Lecture 5 - The Environmental Context - Culture Flashcards
What is culture?
Set of shared values, beliefs, customs, behaviours, and artifacts that characterise a group or society. Encompasses everything from language, traditions, norms, and even daily practices, which collectively shape how people behave and interact within a community.
Importance of culture in business?
Plays critical role in shaping business practices, consumer behaviour and organisational behaviour. Influences social norms, how individuals make decisions, and how they interact in a professional setting.
- In Japan, the culture of respect and hierarchy deeply influences business etiquette, such as exchanging business cards with both hands and bowing, whereas U.S business interactions tend to be more casual and focused on efficiency.
What are the 5 dimensions in Geert Hofstede’s Cultural Dimensions Theory?
- Power Distance
- Individualism vs. Collectivism
- Masculinity vs. Femininity
- Uncertainty Avoidance
- Long-Term vs. Short-Term Orientation
Power Distance
The extent to which less powerful members of a society accept the unequal distribution of power.
- In Russia, a high power distance society, employees expect clear hierarchies and decision making from the top. Contrast this with Sweden, where power distance is low, and organisational structures are more egalitarian, with employees having a say in decisions.
Individualism vs. Collectivism
The focus on personal achievements (individualism) versus group welfare (collectivism).
- The U.S. is highly individualistic, with a focus on personal success and innovation. China, on the other hand, is more collectivist, emphasising group harmony and loyalty in both personal and business contexts.
Masculinity vs. Femininity
The distribution of emotional roles between genders. Masculine societies value competitiveness and achievement, while feminine societies emphasise care and quality of life.
- Japan is considered a more masculine society, emphasising competition, while Norway is a more feminine society, focusing on cooperation and equality
Uncertainty Avoidance
The degree to which members of a society feel uncomfortable with uncertainty and ambiguity.
- Greece has high uncertainty avoidance, preferring structured environments and clear rules, whereas Singapore is more open to ambiguity and risk.
Long-Term vs. Short-Term Orientation
Societies with a long-term orientation value perseverance and thrift, while short-term orientation focuses on respect for tradition and fulfilling social obligations.
- South Korea has a long-term orientation, focusing on future rewards, while Nigeria has a more short-term focus, placing importance on quick results and maintaining social norms.
Impact of culture on leadership and management?
Cultural differences shape leadership styles and management practices. In hierarchical cultures, leaders are seen as authority figures, while in egalitarian cultures, leadership is
more collaborative.
* In Germany, management is formal and structured, while in Brazil,
management often involves personal relationships and flexibility.
Challenges of managing a culturally diverse workforce?
Communication Barriers:
Different cultures have varying communication styles—some are direct (e.g U.S.), while others use indirect communication (e.g Japan).
Work Ethics:
Expectations around punctuality and work-life balance vary widely. For instance, in France, employees may prioritise personal time, while in South Korea, long work hours are more common.
Cultural adaption in business
Companies often need to adapt their practices to align with local cultural norms.
McDonald’s adapts its menu in different countries, offering vegetarian options in India and rice dishes in Japan, reflecting local preferences and cultural expectations.
Challenges in cross-cultural businesses?
Cultural Misunderstandings:
Misunderstandings can arise in international business due to differences in communication styles, etiquette, and negotiation tactics.
* In Saudi Arabia, decision-making can take time as relationships are built, may frustrate businesses
from U.S., where decisions often made quickly.
Opportunities in cross-cultural businesses?
Cultural diversity brings different perspectives and ideas, can lead to innovation and give businesses a competitive edge.
A diverse team might generate creative solutions by combining insights from multiple cultural viewpoints, such as designing a marketing campaign that appeals to both Eastern and Western audiences.
