CrossCross--CulturalCultural2 C ossC oss Cu tu aCu tu aBusinessBusiness

ObjectivesObjectivesjj

• Determinants of Culture

• Common Cultural Frameworks for Classification

• Culture Game

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What is Culture?What is Culture?

SuperstructureSuperstructure: A culture’s ppworldview, including morals and values, oftentimes grounded in religion

Social structureSocial structure: The rule-governed relationships—with all their rights and obligations—that hold members of a society together. This includes households, families, associations, and power relations, including politics.

InfrastructureInfrastructure: The economic foundation of a society, including its subsistence practices and the t l d th t i ltools and other material equipment used to make a living. The Barrel Model 

of Culture

What is Culture?What is Culture?What is Culture?What is Culture?

• The beliefs and behaviors of a society

– Culture consists of abstract ideas, ,values, and perceptions of the world that inform and are reflected in people’s behavior

• Culture is the lens through which we view our world, it “invents” our reality

Iceberg example…

Culture is like an Iceberg…

Components of CultureComponents of CultureComponents of CultureComponents of Culture

Physicalenvironments

Values &attitudes

Aesthetics

environments

Ed ti Manners &

attitudes

CultureCultureEducation

P l

customsCultureCulture

Personalcommunication

ReligionSocial structure

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A th tiA th tiAestheticsAesthetics

MusicIn business, this

Paintin

g

In business, this means:Choosing appropriate colors

g

Dance

for advertising, product packaging, and even work Dan

Dramaand even work uniforms

Architec

ture2 - 7

V l d Attit dV l d Attit dValues and AttitudesValues and Attitudes

ValuesValues AttitudesAttitudesNormsNormsPositive or Positive or negative negative

evaluations, evaluations, feelings, and feelings, and

Ideas, beliefs, Ideas, beliefs, and customs to and customs to which people which people

Social rules Social rules that govern that govern

people actionpeople actiontendencies people tendencies people

hold toward hold toward objects or objects or conceptsconcepts

are emotionally are emotionally attachedattached

•• FreedomFreedom

2 categories2 categories

•Folkways•• ResponsibilityResponsibility•• HonestyHonesty

•• TimeTime•• WorkWork•• Cultural chanCultural changege

y•Mores

gg

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M d C tM d C tManners and CustomsManners and Customs

MannersA i t b h i

CustomsT diti lAppropriate behavior,

speech, and dressing in general

Traditional ways or behavior in specific

circumstancesg

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CustomsCustomsCustomsCustoms

FolkFolk

PopularPopularPopularPopular

Gift GivingGift Giving

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Social StructureSocial StructureSocial StructureSocial Structure

SSocial groupTwo or more people who identify and

interact with each other

Social stratificationProcess of ranking people into social layers

Social mobilityEase of moving up or down a culture's

"social ladder"social ladder

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World ReligionsWorld ReligionsWorld ReligionsWorld Religions

Christianity

IslamIslam

HinduismOrigin ofOrigin ofBuddhism

Confucianism

Origin ofHuman Values

Origin ofHuman Values

Judaism

Shinto

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Class Discussion Class Discussion Modernization andModernization andModernization andModernization andTraditional BeliefsTraditional Beliefs

Does globalization endanger traditional beliefs, such as living a life void of

materialistic ambitions?

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LanguageLanguage

• Verbal and non verbal expressionsVerbal and non verbal expressions

• Language blunders

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Mixed SignalsMixed SignalsMixed SignalsMixed Signals

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Discussion QuestionDiscussion QuestionDiscussion QuestionDiscussion Question

How does an understanding of the gspoken, written, and body language in abody language in a market abroad contribute tocontribute to business success?

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Answer to Discussion QuestionAnswer to Discussion QuestionAnswer to Discussion QuestionAnswer to Discussion Question

Knowledge of a culture’s spoken, written, andspoken, written, and body language gives international managersinternational managers insight into why people think and act the waythink and act the way they do.Experience this duringExperience this during the class game 2 - 17

Ed tiEd tiEducationEducation

Cultures pass on traditions, customs, and values through schooling, parenting, group memberships, etc.

Education levelWell-educated attract high-paying jobs, while poorly educated g p y g j , p y

attract low-paying manufacturing jobs

Brain drainBrain drainDeparture of highly educated people from one profession,

geographic region or nation to another

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Ph i l d M t i l C ltPh i l d M t i l C ltPhysical and Material CulturePhysical and Material Culture

These influence a culture’s development and pace of change

TopographyPhysical features characterizing the surface of a geographic region

ClimateWeather conditions of a geographic regiong g p g

Material CultureTechnology used to manufacture goods and provide servicesTechnology used to manufacture goods and provide services

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Classification of culturesClassification of cultures

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Hofstede FrameworkHofstede Framework

Individualism Individualism PowerPowervs. collectivismvs. collectivism distancedistance

UncertaintyUncertaintyUncertaintyUncertaintyavoidanceavoidance

MasculinityMasculinityvs. femininityvs. femininity

LongLong--termtermorientationorientation

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Individualism VS Individualism VS CollectivismCollectivism

• This aspect of culture measures the society tendency to engage in emotional independence and autonomyautonomy.

• Societies with high individualism place a great deal of emphasis on individual feelings and wellbeing.individual feelings and wellbeing. Satisfying the desires of the individual is top priority.

• Collective societies foster interdependent among individuals. They consider group cohesion as critical. Loyalty is important for this group.

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Power DistancePower Distance

• Refers to the extent to which members of a society ( d i H f t d ti ) t d l(and in Hofstede case, nation) accepted unequal distribution of power in society.

• When power distance is low in a society members• When power distance is low in a society, members generally feel equal and close to each other regardless of social or occupational status. Delegations of power and job enrichment are g p jimportant to members of this society.

• In contrast, high power distance societies respect and t th hi hi l diff i di id laccept the hierarchical differences among individuals.

In this type of society, individuals are separated from each other and some people are given more status and respect than others are. a d espect t a ot e s a e

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Masculinity/FemininityMasculinity/Femininityy yy y

• This represents the dominant value of a society and l t t t f i titirelate to aspects of aggression, competitiveness,

nurturing, and softness.

• In masculine societies the dominant values of• In masculine societies, the dominant values of aggression, competitiveness, assertiveness, and materiality are present. In such societies accomplishments and career is important. Members p pplace a high emphasis on ego, self esteem and independence.

C t f i i i ti f i t d d• Contrary, feminine societies favors interdependence among people in society. They adopt a more nurturing and caring role. These types of society are more patient and exercise greater sympathy towards their colleagues.a d e e c se g eate sy pat y to a ds t e co eagues

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Uncertainty Avoidancey

• This category refers to members in aThis category refers to members in a society propensity to deal with uncertain events. It measures the extent to which

i i f l h d dpersons in a society feels threatened and stressed when confronted with ambiguous and uncertain circumstancesambiguous and uncertain circumstances. In societies where uncertainty avoidance is high, there is usually a high level of g , y gaggression towards change and will to control events and occurrences.

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Power Distance &Power Distance &Individualism vs. CollectivismIndividualism vs. Collectivism

Source: Geert Hofstede, “The Cultural Relativity of Organizational Practices and Theories,” Journal of International Business Studies, Fall 1983, p. 82.

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Power Distance &Power Distance &Uncertainty AvoidanceUncertainty Avoidance

Source: Geert Hofstede, “The Cultural Relativity of Organizational Practices and Theories,” Journal of International Business Studies, Fall 1983, p. 84.

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Discussion QuestionDiscussion QuestionDiscussion QuestionDiscussion Question

Cultures with small ____________ tend to display greater equality and a more equal di t ib ti f ddistribution of rewards.a. Individualismb. Power distancec. Uncertainty avoidance

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Answer to Discussion QuestionAnswer to Discussion QuestionAnswer to Discussion QuestionAnswer to Discussion Question

Cultures with small ____________ tend to display greater equality and a more equal di t ib ti f ddistribution of rewards.a. Individualismb. Power distancec. Uncertainty avoidance

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Dealing with global CultureDealing with global CultureDealing with global CultureDealing with global Culture

Set of values, beliefs, rules, and institutions held by a specific group of people

Cultural literacyEthnocentricityDetailed knowledge of a

culture that enables a person to function

√√Belief that one’s own

ethnic group or culture is superior to that of

happily and effectively within it √√

othersXX √√XX2 - 30

Eth t i it di t t i f th ltEthnocentricity distorts our view of other cultures and causes us to overlook important human and environmental differences among cultures.g

Cultural literacy improves the ability of managers t l d l d k tto manage employees, develop and market products, and conduct negotiations in local markets.

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Culture Matters:Culture Matters:Creating a Global MindsetCreating a Global Mindset

Cultural BridgingCulturalAdaptability

Bridgingthe Gap

Fl ibilitB ildi FlexibilityIs Key

BuildingGlobal Mentality

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Implications for businessImplications for businesspp

• The need to develop Cross Cultural LiteracyThe need to develop Cross Cultural Literacy

• Culture and competitive advantageCulture and competitive advantage

• Culture and Business Ethics• Culture and Business Ethics

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