Bài giảng Global Business Today 6e - Chapter 3: Differences in Culture

Introduction Cross-cultural literacy (an understanding of how cultural differences across and within nations can affect the way in which business is practiced) is important to success in international business There may be a relationship between culture and the costs of doing business in a country or region Culture is not static, and the actions of MNEs can contribute to cultural change

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Global Business Today 6eby Charles W.L. HillMcGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.Chapter 3Differences in CultureIntroduction Cross-cultural literacy (an understanding of how cultural differences across and within nations can affect the way in which business is practiced) is important to success in international businessThere may be a relationship between culture and the costs of doing business in a country or regionCulture is not static, and the actions of MNEs can contribute to cultural changeWhat is Culture?Question: What is culture?Culture is a system of values (abstract ideas about what a group believes to be good, right, and desirable) and norms (the social rules and guidelines that prescribe appropriate behavior in particular situations) that are shared among a group of people and that when taken together constitute a design for living A society is a group of people who share a common set of values and normsWhat is Culture?There is not a strict one-to-one correspondence between a society and a nation-stateNation- states are political creations that can contain a single culture or several culturesSome cultures embrace several nationsCulture arises from prevailing political and economic philosophiesa society’s social structurethe dominant religion, language, and educationSocial StructureA society's social structure is its basic social organization Two dimensions to consider:the degree to which the basic unit of social organization is the individual, as opposed to the groupthe degree to which a society is stratified into classes or castesSocial StructureIn societies where the individual is emphasizedindividual achievement and entrepreneurship are promotedbut, this can encourage job switching, competition between individuals in a company rather than team building, and a lack of loyalty to the firm In societies with a strong identification with the groupcooperation and team work are encouraged and life time employment is commonbut, individual initiative and creativity may be suppressedSocial StructureAll societies are stratified on a hierarchical basis into social categories, or social strata Social mobility refers to the extent to which individuals can move out of the strata into which they are bornThe most rigid system is the caste system A less rigid system is the class systemReligious and Ethical SystemsReligion is a system of shared beliefs and rituals that are concerned with the realm of the sacredEthical systems are a set of moral principles, or values, that are used to guide and shape behaviorReligious and Ethical Systems Christianity is the most widely practiced religion Adherents of Islam, called Muslims, believe that there is one true omnipotent GodHinduism focuses on the importance of achieving spiritual growth and development, which mayBuddhists stress spiritual growth and the afterlife, rather than achievement while in this worldConfucianism teaches the importance of attaining personal salvation through right actionLanguageCountries differ in terms of language or means of communicationThere are two forms languagespokenunspoken Language is one of the defining characteristics of culture EducationFormal education is the medium through which individuals learn many of the language, conceptual, and mathematical skills that are indispensable in a modern societyThe knowledge base, training, and educational opportunities available to a country's citizens can also give it a competitive advantage in the market and make it a more or less attractive place for expanding businessThe general education level of a country is a good indicator of the types of products that might sell in that location or the type of promotional materials that might be successfulCulture and the Workplace Question: How does a society's culture impact on the values found in the workplace?The most famous study undertaken to answer this question was done by Geert Hofstede who isolated four dimensions that he believed summarized different culturesPower distanceIndividualism versus collectivismUncertainty avoidanceMasculinity versus femininity Culture and the WorkplacePower distance is focused on how a society deals with the fact that people are unequal in physical and intellectual capabilities Individualism versus collectivism is focused on the relationship between the individual and his or her fellows Uncertainty avoidance measures the extent to which different cultures socialize their members into accepting ambiguous situations and tolerating ambiguityMasculinity versus femininity looks at the relationship between gender and work rolesHofstede later added a fifth dimension, Confucian dynamism, to capture attitudes towards time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors Cultural ChangeCulture evolves over time, although changes in value systems can be slow and painful for a societySocial turmoil is an inevitable outcome of cultural changeAs countries become economically stronger, cultural change is particularly commonImplications for ManagersDifferences in culture imply that there is a need for managers to develop cross-cultural literacythere is a connection between culture and national competitive advantagethere is a connection between culture and ethics in decision making