Culture - Differences

Question 1

In Chapters 2 and 3, we saw

Answer 1

how national differences in political, economic, and legal systems influence the benefits, costs, and risks associated with doing business in different countries.

Question 2

Understanding and adapting to the local cultural is important in international companies.

Answer 2

Cross-cultural literacy is important for business success​

A relationship may exist between culture and the costs of doing business in a country or region.​

Culture​

Is rooted in values and norms​

Evolves over time​

Question 3

culture - values - norms - society

Answer 3

Culture​

Multiple definitions​

Values​

Shared assumptions about how things ought to be​

Norms​

Rules for appropriate behavior​

Society​

Some countries have several societies or subcultures and some societies embrace more than one country

culture as a system of values and norms that are shared among a group of people and that when taken together constitute a design for living.

By values, we mean ideas about what a group believes to be good, right, and desirable. Put differently, values are shared assumptions about how things ought to be.11

By norms, we mean the social rules and guidelines that prescribe appropriate behavior in particular situations.

We use the term society to refer to a group of people sharing a common set of values and norms.

While a society may be equivalent to a country, some countries have several societies or subcultures (i.e., they support multiple subcultures), and some societies embrace more than one country

Question 4

Values

Answer 4

Provide the context within which a society’s norms are established and justified​

Invested with emotional significance​

Values provide the context within which a society’s norms are established and justified.

Values may include a society’s attitudes toward such concepts as individual freedom, democracy, truth, justice, honesty, loyalty, social obligations, collective responsibility, women, love, sex, marriage, and so on.

Values are not just abstract concepts; they are invested with considerable emotional significance. People argue, fight, and even die over values, such as freedom. Freedom and security are often the core reasons the U.S. political leadership uses when justifying the country engaging in various parts of the world, in some way, as the “global police” force. Values are also often reflected in the economic systems of a society

Question 5

Norms​ def and 2 types

Answer 5

Social rules that govern people’s actions​

Folkways ​ - are the routine conventions of everyday life. Generally, folkways are actions of little moral significance. Rather, they are social conventions that deal with things like appropriate dress code in a particular situation, good social manners, eating with the correct utensils, neighborly behavior, and so on. Although folkways define the way people are expected to behave, violation of them is not normally a serious matter. People who violate folkways may be thought of as eccentric or ill-mannered, but they are not usually considered to be evil or bad.

Violations not a serious matter​

Mores ​- is a term that refers to norms that are more widely observed, have greater moral significance than other norms, and are central to the functioning of a society and to its social life. This means that mores have a much greater significance than folkways. Violating mores can bring serious retribution, ill will, and the collapse of any business deal. Mores include such drastic factors as indictments against theft, adultery, incest, and cannibalism. In many societies, certain mores are so drastic that they have been enacted into law. For example, all advanced societies have laws against theft, incest, and cannibalism.

More widely observed ​

Have greater moral significance than other norms​

Question 5

Norms​ def and 2 types

Answer 5

Social rules that govern people’s actions​

Folkways ​

Violations not a serious matter​

Include rituals and symbolic behavior​

Mores ​

More widely observed ​

Have greater moral significance than other norms​

Question 6

Culture, Society, and the Nation-State​

Answer 6

The relationship between a society and a nation state is not strictly one-to-one ​

Nation-states are political creations ​

A nation can have several cultures, and a culture can embrace several nations​

Different levels of culture​

Question 7

Determinants of Culture​

Answer 7

The values and norms of a culture evolve over time​

Religion​

Political philosophy​

Economic philosophy​

Education​

Language​

Social structure​

Question 8

Social structure ​

Answer 8

refers to its basic social organization. In essence, we are talking about how a society is organized in terms of its values, norms, and the relationships that are part of the society’s fabric. How society operates and treats each other as people, groups, companies, and so on, is both emergent from and a determinant of the behaviors of individuals in the specific society.

A society’s social structure refers to its basic social organization.

Two dimensions explain differences among cultures​

The basic unit of social organization is the individual, as opposed to the group​

A society is stratified into classes or castes​

AND two dimensions are particularly important when explaining differences among cultures.

The first is the degree to which the basic unit of a social organization is the individual, as opposed to the group, or even company for which a person works. In general, Western societies tend to emphasize the importance of the individual, whereas groups tend to figure much larger in many other societies.

Question 9

Societal structure - individuals and groups

Answer 9

The individual​

In many Western societies, the individual is the basic building block of social organization.​

Emphasis on individual achievement​

The group​

The primary unit of social organization in many non-Western societies​

Importance of group membership/identification​

Question 10

Social Stratification; principles

Answer 10

All societies are stratified on a hierarchical basis into social categories, or social strata​

Individuals are born into a particular stratum, which affects life chances​

Four basic principles​

Trait of society​

Carries over into next generation​

Generally universal but variable​

Involves not just inequality but also beliefs​

Question 11

Social mobility

Answer 11

ocial mobility​

Varies among societies​

Caste system​

Social position determined by family​

India has four main castes ​

Class system ​

Form of open social stratification ​

Position can be changed through achievement or luck​

Question 12

social stratification significance

Answer 12

Significance​

Affects business operations​

Class consciousness​

Makes it difficult to establish a competitive advantage in a global economy​

Question 13

Religion vs Ethical System

Answer 13

Religion​

Concerned with the realm of the sacred​

Ethical system​ - refers to a set of moral principles, or values, that are used to guide and shape behavior.32 Most of the world’s ethical systems are the product of religions.

Most are the product of religions​

Four dominant religions​

Christianity​, Islam​, Hinduism​, Buddhism​

Question 14

world religions map

Answer 14

slide 16

Question 15

Christianity

Answer 15

The world’s largest religion​

Found throughout Europe, the Americas, and other countries settled by Europeans ​

Economic implications of Christianity​

Max Weber, Protestant ethics, and the spirit of capitalism​

Question 16

Islam

Answer 16

Islam​

The world’s second largest religion dating to a.d. 610​

Monotheistic, one true omnipotent God (Allah)​

Islamic fundamentalism​

Associated in the Western media with militants, terrorists, and violent upheavals​

Muslims teach peace, justice, and tolerance​

Economic implications​

Many pro-free enterprise principles, protection of private property, concern with social justice​

Prohibits the payment or receipt of interest​

Question 17

Hinduism

Answer 17

Hinduism​

Practiced primarily on the Indian subcontinent​

Focus on achieving spiritual growth and development, which may require material and physical self-denial​

Economic implications​

Hindus are valued by their spiritual rather than material achievements​

Promotion and adding new responsibilities may not be important, or may be infeasible due to the employee’s caste​

Question 18

Buddhism

Answer 18

Has about 535 million followers​

Stresses spiritual growth and the afterlife, rather than achievement while in this world ​

Economic implications​

Does not emphasize wealth creation​

Entrepreneurial behavior is not stressed culturally, but still acceptable​

Does not support the caste system, individuals do have some mobility and can work with individuals from different classes​

Question 19

Confucianism

Answer 19

Confucianism​

Practiced mainly in China​

Teaches the importance of attaining personal salvation through right action​

High morals, ethical conduct, and loyalty to others​

Economic implications​

Three key teachings of Confucianism - loyalty, reciprocal obligations, and honesty - may all lead to a lowering of the cost of doing business in Confucian societies​

Guanxi​

​

Question 20

Language spoken vs unspoken

Answer 20

—–Spoken Language​

Language structures the way we see the world​

Countries with more than one language often have more than one culture​

Chinese is the mother tongue of the largest number of people​

English is becoming the language of international business​

—-Unspoken language

Nonverbal communication​

Often culturally bound​

Personal space

Question 21

Formal education

Answer 21

Medium through which individuals learn languages and other skills​

Socializes the young into the values and norms of a society​

Citizenship and culture​

Provides a national competitive advantage​

Question 22

Culture and Values in the Workplace​ & Hofstede

Answer 22

Hofstede’s dimensions of culture​

Hofstede’s power distance dimension focused on how a society deals with the fact that people are unequal in physical and intellectual capabilities. According to Hofstede, high power distance cultures were found in countries that let inequalities grow over time into inequalities of power and wealth. Low power distance cultures were found in societies that tried to play down such inequalities as much as possible.

The individualism versus collectivism dimension focused on the relationship between the individual and his or her fellows. In individualistic societies, the ties between individuals were loose, and individual achievement and freedom were highly valued. In societies where collectivism was emphasized, the ties between individuals were tight. In such societies, people were born into collectives, such as extended families, and everyone was supposed to look after the interest of his or her collective.

Hofstede’s uncertainty avoidance dimension measured the extent to which different cultures socialized their members into accepting ambiguous situations and tolerating uncertainty. Members of high uncertainty avoidance cultures placed a premium on job security, career patterns, retirement benefits, and so on. They also had a strong need for rules and regulations; the manager was expected to issue clear instructions, and subordinates’ initiatives were tightly controlled. Lower uncertainty avoidance cultures were characterized by a greater readiness to take risks and less emotional resistance to change.

Hofstede’s masculinity versus femininity dimension looked at the relationship between gender and work roles. In masculine cultures, sex roles were sharply differentiated, and traditional “masculine values,” such as achievement and the effective exercise of power, determined cultural ideals. In feminine cultures, sex roles were less sharply distinguished, and little differentiation was made between men and women in the same job.

The long-term versus short-term orientation dimension refers to the extent to which a culture programs its citizens to accept delayed gratification of their material, social, and emotional needs. It captures attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors. The label refers to these “values” being derived from Confucian teachings.

Question 23

Culture and Values in the Workplace GLOBE

Answer 23

Global Leadership and Organizational Behavior Effectiveness (GLOBE) Instrument​

A leader’s effectiveness is contextual​

Embedded in the societal and organizational norms, values, and beliefs of the people being led​

Nine cultural dimensions​

instrument is designed to address the notion that a leader’s effectiveness is contextual.69 It is embedded in the societal and organizational norms, values, and beliefs of the people being led. The initial GLOBE findings from 62 societies involving 17,300 middle managers from 951 organizations build on findings by Hofstede and other culture researchers. The GLOBE research established nine cultural dimensions: power distance, uncertainty avoidance, humane orientation, institutional collectivism, in-group collectivism, assertiveness, gender egalitarianism, future orientation, and performance orientation.

Question 24

Culture and Values in the Workplace WVS

Answer 24

World Values Survey (WVS)​

Explores people’s values and norms, how they change over time, and what impact they have in society and business​

Dimensions​

a research project spanning more than 100 countries that explores people’s values and norms, how they change over time, and what impact they have in society and business.70 The WVS includes dimensions for support for democracy; tolerance of foreigners and ethnic minorities; support for gender equality; the role of religion and changing levels of religiosity; the impact of globalization; attitudes toward the environment, work, family, politics, national identity, culture, diversity, and insecurity; and subjective well-being.

Question 25

Cultural Literacy and Competitive Advantage implications

Answer 25

al Literacy and Competitive Advantage​

Need to develop cross-cultural literacy​

Ethnocentrism​

Connection between culture and national competitive advantage​

Connection between culture and ethics in decision making​

• In this “cultural” chapter, we explore how differences in culture across and within countries can have an effect on the development and implementation of a company’s international business strategies
• In this Chapter 4, we make a case that it is important for foreign businesses to gain an understanding of the culture that prevails in countries where they do business and that success requires a foreign enterprise to adapt, at least to some degree for most products and services, to the macro (overall) culture of its host country as well as dominant subcultures within the country.3

-Another theme developed in this chapter is that a relationship may exist between culture and the cost of doing business in a country or region. Different countries will be either more or less supportive of the market-based mode of production and selling to customers (i.e., where supply and demand set the prices for products and services).

-Cultural factors can sometimes also raise the costs of doing business.

Question 26

cross-cultural literacy

Answer 26

By cross-cultural literacy, we mean an understanding of how cultural differences across and within nations can affect the way business is practiced.

Question 27

Culture

Answer 27

as “that complex whole which includes knowledge, belief, art, morals, law, custom, and other capabilities acquired by man as a member of society.”

Hofstede: the collective programming of the mind which distinguishes the members of one human group from another

Question 28

Indivisualism vs Collectivism bottom economic line

Answer 28

In fact, some argue that individualistic societies are great at creating innovative ideas while collectivist, or group-oriented, societies are better at the implementation of those ideas (i.e., taking the idea to the market).

Question 29

Social stratification

Answer 29

All societies are stratified on a hierarchical basis into social categories—that is, into social strata.

These strata are typically defined on the basis of socioeconomic characteristics such as family background, occupation, and income. Individuals are born into a particular stratum. They become a member of the social category to which their parents belong. Individuals born into a stratum toward the top of the social hierarchy tend to have better life chances than those born into a stratum toward the bottom of the hierarchy. They are likely to have better education, health, standard of living, and work opportunities.

Although all societies are stratified to some degree, they differ in two related ways.

First, they differ from each other with regard to the degree of mobility between social strata.

Second, they differ with regard to the significance attached to social strata in business contexts.

Overall, social stratification is based on four basic principles:25

1. Social stratification is a trait of society, not a reflection of individual differences.
2. Social stratification carries over a generation to the next generation.
3. Social stratification is generally universal but variable.
4. Social stratification involves not just inequality but also beliefs.

Question 30

Social mobility

Answer 30

The term social mobility refers to the extent to which individuals can move out of the strata into which they are born. Social mobility varies significantly from society to society. The most rigid system of stratification is a caste system

Question 31

Caste system vs class system

Answer 31

A caste system is a closed system of stratification in which social position is determined by the family into which a person is born, and change in that position is usually not possible during an individual’s lifetime.

Often, a caste position carries with it a specific occupation. Members of one caste might be shoemakers, members of another might be butchers, and so on. These occupations are embedded in the caste and passed down through the family to succeeding generations. Although the number of societies with caste systems diminished rapidly during the twentieth century, one partial example still remains. India has four main castes and several thousand subcastes.

A class system is a less rigid form of social stratification in which social mobility is possible. It is a form of open stratification in which the position a person has by birth can be changed through his or her own achievements or luck. Individuals born into a class at the bottom of the hierarchy can work their way up; conversely, individuals born into a class at the top of the hierarchy can slip down.

Question 32

Religion vs economics

Answer 32

Some scholars have theorized that the most important business implications of religion center on the extent to which different religions shape attitudes toward work and entrepreneurship and the degree to which the religious ethics affects the costs of doing business in a country. However, it is hazardous to make sweeping generalizations about the nature of the relationship between religion and ethical systems and business practice

Question 33

culture changes

Answer 33

The culture of societies may also change as they become richer because economic progress affects a number of other factors, which in turn influence culture. For example, increased urbanization and improvements in the quality and availability of education are both a function of economic progress, and both can lead to declining emphasis on the traditional values associated with poor rural societies.

As countries get richer, a shift occurs away from “traditional values” linked to religion, family, and country, and toward “secular rational” values. Traditionalists say religion is important in their lives. They have a strong sense of national pride; they also think that children should be taught to obey and that the first duty of a child is to make his or her parents proud.