Business
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IBM-4161_Chapter10-IntlCulture.pptInternational Culture
What is Culture?
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Culture
- The integrated system of learned behavior patterns that are distinguishing characteristics of the members of any given society. Including everything that a group thinks, says, does and makes – its customs language, material artifacts & shared systems of attitudes & feelings.
Gives an individual an anchoring point.
Is learned, shared & transmitted from one generation to the next.
Passed on by parents, social organizations, special-interest groups, the government, schools & churches.
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Elements of
Culture
Culture
Material
Elements
Aesthetics
Social
Institutions
Language
Verbal
Nonverbal
Values
&
Attitudes
Religion
Manners
&
Customs
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Social Infrastructure
- Companies should be aware of social norms & how they will influence the way in which business is done in the target country:
- Religion – religious practices, holidays, what is sacred & prohibitions
- Attitudes – toward family, work ,leisure, country & the world outside
- Ethics – concept of right & wrong, ethical standards, guilt, shame
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Social Infrastructure Cont.
- Values – responses to personal characteristics such as honor, generosity, integrity, decisiveness, etc.
- Etiquette – personal greetings, introductions, gift giving, etc.
- Material culture – standards of living, spending priorities
- Aesthetics – approach to design, standards of beauty, color, music
- Social Institutions – role of family, friends, social stratification
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Culture (cont.)
- Surface Culture –
Fads
Fashions & Styles
Art & Music
Behavior – verbal & nonverbal
- Deep Culture
Expectations
Assumptions
Attitudes
Norms
Values
Beliefs
Perceptions
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Culture and the workplace
Geert Hofstede – A Danish pyschologist sampled 100,000 IBM employees 1963-1973
Compared employee attitudes and values across 64 countries
Isolated 4 dimensions summarizing culture:
Power distance
Individualism vs. collectivism
Uncertainty avoidance
Masculinity vs. femininity
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Hofstede’s Cultural Dimensions
- Power distance: Less powerful members accept that power is distributed unequally
High power distance countries: people blindly obey superiors; centralized, tall structures (e.g., Mexico, South Korea, India)
Low power distance countries: flatter, decentralized structures, smaller ratio of supervisor to employee (e.g., Austria, Finland, Ireland)
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Hofstede’s Cultural Dimensions
- Uncertainty avoidance: people feel threatened by ambiguous situations; create beliefs/institutions to avoid such situations
High uncertainty avoidance countries: high need for security, strong belief in experts and their knowledge; structure organizational activities, more written rules, less managerial risk taking (e.g., Germany, Japan, Spain)
Low uncertainty avoidance countries: people more willing to accept risks of the unknown, less structured organizational activities, fewer written rules, more managerial risk taking, higher employee turnover, more ambitious employees (e.g., Denmark and Great Britain)
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Hofstede’s Cultural Dimensions
- Individualism: People look after selves and immediate family only
High individualism countries: wealthier, protestant work ethic, greater individual initiative, promotions based on market value (e.g., U.S., Canada, Sweden)
High collectivism countries: poorer, less support of Protestant work ethic, less individual initiative, promotions based on seniority (e.g., Indonesia, Pakistan)
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Hofstede’s Cultural Dimensions
- Masculinity: dominant social values are success, money, and things
High masculine countries: stress earnings, recognition, advancement, challenge, wealth; high job stress (e.g., Germanic countries)
High feminine countries: emphasize caring for others and quality of life; cooperation, friendly atmosphere., employment security, group decision making; low job stress (e.g., Norway)
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Hofstede’s Dimensions By Country
Individualism/
Collectivism
Power Distance
Uncertainty Avoidance
Masculinity/Femininity
Collectivistic
Individualistic
Low
High
Low
High
Feminine
Masculine
Columbia
Pakistan
Venezuela
Austria
Israel
Denmark
Singapore
Hong Kong
Denmark
Sweden
Norway
Denmark
Australia
United States
Great Britain
Philippines
Mexico
India
Greece
Portugal
Japan
Japan
Austria
Venezuela
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Culture
- Acculturation – adjusting & adapting to a culture other than your own.
- High Context Cultures – meaning is as important as the words that are spoken.
- Low Context Cultures – the words are the meaning…nothing is implied.
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Mary Ellen Guffey, Business Communication: Process and Product, 6e
Ch. 3, Slide *
Dimensions of Culture: Context
High-context cultures tend to be relational, collectivist, intuitive, and contemplative.
Low-context cultures tend
to be logical, linear, and action-oriented.
North America, Germany, Scandinavia
Japan, China, Arab countries
Context
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United States Japan Arab Countries
Priorities of Cultural Values
Table 4-1
Priorities of Cultural Values: United States, Japan, and Arab Countries
- Freedom
- Independence
- Self-reliance
- Equality
- Individualism
- Competition
- Efficiency
- Time
- Directness
- Openness
- Belonging
- Group harmony
- Collectiveness
- Age/seniority
- Group consensus
- Cooperation
- Quality
- Patience
- Indirectness
- Go-between
- Family security
- Family harmony
- Parental guidance
- Age
- Authority
- Compromise
- Devotion
- Patience
- Indirectness
- Hospitality
Note: “1” represents the most important cultural value, “10” the least.
Adapted from Table 4-1: Priorities of Cultural Values: United States, Japan, and Arab Countries
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Communication
- The exchange of meaning
- Includes written, verbal and non-verbal
- 7% of a message is communicated by words while 93% is communicated through non-verbal means such as: Tone of voice (how it is said), Facial expressions, Hand gestures & Posture
- Communication is dependent on and determined by the culture in which it occurs & will vary by culture.
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Cultural Diversity – “Chevy Nova Award”
Dairy Association’s huge success with the campaign “Got Milk?” prompted them to expand advertising to Mexico
It was brought to their attention the Spanish translation read, “Are you lactating?”
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Cultural Diversity – “Chevy Nova Award”
Clairol introduced the “Mist Stick”, a curling iron into Germany
Only to find out that “mist” is German slang for manure.
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Cultural Diversity
Chevy Nova Award
When Gerber started selling baby food in Africa, they used US packaging with the smiling baby on the label.
In Africa, companies routinely put pictures on labels of what’s inside, since many people can’t read.
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Cultural Diversity
Chevy Nova Award
Pepsi’s “Come Alive With the Pepsi Generation” in Chinese translated into
“Pepsi Brings Your Ancestors Back From the Grave”
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Cultural Diversity
Chevy Nova Award
Coca-Cola’s name in China was first read as “Kekoukela”, meaning “Bite the wax tadpole” or “female horse stuffed with wax”, depending on the dialect.
Coke then researched 40,000 characters to find a phonetic equivalent “kokou kole”, translating into “happiness in the mouth.”
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Cultural Sensitivity
- Ability to view the world from the view point of another’s culture
- Culturally Sensitive Person:
Aware of cultural differences
Appreciates & celebrates differences
Open to interact & integrate
Perceives & reacts appropriately
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Success in
International Business
- Relationships are built on Knowledge
- Knowledge leads to Trust
- Trust creates Relationships
- Success in International Business is based on good RELATIONSHIPS
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Tips for Dealing with Cultural Differences
- Build Trust
Investing time to build relationships
- Study Foreign Cultures & Foreign Events
Common to discuss non-business issues before a meeting – Therefore, know about the country
- Never Assume You Know it All
Impossible to know everything about a foreign culture
Rely on input from local experts
- Gestures & Etiquette
Learn the Dos and Don’ts of the foreign culture to avoid embarrassment
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