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Chapter 2: Cross-Cultural Business Chapter Objectives: Culture Defined: Components of Culture: Kluckhohn-Strodtbeck Framework: Hofstede Framework: Trompanaars Cultural Dimensions: GLOBE Project: Review and Discussion: Culture Defined: Culture is defined as a set of values, beliefs, rules, and institutions held by a specific group of people. Ethnocentricity is the belief that ones own culture or ethnic group is superior to that of others. National Culture vs. Subcultures National Culture This is the set of values, beliefs, rules, and institutions that make up the culture of a single country. Subculture This is the set of values, beliefs, rules and institutions that make up a smaller group of people within a larger national culture. Components of Culture: Aesthetics: lWhat a culture considers “good taste” in the arts, the imagery evoked by certain expressions, and the symbolism of certain colors. Values: lIdeas, beliefs, and customs to which people are emotionally attached. Attitudes: lPositive or negative evaluations, feelings, and tendencies that individuals harbor toward objects or concepts. Components of Culture: Manners: lAppropriate ways of behaving, speaking, and dressing in a culture. Customs: lHabits or ways of behaving in specific circumstances that are passed down through generations in a culture. Components of Culture: Social structure: lA cultures fundamental organization, including its groups and institutions, its system of social positions and their relationships, and the process by which its resources are distributed. lFamily: Nuclear Family: Mother, Father, Brother, Sister, (Sometimes Grandparents) Extended Family: Aunts, Uncles, Cousins, (Often times Grandparents) lGender: Man (male), Woman (female), Transgender lSocial Stratification: Process of ranking people into social layers. lCaste System: social system used in India lClass System: social system used else where Components of Culture: Religions: lBuddhism, Catholicism, Christianity, Hinduism, Islam, Judaism, etc. Personal communication: lLanguage, words and body language used to convey messages. Education: lThe set of academic and practical education. Components of Culture: Physical environment: lThe topography, and climate which make up the physical environment. Material environment: lThe technology used in a culture to manufacture goods and provide services. Kluckhohn-Strodtbeck Framework The Kluckhohn-Strodtbeck Framework studies cultures by asking six questions: Do people believe that their environment controls them, that they control their environment, or that they are part of nature? Do people focus on past events, on the present, or on the future implications of their actions? Are people easily controlled and not to be trusted, or can they be trusted to act freely and responsibly? Do people desire accomplishments in life, carefree lives, or spiritual and contemplative lives? Do people believe that individuals or groups are responsible for each persons welfare? Do people prefer to conduct most activities in private or in public? Hofstedes Framework A study published in 1978 by a Dutch sociologist Individualism vs. Collectivism lIndividual or the group Power Distance lLarge distance or small distance Uncertainty Avoidance lLarge uncertainty avoidance or small uncertainty avoidance. Achievement vs. Nurturing lMasculinity vs. Femininity Long-term vs. Short-term lLater added this element to his framework. Trompenaarss Cultural Dimensions Another cultural study done after Hofstedes study. It highlights some cultural changes over a relatively short period of time. Trompenaarss Cultural Dimensions: lUniversalism vs. Particularism lIndividualism vs. Communitarianism lNeutral vs. Emotional lSpecific vs. Diffuse lAchievement vs. Ascription lSequential vs. Synchronous Universalism vs. Particularism Universalism The belief that ideas and practices can be applied everywhere without modification. Focus: Formal Rules Suggestions for doing business: Be prepared for rational, professional arguments and a “lets get down to business” attitude. Particularism The belief that circumstances dictate how ideas and practices should be applied. Focus: Relationships and Trust Suggestions for doing business: Be prepared for personal meandering or irrelevancies that seem to go nowhere and should not regard personal, get-to-know-you attitudes as mere small talk. Individualism vs. Communitarianism Individualism Refers to people regarding themselves as individuals. Focus: The Individual. Suggestions for doing Business: Be prepared to make quick decisions and commit your organization to decisions. Communitarianism (Collectivism) Refers to people regarding themselves as part of a group. Focus: The Group. Suggestions for doing Business: Have patience for the time taken to consent and consult and aim to build a lasting relationship. Neutral vs. Emotional Neutral Neutral culture is one in which emotions are held in check, not used. Examples: Japan & United Kingdom Suggestions for Doing Business: Realize lack of emotion does not mean lack of interest or boredom. Emotional Emotional culture is one in which emotions are openly and naturally expressed. Examples: Mexico & Switzerland Suggestions for doing Business: Do not be discouraged when the other side becomes loud and animated. Try to be warm and receptive. Specific vs. Diffuse Specific Specific culture is one in which individuals have a large public space they readily let others enter and share and a small private space they guard closely and share only with close friends and associates. Implications: Easy entry into public space Strong separation from work and private life. Suggestions when doing Business: Get to the point, be efficient and not refer to titles, achievements or skills that are irrelevant to the issues. Diffuse Diffuse culture is one in which public space and private space are similar in size and individuals guard their public space carefully, because entry into public space affords entry into private space as well. Implications: Difficult entry into public space Weak separations from work and private life. Suggestions when doing Business: Respect ones title, age and background & patient when others are indirect. Achievement vs. Ascription Achievement Achievement culture is one in which people are accorded status based on how well they perform their functions. Example: Austria, US & Switzerland Business Suggestions: Be knowledgeable and provide technical advisers so the group appears to proficient. Ascription Ascription culture is one in which status is attributed based on who or what a person is using age, gender, or social connections. Examples: Indonesia & China Business Suggestions: Include older individuals in the group. Be formal and respect the other side. Time Sequential vs. Synchronous Sequential One thing at a time Keep appointments strictly Show a strong preferences for Follow plans closely Synchronous Do more than one thing at a time Appointments are approximate and maybe changed at anytime Schedules are subordinate to relationships Integrating Culture and Management: The Globe Project Nine Cultural Dimensions of

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