Cultural Dynamics

British Airways

I was meeting with a group of Japanese businessmen in Tokyo, and our morningdiscussions had not gone well. For lunch my hosts rented a private room in arestaurant. As is the custom, they took off their shoes. I was wearing my dresscowboy boots and removed them. No sooner had we sat cross-legged on the dining mats than I began to receive the first smiles and laughter of the day. I was puzzled until one man said, "Mickey Mouse," pointing to my socks. My children had packed this footwear, which they had given me for my birthday. Not realizing I would be taking off my boots, I wore the socks. That moment in the restaurant was the turning point of the trip, and before I left Japan we had an agreement.

Take off the shoes to win

National Differences in Culture

What is CULTURE?– shared system of values and norms that offer a

design for living Values: abstract ideas about what is good, right and

desirable Norms: social rules and guidelines that prescribe

appropriate behavior in particular situations

Culture Quiz

http://www.branchor.com/culturequiz.htm

U.S. multinationals learn importance of culture USA Today 3/1/98

Theoretical Frameworks to Understand Culture

Reading Quiz1. Name one of the cultural researchers in the readings.2. Name the other cultural researcher in the readings.3. What are the Silent Languages?

1. _______________2. _______________3. _______________

4. What the the dimensions of culture?1. _______________2. _______________3. _______________4. _______________

5. What was the survey designed to measure?

Categorization of Cultures

Low Context vs. High Context

Hofstede’s Dimensions of Culture• Masculine/ Feminine

• Risk Avoidance

• Power Distance

• Individualism/ Collectivism

I. High and Low Context Cultures

High Context Cultures (Japan, Saudi Arabia)– Meaning of individual behavior and speed

changes depending on the situation

– Nonverbal messages full of important and intended meanings, subtle

– Important to “read between the lines”

I. High and Low Context Cultures

Low Context Cultures (USA)– Intentions are expressed verbally, directly

– Situation is not allowed to change the meaning of words and behavior

– Straight talk

Factors/Dimensions

High Context Low Context

Lawyers Less Important Very Important

A Person’s word Is his or her bond Is not be relied upon,“get it in writing”

Responsibility fororganizational error

Taken by highest level Pushed to lowest level

Space People breathe on eachother

People carry a bubbleof private space withthem

Time Polycronic – everythingin life must be dealtwith in term of its owntime

Monocronic – time ismoney

Negotiations Are lengthy – knoweach other first

Proceed quickly

Country Examples Japan, Middle East Canada, U.S., NorthernEurope

Silent Languages

Five different silent languages– Time– Space– Material possessions– Friendship patterns (reciprocity)– Agreements (emphasis on legal contracts)

All have important economic implications

II. Hofstede’s Model

Power Distance: tolerance of inequalities of intellectual and physical capabilities

Individualism versus collectivism: relationship between individual and his or her fellows

II. Hofstede’s Model

Uncertainty avoidance: acceptance of ambiguous situations and tolerance of uncertainty.

Masculinity versus femininity: identification of gender and work roles (Japan - HI; Sweden - LO)

Confucian Dynamics: long term vs short term orientation

Individualism and Power Distance

Figure 3-5 Source: G. Hofstede, “The Cultural Relativity of Organizational Practices and Theories,” Journal of International Business Studies 14 (Fall 1983), pp. 75-89.

1218243036424854606672798591

11 28 44 61 77 94 111

Small power distanceLow individualism

COS PAKTAL

COL

PERKORTHA

CHLPHL

EAF

HOK

MEX

YUG

WAFSIN

EQA

VENIDO

POR

GUA

PAN

PHI

MAL

JAMURUGRE

TURBRA ARA

INDJPNARG

SPA

SAF

FRA

BELITA

FINGER

SWISWEIRE

NOR

AUTISR

DEN

NZL CAN

NET

GBR USA

AULSmall power distanceHigh individualism

Large power distance

Low individualism

Large power distance

High individualism

Power Distance Index (PDI)

SAL

ira

Uncertainty Avoidance and Masculinity

Figure 3-6 Source: G. Hofstede, “The Cultural Relativity of Organizational Practices and Theories,” Journal of International Business Studies 14 (Fall 1983), pp. 75-89.

DEN

NOR

SWE

NET

FIN

SIN

HOK

MAL

JAM

IREGBR

INDPHISAF

AUL

USA

NZL

CANIDO

EAF WAFIRA

THA ARA

PAKTAI

SWI

GER

AUT

MEX

VEN

BEL

ARG

COLITA

JPN

GRE

CHLCOS

YUG

ISRBRA

POR GUAURU

SALPERPAN

TURSPAFRA

KOR

Weak uncertainty avoidance Feminine

Weak uncertainty avoidance Masculine

Strong uncertainty avoidance Feminine

Strong uncertainty avoidance Masculine

8

16

24

32

40

48

56

64

72

80

88

96

104

110

5 23 41 59 77 95

Masculinity Index (MAS)

Hofstede’s Classification of Triad CountriesHofstede’s Classification of Triad Countries

Japan North America W. Europe(Canada, USA, Great Britain) Northern Continent

Individualism low high high low

Powerdistance

high low low high

Masculinity high high low high

Risk tolerance low high high low

Context high low high low