Unit 2 Culture

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    CULTURE

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    Demographic factors

    Changes in values/

    attitudes

    Changes in lifestyle

    Attitudes toward work/spare time

    Education levels

    Work environment factors

    Health concerns

    Changes in income distribution

    Fads and fancies.

    Media pressure

    Socio-cultural factors

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    Culture is the art and other manifestations of humanintellectual achievement regarded collectively; it is thecustoms, civilization, and achievement of a particulartime or people; is it the way of life of a particularsociety or group.

    Culture is the knowledge, beliefs, art, law, morals,customs, and other capabilities of one group,distinguishing it from other groups

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    etiquette (e.g. greetings) individual customs (e.g. routines for sleeping,

    bathing) ways of thinkingthe way people understand

    their world and make sense of it, a sharedsystem of meanings.

    Cultural programming deals with both valuesandpractices.

    There are different layers of culturalprogramming: national culture, professionalculture, corporate culture.

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    Culture is very important to thepractice ofinternational business.

    Culture impacts the waystrategic moves are presented.

    Culture influences decisions. Culture is the lens through which motivation occurs.

    Management, decision making, and negotiations areall influenced through culture.

    Culture influences nearly all business functions fromaccounting to finance to production to service.

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    Culture is a key ingredient in the liability offoreign-ness

    Ethnic, religious, class, age and other sources of

    heterogeneity Individual variation within groups

    Danger ofethnocentric stereotypes

    Intra-culturalvs. cross-cultural behaviour

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    LANGUAGE- verbal and non verbal

    RELIGION Christianity, Islam,

    Hinduism, Buddhism,Confucianism

    NATIONAL CULTURE Cultural typologies and

    differences

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    Linguistics

    or the meanings of words

    Proxemics or the distance that speakers stand from oneanother

    Pragmatics the cultural interpretations of words,gestures, and non verbal

    Non verbal The gestures and body language thataccompanies spoken words

    (that for language to be truly useful to business people,they must understand the uses, distances, gestures andinterpretations that accompany verbal communication )

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    Religion contains key values and norms that arereflected in a way of life.

    Religion influences international business

    practices. People try to adopt business practicesthat will satisfy religious tenets without sacrificingmodern practices in business.

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    Hofstede

    Bond

    Trompenaars[By and large, these classifications show similardimensions and classify countries in the same

    clusters.]

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    A study of IBM employees in 50 countries. Studying

    values (the broad tendencies to prefer certain states over

    others

    Four dimensions

    power distance

    uncertainty avoidance

    individualism/collectivism

    femininity/masculinity

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    Power Distance is the extent to whichhierarchical differences are accepted in society

    and articulated in term of deference to higher

    and lower social and decision levels inorganization.

    Centralization, Org.Levels-Height, Supervisors,Wage Differentials, White, Blue Collar Work

    [A bottom-up view of power differences]

    Large: Mexico, South Korea, India

    Small: U.S.

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    Uncertainty Avoidance is the extent to whichuncertainty and ambiguity are tolerated and rely

    on formal rules

    Standardization, Structured activities, Writtenrules, Specialists, No risk tolerance andRitualistic behaviour

    [A proxy for risk propensity and tolerance]

    High (i.e. risk averse): Japan, Greece

    Low (i.e. risk taking): U.S., Hong-Kong

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    The tendency of people to look after themselves and their

    immediate family versus belonging to groups or

    collectives and looking after each other in exchange for

    loyalty

    Firm as family, Utilitarian decision making, Groupperformance

    High individualism: U.S.

    High collectivism: China, Brazil, Venezuela There is an association between collectivism and wealth

    per capita

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    Values concerning work goals and assertiveness

    (masculinity) as opposed to personal goals

    (getting along, having friendly atmosphere) and

    nurturance (femininity). Sex Roles Minimized, More Women In Jobs,

    Interpersonal Skills Rewarded, Intuitive SkillsRewarded, Social Rewards Valued

    [A proxy for assertiveness] High: Brazil, Chile, Sweden

    Low: Japan, Mexico

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    Small PD, Weak UA Examples: USA, UK

    Less formal rules, less unnecessary layers of hierarchy. Control and coordination through mutual adjustment of people throughinformal coordination

    Small PD, Strong UA Examples: Israel, Austria, Germany

    Clearly defined rules and procedures without imposing stronghierarchy

    Large PD, Strong UA

    Examples: Japan, Korea, Portugal, Mexico Pyramids, clear authority lines

    Large PD, Weak UA Examples: Singapore, Hong Kong

    Family structure. Allocation of duties, strongKartaism

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    STRONG UA WEAK UA

    SMALL PD Israel, Austriaand Germany

    USA, UK

    LARGE PD Japan, Korea,Portugal,Mexico

    Singapore,

    Hong Kong

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    Individualism versus collectivism

    Universalism versus Particularism

    Neutral versus affective relationships

    Specific versus diffuse relationships

    Achievement versus ascription

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    Universalism is the belief that ideas and

    practices can be applied everywhere without

    modification.

    Universalistic: Germany, U.K. Particularism is the belief that circumstances

    dictate how ideas and practices should be

    applied.

    Particularistic: China, Hong-Kong, Venezuela

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    A neutral culture is one where emotions

    are held in check (repressed)

    Neutral: Japan, U.K.

    An affective country is one in which

    emotions are openly and naturally

    expressed

    Affective: Mexico, Netherlands,Switzerland

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    Public versus private spaces In specific cultures people tend to have a larger public

    area and small private area. They prefer to keep privatelife separate.

    Highly mobile; Separate work and private life

    Direct, open To the point may appear abrasive

    In diffuse cultures the private space is usually largerwhile the public area is smaller and more guarded.

    People come across as cool initially the private space ismore accessible.

    Low mobility; Work and private life closely linked

    Indirect, close and introvert

    Flexibility is very important

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    Achievement: people are accorded statusbased on how well they perform theirfunctions.

    Achievement: U.K., Argentina An ascription culture in one in which status

    is attributed based on who or what aperson is.

    Ascription: China

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    Important:

    persistence

    ordering relationship by status and observing this order

    thrift having a sense of shame (sensitivity to social contacts)

    Less important:

    personal steadiness and stability

    protecting your face respect for tradition

    reciprocation of greetings, favours and gifts.

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    Corporate Culture is the cultureadopted, developed and disseminatedin an organization.

    Corporate culture can deviate fromnational norms, but that depends upon

    the strength of culture and the valuesand practices tied to it.

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    Ethnicity

    Industry

    Demographics

    Ideology KEY CULTURAL ISSUES

    Cultural Etiquette

    Cultural Stereotyping Cultural Distance

    Cultural Convergence and Divergence

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