Culture

1. Fall 2009 Culture (Part 1) 1 Culture

2. Fall 2009 Culture (Part 1) 2 What We�ll be Looking At Introduction to culture Language and customs Religion Models of cultural differences Practical implications

3. Fall 2009 Culture (Part 1) 3 1. Introduction to Culture

4. Fall 2009 Culture (Part 1) 4 What is Culture? �A system of values and norms that are shared among a group of people and that when taken together constitute a design for living.� Collective mental programming Values and norms? Values: Abstract ideas about what a group believes to be good, right and desirable OR shared assumptions about how things ought to be. Norms: social rules and guidelines that prescribe appropriate behavior in particular situations.

5. Fall 2009 Culture (Part 1) 5 Basic Principles of Culture What is logical and important in one culture may seem irrational and unimportant in another In describing cultures, people tend to stress the differences and overlook the similarities Stereotyping may be inevitable for people who lack frequent contact with another culture Cultures are not homogenous; differences exist due to gender, age, socioeconomic status, education Understanding another culture is a journey, not a goal

6. Fall 2009 Culture (Part 1) 6 Barriers to Cross-Cultural Understanding Corporate imperialism Ethnocentrism Stereotypes (positive and negative)

7. Fall 2009 Culture (Part 1) 7 But��. The ethical dilemma Are there common factors / values? Basic idea of social organization, goal orientation Personality structure (Big 5) What about cultural convergence? Cultural evolution Cultural diffusion Resistance to culture diffusion (Mecca Cola, Islamic Barbie, head coverings in France) Immigration and acculturation

8. Fall 2009 8 Culture (Part 1)

9. Fall 2009 Culture (Part 1) 9 Cultural Convergences Indonesian and US managers Significantly different on power distance and individualism in 1991 By 1996, differences no longer statistically significant Much influence from West in management education US, PRC and Hong Kong managers Several studies (1993, 1997,1999) indicate some cultural convergence HK managers (and now, younger Chinese managers) have become more individualistic, but have not given up Confucian values

10. Fall 2009 Culture (Part 1) 10 On the Other Hand� According to Hofstede� Practices may change But values don�t Why? We learn values as children And, deep value change in adulthood is not easy Don�t rule out the possibility of long-term, gradual change

11. Fall 2009 Culture (Part 1) 11 The Effects of Cultural Blunders The �Nova� didn�t sell well in Mexico (actually, an urban legend) Gerber placed a picture of a baby on jars of baby food to be sold in an African country, not understanding that, in that country, the picture told the buyer what was in the jar. KFC�s �finger-lickin� good� slogan translated into Chinese as �Eat your fingers off� Liquor in Saudi Arabia

12. Fall 2009 Culture (Part 1) 12 Some Sources of Differences History Russian paranoia South America vs. Brazil Influences from other countries Multiple influences on U.S. culture (Africa, Asia, Europe, Native American) Africa and colonialism Geography The case for geography as a determinant of long-term economic development Arabs and trading Temperature and political violence (curvilinear relationship)

13. Fall 2009 Culture (Part 1) 13 Elements of Culture

14. Fall 2009 Culture (Part 1) 14 2. Language, Communications and Customs

15. Fall 2009 Culture (Part 1) 15 Language Issues U.S. one of few countries where we don�t learn a second (or a third) language Languages learned in school often do not translate to business usage Do you try? Not in France, not unless you can pronounce it right ! Other countries, yes: it�s a gesture of goodwill But, even if the language is the same, will we understand? (Britspeak) And�.shouting doesn�t make you any more comprehensible!!!

16. Fall 2009 Culture (Part 1) 16 Languages of the World Sources:http://www.EdwardMooney.com/miniflags/; http://www.infoplease.com/ipa/A0774735.html Sources:http://www.EdwardMooney.com/miniflags/; http://www.infoplease.com/ipa/A0774735.html

17. Fall 2009 Culture (Part 1) 17 Languages Students Study in the US (2002)

18. Fall 2009 Culture (Part 1) 18 But, in Defense of English... English is perceived as being the universal business language Estimates vary widely, but as many as 2 billion people worldwide speak at least some English For example, must be fluent in English to work for Renault (French automaker) A number of former British colonies continue to use English as an official language http://www.renault.com/en/Carrieres/choisir-renault/Pages/dimension-internationale.aspx http://en.wikipedia.org/wiki/English_languagehttp://www.renault.com/en/Carrieres/choisir-renault/Pages/dimension-internationale.aspx http://en.wikipedia.org/wiki/English_language

19. Fall 2009 Culture (Part 1) 19 English Language Fluency in Europe However, there�s English and English Baseball terms The French problem http://en.wikipedia.org/wiki/English_language_in_Europehttp://en.wikipedia.org/wiki/English_language_in_Europe

20. Fall 2009 Culture (Part 1) 20 http://www.minnpost.com/client_files/alternate_images/1800/mp_main_wide_BestBuyShanghai.jpg http://www.nytimes.com/2004/11/11/business/worldbusiness/11antitrust.html?_r=1http://www.minnpost.com/client_files/alternate_images/1800/mp_main_wide_BestBuyShanghai.jpg http://www.nytimes.com/2004/11/11/business/worldbusiness/11antitrust.html?_r=1

21. Fall 2009 Culture (Part 1) 21

22. Fall 2009 Culture (Part 1) 22 Moving Beyond Language http://www.aiga.org/content.cfm/symbol-signs http://www.indiandrivingschools.com/informatory-signs.html http://en.wikipedia.org/wiki/File:Kangaroo_sign_in_australia.jpg http://www.randburg.is/is/driving_in_iceland/downloads/signs.pdf http://en.wikipedia.org/wiki/File:Diamond_road_sign_children_crossing_1956.png http://en.wikipedia.org/wiki/File:Fareskilt_33.PNG http://www.mintransporte.gov.co/Servicios/Biblioteca/documentos/Manual_senalizacion/AnexoA1_Diseno_senales.pdfhttp://www.aiga.org/content.cfm/symbol-signs http://www.indiandrivingschools.com/informatory-signs.html http://en.wikipedia.org/wiki/File:Kangaroo_sign_in_australia.jpg http://www.randburg.is/is/driving_in_iceland/downloads/signs.pdf http://en.wikipedia.org/wiki/File:Diamond_road_sign_children_crossing_1956.png http://en.wikipedia.org/wiki/File:Fareskilt_33.PNG http://www.mintransporte.gov.co/Servicios/Biblioteca/documentos/Manual_senalizacion/AnexoA1_Diseno_senales.pdf

23. Fall 2009 Culture (Part 1) 23 Forms of Nonverbal Communication Hand gestures Facial expressions Posture and stance Personal distance and touching Architecture and interior design �Artifacts� Dress Use of time Silence

24. Fall 2009 Culture (Part 1) 24 Low and High Context Low context Words specifically and clearly convey message Where? Anglo countries High context The setting and situation matter just as much as the actual words Japan, Arab countries For example: Low context � doesn�t matter who the sales rep is, just the product / company High context � to sell, build a personal relationship

25. Fall 2009 Culture (Part 1) 25 Customs Dress Time Addressing other people Food and drink Humor Gifts and bribes Colors and numbers Business practices

26. Fall 2009 Culture (Part 1) 26 Dress �Casual Days� are a U.S. custom Very conservative dress for women in Islamic countries Removing one�s shoes Across Asia Russian homes

27. Fall 2009 Culture (Part 1) 27 Time Time fluid in Latin America, Spain, Italy Mana�a Lateness (half hour, hour) accepted and expected Time off work: Germany, France, Scandinavia: 6 weeks vacation, August in the country Africa: everyone attends funerals (then, add in the impact of AIDS) India: in upper levels, many take time off work for family Working hours and pace Europe (esp. Germany) isn�t open 24/7 [WalMart] Latin America, Middle East, Japan: take time to establish relationship before getting down to business

28. Fall 2009 Culture (Part 1) 28 Addressing Other People Formality Herr und Frau, not first names in Germany Titles (Dr., Professor, �Assistant Vice President�, etc.) very important everywhere but U.S. Be careful, if you know language, with formal and informal pronouns Business cards essential in Mexico, Europe, Japan Personal space: much smaller in Latin America, Spain, Italy

29. Fall 2009 Culture (Part 1) 29 Food and Drink (First Course) General perception is that Americans are timid, unadventurous eaters Drinking: Beer with lunch in the UK (though not so much any more) Russia and vodka Japan and tea Egypt and coffee

30. Fall 2009 Culture (Part 1) 30 Food and Drink (Second Course) Late dining Spain, Italy, Latin America Business dinners, but don�t discuss business until after dinner In the Arab world: The guest eats first Avoid using the left hand Muslim dietary restrictions (pork, alcohol) India: no beef

31. Fall 2009 Culture (Part 1) 31 Humor First rule: Humor rarely translates Second Rule: Humor is often seen as inappropriate in business context

32. Fall 2009 Culture (Part 1) 32 Gifts and Bribes Small gifts (wine, flowers) often appreciated Especially in cultures where personal relationships important But avoid implication or impression of bribery

33. Fall 2009 Culture (Part 1) 33 Colors and Numbers Not every language distinguishes colors in the same way as English; for example, most African languages do not differentiate blue and green Colors Red: Celebration and good luck in China Green: Sacred in Islam Green: Danger in Malaysia White: In many Asian cultures, a color of mourning Numbers In Russia, a gift of flowers is acceptable if it is an odd number; an even number of flowers is for a grave Four unlucky in Japan (sounds like word for death)

34. Fall 2009 Culture (Part 1) 34 Business Practices Small, yet important differences British spelling and vocabulary Paper size (A4 paper is 210mm � 297mm, or 8.3 inches x 11.7 inches) Keyboards (those pesky ������ characters) Date / time formats Number formats Invoices, letters, etc.

35. Fall 2009 Culture (Part 1) 35 3. Religion

36. Fall 2009 Culture (Part 1) 36 Religion: Does it Matter? Political stability Middle East Northern Ireland Fundamentalist Islam Practical issues Gender Work accommodations Moral values in the work setting Work values and religion

37. Fall 2009 Culture (Part 1) 37 World Religions Source:http://www.infoplease.com/ Source:http://www.infoplease.com/

38. Fall 2009 Culture (Part 1) 38 However�.Percentage of Regular Attendees

39. Fall 2009 Culture (Part 1) 39 The World of Islam

40. Fall 2009 Culture (Part 1) 40 Practical Issues with Islam As a multinational businessperson Women on overseas assignments? �Haji� or �Hajjah� as a title for one who has made the pilgrimage to Mecca For your employees Ramadan fasting 5 daily prayers (15 minutes or so), even at work Modest dress for women (including head scarf) Friday, not Sunday (noon prayers on Fridays)

41. Fall 2009 Culture (Part 1) 41 Moral Values in the Work Setting: Islam Prohibition on charging interest Lending fees Leasing Share of a bank�s profits rather than interest Investment (Syariah principles) operations based on riba (interest) such as banking or finance companies Gambling Manufacture and/or sale of haram (forbidden) products such as liquor, non-halal meats and pork; and Elements of gharar (uncertainty) such as conventional insurance

42. Fall 2009 Culture (Part 1) 42 Work Values and Religion How does religion affect attitudes towards work and its place in life? We know about... Protestant Catholic Islamic Confucian We don�t know much about�.. Jewish Zoroastrian Buddhist Hindu

43. Fall 2009 Culture (Part 1) 43 What is a Work Ethic? Work centrality Work goals Societal norms about working Is work interesting or valuable in and of itself? Do we live to work or work to live?

44. Fall 2009 Culture (Part 1) 44 Sources of Work Ethics Overall culture Hofstede�s dimensions Schwartz�s dimensions: Achievement, Openness to Change values Relationship of man to nature (do we control our own destinies?), preferred mode of activity Economic factors (developed vs. underdeveloped nations) Generational factors (Gen X) Religious values

45. Fall 2009 Culture (Part 1) 45 Protestant Work Ethic Identified by Max Weber What is the PWE? Respect and admiration for hard work and achievement Self-denial, frugality, saving for the future Avoid leisure or idleness Working is inherently virtuous and meaningful Issues With the PWE Linkage with rise of capitalism ???? Secularization of PWE Does it still exist? Is it exclusive to Protestants?

46. Fall 2009 Culture (Part 1) 46 A Culture as a Whole Within a culture, will individual religious values or the dominant religious group�s values most affect work values ? This depends on�... Relative numerical dominance of one religion over another Extent to which members of different religions interact

47. Fall 2009 Culture (Part 1) 47 4. Models of Cultural Differences

48. Fall 2009 Culture (Part 1) 48 Characterizing Cultures: Hofstede and Beyond Hofstede�s original work Criticisms and responses

49. Fall 2009 Culture (Part 1) 49 Hofstede�s Basic Work Based on survey of IBM employees worldwide The dimensions Collectivism - Individualism Power Distance Uncertainty Avoidance Masculinity / Femininity (quality of life)

50. Fall 2009 Culture (Part 1) 50 Collectivism - Individualism Identification with group vs. identification as an individual Collective cultures: Think in terms of in-groups and out-groups Life decisions made by group Look after one�s in-group, no matter what Individualistic cultures Concern for self and immediate family Individual privacy Association with level of economic development

51. Fall 2009 Culture (Part 1) 51 Collectivism - Individualism: Where Venezuela Pakistan Taiwan Portugal Greece Brazil India Japan Arab countries Spain Israel Austria Germany Norway France Canada Great Britain U.S.

52. Fall 2009 Culture (Part 1) 52 Power Distance The extent to which a culture accepts that power is distributed unevenly High power distance People have a place in society, high or low Superiors are to be respected Less trust and cooperation; more likelihood of corruption Low power distance Equal rights for everyone Hierarchies are established for convenience Power can be judged to be legitimate or not

53. Fall 2009 Culture (Part 1) 53 Power Distance: Where Philippines Mexico Italy Brazil Hong Kong France Turkey Pakistan Japan Argentina U.S Canada Australia Germany Sweden Ireland Denmark Israel

54. Fall 2009 54 Culture (Part 1)

55. Fall 2009 Culture (Part 1) 55 Class and Status Where are there class differences? India France Where are the differences less? UK (not classless, but less stratified; also mobility easier) US Scandinavia

56. Fall 2009 Culture (Part 1) 56 Caste in India

57. Fall 2009 Culture (Part 1) 57 Power Distance and Corruption Best predictor of corruption is economic (GDP) Next: Power Distance Also, some influence from Uncertainty Avoidance and Masculinity

58. Fall 2009 Culture (Part 1) 58 Legal Compliance:Perceptions of Corruption (2008) Source: http://www.transparency.org/ Source: http://www.transparency.org/