Uploaded by Ismaiel Aden

What is Culture 1

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What is Culture?
A system of values
and norms shared
among a group of
people and, when
taken together,
constitute a design
for living.
Norms and Values
Norms:
Social rules and guidelines
that prescribe appropriate
behavior in particular
situations.
Folkways:
Routine conventions of
everyday life.
Mores:
Central to functioning of
society and its social life.
Values:
Abstract ideas about
what a group believes to
be good, right, and
desirable.
The bedrock of culture.
Have emotional
significance.
Freedom.
Culture, Society and the Nation-State
NationStates are
political
creations
Not a strict
one-to-one
correspondence
Determinants of Culture
Economic
Philosophy
Education
Language
Culture:
Norms and
Value
Systems
Religion
Political
Philosophy
Social
Structure
Social Structure
Individual
Western
Mobile
Managers
Entrepreneurship
Group
two or more individuals
with a shared sense
of identity
Group
Eastern
Identity
Hard to
Build
Teams
Nonmobile
Managers
Lack
of
Loyalty
Lack of
Entrepreneurship
Lifetime
Employment
Social Stratification
Typically defined by family
background, occupation,
and income.
Caste:
Virtually no mobility
Class:
some social
mobility
Class Consciousness:
May play a role in
a firm’s operations
Religion
Shared beliefs and rituals concerned with the
realm of the sacred.
Ethical Systems:
Moral principles or values used to guide and
shape behavior.
Shapes attitudes toward work and
entrepreneurship and can affect the cost of
doing business.
World’s Religions
Christian
Islam
20%
43%
18%
4%
5%
10%
Hindu
Buddhist
Confucian
Other/Nonreligious
Religion and Economic Implications
Christianity
“Protestant Work Ethic” and “The Spirit of
Capitalism”.
Islam
Favors market-based systems.
No payment or receipt of interest.
Hinduism
Asceticism may have an impact.
Caste system plays a role.
Buddhism
Little emphasis on entrepreneurial behavior.
Confucianism
Loyalty, reciprocal obligations, and honesty in dealings.
Language
Allows people to communicate.
Structures the way the world is perceived.
Directs attention to certain features of the world
rather than others.
Helps define culture.
Creates separatist tendencies?
Spoken Language
6%
5%
4%
3%
Other
62%
20%
Chinese
English
Hindi
Russian
Spanish
Nonspoken Language
Nonverbal cues:
eyebrows
fingers/thumbs
hand gestures
feet
personal space
body gestures
Education
Formal education
supplements family role
in teaching values
and norms
For int’l business, it is a
determinant of national
competitive advantage
Medium to learn
language, conceptual,
and math skills
Cultural norms such as
respect, obedience, honesty
Value of personal
achievement and
competition
Focus on facts of social
and political nature
of society
Obligations of
citizenship
Hofstede
Study (IBM) is a general way to look at differences
between cultures.
4 dimensions:
Power distance.
Individualism versus collectivism.
Uncertainty avoidance.
Masculinity versus femininity.
But:
Assumption of one-to-one relationship between culture
and nation-state.
Research may be culturally bound.
Respondents worked within a single company.
Work is beginning to look dated (1967-1973).
Work Related Values for Selected Countries
Power
Distance
Uncertainty Individualism Masculinity
Avoidance
Argentina
49
86
46
56
Brazil
69
76
38
49
France
68
86
71
43
India
77
40
48
56
Japan
54
92
46
95
Mexico
81
82
30
69
Netherlands
38
53
80
14
U.S.A.
40
46
91
62
Table 3.1
Culture is Dynamic
Cultural Change
Culture and Competitive Advantage
The connection suggests:
Which countries are likely to be the most viable
competitors.
Which countries in which to locate production
facilities and do business.
Culture and Ethics
Do the “right” thing.
Thomas Donaldson’s Three Principles:
Respect for core human values (human
rights), which determine the absolute moral
threshold for all business activities.
Respect for local tradition.
The belief that context matters when
deciding what is right and what is wrong.