2 Culture Language Religion The way in which a group of people solves problems and reconciles dilemmas.A code of attitudes, norms and values,our way of thinking.Determines how we see ourselves and how we see the world.Is not right or wrong; it is not inherited, but learned.Social StructureCommunicationValues/ Attitudes/Beliefs
3 Artifacts and Products Norms and Values Basic Assumptions explicit implicit
4 Cross-Cultural Proficiency is Paramount in Managerial Tasks Developing products and servicesCommunicating and interacting with foreign business partnersScreening and selecting foreign distributors and other partnersNegotiating and structuring international business venturesInteracting with current and potential customers from abroadPreparing for overseas trade fairs and exhibitionsPreparing advertising and promotional materials
5 What are your top 10 values? Age/seniorityAuthorityBelongingnessCollectivenessCompetitionCompromiseCooperationDevotionDirectnessEfficiencyEqualityIndependenceFamily harmonyFamily securityFreedomGo-betweenGroup consensusGroup harmonyIndependenceIndirectnessIndividualismHospitalityOpennessParental guidancePatienceQualitySelf-relianceTime
6 Priorities of Cultural Values Table 4-1Priorities of Cultural Values: United States, Japan, and Arab CountriesUnited States Japan Arab CountriesFreedomIndependenceSelf-relianceEqualityIndividualismCompetitionEfficiencyTimeDirectnessOpennessBelongingGroup harmonyCollectivenessAge/seniorityGroup consensusCooperationQualityPatienceIndirectnessGo-betweenFamily securityFamily harmonyParental guidanceAgeAuthorityCompromiseDevotionPatienceIndirectnessHospitalityNote: “1” represents the most important cultural value, “10” the least.Adapted from Table 4-1: Priorities of Cultural Values: United States, Japan, and Arab Countries
10 Mini-Quiz on CultureAt what time should you arrive for a 10:00 meeting: in USA? China? Spain?If given a gift, should you open it: in Saudi Arabia? China?Should you give bad news in the morning: in USA? Korea?Is it a bad sign if you didn’t really speak about business in your first meeting: in UK? Japan?Should you send a young executive to a meeting: in USA? Japan?
11 How to Categorize and Understand Cultures Key Researchers:Hofstede, GeertHall, EdwardTrumpenaars, FonsDevelop Frameworks for Understanding Cultures
12 Which definition do you agree with more? A company is….a system designed to perform functions and tasks in an efficient way. People are hired to perform these functions with the help of machines and other equipment. They are paid for the tasks they perform.a group of people working together. They have social relations with other people and with the organization. The functioning is dependent on these relations.
14 Mini-CaseSix months after the ABC mining company had signed a long- term contract with a foreign buyer to buy bauxite in 20 annual installments, the world price of bauxite collapsed. Instead of paying $4 a ton below world market prices, the buyer now faced paying $3 above. The buyer faxed ABC to say it wished to renegotiate. The final words of the fax stated: “You cannot expect us as your new partner to carry alone the now ruinous expense of these contract terms.”
15 Options A contract is a contract. We had a deal. We won. A contract symbolizes the underlying relationship. Where circumstances transform the mutual spirit, the terms must be renegotiated to preserve the relationship.A contract symbolizes the underlying relationship. But such rigid terms are too brittle for turbulent environments. We need to be flexible.A contract is a contract. Had the price risen we wouldn’t have complained. We would, however, consider a second contract who’s terms would help offset their losses.
16 Hofstede’s Five Dimensions Social OrientationPower OrientationUncertainty OrientationGoal OrientationTime Orientation
17 Social Orientation Individualism Collectivism Relative importance of theinterests of the individual versusinterests of the group
18 power/authority within Power OrientationPower Respect Power ToleranceAppropriateness ofpower/authority withinorganizations
20 to achieve different goals Goal OrientationAggressive Goal Behavior Passive Goal Behavior(masculine) (feminine)What motivates peopleto achieve different goals
21 Time Orientation Long-term Outlook Short-term Outlook The extent to whichmembers of a cultureadopt a long-term or a short-termoutlook on work and life
22 Other Cultural Orientations Inner-directed vs. Outer-directedHigh context vs. Low contextNeutral vs. EmotionalAchievement vs. AscriptionAchievement culture: people are accorded status based on how well they perform their jobsAscription culture: status is attributed based on who or what the person is
23 Synthesis of Country Clusters Adapted from Figure 4–8: A Synthesis of Country Clusters