISTANCE NORMS, VALUES, AND BELIEFS F Inequality is good F Everyone has a place F People should depend on a leader F The powerful are entitled to privileges F The powerful should not hide their power

UNCERTAINTY AVOIDANCE NORMS, VALUES, AND BELIEFS F Avoid conflict F Low tolerance of deviant people and ideas F Respect for laws and rules F Experts and authorities are usually correct F Consensus is important

INDIVIDUALISM NORMS, VALUES, AND BELIEFS F People are responsible for themselves F Individual achievement is ideal F People are not emotionally dependent on organizations or groups

COLLECTIVISM HAVE NORMS, VALUES, AND BELIEFS F Self identity based on group membership F A belief that group decision making is best F A belief that groups protect you in exchange for loyalty

MASCULINITY NORMS, VALUES, AND BELIEFS F Clear definitions of gender roles F Men are assertive and dominant F Support for Machismo F Men should be decisive F Work is priority F Growth, success, and money are important

LONG TERM (CONFUCIAN) ORIENTATION F Belief in substantial savings F Willingness to invest F Acceptance of slow results F Persistence to achieve goals F Sensitivity to social relationships F Pragmatic adaptation

EXHIBIT 1 HOFSTEDE’S VALUE DIMENSIONS BY COUNTRIES F Anglo cultures (US, GB, Australia) – High on individualism and masculinity, low on power distance and uncertainty avoidance

F Latin European – High uncertainty avoidance F Nordic – Low masculinity F Far Eastern – high power distance, low individualism