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Lissa Monk

on 29 September 2015

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Transcript of Culture

National culture

What is culture?
Culture theories
Organizational culture
Changing societies

the distinctive values and norms which distinguish one nation from another
National culture
Most states contain multiple cultural and national identities
Can lead to social tensions between majority and minority groups
Subcultures distinguish minority groups
Discrimination against minority groups has a long history
Low-context culture – clear and direct communication
High-context culture – communication relies heavily on relationships and behaviour
Majority and minority languages exist in most states, due to colonization (where indigenous cultures already existed) and immigration
How religion impacts on business life
Religious practices
e.g. Daily prayers
Clothing requirement
Religious festivals and celebrations
Religious requirements regarding food and drinks
Religious law
restrictions on business transactions
Restrictions on busines trading due to religious observations
e.g. at certain times or in certain places
Culture is a body of learned behaviour, a collection of beliefs, habits and traditions, shared by a group of people and successfully learned by people who enter society (Mead)
Culture and Difference
differences between countries
differences within countries
e.g North/South divide
Differences between the sexes
Differences between generations
Globalisation and Culture
Companies cannot succeed without an understanding of:
the culture within which they wish to operate
the nature/culture of the companies with which they are dealing
The way(s) in which those cultures affect the business environments
Law (e.g. Employment and Business law
High and Low Context Cultures
Cultural Theories
Information is part of the person
The message is less important than the relationship between the communicators
Agreements based on trust
High context
Low context
Information is independent of the person, expertise in handling it is ‘all’
The relationship is of little importance
Agreements are legally binding
(Far East countries)
complexity (and potential irritation) of inter-national, inter-cultural business dealings
Time-precious v time-relaxed approaches
Friendship v impersonal approaches
potential for misunderstanding
Friendship, gift-based approach
Misinterpretation/accusation of bribery
the West
Long/Short-term Orientation
(France, Mexico and Hong Kong):
Society broadly accepts unequal distribution of power on the basis of physical, economic, intellectual and/or social characteristics
Employee dependence on employers
Titles and status are important
High Power distance
(Germany, Scandinavia):
Society aims to reduce inequalities through, for e.g. proportionate taxation for redistribution of wealth
Employee independence of employer
Titles and status are nothing without appropriate behaviour
Low Power distance
(USA, UK):
Preference for looking after self and family
Belief in ‘freedom’
Instrumental associations with others
Loose social networks
(The East, India, Mexico)
Wider, group-based concern
Sense of belongingness
Unitary perspective (both work and in society)
(USA, Hong Kong, Thailand):
Willing to make speedy decisions
Willingness to ‘run’ with new ideas
Relaxed attitude to rules
Uncertainty/risk acceptance
(Argentina, Switz-erland, Japan)
Anxious about the future
Resistant to different/new ideas
Threatened by ambiguity
Uncertainty/risk avoidance
USA, Japan, Germany):
Displaying a need to achieve/for success
Overt assertiveness (Macho-management)
Need to display material indicators of success
Belief in distinct gender roles
(Scandinavia, The Netherlands):
Emphasis placed on the quality of life
Caring for others
Sex and gender equality
(South-East Asia, Brazil):
Valuing perseverance
Prepared for investment
Adaptable to change
(UK, USA, Canada, Nigeria, Pakistan):
Expecting fast returns on investment
Speedy achievement of goals
5 cultural dimensions
Power distance – To what extent do people accept unequal power structure?
Uncertainty avoidance – How do people cope with life’s uncertainties?
Individualism – Do people see themselves as independent or members of a group (collectivist)
Masculinity – Are people inclined towards aggressive behaviour, or more caring (feminine)?
Long-term or short-term orientation
5 relationship orientations
Universalism vs particularism
Individualism vs collectivism
Neutral vs emotional
Specific vs diffuse
Achievement vs ascription
no one ‘best way’ of managing people, and adaption to cultural background is essential
The way people relate to each other
People’s attitude to time
People’s attitude to the (green) environment
(USA, Switzerland, Germany):
rules being more bureaucratically applied (i.e. irrespective of the situation)
Legislative, directive, contractual and formal
(Malaysia, Indonesia)
Exercising choice over where, when and how rules would be applied
(Mediterranean, Latin America):
Difficulty in distinguishing between issues and personalities
Emotion challenging ‘reason’
Overt Emotional display
(Scandinavia, Northern Europe, USA, Japan):
Neutral display (appearance of ‘coldness’)
Deference to seniority in age and/or hierarchy, status, qualification
Minimal Emotional display
values, norms and management style of the organization
Organisational culture
companies tend to reflect national culture of their home country
MNEs encounter cultural diversity in internationalization:
Acquisition of foreign subsidiaries
Merger with another company
Joint ventures
Changing societies
Changing populations
Push factors – escape from poverty, natural disasters, religious persecution
Pull factors – prospect of work and economic betterment
the movement of people from one place to another
can occur within a country or between countries
substantial percentage of some populations, e.g. oil-rich states in the Middle East
Remittances sent by migrants back to families contribute to the economies of many developing countries, such as China and India
shift of population from rural areas to the cities
linked to industrialization
in poor developing countries, it can be due to deterioration in agriculture in the countryside
rapid urbanization in developing countries, is raising problems over -
Inadequate water and sanitation systems
Poor housing, associated with slums
The spread of disease
changes in whole populations
rising birth or death rates
Populations in the developed world are ageing, creating challenges for societies and governments
Challenges in ageing societies?
Governments face increases in spending on pensions, and are raising the retirement age
Businesses are finding roles for older workers
Cultural values and norms of behaviour are shaped by national sense of belonging, including language and geographic homeland.
For many people, religion is their defining cultural identity
Theories may help us to identify the main characteristics of national cultures, which shape organizational cultures
Populations and societies are constantly changing, presenting challenges for governments and businesses
Significant trends are
the growing populations of the developing world,
urbanization in developing regions
ageing of populations around the world.
DIVERSITY can be regarded as beneficial to business
Insensitivity, and stereotyping, is problematic

Tuesday at 11 - Sony case

Tuesday at 1 - McDonalds

Tuesday at 2 - Vales colide

Wednesday at 10 - Growing power of older consumers

Title slide - 3 slides addressing the question and analysing the research questions (see below) - Reference slide

Is the information in the article accurate?
Why would you rely on one of the sources instead of another?
What is the intended audience of each article?

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