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

2. Lecture Date: China is shrinking the idea of the West!
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. 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 18th 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. A little about China’s economic growth
Source: The Economist
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 2nd 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 2050

5. Team Alpha reports Why the fastest growth on earth?
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
Trade balance
USA: $Bn (Jul 2010) (3.0% GDP Q2)
China: $Bn (Aug 2010) (10.3% GDP)
The Economist

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

9. Teachings of Confucius
Pragmatic rules for daily life
Society stability is based on unequal relationships between people
Family is prototype of all social organizations
Virtuous behavior: do no treat others as one would not like to be treated oneself
Virtue derives from education, hard working, not spending more than needed, being patient and persevering
Confucius, C. philosopher (~500 B.C.)
Cultures and Organizations: Software of the Mind
By Geert Hofstede and Gert Jan Hofstede

10. Teachings of Confucius
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
Cultures and Organizations: Software of the Mind
By Geert Hofstede and Gert Jan Hofstede

11. 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.
Cultures and Organizations: Software of the Mind
By Geert Hofstede and Gert Jan Hofstede

12. 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
Cultures and Organizations: Software of the Mind
By Geert Hofstede and Gert Jan Hofstede

13. Long Term Orientation (LTO)
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
Cultures and Organizations: Software of the Mind
By Geert Hofstede and Gert Jan Hofstede

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

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

16. Long Term Orientation (LTO)
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
Cultures and Organizations: Software of the Mind
By Geert Hofstede and Gert Jan Hofstede

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

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

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

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

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

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

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

25. GUANXI In China
Huanlin Zhu
April 21 25

26. Guanxi
Guanxi ? Relationship
Ignores the culture implications

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. Blood is thicker than water
Guanxi
Rely on family
Blood is thicker than water

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

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

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

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

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

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

35. Questions?
Next lecture

36. World Values Map

37. (not used)
the importance of education

38. Satisfaction with life index

39. GINI Coefficient World CIA Report 2009
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).