2. Management 2203, Ch 4

Chapter 4: Differences in Culture

Page 1: Introduction

• Focus on understanding cultural differences in business practices.

Page 2: Learning Objectives

• Understand the culture of a society.

• Identify forces leading to differences in social culture.

• Explore business and economic implications of cultural differences.

• Analyze how social culture influences business values.

• Appreciate the economic and business implications of cultural change.

Page 3: Introduction to Cross-Cultural Literacy

• Cross-cultural literacy: understanding the impact of cultural differences on business.

• Culture is dynamic and evolves.

• Multinational enterprises can initiate cultural change.

Page 4: Culture, Society, & Nation-State

• Culture: a system of shared values and norms that guides social living.

• Society: a group sharing common values and norms.

Page 5: Determinants of Culture

• Influencing factors of culture:

  • Social structure

  • Language

  • Religion

  • Political philosophy

  • Economic philosophy

  • Education

Page 6: Social Structure

• Definition: basic social organization of a society.

• Key dimensions:

  • Individual vs. group emphasis.

  • Social stratification (castes or classes).

Page 7: Individuals & Groups

• Individual Emphasis:

  • Valued traits: achievement, entrepreneurship.

  • Downsides: job switching, competition, reduced loyalty.

• Group Emphasis:

  • Valued traits: cooperation, teamwork, lifetime employment.

  • Downsides: suppressed initiative and creativity.

Page 8: Social Stratification

• Social Mobility: the ability to move between social strata.

  • Caste System: rigid, closed system determined by birth.

  • Class System: more flexible; social position can change.

Page 9: Religious & Ethical Systems

• Religion: shared beliefs and rituals regarding the sacred.

• Ethical Systems: moral principles shaping behavior.

Page 10: High-Low Context Cultures

• High Context Cultures: rely on implicit knowledge and group norms for communication.

• Low Context Cultures: depend on explicit communication, rules, and goals.

Page 11: Hofstede’s Cultural Dimensions

• Power Distance: distribution of power and wealth.

• Individualism vs. Collectivism: relationship between individual needs and group needs.

• Uncertainty Avoidance: tolerance for uncertainty and ambiguity.

• Masculinity vs. Femininity: task vs. people-oriented cultures.

• Confucian Dynamism: attitudes towards time, status, tradition.

Page 12: Hofstede’s Dimensions Applied to Various Countries

• Example scores on Hofstede’s dimensions for certain countries:

  • Argentina: Power Distance (49), Individualism (46), Uncertainty Avoidance (86).

  • Denmark: Power Distance (18), Individualism (71), Uncertainty Avoidance (23).

  • United States: Power Distance (40), Individualism (91), Uncertainty Avoidance (46).

Page 13: Religion and Business - Christianity

• Max Weber: Protestant work ethic emphasizes hard work and wealth creation.

• Economic implications: contracts, interest, property rights, ethical transactions.

Page 14: Religion and Business - Islam

• Belief in one omnipotent God; promotes peace and justice.

• Economic implications: property rights, integrity in contracts, prohibition of interest.

Page 15: Religion and Business - Hinduism

• Focus on spiritual growth, sometimes prioritizing spirituality over material gains.

• Economic implications: caste system influencing career mobility.

Page 16: Religion and Business - Buddhism

• Emphasis on spiritual development; mobility across social classes encouraged.

• Mainly in China, Korea, and Japan

• Buddhism promotes the idea that one's spiritual progress can lead to improved social standing, thus fostering an environment where individuals are motivated to pursue personal and professional growth regardless of their caste.

• Economic implications: acceptance of entrepreneurship, less stress on material success.

Page 17: Religion and Business - Confucianism

• Aims for personal salvation through ethical conduct.

• Mainly practiced in China.

• Confucianism emphasizes the importance of relationships, social harmony, and moral integrity in business practices.

• Economic implications: loyalty and honesty fostering smoother business operations.

Page 18: Implications for Managers

• Importance of developing cross-cultural literacy.

• Links between culture, national competitive advantage, and ethical decision-making in businesses.