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TRANSCRIPT
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International Business8e
By Charles W.L. Hill
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Chapter 3
Differences
in Culture
Copyright 2011 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
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Chapter Objectives
know what is meant by the culture of asociety
Identify the forces that lead to differences
in social culture Identify the business and economic
implications of differences in culture
Understand how differences in socialculture influence values in the workplace
Develop an appreciation for the economic
and business implications of cultural change
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What Is Cross-Cultural Literacy?
Cross-cultural literacy is an
understanding of how cultural differences
across and within nations can affect the way
in which business is practiced
A relationship may exist between culture
and the costs of doing business in a country
or region
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What Is Culture?
Culture is a system of values and norms that are
shared among a group of people and that when
taken together constitute a design for living
wherevalues are abstract ideas about what a group believes
to be good, right, and desirable
norms are the social rules and guidelines that prescribe
appropriate behavior in particular situations
Society refers to a group of people who share a
common set of values and norms
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What Are Values And Norms?
Values provide the context within which a
societys norms are established and justified
and form the bedrock of a culture
Norms include
folkways - the routine conventions of everyday
life
mores - norms that are seen as central to the
functioning of a society and to its social life
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How Are Culture, Society,
And The Nation-State Related?
The relationship between a society and a
nation state is not strictly one-to-one
Nation-states are political creations
can contain one or more cultures
A culture can embrace several nations
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How Are Individuals
And Groups Different? A group is an association of two or more people who have
a shared sense of identity and who interact with each otherin structured ways on the basis of a common set ofexpectations about each others behavior
In Western societies, there is a focus on the individual individual achievement is common
dynamism of the U.S. economy
high level of entrepreneurship
But, creates a lack of company loyalty and failure to gaincompany specific knowledge competition between individuals in a company instead of than
team building
less ability to develop a strong network of contacts within a firm
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What Is Hinduism?
Hinduism
practiced primarily on the Indian sub-continent
focuses on the importance of achieving spiritual
growth and development, which may requirematerial and physical self-denial
Hindus are valued by their spiritual rather thanmaterial achievements
promotion and adding new responsibilities maynot be important, or may be infeasible due tothe employee's caste
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What Is Confucianism?
Confucianism
ideology practiced mainly in China
teaches the importance of attaining personal
salvation through right actionhigh morals, ethical conduct, and loyalty to
others are stressed
three key teachings of Confucianism - loyalty,
reciprocal obligations, and honesty - may alllead to a lowering of the cost of doing businessin Confucian societies
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What Is The Role
Of Education In Culture?Formal education is the medium through
which individuals learn many of thelanguage, conceptual, and mathematical
skills that are indispensable in a modernsociety
important in determining a nationscompetitive advantage
general education levels can be a good index forthe kinds of products that might sell in acountry
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How Does Culture
Impact The Workplace? Management processes and practices must be adapted to
culturally-determined work-related values
Geert Hofstede identified four dimensions of culture
1. Power distance - how a society deals with the fact that
people are unequal in physical and intellectualcapabilities
2. Uncertainty avoidance - the relationship between theindividual and his fellows
3. Individualism versus collectivism - the extent to which
different cultures socialize their members into acceptingambiguous situations and tolerating ambiguity
4. Masculinity versus femininity -the relationshipbetween gender and work roles
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How Does Culture
Impact The Workplace?Work-Related Values for 20 Countries
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Was Hofstede Right?
Hofstede later expanded added a fifth dimension calledConfucian dynamism captures attitudes toward time, persistence, ordering by status,
protection of face, respect for tradition, and reciprocation of giftsand favors
Hofstedes work has been criticized becausemade the assumption there is a one-to-one relationship between
culture and the nation-state
study may have been culturally bound
used IBM as sole source of information
culture is not static it evolves
But, it is a starting point for understanding how culturesdiffer, and the implications of those differences formanagers
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Does Culture Change?
Culture evolves over time
changes in value systems can be slow and
painful for a society
Social turmoil - an inevitable outcome of
cultural change
as countries become economically stronger,
cultural change is particularly common
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What Do Cultural Differences
Mean For Managers?1. It is important to develop cross-cultural
literacy companies that are ill informed about the practices of
another culture are unlikely to succeed in that culture
managers must beware of ethnocentric behavior, or abelief in the superiority of one's own culture
2. There is a connection between culture andnational competitive advantage suggests which countries are likely to produce the
most viable competitors has implications for the choice of countries in which
to locate production facilities and do business