Chapter 4 - Culture Environment

7/28/2019 Chapter 4 - Culture Environment

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Culture Environment

National Differences

FTU Foreign Trade University

Dr. Nguyen Hai Ninh


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Perceptions of each other


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Telling the truth


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Queuing


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Transportation


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Child


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Seniors daily life


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Noise level inside a restaurant


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Connections and Contacts


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Punctuality


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Boss


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and many others.

EAST - WEST

CULTURAL DIFFERENCES


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Culture is more often a source of conflict than of

synergy. Cultural differences are a nuisance at best and

often a disaster

Prof. Geert Hosftede


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WHAT IS CULTURE?

is the system of

Values

Norms

and Beliefs

being shared among group of people


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ELEMENTS OF CULTURE- Religion

- Language

- Aesthetic- Political - economic philosophies

- Education

- Social structure


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3,000 languages and as many as 10,000 dialects worldwide

LANGUAGE

Language can be a competitive weapon

Language serves at the window to the culture of a society

Verbal or non-verbal is a very important skill for Business people


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4 Main religious: Christianity, Islam, Hinduism, Buddhism


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Master Kong: 551 478 BC

Confucianism is not a religion, but influences behavior and

shapes culture in many parts of Asia


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Activity 1

Give some examples of cultural differences in the interpretationof body language. What is the role of such nonverbal

communication in business relationships?


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WORKING IN CROSS CULTURAL WORKPLACE


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Power distanceThe extent to which the less

powerful members of institutionsand organizations within a country

expect and accept that power is

distributed unequally


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High power distance

Minimize the inequalities among people

Interdependence between less and

more powerful people Flat hierarchy pyramid

Power decentralization

Narrow salary range

Subordinated expect to be consulted

The ideal boss is a resourceful democrat

Privileges and status are disapproved

Inequalities among people are both

expected and desired

Less powerful people should bedepended on the more powerful

Slope hierarchy pyramid

Power centralization

Wide salary range

Subordinated expect to be told what to

do

The ideal boss is a benevolent autocrat or

good father

Privileges and status are both expected

and popular

Low power distance


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High

Low

Orientationtoward

sauthority

Viet NamMalaysia

Arab Countries

Mexico

India

France

ItalyJapan

Spain

Argentina

US

Germany

UKDenmark

Israel

Austria


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Example

A company from Austria (low power distance) is considering entering the

Vietnam (high power distance) market.

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40

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Austria Viet Nam

Po

werDistanceIndex

Communication tips for the Austrian manager:

1) Give clear and explicit directions to those working with him

2) Deadlines should be highlighted and stressed

3) Do not expect subordinates to take initiative

4) Be more authoritarian in his management style

5) Show respect and deference to those higher up the ladder


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Uncertainty avoidance The extent to which members of a

society feel threaten by uncertain

or unknown situations


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Uncertainty: normal feature of life and

each day is accepted as it comes

Low stress subjective feeling of well-being

Aggression and emotions must not be

shown

Comfortable in ambiguous situations

and with unfamiliar risk

There should not be more rules than

necessary

Precision and punctuality have to be

learned

Tolerance to innovation

Motivation by achievement

Uncertainty : continuous threat that

must be fought

High stress subjective feeling ofanxiety

Aggression and emotions may be

shown at proper times

Fear of ambiguous situations and of

unfamiliar risk

Emotional need for rules, even if they

never work

Precision and punctuality come

naturally

Resistance to innovation

Motivation by security

Weak uncertainty avoidance Strong uncertainty avoidance


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High

Low

Desire

forstability

VietNam

Greece

Japan

France

Korea

Arab CountriesGermany

Australia

Canada

US

UK

IndiaDenmark

Singapore


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Example

A company from France (high uncertainty avoidance) is considering investing in

Denmark (low uncertainty avoidance)

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40

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France Denmark

Un

certaintyAvoidanc

eIndex

Communication tips for the French manager:

1) Try to be moreflexible oropen in his approach to new ideas than he may be used to

2) Be prepared to push through agreed plans quickly as they would be expected to be

realized as soon as possible

3) Allow employees the autonomyand space to execute their tasks on their own; only

guidelines and resources will be expected of him


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IndividualismThe tendency of people to look

after themselves and their

immediate family and neglect the

needs ofsociety


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High individualism

Individuals learn to think in terms of

we

Diplomas provide entry to higherstatus groups

Relationship employer- employee is

perceived in moral terms, like a family

Hiring and promotion decisions take

employees ingroup into account

Management is management of

groups

Relationship prevails over task

Individuals learn to think in terms of

I

Diplomas increase economic worthand/or self- respect

Relationship employer-employee is a

contract based on mutual advantage

Hiring and promotion are supposed

to be based on skills and rules only

Management is management of

individuals

Task prevails over relationship

Low individualism


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High

Low

Australia

US

UK

Canada

FranceGermany

Spain

Japan

Mexico

Italy

Korea

Singapore

l


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Example

A company from UK (high individualism) is considering investing in Mexico

(low individualism)96

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40

60

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UK Mexico

I

ndividualismIndex

Communication tips for the UK manager:

1) Note that individuals have a strong sense ofresponsibility for their family

2) Remember that praise should be directed to a team rather than individuals

3) Understand thatrewards depend upon seniorityand experience

4) Be aware that the decision making process will be rather slow, as many members

across the hierarchy need to be consulted


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MasculinityThe tendency within a society to

emphasize traditional gender

roles


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High masculinity

Dominant values: caring for others

and preservation

People and warm relationships are

important

Sympathy for the weak

In family, both fathers and mothers

deal with facts and feelings

Stress on equality, solidarity , and

quality of work life

Managers use intuition and strive

for consensus

Resolution of conflicts by

compromise and negotiation

Dominant values: material success

and progress

Money and things are important

Sympathy for the strong

In family, fathers deal with facts and

mothers with feelings

Stress on equity, competition among

colleagues and performance

Managers are expected to be

decisive and assertive

Resolution of conflicts by fighting

them out

Low masculinity


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High

Low

Japan

Mexico

Germany

UKUS

Arabia

France

Korea

Portugal

DenmarkSweden

Example


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Example

A company from Denmark ( low masculinity) is considering investing in Mexico

(high masculinity)

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Denmark Mexico

Mascu

linityIndex

Communication tips for the Danish manager :

1) Be aware that people will discuss business anytime, even at social gatherings

2) Avoid asking personal questions in business situations

3) Take into account that people are not interested in developing closer friendships

4) Communicate directly, unemotionally and concisely

5) In order to assess others use professional identity, not family or contacts


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Long- term orientationA basic orientation towards time

that valuespatience


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Long-term orientation

Respect for traditions

Little money available for

investment

Quick results expected

Respect for social and status

obligations regardless of cost

Concern with possessing the Truth

Adaptation of traditions to a

modern context

Funds available for investment

Perseverance towards slow results

Respect for social and status

obligations within limits

Concern with respecting the

demands of Virtue

Short- term orientation


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Activity 2

Assumed that your corporation intend to open your business inAmerica and Japan, from your own research about their culture,

point out the culture differences and specialties. Give some

recommendations for your boss?

Chapter 4 - Culture Environment

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Transcript of Chapter 4 - Culture Environment