1. Differences in Culture3
Chapter
Differences in Culture

2. Guanxi-strength of relationship
U.S.
Business transactions are conducted within the framework of contract law and mechanisms for dispute resolution are in place
Reciprocal networks are becoming more important but have to operate within the confines of the law
Gifts may be frowned upon as bribery (Foreign Corrupt Practices Act)
China
Personal power and relationships or connections rather than rule of law are important in China
Reciprocal relationship networks can often mean doing favors or offering bribes
Establish relationships with gifts

3. What is culture?
“A system of values and norms that are shared among a group of people and that when taken together constitute a design for living.”
Hofstede, Namenwirth and Weber

4. Different components of culture
Values and Norms
Folkways and mores

5. Values and norms
Values: Abstract ideas/assumptions about what a group believes to be good, right and desirable
Norms: social rules and guidelines that prescribe appropriate behavior in particular situations

6. Folkways and mores Folkways: Routine conventions of everyday life.
Little moral significance
Generally, social conventions such as dress codes, social manners, and neighborly behavior
Mores: Norms central to the functioning of society and its social life
Greater significance than folkways
Violation can bring serious retribution
Theft, adultery, incest and cannibalism

7. Culture, society and nation states
Society is a group of people who share a common culture
No one to one correspondence between society and a nation state
Nation states are political creations
Many cultures can co-exist within a nation state

8. Determinants of culture
Fig: 3.1
Social structure
Religion
Language
Education
Economic philosophy
Political philosophy

9. Social structure Two dimensions Other influences
The extent to which society is group or individually oriented
Degree of stratification into castes or classes
Social mobility
Significance to business
Other influences
Political philosophy
Economic philosophy

10. Religious and ethical systems
Christianity
Economic implications
Hinduism
Islam
Buddhism
Confucianism

11. World religions
Map 3.1

12. Language Spoken Verbal cues Language structures perception of world
Unspoken
Body language
Personal space
Fig: 3.2

13. Education Education can be a source of competitive advantage Example
India
Malaysia
Singapore

14. Percentage of GNP spent on education
Map 3.2

15. Adult literacy rates
Map 3.3

16. Culture and the workplace
Study on the relationship between culture and the workplace by Geert Hofstede
40 countries
100,000 individuals

17. Hofstede’s cultural dimensions
Four dimensions of culture
Power distance
Individualism versus collectivism
Uncertainty avoidance
Masculinity versus femininity

18. Power distance
Cultures are ranked high or low on this dimensions based on the particular society’s ability to deal with inequalities

19. Individualism versus collectivism
This dimension focuses on the relationship between the individual and his/her fellows within a culture
Individualistic societies:
loose ties
individual achievement and freedom highly valued
Collectivist societies-
tight ties
tend to be more relationship oriented

20. Uncertainty avoidance
This dimension measures the extent to which a culture socializes its members into accepting ambiguous situations and tolerating uncertainty

21. Masculinity versus femininity
This dimension looks at the relationship between gender and work roles

22. Work related values for twenty countries

23. Problems with Hofstede’s findings
Assumes one-to-one relationship between culture and the nation-state
His research may have been culturally bound.
Survey respondents were from a single industry (computer) and a single company (IBM)

24. Cultural change Culture is not a constant; it evolves over time
Since 1960s American values toward the role of women are changing.
Japan moves toward greater individualism in the workplace
Effects of globalization

25. Changing values
Fig: 3.3

26. Managerial implications
Cross cultural literacy
Culture and competitive advantage
Culture and business ethics