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Rules of Thumb for Business Rules of Thumb for Business Conduct Across CulturesConduct Across Cultures

Be prepared Slow down Establish trust Understand the importance of language Respect the culture Understand the components of culture

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What is Culture?What is Culture?

Culture is the sum total of beliefs, rules, techniques, institutions, and artifacts that characterize human populations Culture is learned Its aspects are interrelated Culture is shared (as opposed to individual traits) It defines the boundaries of different groups

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EthnocentricityEthnocentricity

Ethnocentrism is the belief in the superiority of one’s own ethnic group

To overcome ethnocentricity Realize that there are many different cultures Spend time in another country Undergo training on culture and language

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Sociocultural ComponentsSociocultural Components

Culture is reflected in aesthetics attitudes and beliefs religion materialism language societal organization legal characteristics political structures

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Attitudes and BeliefsAttitudes and Beliefs

Attitudes Toward Time Vary across cultures Difficult area for some Americans Directness and drive may be perceived to be

rudeness Deadlines

Liability abroad

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Attitudes Toward Attitudes Toward Achievement and WorkAchievement and Work

Germans put leisure first and work second The demonstration effect

Result of having seen others with desirable goods Job Prestige

The distinction between blue-collar workers and office employees

Professional order of hierarchy

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ReligionReligion

Religion is responsible for many of the attitudes and beliefs affecting human behavior

Work Ethic Protestant work ethic

Duty to glorify God by hard work and the practice of thrift

Confucian work ethic Drive toward hard work and thrift; similar to

Protestant work ethic

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Primary Asian ReligionsPrimary Asian Religions Hinduism

Caste system Society is divided into four groups (plus the

outcasts) Each is assigned a certain class of work

Buddhism Reform of Hinduism

Jainism (Mahavira a contemporary of Buddha) Nonviolence a major principle

Sikhism Bridge between Hinduism and Islam

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Primary Asian ReligionsPrimary Asian Religions

Confucianism Inseparable from Chinese culture

Taoism Lao Tzu, contemporary of Confucius

Shintoism Indigenous to Japan

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IslamIslam

Islam is the youngest and second largest faith 1.3 billion followers In comparison, Christianity has 2 billion

adherents Muhammad is Founder

Prophet of God and head of state Holy Book Koran

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IslamIslam

Five Pillars of Faith Confession of faith Five daily prayers Charity Ramadan fast Pilgrimage to Mecca

Jihad – holy war Sunni-Shia Conflict

Conflict gives rise to violent clashes

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Religions of the WorldReligions of the World

Insert Figure 6.1

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Spoken LanguageSpoken Language

Spoken language is the most apparent cultural distinction between countries

Spoken languages demarcate cultures Switzerland has four separate cultures

Many languages can exist in a single country, but one usually serves as communication vehicle Lingua franca or link language English primary language of business

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Language and TranslationLanguage and Translation

Translation The ability to speak the language well does

not eliminate the need for translator Use back translation to avoid translation

problems Japanese hotel: “You are invited to take

advantage of the chambermaid.” Bangkok dry cleaner: “Drop your trousers

here for best results.”

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Language IssuesLanguage Issues

Technical words do not exist in all languages Usually use English

Many cultures avoid saying anything disagreeable

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Unspoken LanguageUnspoken Language

Nonverbal communication Gestures vary tremendously from one region

to another Closed doors convey different meanings Office size has different meanings in various

cultures Conversational distance small in Middle East Gift giving has specific etiquette in each culture

Gift or bribe? Questionable Payments

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2003 Corruption Index 2003 Corruption Index Scores and RankingScores and Ranking

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Societal OrganizationSocietal Organization

Kinship Extended family

includes blood and marriage relatives Member’s responsibility

Although the extended family is large, each member’s feeling of responsibility to it is strong

Associations Social units based on age, gender, or common

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Societal OrganizationSocietal Organization

Associations Age is an important market segment criterion Gender

As nations industrialize, more women enter the job market and assume greater importance in the economy

Free association people joined together by a common bond:

political, occupational, religious or recreational

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Understanding National CulturesUnderstanding National Cultures

Hofstede’s Dimensions of Culture Individualism versus Collectivism Large versus Small Power Distance Strong versus Weak Uncertainty

Avoidance Masculinity versus Femininity

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Hofstede Hofstede Value Dimension ScoresValue Dimension Scores

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Individualism versus CollectivismIndividualism versus Collectivism

Collectivistic cultures People belong to groups that are supposed

to look after them in exchange for loyalty Individualistic cultures

People look after only themselves and the immediate family

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Large versus Small Large versus Small Power DistancePower Distance

Power distance refers to the extent to which members of a society accept the unequal distribution of power among individuals In large-power-distance societies employees

believe their supervisors are right; employees do not take any initiative in making non-routine decisions

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Strong versus Weak Strong versus Weak Uncertainty AvoidanceUncertainty Avoidance

Uncertainty avoidance refers to the degree to which members of a society feel threatened by ambiguity and are rule-oriented Employees in high uncertainty-avoidance cultures

tend to stay with their organizations Japan, Greece, and Portugal

Those from low uncertainty-avoidance nations are more mobile

United States, Singapore, and Denmark

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Power Distance and Power Distance and Uncertainty Avoidance Uncertainty Avoidance

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Individualism and Individualism and Power DistancePower Distance

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Masculinity versus FemininityMasculinity versus Femininity

Masculinity versus femininity refers to the degree to which the dominant values in a society emphasize assertiveness, acquisition of money, and status Masculinity

achievement of visible and symbolic organizational rewards

Femininity emphasize relationships, concern for

others, and the overall quality of life

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