InternationalBusiness7e

byCharlesW.L.HillChapter3

DifferencesinCultureIntroductionSuccessfulinternationalmanagersneedcross-culturalliteracy-anunderstandingofhowculturaldifferencesacrossandwithinnationscanaffectthewayinwhichbusinessispracticedArelationshipmayexistbetweencultureandthecostsofdoingbusinessinacountryorregionWhatIsCulture?Cultureisasystemofvaluesandnormsthataresharedamongagroupofpeopleandthatwhentakentogetherconstituteadesignforlivingwhere-valuesareabstractideasaboutwhatagroupbelievestobegood,right,anddesirable-normsarethesocialrulesandguidelinesthatprescribeappropriatebehaviorinparticularsituationsSocietyreferstoagroupofpeoplewhoshareacommonsetofvaluesandnormsValuesAndNormsValuesprovidethecontextwithinwhichasociety’snormsareestablishedandjustifiedandformthebedrockofacultureNormsincludefolkways(theroutineconventionsofeverydaylife)andmores(normsthatareseenascentraltothefunctioningofasocietyandtoitssociallife)ClassroomPerformanceSystemAbstractideasaboutwhatagroupbelievestobegood,right,anddesirablearecalleda)normsb)valuesc)folkwaysd)moresCulture,Society,AndTheNation-stateThereisnotastrictone-to-onerelationshipbetweenasocietyandanationstateNation-statesarepoliticalcreationsthatcancontainoneormoreculturesSimilarly,aculturecanembraceseveralnationsTheDeterminantsOfCultureThevaluesandnormsofaculturearetheevolutionaryproductofanumberoffactorsatworkinasocietyincludingreligion,politicalandeconomicphilosophies,education,language,andsocialstructureSocialStructureSocialstructurereferstoasociety’sbasicsocialorganizationTwodimensionstoconsider:thedegreetowhichthebasicunitofsocialorganizationistheindividual,asopposedtothegroupthedegreetowhichasocietyisstratifiedintoclassesorcastesClassroomPerformanceSystemThebasicsocialorganizationofasocietyisitsa)cultureb)socialstratac)socialstructured)castesystemIndividualsAndGroupsAgroupisanassociationoftwoormorepeoplewhohaveasharedsenseofidentityandwhointeractwitheachotherinstructuredwaysonthebasisofacommonsetofexpectationsabouteachother’sbehaviorSocietiesdifferintermsofthedegreetowhichthegroupisviewedastheprimarymeansofsocialorganizationIndividualsAndGroupsInmanyWesternsocieties,thereisafocusontheindividual,andindividualachievementiscommonThiscontributestothedynamismoftheUSeconomy,andhighlevelofentrepreneurshipBut,leadstoalackofcompanyloyaltyandfailuretogaincompanyspecificknowledge,competitionbetweenindividualsinacompanyinsteadofthanteambuilding,andlessabilitytodevelopastrongnetworkofcontactswithinafirmIndividualsAndGroupsInmanyAsiansocieties,thegroupistheprimaryunitofsocialorganizationThismaydiscouragejobswitchingbetweenfirms,encouragelifetimeemploymentsystems,andleadtocooperationinsolvingbusinessproblemsBut,mightalsosuppressindividualcreativityandinitiativeClassroomPerformanceSystemThegroupistheprimaryunitofsocialorganizationina)Japanb)theUnitedStatesc)Switzerlandd)MexicoClassroomPerformanceSystemWhichofthefollowingisnotcharacteristicofindividualism?a)individualachievementb)lowmanagerialmobilityc)lowcompanyloyaltyd)entrepreneurialbehaviorSocialStratificationAllsocietiesarestratifiedonahierarchicalbasisintosocialcategories,orsocialstrataWhileallsocietiesarestratifiedtosomeextent,theydifferby:thedegreeofmobilitybetweensocialstratathesignificanceattachedtosocialstratainbusinesscontactsSocialStratificationSocialmobilityistheextenttowhichindividualscanmoveoutofthestrataintowhichtheyarebornAcastesystemisaclosedsystemofstratificationinwhichsocialpositionisdeterminedbythefamilyintowhichapersonisborn,andchangeinthatpositionisusuallynotpossibleduringanindividual'slifetimeAclasssystemisaformofopensocialstratificationinwhichthepositionapersonhasbybirthcanbechangedthroughhisorherachievementorluckSocialStratificationThesocialstratificationofasocietyissignificantifitaffectstheoperationofbusinessorganizationsClassconsciousnessisaconditionwherepeopletendtoperceivethemselvesintermsoftheirclassbackground,andthisshapestheirrelationshipswithothersIncultureswhereclassconsciousnessishigh,thewayindividualsfromdifferentclassesworktogethermaybeveryprescribedandstrainedReligiousAndEthicalSystemsReligionisasystemofsharedbeliefsandritualsthatareconcernedwiththerealmofthesacredEthicalsystemsareasetofmoralprinciples,orvalues,thatareusedtoguideandshapebehaviorReligionandethicsareoftencloselyintertwinedFourreligionsdominatesociety-Christianity,Islam,Hinduism,andBuddhismConfucianismisalsoimportantininfluencingbehaviorandcultureinmanypartsofAsiaReligiousAndEthicalSystemsMap3.1WorldReligionsChristianityChristianityistheworld’slargestreligionandisfoundthroughoutEurope,theAmericas,andothercountriessettledbyEuropeansPerhapsthemostimportanteconomicimplicationofChristianityistheProtestantworkethic

In1804,MaxWebersuggestedthatitwasthisethicanditsfocusonhardwork,wealthcreation,andfrugality,thatwasthedrivingforceofcapitalismIslamIslam,theworld’ssecondlargestreligion,extendstheunderlyingrootsofChristianitytoanall-embracingwayoflifethatgovernsone'sbeingIntheWest,Islamicfundamentalismisassociatedinthemediawithmilitants,terrorists,andviolentupheavals,butinfactIslamteachespeace,justice,andtoleranceFundamentalists,whodemandrigidcommitmenttoreligiousbeliefsandrituals,havegainedpoliticalpowerinmanyMuslimcountries,andblametheWestformanysocialproblemsThekeyeconomicimplicationofIslamisthatunderIslam,peopledonotownproperty,butonlyactasstewardsforGodandthusmusttakecareofthatwhichtheyhavebeenentrustedwith,sowhileIslamissupportiveofbusiness,thewaybusinessispracticedisprescribedHinduismHinduism,practicedprimarilyontheIndiansub-continent,focusesontheimportanceofachievingspiritualgrowthanddevelopment,whichmayrequirematerialandphysicalself-denialSinceHindusarevaluedbytheirspiritualratherthanmaterialachievements,thereisnotthesameworkethicorfocusonentrepreneurshipfoundinsomeotherreligionsPromotionandaddingnewresponsibilitiesmaynotbethegoalofanemployee,ormaybeinfeasibleduetotheemployee'scasteBuddhismBuddhism,whichhasabout350millionsfollowers,stressesspiritualgrowthandtheafterlife,ratherthanachievementwhileinthisworldBuddhismdoesemphasizewealthcreation,andsoentrepreneurialbehaviorisnotstressedHowever,becauseBuddhismdoesnotsupportthecastesystem,individualsdohavesomemobilityandcanworkwithindividualsfromdifferentclassesConfucianismConfucianism,anideologypracticedmainlyinChina,teachestheimportanceofattainingpersonalsalvationthroughrightactionHighmorals,ethicalconduct,andloyaltytoothersiscentralinConfucianismThreekeyteachingsofConfucianism-loyalty,reciprocalobligations,andhonesty-mayallleadtoaloweringofthecostofdoingbusinessinConfuciansocietiesClassroomPerformanceSystemWhichreligionpromotesthenotionthatamoralforceinsocietyrequirestheacceptanceofcertainresponsibilitiescalleddharma?a)Islamb)Buddhismc)Hinduismd)ConfucianismLanguageLanguagereferstothespokenandunspokenmeansofcommunicationLanguageisoneofthedefiningcharacteristicsofcultureSpokenLanguageCountrieswithmorethanonelanguageoftenhavemorethanonecultureThemostwidelyspokenlanguageintheworld,butChineseisthemothertongueofthelargestnumberofpeopleEnglishisalsobecomingthelanguageofinternationalbusiness,butknowledgeofthelocallanguageisbeneficial,andinsomecases,criticalforbusinesssuccessUnspokenLanguageUnspokenlanguagereferstononverbalcommunicationsuchasfacialexpressions,personalspace,andhandgesturesFailingtounderstandthenonverbalcuesofanotherculturecanleadtocommunicationfailureClassroomPerformanceSystemThemostwidelyspokenlanguageintheworldisa)Chineseb)Spanishc)Hindid)EnglishEducationFormaleducationisthemediumthroughwhichindividualslearnmanyofthelanguage,conceptual,andmathematicalskillsthatareindispensableinamodernsocietyEducationisimportantindetermininganation’scompetitiveadvantageGeneraleducationlevelscanalsobeagoodindexforthekindsofproductsthatmightsellinacountryCultureAndTheWorkplaceItisimportantforcompaniestounderstandhowasociety’scultureaffectsworkplacevaluesManagementprocessesandpracticesmustbeadaptedtoculturally-determinedwork-relatedvaluesGeertHofstedeidentifiedfourdimensionsofculture:powerdistance,uncertaintyavoidance,individualismversuscollectivism,andmasculinityversusfemininityCultureAndTheWorkplacePowerdistancefocusesonhowasocietydealswiththefactthatpeopleareunequalinphysicalandintellectualcapabilitiesIndividualismversuscollectivismfocusesontherelationshipbetweentheindividualandhisorherfellowsUncertaintyavoidancemeasurestheextenttowhichdifferentculturessocializetheirmembersintoacceptingambiguoussituationsandtoleratingambiguityMasculinityversusfemininitylooksattherelationshipbetweengenderandworkrolesCultureAndTheWorkplaceTable3.1:Work-RelatedValuesfor20SelectedCountriesCultureAndTheWorkplaceHofstedelaterexpandedhisstudytoincludeafifthdimensioncalledConfuciandynamismwhichcapturesattitudestowardtime,persistence,orderingbystatus,protectionofface,respectfortradition,andreciprocationofgiftsandfavorsClassroomPerformanceSystem_______focusesonhowsocietydealswiththefactthatpeopleareunequalinphysicalandintellectualcapabilities.a)powerdistanceb)individualismversuscollectivismc)uncertaintyavoidanced)masculinityversusfemininityCulturalChangeCultureevolvesovertime,althoughchangesinvaluesystemscanbeslowandpainfulforasocietySocialturmoilisaninevitableoutcomeofcu