Cultural differences

Question 1

what levels of culture do you know?

Answer 1

individual, collective, and universal culture divide into

1. National culture
2. Business culture

Question 2

What are the components of culture?

Answer 2

1. Language
2. Religion
3. Values
4. Customs

**5. Aesthetics

6. Social structures**

Question 3

Talk about Hofstede on culture

Answer 3

Hofstede classifyies cultures according to

1. Power distance: how cultures deal with inequality
2. Uncertainty avoidance: tolerance for ambiguity
3. Individualism vs collectivism: are people responsible for themselves? Is group decision making the best?
4. Masculinity vs femininity
5. Long term vs short term orientation: this determines the willingness to invest and tolerance of slow results. Western cultures tend to be short term oriented and organizations are designed to respond immediately to pressures from the environment.
6. Indulgence vs restraint: does society allow for relatively free gratification or does it regulate it by means of strict social norms?

Question 4

Talk about Trompenaars on culture

Answer 4

Trompenaars classifyes cultures based on:

1. Universalism vs Particularism: focus on rules, in the universalistic view the right way is based on abstract principles such as rules, law, and religion. In the particularistic view each judgement represents a unique situation.
2. Individualism vs collectivism: similar to Hofstede
3. Neutral vs emotional: to what extent is the expression of emotions accepted?
4. Specific vs diffuse: to what extent is an individual’s life involved in work? Specific = business is separated from other parts of life, diffuse = business is a part of life
5. Achievement vs ascription: society gives status based on achievements or based on characteristics which define status? (university)
6. Future vs Present oriented: this is different from short vs long term view.
7. Internal vs external control: how do people interact with the environment?

Question 5

what is ethnocentrism?

Answer 5

when people from one culture believe that theirs are the only correct norms, values, and beliefs

Question 6

are cultural differences relevant for managers?

Answer 6

yes, managers need to develop cross cultural literacy. Companies that are not informed about the country in which they operate are unlikely to succeed. There is also a connection between culture and national competitive advantage