Note for IBA 350 with Professor Turner at UA-Intro World Business (8)
Note for IBA 350 with Professor Turner at UA-Intro World Business (8)
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This 3 page Class Notes was uploaded by an elite notetaker on Friday February 6, 2015. The Class Notes belongs to a course at University of Alabama - Tuscaloosa taught by a professor in Fall. Since its upload, it has received 18 views.
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Date Created: 02/06/15
CHAPTER FIVE REVIEW MATERIALS 0 Rules of thumb for doing international crosscultural business 1 Be prepared 2 Slow down 3 Establish trust 4 Understand the importance of language S Respect the culture 6 Understand the components of culture 0 Culture is quotlearnedquot and is not innate The rst step to learning to live with other cultures is the realization that there are indeed other cultures 0 Culture de ned The sum total of beliefs rules techniques institutions and artifacts that characterize human populations Culture consists of the individual worldviews social rules and interpersonal dynamics characterizing a group of people set in a particular time and place 0 The various aspects of culture are quotinterrelatedquot 0 Culture is quotsharedquot 0 Indeed culture de nes the quotboundariesquot of different groups 0 Ethnocentricity is the belief in the superiority of one39s own ethnic group We referred earlier to this as quotselfreference criterionquot 0 As Americans we MUST be careful to not try to impose our culture our ways on other cultures or we may be referred to as quotUeg Americansquot 0 A national culture is de nitely a key in determining the criteria by which managers are evaluated in each country As Americans managing in another country we must be aware of this 0 Components of culture include 1 Aesthetics A culture39s sense of beauty and good tasteas expressed in its art drama folklore and dances 2 Attitudes and beliefs Every culture has a set of attitudes and beliefs that influence nearly all aspects of human behavior and help bring order to a society and its individuals Attitude towards quottimequot is what presents the most adaptation problems for Americans abroadThe American pride in directness and drive is interpreted by many foreigners as being brash and rudePeople s attitude towards quotchangequot makes it difficult for the marketer to introduce new products in many foreign marketsUnderstand quotmananaquot and quotadios siesta timequot Bottom line The more consistent a new idea or technique is with a society39s attitudes and experiences the more quickly it will be adopted The result of seeing others with quotdesirable goods and productsquot is called the quotdemonstration effectquot 3 Religion The European and American attitude toward work stems in part from the quotProtestant work ethicquotThe quotcaste systemquot in India is still a real factor and managers must understand this system is inheritedquot And is the basis for the division of Labor in Hindu societyIslam is the second largest religion with 13 billion followersChristianity has 2 billionMuslims are divided into two major divisions Sunnis and the Shiites with the Sunnis being less authoritarianThere is little separation of church and stateAmericarr business people must fully understand the importance of religion in doing business abroad Sikhism is a religion a military brotherhood and a political movement with 80 of Sikhs living in Punjab Shintoism is the indigenous religion of Japan and has no founder or sacred text Islarn with over 13 billion followers is the second largest religion in terms of faithmembership In Muslim nations there is not complete separation of church mosque and state Animism is a kind of spirit worship that includes magic and witchcraft 4 Material Culture Refers to all humanmade objects and is concerned with how people make things technology and who makes what and why economicsquotTechnologyquot in a society is critical and it is the mix of usable knowledge that that society applies and directs towards attainment of culture and economic objectivesIndeed good technology held by a country can even enable a company in that country which has only a minority equity position to control a joint ventureIndeed appropriate technology is the technology that most closely ts the society using it 5 Language Definitely one of the key aspects of cultureLanguages demarcate cultures just as much as physical barriers Nonverbal communication or the quotunspoken languagequot can often tell businesspeople something that the spoken language does not But the differences in customs among cultures may cause misinterpretations of the communication quotlingua Francaquot is a foreign language used to communicate among a nation39s diverse cultures To avoid translation errors the experienced marketer will use the backtranslationquot approach 6 Societal Organization The quotextended familyquot includes blood relatives and relatives by marriagequotAssociationsquot are social units based on age gender or common interest and not on kinshipSo every culture and society has two classes of relationships which are quotkinshipquot and quotassociationquot Managers working in different countries should always understand the importance of these social organizations and how to manage them effectively 7 Education 8 Legal characteristics 9 Political structures Geert Hofstede a Dutch psychologist came up with four dimensions which give managers a basis for understanding people of other cultures and hence a clue as to how to manage them The four dimensions give managers a basis for understanding that a management technique appropriate in one national culture is lot necessarily appropriate in another They are l Individualism vs collectivism People in collective cultures belong to groups that are supposed to look after them in exchange for loyalty whereas people in individualistic societies look only after themselves Therefore rms operating in collectivistic cultures are more likely to rely on quotgroupquot decision making 2 Large vs small power distance Power distance is the extent to which members of a society accept the unequal distribution of power among individuals Large power distance societies re ect the fact that employees believe their supervisors are always right A participative management style is viewed as weak 3 Masculinity vs femininity A dominant value system in a society emphasizes assertiveness acquisition of money and status and visible achievement whereas in a feminity society relationships and concerns for others are emphasized 4 Strong vs weak uncertaintV avoidance Uncertainty avoidance is the degree to which the members of a society feel threatened by ambiguity and are rule oriented Employees in highuncertaintyavoidance cultures such as Japan and Greece tend to stay with their organizations for a long time Those from low uncertaintyavoidance cultures such as the USA and Denmark are much more mobile
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