2

CrossCross
C
oss-Cu
Cultural
tu a
Business

Objectives
j
Determinants of Culture
Common Cultural Frameworks for
Classification
Culture Game
2-2

What is Culture?
Superstructure:
Superstructure
p
A cultures
worldview, including morals and
values, oftentimes grounded in
religion
Social structure:
structure The rule-governed
relationshipswith all their rights and
obligationsthat hold members of a society
together. This includes households, families,
associations, and power relations, including
politics.
Infrastructure The economic
Infrastructure:
foundation of a society, including
its subsistence practices and the
t l and
tools
d other
th material
t i l
equipment used to make a living.

TheBarrelModel
ofCulture

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 peoples behavior
Culture is the lens through which we view our
world, it invents our reality

Iceberg example

Culture is like an
Iceberg

Components of Culture
Physical
environments
Ed ti
Education

Aesthetics

Culture

Personall
P
communication

Values &
attitudes
Manners &
customs
Social structure

Religion
2-6

A th ti
Aesthetics

In business, this
means:Choosing
appropriate colors
for advertising,
product packaging,
and even work
uniforms

Music
Paintin
g
Dance
Dan
Drama
Architec
ture

2-7

V l
Values
and
d Attitudes
Attit d
Values
Ideas, beliefs,
and customs to
which people
are emotionally
attached

Freedom
Responsibility
Honesty

Norms

Attitudes

Social rules
that govern
people action
2 categories

Positive or
negative
evaluations,
feelings, and
tendencies people
hold toward
objects or
concepts
Time
Work

Folkways
y
Mores

Cultural chang
ge
2-8

M
Manners
and
dC
Customs
t
Manners

Customs

Appropriate
A
i t b
behavior,
h i
speech, and dressing
in g
general

Traditional
T
diti
l ways or
behavior in specific
circumstances

2-9

Customs

Folk
Popular
Gift Giving
2 - 10

Social Structure
Social group
Two or more people who identify and
interact with each other

Social stratification
Process of ranking people into social layers

Social mobility
Ease of moving up or down a culture's
"social
social ladder"
ladder
2 - 11

World Religions
Christianity
Islam
Hinduism
Buddhism

Origin of
Human Values

Confucianism
Judaism
Shinto
2 - 12

Class Discussion
Modernization and
Traditional Beliefs
Does globalization endanger traditional
beliefs, such as living a life void of
materialistic ambitions?

2 - 13

Language
Verbal and non verbal expressions

Language blunders

2 - 14

Mixed Signals

2 - 15

Discussion Question
How does an
g of the
understanding
spoken, written, and
body language in a
market abroad
contribute to
business success?
2 - 16

Answer to Discussion Question

Knowledge of a cultures
spoken, written, and
body language gives
international managers
insight into why people
think and act the way
they do.
Experience this during
the class game

2 - 17

Ed
Education
ti
Cultures pass on traditions, customs, and values
through schooling, parenting, group memberships, etc.
Education level
Well-educated attract high-paying
g p y g jjobs,, while p
poorly
y educated
attract low-paying manufacturing jobs

Brain drain
Departure of highly educated people from one profession,
geographic region or nation to another
2 - 18

Ph i l and
Physical
dM
Material
t i l Culture
C lt
These influence a cultures development and pace of change
Topography
Physical features characterizing the surface of a geographic region
Climate
Weather conditions of a ggeographic
g p region
g
Material Culture
Technology used to manufacture goods and provide services
2 - 19

Classification of cultures

2 - 20

Hofstede Framework
Individualism
vs. collectivism

Power
distance
Uncertainty
avoidance

Masculinity
vs. femininity

Long-term
Longorientation
2 - 21

Individualism VS
Collectivism

This aspect of culture measures

the society tendency to engage in
emotional independence and
autonomy.
autonomy

Societies with high individualism

place a great deal of emphasis on
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.

2 - 22

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

When power distance is low in a society,

society members
generally feel equal and close to each other
regardless of social or occupational status.
Delegations
g
of power
p
and job
j
enrichment are
important to members of this society.

In contrast, high power distance societies respect and

acceptt th
the hierarchical
hi
hi l differences
diff
among individuals.
i di id l
In this type of society, individuals are separated from
each other and some people are given more status
and
a
d respect
espect tthan
a ot
others
e sa
are.
e
2 - 23

Masculinity/Femininity
y
y
This represents the dominant value of a society and
relate
l t to
t aspects
t off aggression,
i
competitiveness,
titi
nurturing, and softness.
In masculine societies,
societies the dominant values of
aggression, competitiveness, assertiveness, and
materiality are present. In such societies
accomplishments
p
and career is important.
p
Members
place a high emphasis on ego, self esteem and
independence.
C
Contrary,
t
f i i societies
feminine
i ti favors
f
interdependence
i t d
d
among people in society. They adopt a more nurturing
and caring role. These types of society are more patient
and
a
d exercise
e e c se g
greater
eate sy
sympathy
pat y to
towards
a ds ttheir
e co
colleagues.
eagues
2 - 24

Uncertainty
y Avoidance
This category refers to members in a
society propensity to deal with uncertain
events. It measures the extent to which
persons in
i a society
i
feels
f l threatened
h
d and
d
stressed when confronted with
ambiguous and uncertain circumstances.
circumstances
In societies where uncertainty avoidance
g , there is usually
y a high
g level of
is high,
aggression towards change and will to
control events and occurrences.
2 - 25

Power Distance &

Individualism vs. Collectivism

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

2 - 26

Power Distance &

Uncertainty Avoidance

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

2 - 27

Discussion Question
Cultures with small
____________ tend to
display greater equality
and a more equal
di t ib ti off rewards.
distribution
d
a. Individualism
b. Power distance
c. Uncertainty avoidance
2 - 28

Answer to Discussion Question

Cultures with small
____________ tend to
display greater equality
and a more equal
di t ib ti off rewards.
distribution
d
a. Individualism
b. Power distance
c. Uncertainty avoidance
2 - 29

Dealing with global Culture

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

Ethnocentricity

Cultural literacy

Belief that ones own

ethnic group or culture
is superior to that of
others

Detailed knowledge of a
culture that enables a
person to function
happily and effectively
within it

2 - 30

Ethnocentricity
Eth
t i it distorts
di t t our view
i
off other
th cultures
lt
and causes us to overlook important human and
environmental differences among
g cultures.
Cultural literacy improves the ability of managers
t manage employees,
to
l
develop
d
l and
d market
k t
products, and conduct negotiations in local
markets.

2 - 31

Culture Matters:

Creating a Global Mindset

Cultural
Adaptability

Bridging
the Gap

Building
B
ildi
Global Mentality

Flexibility
Fl
ibilit
Is Key
2 - 32

Implications
p
for business
The need to develop Cross Cultural Literacy
Culture and competitive advantage
Culture and Business Ethics

2 - 33