mngt 375 the role of culture ch4

education

US- primary and secondary schools UK- elite education to few students Germany- apprenticeships japan and France- exams to get into prestigious universities

Anglo Saxon approach

Van Tulder and van der Zwarts analysis Anglo Saxon countries view the state the market and civil society as separate competitive and antagonistic when the government must contract with the private sector to purchase goods or services such contracting should be done through an open and competitive bidding process focuses on competition not cooperation among the three groups as the means to promote social goals

greenfield investment

a brand new investment. Japan would use this

international Labor organization (ILO)

a major watchdog for monitoring working conditions in factories in developing countries. - begun to systematically inspect working conditions in countries such as Bangladesh, Cambodia, and the Philippines. -corporations find that such an independent inspection mechanism helps allay concerns from human rights and workers rights activist groups. Factory owners are also finding that subjecting themselves to regular ILO inspections helps them establish new business relationships with MNCs

social orientation

a persons beliefs about relative importance of the individual and the groups to which that person belongs 2 extremes are individualism and collectivism

social stratification

all societies categorize people to some extent on the basis of their birth, occupation , educational achievements or other attributes in less stratified societies firms are freer to seek out the most qualified employee highly stratified societies advertisers must tailor their messages more carefully to ensure that they reach only the targeted audience or others can be offended.

bribery act

applies to corrupt actions done anywhere in the worlds firms with a business presence in the UK -also applies to transactions between two businesses and it outlaws facilitation payments.

cross cultural literacy

best way is to have personal experience as a business trip r long term assignment or from travel

gift giving and hospitality

business gifts are opened in private so as not to cause the giver to lose face should the gift be too expensive or too cheap - japan US- see and be seen Japan- privacy

the Asian approach

close cooperation between the private sector and the government, Japans Keiretse and Korea Chaebol rests on their willingness to do the governments bidding and vice versa

cultural cluster

comprises countries that share many cultural similarities

language

countries with one language group are more homogeneous society. nationhood defines society. multiple language groups - heterogeneous and identifying cultural differences within the country

acculturation

cross cultural literacy is the first step. the proves by which people not only understand a foreign culture but also modify and adapt their behavior to make it compatible with their culture

individualism

cultural belief that the person comes first key values in individualist people include a high degree of self respect and independence. put career interest before the good of their organizations and they tend to assess decisions in terms of how those decisions affect them as individuals nepotism is frowned on in individualistic cultures but may be normal hiring practice in collectivistic cultures (favoring relatives or friends) -US UK Aus. Canada, new Zealand, Netherlands

characteristics of culture/ culture

culture is the collection of values, beliefs behaviors customs and attitudes that distinguish one society from another

cultural convergence

define appropriate lifestyles, attitudes and goals and by bringing new management techniques technologies and cultural values to the countries in which they operate

anti bribery convention of the organization for economic cooperation and development

developed and then ratified by Canada and then 37 countries - the convention is an attempt to eliminate bribery in the international business transactions its centerpiece mandates jail time for those convicted of paying bribes

uncertainty avoidance

dislike ambiguity and will avoid it whenever possible ambiguity and change are seen as undesirable these people tend to prefer a structured and routine even bureaucratic way of doing things. tend to adopt more rigid hierarchies and more elaborate rules and procedures for doing business. rely on banks to raise capital - France Germany

nonverbal communication

facial expressions hand gestures intonation eye contact body positioning and body posture

passive goal behavior

higher value on social relationships, quality of life and concern for others

religion

highest to low Christianity, Islam, Hinduism, Buddhism religion shapes attitudes its adherents have toward work, consumption, individual responsibility, and planning for the future. max webbed- protestant ethic for the rise of capitalism in western Europe. it stresses individual hard work frugality and achievement as means of glorifying god. -makes virtue of high savings rates constant striving for efficiency and reinvestment of profits to improve future productivity all of which are necessary for the smooth functioning of capitalist economy. Hinduism- emphasizes spiritual accomplishment rather than economic success. goal is to achieve union with brahma the universal spirit by living more pure life as ones reincarnated soul goes though cycles. Islam- obligation to society profits not from exploitation or deceit the impact of religion on international businesses varies from country to country depending on the country's legal system, homogeneity of religious beliefs and its toleration of other religious viewpoints.

the continental European approach

larger employer associations bargain with umbrella labor organizations under the watchful supervision of the government. Germanys codetermination policy gives workers a well defines role in the governance of large German Business in general the public policy process is based on creating consensus among three actors. cooperation not competition is the hallmark of this approach

goal orientation

manner in which people are motivated to work toward different kinds of goals

power tolerance

more willing to question a decision or mandate from someone at a higher level or perhaps even refuse to accept it they are willing to follow a leader when that leader is perceived to be right o when it seems to be in their own self interest to do so but not because of the leaders intangible right to issue orders. - people believe that hierarchies exist to solve problems and organize tasks within organizations when approaching a new project Americans would first define the tasks at hand and then assemble the project team more suitable for internet stat ups when social orientation and power orientation are superimposed, individualistic and power tolerant countries seem to cluster as do collectivist and power respecting countries

backtranslation

one person translates document then second person translates the translated version back to the original language

collectivism

opposite of individualism the belief that the group comes first well defined social networks including extended families, tribes, and co workers, people are expected to put the food of the group ahead of their own personal welfare, interests or success strongly influenced by the emotion of shame ; when a group fails its members take the failure personal and experience shame. changing jobs is untrustworthy compensation depends on the group of which they belong not personal achievements -Mexico Greece Hong Kong Taiwan Peru Singapore Colombia Pakistan

power respect

people in a culture tend to accept the power and authority of their superiors simplyy on the basis of the superiors position in the hierarchy the same people tend to respect the superiors right to that power - France Spain Mexico japan brazil Indonesia and Singapore

aggressive goal behavior

place a higher premium on material possessions, money and assertiveness gender based roles rigidly

power respect

power respecting business cultures such as those in Indonesia and Malaysia assume that hierarchies are developed so that everyone knows who has authority over whom. first determine who would be in change and ten assess whether the project would be feasible under that managers leadership

the foreign corrupt practices act (FCPA)

prohibits US firms, their employees and agents acting on their behalf from paying or offering to pay bribes to any foreign government officials to influence the official actions or policies of that individual to gain or retain business. applies even if transaction occurs completely out of the US Also applies to foreign companies who have assessed the US public capital market to become subject to SEC jurisdictions - does not outlaw routine payments regardless of their size made to government officials to expedite normal commercial transactions such as issuance of customs documents or permits inspection of goods or provision of police services

alien tort claims act

recently emerges as a potentially significant law affecting MNCs with ties to the US. such multinationals may be responsible for human rights abuses by foreign governments if the companies benefitted from those abuses

power orientation

refers to the beliefs that people in a culture hold about the appropriateness of power and authority differences in hierarchies such as business organizations

characteristics

reflects learned behavior that is transmitted from one member or a society to another - elements of culture are interrelated -because it is a learned behavior It is adaptive -culture is shared by members of the society and indeed defines the membership in the society. people who share culture are members of a society. those who don't are outside the boundaries of society

caterpillar fundamental English (CFE)

simplified condensed version of English can be taught in 30 lessons 800 words

social stratification> social mobility

social mobility is the ability of individuals to move from one stratum of society to another higher in less stratified societies low- us versus them social mobility often affects individuals attitudes and behaviors toward such factors as labor relations human capital formation risk taking and enterprenurship

hofstedes five dimensions

social orientation, power orientation, uncertainty orientation, goal orientation, time orientation

elements of culture

social structure, language, communication religion and values and attitudes

uncertainty acceptance

stimulated by change and thrive on new opportunities ambiguity is seen as a context within which an individual can grow, develop, and carve out new opportunities. more tolerant of flexible hierarchies riles and procedures. risk taking is highly values more attuned with needs of the new e commerce economy than uncertainty avoidance countries rely on stock market job mobility is higher

high context culture

the context in which conversation occurs is just as important as the words that are actual spoken and cultural clues are important in understanding what is being communicated (Arab countries and japan) higher value on interpersonal relations in deciding whether to enter into a business arrangement presence of a lawyer particularly at the initial meeting of participants would be viewed as a sign of distrust

time orientation

the extent to which members of a culture adopt a long term versus a short term outlook on work life and other aspects of society

uncertainty orientation

the feeling people have regarding uncertain and ambiguous situation

elements of culture> social structure

the overall framework that determines the roles of individuals within the society the stratification of the society and individuals mobility within the society American families view ties focus on nuclear family in other countries extended family is far more important US culture- individualism japan- serve the group

self reference criterion

the unconscious use of ones own culture to help assess new surroundings

low context culture

the words used by the speaker explicitly convey the speakers message to the listener Anglo Saxon countries (UK US German) more importance on the specific terms of a transaction

values and attitudes

values are the principles and standards accepted by the members; attitudes encompass the actions, feelings, and thoughts that result from those values. cultural values often stem from deep seated belief about the individuals position in relation to his or her deity, the family, and the social hierarchy.

age

youth in US is virtue Asian and Arab - older more knowledge

difficulties of managing CSR across borders

(corporate social responsibility) policy formulation 1- the state which passes and enforces laws 2. the market which through the process of competition 3- civil society

time

Anglo Saxon- time is money Latin American- late is okay

CHAPTER 5

CHAPTER 5

lingua franca

English has emerged as the predominant common language of international business

status

Japan- persons status depends on the status of the group that they belong to. introduce with their name and their affiliation india- caste Brahmins(priests and intellectuals) kshatriuas (soldiers and political leaders) vaishyas(business people) sudras(farmers and workers dalits (untouchables) who preform dirtiest jobs