1. HOT NEWS!!!
11/14/2018

2. 11/14/2018

3. What is the most important question in your life?
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4. WHO am I?
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5. “I” as a person, am: Biological Combination of my parent genes.
Social human being belonging to certain nation, certain culture, certain community.
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6. Outline Culture: Definition, Components, Determinants
Hofstede’s cultural dimensions: Description, Examples
Case on cultural differences
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7. What is Culture?
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8. What is Culture?
Culture is a system of VALUES and NORMS VALUES Attitude toward different aspects of life and concepts NORMS Folkways (The traditional behavior or way of life of a particular community or group of people) and mores….
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9. Why learn Cultures? Attitudes towards time Consumption of Alcohol
Business lunch culture
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10. Determinants of culture
Education
Social Structure
Language
Political
Culture Norms and Values
Climate
Economic
Religion
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11. Culture in International Business
You want to enter Chinese market with your new product, how would you do it?
You have to represent your company in business meeting with American company, how will you prepare yourself for it?
You have a meeting with your German client who wants to buy your product, how will you deal with him/her?
You, as a representative of Nepal government want to Negotiate terms of trade with Russian government officials, how would you do it? …etc.
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12. Geert Hofstede’s 5 dimensions(+ 1) http://geert-hofstede
Power distance
Masculinity vs. Femininity
Uncertainty avoidance
Pragmatic vs. Normative
Indulgence vs. Restraint
Individualism vs. Collectivism
Professor Geert Hofstede conducted one of the most comprehensive studies of how values in the workplace are influenced by culture. He analyzed a large database of employee value scores collected within IBM between 1967 and The data covered more than 70 countries, from which Hofstede first used the 40 countries with the largest groups of respondents and afterwards extended the analysis to 50 countries and 3 regions. Subsequent studies validating the earlier results include such respondent groups as commercial airline pilots and students in 23 countries, civil service managers in 14 counties, 'up-market' consumers in 15 countries and 'elites' in 19 countries.
In the 2010 edition of the book Cultures and Organizations: Software of the Mind, scores on the dimensions are listed for 76 countries, partly based on replications and extensions of the IBM study on different international populations and by different scholars.
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13. Brazil
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14. Power Distance Index (PDI)
Focuses on the degree of equality or inequality between people in the country’s society.
High Power Distance: strong hierarchy, low upward mobility
Low Power Distance : opportunity for everyone; equality in the society
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15. Example: Country with PDI 26
Power is decentralized and managers count on the experience of their team members.
Employees expect to be consulted.
Control is disliked and attitude towards managers are informal and on first name basis.
Communication is direct and participative.
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16. Power Distance Index (PDI)
Characteristics
Tips
High Power Distance
Centralized companies
• Strong hierarchies
• Large gaps in compensation, authority and respect
• Acknowledge a
leader’s power
• Be aware that you
may need to go to
the top for answer
Low Power Distance
• Flatter organizations.
• Supervisors and
employees are considered as almost equal
Use teamwork
• Involve as many
people as possible in decision making
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17. Nepal
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18. Individualism vs. Collectivism (IDV)
Focuses on the degree of interdependence that a society maintains among its members
Collectivists: people belong to ‘in groups’ (loyalty) ; focus on interpersonal relationship
Individualists above the company; society reinforces personal achievement
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19. Example: Country with IDV 68
The employer/employee relationship is a contract based on mutual advantage.
Hiring and promotion decisions are supposed to be based on merit only.
Management is the management of individuals.
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20. Individualism vs. Collectivism (IDV)
Characteristics
Tips
Individualism
High valuation on people’s time and their need for independence
An enjoyment of challenges and an expectation of rewards for hard work
Respect for privacy
• Acknowledge accomplishments
• Don’t ask for too much personal information
• Encourage debates and expression of own ideas
Collectivism
Emphasis on building skills on becoming masters of something
Work for intrinsic rewards
Harmony more important than honesty
Show respect for age and wisdom
Suppress feelings and emotions to work in harmony
Respect traditions and introduce change slowly
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21. Masculinity vs. Femininity (MAS)
focuses on the degree the society reinforces or does not reinforce the traditional masculine work role model of male achievement, control, wealth and power.
Masculinity: male values like achievement, success, rewards, etc. dominate a significant portion of the society and power structure.
Femininity feminine values like responsibility, quality of life, care, safety and harmony.
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22. Example: Country with MAS 72
People “live in order to work”.
Managers are expected to be decisive.
The emphasis is on equity, competition and performance.
Conflicts are resolved by fighting them out.
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23. Masculinity vs. Femininity (MAS)
Characteristics
Tips
Masculinity
High valuation on people’s achievements and success
• An enjoyment of challenges and an expectation of rewards for hard work
Acknowledge accomplishments
Encourage debate and try to show the individual benefit for the counterpart
Femininity
• Emphasis on building relationships
• Caring about each other
• Harmony more important than personal success
Express feelings and emotions to work towards a solution with benefits for both sides
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24. Switzerland
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25. Uncertainty Avoidance(UAI)
Focuses on the level of tolerance for uncertainty and ambiguity within the society (i.e. unstructured situations).
High Uncertainty Avoidance: the country has a low tolerance for uncertainty and ambiguity => a rule-oriented society that institutes laws, rules, regulations and controls in order to reduce the amount of uncertainty.
Low Uncertainty Avoidance: the country has less concern about ambiguity and uncertainty and has more tolerance for a variety of opinions => less rule-oriented, more readily accepts change and takes more and greater risks
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26. Example: Country with UAI 56
There is an emotional need for rules (even if the rules never seem to work)
Time is money.
People have an inner urge to be busy and work hard.
Precision and punctuality are the norm.
Innovation may be resisted.
Security is an important element in individual motivation.
Decisions are taken after careful analysis of all available information.
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27. Uncertainty Avoidance(UAI)
Characteristics
Tips
High Uncertainty avoidance
• Very formal business conduct with lots of rules and policies.
• Need and expect structure.
• Sense of nervousness spurns high levels of emotion and
expression.
• Differences are avoided.
• Be clear and concise about your expectations and parameters.
• Plan and prepare, communicate often and early, provide detailed plans and focus on the tactical aspects of a project
Low Uncertainty avoidance
Informal business attitude.
• More concern with long
term strategy than what is happening on a daily basis.
• Accepting of change and risk
Do not impose rules or
structure unnecessarily.
• Minimize your emotional response by being calm and
contemplating situations
before speaking.
• Express curiosity when you discover differences.
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28. Japan
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29. Long-term orientation
focuses on the degree the society embraces or does not embrace long-term devotion to traditional values.
Every society has to maintain some links with its own past while dealing with the challenges of the present and the future. Societies prioritize these two existential goals differently.
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30. Pragmatic versus Normative (PRA)
Normative orientation (short-term orientation): prefer to maintain time-honored traditions and norms while viewing societal change with suspicion. They respect traditions, have small propensity to save for the future.
Pragmatic orientation (long term orientation): they encourage thrift and efforts in modern education as a way to prepare for the future. truth depends very much on situation, context and time.
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31. Switzerland
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32. Iran
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33. Indulgence versus Restraint (IND)
This dimension is defined as the extent to which people try to control their desires and impulses, based on the way they were raised. Relatively weak control is called “Indulgence” and relatively strong control is called “Restraint”.
Indulgence: a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun.
Restraint: a society that suppresses gratification of needs and regulates it by means of strict social norms.
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34. Russia
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35. China
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36. India
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37. Germany
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38. Brazil
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39. U.S.
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40. Bangladesh
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41. Iran
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42. Russia
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43. U.K.
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44. India, China, Bangladesh, U.S., U.K, Germany, Russia
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