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Culture 1 Learning Objectives To define and demonstrate the effect culture’s various dimensions on business. of To examine ways in which cultural knowledge can be acquired and individuals and organizations prepared for cross-cultural interaction. To illustrate ways in which cultural risk poses a challenge to the effective conduct of business communications and transactions. To suggest ways in which businesses act as change agents in the diverse cultural environments in which they operate. 2 Imagine you are meeting a stranger from your own culture in a business context for the first time... 1. How close will you stand? 2. Will you make eye contact with them? 3. How long will you maintain that eye contact for? 4. What physical contact will you make with them? 5. How much involvement and emotion will your voice convey? 6. What will be the words that you use in greeting? 7. What is your first neutral topic of conversation likely to be once you have made your greeting? 8. Now think about a stranger from another very different culture, perhaps on the other side of the world from your own. 3 Managing cultural differences Two distinct tasks emerge: to understand cultural differences and the ways they manifest themselves to determine similarities across cultures and exploit them in strategy formulation 4 Culture Defined 1. The system of shared actions, values, and beliefs that develops within an organization and guides the behavior of its members. 2. Called corporate culture in the business setting. 3. No two organizational cultures are identical. 5 Definitions of Organisational Culture The way we do things around here Deal & Kennedy (1982) The pattern of values, norms, beliefs, attitudes, assumptions, signs and symbols that may or may not have been articulated but which shape the ways in which people behave and get things done in an organisation. Hendry (1995) Culture is a pattern of shared assumptions, invented, discovered or developed within an organisation as it learns to cope with its problems of external adaptation and internal integration. That has worked well enough to be considered valid and, therefore, is taught to new members as the correct way to think, perceive and feel. Schein (1992) 6 Influences on the development of Organisational Culture Values Internal Factors External Factors Norms Core Beliefs Attitudes Assumptions Experiences of Employees Signs & Symbols Behaviour 7 A Culture: Anchor Identity Codes of Conduct The collective programming of mind. 8 Henry Mintzberg on Culture “Culture is the soul of the organization — the beliefs and values, and how they are manifested. I think of the structure as the skeleton, and as the flesh and blood. And culture is the soul that holds the thing together and gives it life force.” 9 Characteristics of Culture 1. Culture is learned, shared, and transmitted from one generation to the next. 2. Culture can be passed from parents to children, by social organizations, special interest groups, the government, schools, and churches. 3. Culture is multidimensional, consisting of a number of common elements that are interdependent. 4. Culture helps members solve problems. 5. Culture is taught to newcomers 6. Culture strongly influences behavior 10 Dominant Culture, Subculture and counterculture Smaller firms often have a single dominant culture with a unitary set of shared actions, values, and beliefs. Most larger organizations contain several subcultures as well as one or more counter cultures. 11 Subculture. A group of individuals with a unique pattern of values and philosophy that are not inconsistent with the organization’s dominant values and philosophy. Counterculture. A group of individuals with a pattern of values and philosophy that outwardly reject the surrounding culture. 12 High- versus Low-Context Cultures High context refers to societies or groups where people have close connections over a long period of time. Many aspects of cultural behavior are not made explicit because most members know what to do and what to think from years of interaction with each other. Your family is probably an example of a high context environment. Low context refers to societies where people tend to have many connections but of shorter duration or for some specific reason. In these societies, cultural behavior and beliefs may need to be spelled out explicitly so that those coming into the cultural environment know how to behave. 13 Some contributors of culture Sagas. Heroic accounts of organizational accomplishments. Rites. Standardized and recurring activities that are used at special times to influence organizational members. Rituals. Systems of rites. Cultural symbols. Any object, act, or event that serves to transmit cultural meaning. 14 Study Question 2: How do you understand an organizational culture? Culture often specifies rules and roles. Rules. • The various types of actions that are appropriate. Roles. • Where individual members stand in the social system. 15 Study Question 2: How do you understand an organizational culture? Shared values. Help turn routine activities into valuable and important actions. Tie the organization to the important values of society. May provide a very distinctive source of competitive advantage. 16 Elements of Culture Language (verbal and nonverbal) Religion Values and Attitudes Manners and Customs Material Elements Social Institutions Education Aesthetics 17 Cultural Proxemics Americans use a firm, solid grip; HAND SHAKE Middle Easterners and Asians prefer a gentle grip a firm grip to them suggests unnecessary aggressiveness 18 EYE CONTACT Americans are taught to look directly Japanese and Koreans are taught to avoid direct eye contact, direct eye contact to them is considered a weakness, and may indicate sexual overtones 19 O.K. GESTURE For Americans, forming a circle with thumb and forefinger to signal O.K. Means "zero" or worthless in France Means money in Japan Means calling someone a very bad name in Germany. 20 NODDING YES OR NO For Americans, up and down means yes, side to side means no in Bulgaria, the nods are reversed in meaning. 21 PUTTING FEET ON TABLE An American gesture is found to be offensive to nearly every other country around the globe 22 Cultural differences amongst genders Women Personal Space Tend to surrender more quickly May feel vaguely uncomfortable about having done so. Men Tend to surrender less quickly interrupt men less often they do other women. interrupt both sexes Tend to use more Tend to use less Patience More Less Use of Humor Less More Tend to be better Tend to be worse Interruptions Networking questioning and listening 23 Dominant Religions Christianity Islam Hinduism Buddhism Confucianism 24 Gift Giving Preparation is needed as it’s a sensitive area. Important part of relationship management during visits. Wrapping Both hands http://www.1worldglobalgifts.com/giftgivingetique tteandcustoms.htm http://www.etabletop.com/giftcontent_global.html 25 Dimensions of Culture Differences in cultural lifestyle can be explained by: Individualism vs Collectivisim power distance uncertainty avoidance Masculinity vs. Feminist Asian countries tend to have high uncertainty avoidance and low masculinity. Western countries tend to have low uncertainty avoidance and high masculinity. 26 27 Hofstede’s Framework for Assessing Cultures 28 29 Masculinity vs. Femininity Masculinity focuses on the degree the society reinforces, or does not reinforce, the traditional masculine work role model of male achievement, control, and power. A High Masculinity ranking indicates the country experiences a high degree of gender differentiation. In these cultures, males dominate a significant portion of the society and power structure, with females being controlled by male domination. A Feminine culture indicates the country has a low level of differentiation and discrimination between genders. In these cultures, females are treated equally to males in all aspects of the society. 30 Cultural Dimension Scores for 12 countries 100 Japan U.S.A France 100 Netherlands Great Britain Mexico Brazil Uncertainty Avoidance Germany Netherlands West Africa 50 U.S.A Great Britain Germany Arab Countries Individualism France Japan Brazil Arab Countries Indonesia 50 Mexico Hong Kong Hong Kong West Africa Indonesia 0 50 Power Distance 100 50 Masculinity 0 31 Recent Culture Research Trompenaars (1994) has compared culture to an onion: the outer layer is visible cultural differences, such as the clothes people wear, the food they eat and so on. Going deeper are the actions that individuals perform, for example in greeting, to bow or shake hands. At the centre of the onion are the key beliefs and motivating factors that are not so visible, but have the effect of determining behaviour on the more superficial layers of the onion. 32 33 Self Reference Criterion Self reference criterion is the unconscious reference to one’s own cultural values and is the root of most international business problems. Suggestions to reduce cultural bias include: Define the problem or goal in terms of domestic cultural traits, habits, or norms. Define the problem or goal in terms of the foreign cultural traits, habits, or norms. Isolate the self-reference criterion influence in the problem, and examine it to see how it complicates the problem. Redefine the problem without the selfreference criterion influence, and solve for the optimum-goal situation 34 Cross-Cultural Training Cultural training programs should include: culture-specific information general cultural information on values, practices, and assumptions self-specific information that identifies one’s own cultural paradigm 35 Tips for Making Culture Work for Business Success Embrace local culture Build relationships Employ locals to gain cultural knowledge Help employees understand you Adapt products and practices to local markets Coordinate by region 36