Chapter 2 – The Cultural Environment

Chapter 2 – The Cultural Environment     Culture  Norms based on atÝtudes, values, beliefs of a group of people The Determinants of Culture  Religion, Political Philosophy, Economic Philosophy, Education, Language, Social Structure National culture is: o Acquired (not inherited) o Gradual (shaped slowly over time and not readily apparent) o Ethnocentric (insiders are at the center of the map) o Shared (insiders develop a similar way of seeing the world) o Hard to change (old habits die hard), Relative (neither right nor wrong – just different) o Same process across groups (but with different norms and meanings) GlobeSmart Cultural Profile Dimensions: o Independence vs. Interdependent  individual work vs. collaborative work o Egalitarianism vs. Status  Everyone treated equally vs. behavior based on status o Risk vs. Certainty  Speed over thoroughness vs. thoroughness over speed o Direct vs. Indirect  Say what you mean and mean what you say vs. take care how something is said o Task vs. Relationship  Move quickly to business vs. trust-building/relationships before business can take place  Culture as Capital when Selling Abroad o Domestic Approach:  Rock-Bottom Price + Bell-Ringer Product = Sale o Cross National Approach:  Reasonable Price + Reasonable Product + Customer’s Trust = Sale  The Platinum Rule: Do unto others as they’d like done unto them    Core Values  An individual’s values that are so strong that they are not negotiable Peripheral Values  Less dominant and more pliable values of an individual Bicultural/Multicultural  Someone who has internalized more than one national culture because of having dual or multiple citizenships, parents, or spouses from another country, or lived abroad at an impressionable age. Cultural Collision  When contact among divergent cultures creates problems    Deal-Focus (DF) Culture  People are primarily task-oriented Relationship-Focused (RF) Culture  Less compulsion to wrap things up, put dealings with friends ahead of business dealings  Sources of Cultural Change o Change By Choice  May occur because social and economic situations present people with new alternatives o Cultural Imperialism  Imposing certain elements from an alien culture, such as a forced change in laws by a dominant country that, over time, becomes part of the subject culture.   Social Stratification  Creates hierarchies and influences a person’s class, status, and financial rewards within that culture. Social Stratification determinants: o Individual’s achievements and talents (meritocracy) o Their group memberships   Ascribed Group Memberships  Determined by birth (gender, family, age, caste, origin) Acquired Group Memberships  include those based on religion, political afÏliation, education place and achievement, and profession  Masculinity-Femininity Index  measures atÝtude toward achievement o A high-masculinity score indicates a preference for “live to work” o A high-femininity score indicates a preference for “work to live”  Hierarchy of Needs Theory of motivation  people try to fulfill lower-level needs before moving on to higher-level ones. o Self-Actualization (self-fulfillment) o Esteem (bolstering our self-image through recognition, attention, and appreciation) o AfÏliation (peer acceptance) o Security (safe physical and emotional environments) o Physiological (food, water, sex)  Power Distance  a measurement of employee preferences of interaction between superiors and subordinates o High Power Distance  people prefer little consultation between bosses and subordinates o Low Power Distance  people prefer “consultative” styles  Individualism  Describes a preference to fulfill leisure time, build friendships, and improve skills independently of the organization Collectivism  Typifies an employee’s dependence on the organization through training, satisfactory workplace conditions, and good benefits.   Uncertainty Avoidance  A trait of being uncomfortable with ambiguity  Future Orientation  Denotes a willingness to delay gratification in order to reap more in the future  Low-Context Culture  people generally regard only firsthand information that bears directly on the subject at hand as firsthand information High-Context Culture  People tend to understand and regard direct information as pertinent Monochromic Culture  People normally prefer to work sequentially, such as finishing transactions with one customer before dealing with another Polychromic Culture  People are more comfortable when multitasking, such as simultaneously with multiple customers who need service.      Idealism  Cultures which prefer to establish overall principles before they try to resolve small issues Pragmatic Culture  Cultures in which people focus more on details than on abstract principles  Silent Language  Messages exchanged through a host of nonspoken and nonwritten cues  Culture Shock  The frustration that results from having to absorb a vast array of new cultural cues and expectations Reverse Culture Shock  When people return to their country, having become partial to aspects of life abroad that are not options back home.     Polycentric Organization  Believes it should act abroad like companies there. Ethnocentric Organization  Reflects the conviction that one’s own practices are superior to those of other countries. Geocentric Organization  Integrates home and host country practices as well as introducing some entirely new ones.