Chapter 2

Culture

Ferdinand L. Martinez
 National Cultures as a Point of Reference

• Values - learned, and all individuals have them

- reflected in their attitudes beliefs and
actions
• Core values – so strong that they are not
negotiable
• Peripheral values – less dominant and more
pliable
**The shared values, attitudes, and beliefs of a
group constitutes a Culture
 Culture

• Elusive/difficult topic to study, partly

because people belong to multiple cultures
based on their nationality, ethnicity,
religion, gender, work organization,
profession, age, and income level.
**The nation is useful definition of society because:
1. Similarity among people is a cause and an effect of national
boundaries.
2. It is a reference people make to “we” versus “they”
**Despite using the nation as a cultural reference point
1. Not everyone therein shares the same values and attitudes
2. Subcultures exist within nations
3. Some people are bicultural or multicultural
4. Cultural similarities link groups from different countries
 The People Factor
• IB involves people from different national cultures, which
affects every business function--- managing a workforce,
marketing and transporting output, purchasing supplies,
dealing with regulators, securing funds.
**Cultural diversity can be a competitive advantage, but
managing it can be difficult.
**Cultural collision may cause ineffective business
practices and personal distress.
**Deal Focus (DF) – primary task oriented
**Relationship Focus (RF) culture – less compulsion
to wrap things up, put dealings with friends ahead of
business dealings
 Cultural Factors/Influences
Affecting IB Operation

• Cultural Awareness
• Identification and dynamics of cultures
• Behavioral practices affecting business
• Strategies for dealing with cultural differences
 Cultural Awareness

**almost everyone agrees that national culture differ, but

they disagree on what the difference are.
**problem areas that can hinder managers cultural
awareness are subconscious reactions to circumstances and
assumption that all societal subgroups are similar
• It is the understanding of the difference
between themselves and people from other
countries or other backgrounds (differences in
attitudes and values)
Short Comings of Cultural Assessment

o short coming in cultural research include

1.Erroneous responses to question
2.Relying on averages when there are variations
3.Overlooking changes (research maybe outdated
 Influences on cultural formation
and change
• Culture is transmitted in various ways—
from parent to child, teacher to pupil,
social leader to follower, peer to peer.
 Sources of Change
 Changes by Choice may occur because of social and economic
situation present people with new alternatives.
 Changes by Imposition (cultural imperialism) involves imposing
certain elements from an alien culture, such as a forced change in
laws by a dominant country that, over time, become part of the
subject culture.
Cultural diffusion contact among countries brings change
(spread of beliefs and social activities of one culture to different
ethnicities, religions, nationalities etc.)(act)
Creolization the change result in mixing cultures (mixture of
different people and different cultures that merge to become one)
(process of changing culture)
Language as both a diffuser and
stabilizer of culture
• Language is probably the most noticeable
aspect of culture because it limits contact
among people who can’t communicate with
each other.
• Many nations contains multiple languages, of
which more than one may be official.
Why English Travels So Well
• Native English language countries account for so
much of world production
• It is the world’s most important second language.
The Evolvement of Languages
• The use of English in IB may overvalue people
simply because competence
Religion as a Cultural Stabilizer
• Many strong values are the result of a dominant
religion
Major Behavioral Practices affecting
Business
• Issues on social stratification
• Work Motivation
• Relationship preferences
• Risk-taking behavior
• Information and task processing
 Issues on Social
Stratification
 Creates hierarchies and influences a person’s
class, status, and financial rewards within that
culture.
o Social stratification is determined by:
1. Individuals’ achievements and talents (meritocracy)
*businesses reward meritocracy more highly in some
societies.
2. Their group memberships.
Group Affiliations
o Ascribed Group Membership – determined by birth
(gender, family, age, caste or class, and ethnic,
racial or national)
OR
o Acquired Group Membership – based on religion,
political affiliation, educational place and
achievement and profession)
o Reflection of class and status – how you are
viewed in the society / country to country, social
connections (It’s who you know , not what you
know)
Country by country attributes vary toward
• Social connections (“it is who you know, not
what you know”)
• Race and ethnicity
• Male and female roles
• Rules and expectations based on age
• Family ties (person position depends heavily
on family’s social status)
Ethnic and Racial Groups Gender-Based Groups
• Is used as a matter of • Country-specific differences
cultural identity of a group, in equality and attitudes
often on shared ancestry, toward gender are
language and cultural sometimes quite
traditions, while race is pronounced.
applied as a
pseudoscientific grouping,
based on physical
similarities within groups.
Age-Based Groups
• All countries enforce age-
related laws such as on
employment, driving
privileges, rights to obtain
products and services and
civic duty.
Family-Based Groups
• In some cultures, such as in
much of Latin America,
family is the most important
group.
 Work Motivation

Highly motivated employees (toward work) are

normally more productive than workers aren’t.
Further, higher worker productivity impacts
companies’ efficiency and countries economic
development.
 Differences in how and why
nations differ in this motivation
 Materialism and Motivation
Individual's desire for material wealth and motivates them to work hard, which in turn
leads to community- wide economic development.

 The Productivity/Leisure Trade Off

Some cultures value leisure time more than others do. They push to work shorter
hours, take more holidays and vacations, and generally spend more time and money on
leisure activities.

 Expectation of Success and Reward

People are more eager to work if the rewards for success are high relative to failure
and there is some uncertainty of success (to be compared to somebody with equal ability.

 Success and Reward Across Borders

Performed in different countries, the same tasks come with different probabilities of
success and different rewards for success versus failure. This attitude may prevail in harsh
climates, in very poor areas, or in subcultures subject to discrimination.
Performance and Achievement

 The Masculinity and Femininity Index

Measures attitudes toward achievement. In essence, high-masculinity
individuals show admiration for success achievers, little sympathy for the
unfortunate preference to be better than others rather than on a par with them
and a money and things orientation.
A high-masculinity culture prefers to “live to work” and a high-femininity culture prefers to ”work to
live”
 Hierarchies of Needs
According to the hierarchy of needs theory of motivation, people try to fulfill
lower- level needs before moving on to higher-level ones. This theory helps in
distinguishing among employee’s reward preferences in different parts of the
world.
Hierarchy of Needs (Hierarchy of Needs Theory)
• Physiology
• food water sex satisfy
• Security Needs
• safe physical and emotional environment
• Affiliation Needs motivation

• peer acceptance diminish

• Esteem Needs
• bolstering our self through recognition, attention and
appreciation
• Self Actualization
• self fulfillment
NOTE:
• A larger portion of workers are motivated by
other means
• Compensation cannot fully explain differences
in work motivation
Relationship Preferences
 Power Distance
Is a measurement of employees preferences of interaction between
superiors and subordinates. Evidence suggests that people perform better when
these interactions fit their preferences, thus companies should consider aligning
relationship style effectively. They also prefer management styles either
autocratic ( ruling with unlimited authority) or paternalistic (regulating
subordinate conduct by supplying their needs).

 Individualism Versus Collectivism

Individualism describes a preferences to fulfill leisure time, build friendship,
and improve skills independently of the organization. Collectivism, in contrast,
typifies an employee’s penchant for dependence on the organization through
training, satisfactory workplace conditions and good benefits.
 Risk-Taking Behavior
 Four types of Risking-taking Behavior
1. Uncertainty Avoidance
Describe a trait of being uncomfortable with ambiguity. This trait is strong, most
employees prefer to follow set rules even if they believe that breaking them may be
in the company’s best interest.
2. Trust
Surveys measuring trust indicate national differences in responses to such
statements as “Most people can be trusted” and “You can’t be too careful in dealing
with people.” Trust may differ between people’s in group and others.
3. Future Orientation
Future Orientation denotes a willingness to delay gratification in order to reap
more in the future. (motivate workers through such delayed compensation programs
such as retirement)
4 Fetalism
They’re less likely to accept the basic cause- and – effect relationship between
work and reward (people believe in destiny)
 Information and Task
Processing
 Perception of Cues
Features that inform us about the nature something. We may identify
things through any of our senses, and each sense can provide information in
various way.

 Obtaining Information: Low- Context Versus High- Context Cultures

Low context cultures- ones where people generally regard as relevant
only firsthand information that bears directly on the subject hand.
High-Context Cultures- people tend to understand and regard indirect
information as pertinent.

 Information Processing
All cultures process information inasmuch as they categorize, plan, and
quantity (based on system in organizing something)

 Monochronic Versus Polychronic Cultures

Monochronic- cultures people normally prefer to work sequentially, such
as finishing transaction with one customer before dealing with other.
Polychronic- people are more comfortable when working simultaneously
on a variety of task (multi tasking).
 Idealism (wishful thinking) versus Pragmatic
(realistic/practical)
Some Cultures tend to focus first on the whole and
then on the parts, others do the opposite. Some cultures
prefer to establish overall principles before they try to
resolve small issues an approach sometimes labeled
idealism. Cultures in which people focus more on details
than on abstract principles are said to be pragmatic.
Problems in Communication
Across Cultures

 Translation of spoken and written Language

Translating one language into another is not
straightforward as it seem. (cross border
communication do not always translate as
intended)
 Silent Language

Silent Language
We constantly exchange messages
through a host of nonspoken and
nonwritten cues that from silent language.
Colors
Colors invoke distinct connotations in different
countries, such as being lucky or unlucky or being
associated with a specific business.

Distance
When conducting business with each other may find
themselves constantly moving to maintain their
accustomed distance and body contact.
Time and Punctuality
Different perceptions of time and punctuality also may
create confusion.

Body Language
Body language or kinesics, is the way people walk , touch,
and move their bodies.

Prestige
Another factor in silent language relates to a person’s
status, particularly in an organization setting.
 Guidelines for Cultural
Adjustment
1. The extent to which a culture is willing to
accept the introduction of anything foreign
2. whether key cultural differences are small or
great
3. the ability of individuals to adjust to what
they find in foreign cultures
4. the general management orientation of the
company involved
 Hot Society Acceptance
Host culture do not always expect foreigners to adjust to
them.

Degree of Cultural Differences

(when doing business in a similar culture, companies usually
have to make fewer adjustments and they may overlook
subtle/not obvious differences)
 Cultural Distance
the average number of countries they are apart on the
dimensions their cultural distance, which is the average
number of countries they are apart on the dimensions.
Hidden Cultural Attitudes
Even if the home and host countries have
seemingly similar cultures, people in the
host country may reject the influx of foreign
practices because they see them as
additional steps that threaten their self-
identities.
 Ability to Adjust

Culture Shock
The frustration that results from having
to absorb a vast array of new cultural cues
and expectation.
 Company and Management
Orientations
 Polycentrium
A polycentric organization believes it should act
abroad like companies there.
 Ethnocentrism
Ethnocentrism reflects the conviction that one’s
own practices are superior to those of other
countries.
 Geocentrism
Integrates home and host country practices as
well as introducing some entirely new ones.
Strategies for Instituting
Change
• Value System
• Resistance to too much change
• Participation
• Reward Sharing
• Opinion leadership
• Biculturals as mediators
• Timing
• Learning abroad
Classification of Cultural Differences

CONTEXT APPROACH
• Low context cultures – communication style
that relies heavily on explicit and direct
language (North American and Western
European)
• High context cultures – communication relies
heavily on unspoken conditions or
assumptions which are as important as the
words used (Arab and Asian countries)
 INTERCULTURAL
COMMUNICATIONS
HIGH CONTEXT CULTURES LOW CONTEXT CULTURES
• -relies on implicit • relies on explicit
communication and non communication, more
verbal cues information in a message is
spelled out and defined
 INTERCULTURAL
COMMUNICATIONS
HIGH CONTEXT CULTURES
ASSOCIATION
• Relationship build slowly
and depends on trust.
• Individual identity is rooted
in groups (family, culture,
work).
• Social structure and
authority are centralized.
LOW CONTEXT CULTURES
ASSOCIATION
• Relationship begin and end
quickly.
• Identity of individuals is
rooted in themselves and
their accomplishments
• Productivity depends on
procedures and paying
attention to the goals.
• Social structure is
decentralized.
 INTERCULTURAL
COMMUNICATIONS
HIGH CONTEXT CULTURES
INTERACTION
• Non verbal elements such as
voice tone, gestures, facial
expression and eye movement
are significant.
• Verbal messages are indirect, and
communication is seen as an art
form or way of engaging
someone.
• Disagreement is personalized,
and a person is sensitive to
conflict expressed in someone
else’s non verbal communication.
LOW CONTEXT CULTURES
INTERACTION
• Non verbal elements are not
significant.
• Verbal message are explicit &
communication is seen as a way
of exchanging information, ideas
and opinions.
• Disagreement is depersonalized;
focus on rationale solution.
• An individual can be explicit
about another person’s
bothersome behavior.
 INTERCULTURAL
COMMUNICATIONS
HIGH CONTEXT CULTURES
TERRITORIALITY
• Space is communal
• People stand close to each
other and share the same
space.
LOW CONTEXT CULTURES
TERRITORIALITY
• Space is compartmentalized
• Privacy is important, so
people stand farther apart.
 INTERCULTURAL
COMMUNICATIONS
HIGH CONTEXT CULTURES
TEMPORALITY
• Everything has its own time,
and time is not easily
scheduled.
• Change is slow, and time is a
process that belongs to
others and nature.
LOW CONTEXT CULTURES
TEMPORALITY
• Events and tasks are
scheduled and to be done
at particular times.
• Change is fast, and time is a
commodity to be spent or
saved.
• One’s time is one’s
 INTERCULTURAL
COMMUNICATIONS
HIGH CONTEXT CULTURES LOW CONTEXT CULTURES
LEARNINGS LEARNINGS
• Multiple sources of • One source of information is
information are used. used.
• Thinking proceeds from • Thinking proceeds from
general to specific. specific to general.
• Learning occurs by • Learnings occurs by
observing others as they following the explicit
model or demonstrate and directions and explanations
then practicing. of others.
• Groups are preferred, and • Individual orientation, and
accuracy is valued. speed is valued.
 INTERCULTURAL
COMMUNICATIONS
HIGH CONTEXT CULTURES LOW CONTEXT CULTURES
COUNTRIES: COUNTRIES
Asian United States
African Australia
Arab Western Europe (Austria,
Central European (Poland, Belgium, Croatia, Denmark,
Czech Republic, Slovakia & Finland, France, Germany,
Hungary) Estonia)
Latin America (Colombia, Costa Canada
Rica, Ecuador, El Salvador, United Kingdom
Mexico, Peru, etc)
Japan