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Differences in Culture

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1 Differences in Culture
3 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

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