LU4 Perception, Interpretations, and Attitudes across culture.ppt

Editor's Notes

• #4: Greeting ceremonies are a deeply embedded cultural marker and have evolved over many centuries. They specify such behaviors as whether to shake hands, what to say, and how far apart to stand. These cultural conventions may vary as a function of the age, gender, or status of the greeters. In China, friends express thoughtfulness by asking each other whether they have had their meal yet. In Turkey, a typical greeting is “What is new with you?” The Japanese, who follow elaborate greeting and parting rituals, routinely apologize to the other party just before ending a telephone conversation. Unlike political, legal, and economic systems, culture has proven difficult to identify and analyze, but its effects on international business, as well as on interpersonal exchange, are profound and broad. Its effect on value-chain activities, such as product and service design, marketing, and sales, is substantial. Managers must design products and packaging with culture in mind, even regarding color. While red may be beautiful to the Russians, it symbolizes mourning in South Africa. Items such as pens are universally acceptable as business gifts, but chrysanthemums are often associated with funerals and handkerchiefs may suggest sadness. In some cultures knives or scissors imply cutting off the relationship or other negative sentiments. Companies want their employees to learn about other cultures and become cross culturally proficient. In California’s Silicon Valley, where many IT firms are concentrated, Intel offers a staff seminar called “Working with India” to help employees work more effectively with the estimated 300,000 Indian nationals in the valley. Several other Silicon Valley firms offer similar training. Another computer firm, AMD, flies IT workers from India to its facilities in Texas for a month of cultural training with U.S. managers. Workers role-play and study subjects like Indian movies, political history, and the differences between Hinduism and other Indian religions. Training includes lessons on assigning work (Indian workers often agree to aggressive timelines but may not inform a manager when falling behind, so managers should make sure timelines are reasonable), preparing food (to help those who practice Jainism, company cafeterias should clearly distinguish vegan from vegetarian food), and socializing (since it’s polite to initially decline an invitation to a colleague’s home, managers should offer more than once).
• #5: ■ Not right or wrong. Culture is relative; there is no cultural absolute. People of different nationalities simply perceive the world differently. Each culture has its own notions of acceptable and unacceptable behavior. For instance, in some Islamic cultures, a wife cannot divorce her husband. In many countries, nudity is entirely acceptable on TV. In Japan and Turkey, wearing shoes in the home is taboo. ■ Not about individual behavior. Culture is about groups. It refers to a collective phenomenon of shared values and meanings. Thus, while culture defines the collective behavior of each society, individuals often behave differently. For example, in most countries, men wear their hair short. But a few mavericks have very long hair and stand out among their peers. In numerous countries, some men wear makeup. But such behavior does not represent the cultural values of the larger population. ■ Not inherited. Culture is derived from the social environment. People are not born with a shared set of values and attitudes. Children gradually acquire specific ways of thinking and behaving as they are raised in a society. For example, in the United States, children usually acquire values of individualism and Christianity. But in China, children learn to depend on family members and acquire values based on Confucianism. Culture is passed from generation to generation by parents, teachers, mentors, peers, and leaders. Modern methods of communication, including transnational media, play an enormous role in transmitting culture.
• #6: ■ Not right or wrong. Culture is relative; there is no cultural absolute. People of different nationalities simply perceive the world differently. Each culture has its own notions of acceptable and unacceptable behavior. For instance, in some Islamic cultures, a wife cannot divorce her husband. In many countries, nudity is entirely acceptable on TV. In Japan and Turkey, wearing shoes in the home is taboo. ■ Not about individual behavior. Culture is about groups. It refers to a collective phenomenon of shared values and meanings. Thus, while culture defines the collective behavior of each society, individuals often behave differently. For example, in most countries, men wear their hair short. But a few mavericks have very long hair and stand out among their peers. In numerous countries, some men wear makeup. But such behavior does not represent the cultural values of the larger population. ■ Not inherited. Culture is derived from the social environment. People are not born with a shared set of values and attitudes. Children gradually acquire specific ways of thinking and behaving as they are raised in a society. For example, in the United States, children usually acquire values of individualism and Christianity. But in China, children learn to depend on family members and acquire values based on Confucianism. Culture is passed from generation to generation by parents, teachers, mentors, peers, and leaders. Modern methods of communication, including transnational media, play an enormous role in transmitting culture.
• #8: Values represent a person’s judgments about what is good or bad, acceptable or unacceptable, important or unimportant, and normal or abnormal. Our values guide the development of our attitudes and preferences. Attitudes are similar to opinions but are often unconsciously held and may not have a rational basis. Prejudices are rigidly held attitudes, usually unfavorable and usually aimed at particular groups of people. Typical values in North America, northern Europe, and Japan include hard work, punctuality, and the acquisition of wealth. People from such countries may misjudge those from developing economies who may not embrace such values.
• #9: Manners and customs are ways of behaving and conducting oneself in public and business situations. Some countries are characterized by egalitarian, informal cultures, in which people are equal and work together cooperatively. In other countries people are more formal, and status, hierarchy, power, and respect are important. Customs that vary most worldwide are those related to eating habits and mealtimes, work hours and holidays, drinking and toasting, appropriate behavior at social gatherings, gift giving, and the role of women. Handshaking varies across the world: limp handshakes, firm handshakes, elbow-grasping handshakes, and no handshake at all. In much of the world, people greet by kissing each other on both cheeks. In some countries it is appropriate to kiss the other’s hand. In Southeast Asia, greeting involves placing the palms together in front of the chest, as in praying. In Japan, bowing is the norm. Gift giving is a complex ritual in much of the world. It is ingrained in Japanese culture, where it is usually a blunder to not offer a gift in initial meetings. The Middle East is characterized by generous gift giving.
• #10: Time dictates expectations about planning, scheduling, profit streams, and promptness, or what constitutes lateness in arriving for work and meetings. Japanese managers tend to prepare strategic plans for extended periods, such as a decade. The planning horizon for Western companies is much shorter, typically a few years. Some societies are more oriented to the past, others to the present, and still others to the future. Young countries like Australia, Canada, and the United States are relatively focused on the present. They can be characterized as having a monochronic orientation to time—a rigid orientation in which the individual is focused on schedules, punctuality, and time as a resource. People in these cultures view time as linear, like a river flowing into the future, carrying workers from one activity to the next. In such cultures, where people are highly focused on the clock, managers make commitments, set deadlines, and adhere to a strict schedule of meetings and activities. Punctuality is a virtue and time is money. Throughout the day, workers glance at their watches, their computer’s clock, or the clock on the wall. Investors are impatient and want quick returns. Managers have a relatively short-term perspective when it comes to investments and making money; performance is measured on a quarterly basis. In this way, people in the United States have acquired a reputation for being hurried and impatient. Indeed, the word business was originally spelled busyness. Some cultures have a polychronic perspective on time. In such societies, instead of performing single tasks serially, people are inclined to do many things at once. In this way, members of polychronic cultures are easily distracted. They can change plans often and easily, and long delays are sometimes needed before taking action. Punctuality per se is relatively unimportant, and managers consider time commitments flexible. They do not adhere strictly to the clock and schedules. They put more value on relationships and spending time with people. Chinese and Japanese firms are future-oriented, focusing not on how the firm will perform next quarter, but on how it will perform a decade from now. Large Japanese firms offer lifetime employment and invest heavily in employee training, expecting workers to remain with the firm for 30 or 30 years. Latin Americans similarly have a flexible perception of time and are more inclined to arrive late for appointments than people from other cultures. In the Middle East, strict Muslims view destiny as the will of God (“Inshallah” or “God willing” is a frequently used phrase) and downplay the importance of future planning. They perceive appointments as relatively vague future obligations.
• #14: An idiom is an expression whose symbolic meaning is different from its literal meaning. It is a phrase you cannot understand by knowing only what the individual words in the phrase mean. For example, “to roll out the red carpet” is to extravagantly welcome a guest—no red carpet is actually used. The phrase is misunderstood when interpreted in a literal way. In Spanish, the idiom “no está el horno para bolos” literally means “the oven isn’t ready for bread rolls.” But the phrase is understood as “the time isn’t right.” In Japanese, the phrase “uma ga au” literally means “our horses meet,” but the everyday meaning is “we get along with each other.” Idioms exist in virtually every culture, and people often use them as a short way to express a larger concept. Managers can study national idioms to gain a better understanding of cultural values.
• #16: Almost every culture is underpinned by religious beliefs. Religion influences culture, and therefore business and consumer behavior, in various ways. Protestantism emphasizes hard work, individual achievement, and a sense that people can control their environment. The Protestant work ethic provided some of the basis for the development of capitalism. In fundamentalist Islamic countries, Islam is the basis for government and legal systems as well as social and cultural order. Because people raised in Islamic cultures perceive God’s will as the source of all outcomes, Muslims may be fatalistic and reactive. Islam’s holy book, the Qur’an, prohibits drinking alcohol, gambling, usury, and immodest exposure. These prohibitions affect firms that deal in alcoholic beverages, resorts, entertainment, and women’s clothing, as well as ad agencies and banks and other institutions that lend money. A growing number of businesses are reaching out to Muslim communities. Nokia launched a mobile phone that shows Muslims the direction toward Mecca, Islam’s holiest site, when they pray. Heineken, the Dutch brewing giant, rolled out the nonalcoholic malt drink Fayrouz for the Islamic market.
• #19: American football is a cultural metaphor for traditions in the United States, such as being a team player and having a strong leader who moves an organization aggressively toward a desired goal. The Swedish stuga (cottage or summer home) is a cultural metaphor for Swedes’ love of nature and desire for individualism through self-development. Other examples of cultural metaphors include the Japanese garden (tranquility), the Turkish coffeehouse (social interaction), the Israeli kibbutz (community), and the Spanish bullfight (ritual). The Brazilian concept of jeito or jeitinho Brasileiro refers to an ability to cope with the challenges of daily life through creative problem solving or manipulating the arduous bureaucracy of the country. In the Brazilian context, manipulation, smooth talking, and patronage are not necessarily viewed negatively, because individuals have to resort to these methods to conduct business.
• #20: American football is a cultural metaphor for traditions in the United States, such as being a team player and having a strong leader who moves an organization aggressively toward a desired goal. The Swedish stuga (cottage or summer home) is a cultural metaphor for Swedes’ love of nature and desire for individualism through self-development. Other examples of cultural metaphors include the Japanese garden (tranquility), the Turkish coffeehouse (social interaction), the Israeli kibbutz (community), and the Spanish bullfight (ritual). The Brazilian concept of jeito or jeitinho Brasileiro refers to an ability to cope with the challenges of daily life through creative problem solving or manipulating the arduous bureaucracy of the country. In the Brazilian context, manipulation, smooth talking, and patronage are not necessarily viewed negatively, because individuals have to resort to these methods to conduct business.
• #21: Renowned anthropologist Edward T. Hall made a distinction between cultures he characterized as “low context” and “high context.” Low-context cultures rely on elaborate verbal explanations, putting great emphasis on spoken words. The low-context countries tend to be in northern Europe and North America, which have long traditions of rhetoric, placing central importance on delivering verbal messages. The primary function of speech in such cultures is to express ideas and thoughts clearly, logically, and convincingly. Communication is direct and explicit, and meaning is straightforward. For example, in negotiations Americans typically come to the point and do not beat around the bush. Low-context cultures tend to value expertise and performance and conduct negotiations as efficiently as possible. These cultures use specific, legalistic contracts to conclude agreements. By contrast, high-context cultures such as Japan and China emphasize nonverbal messages and view communication as a means to promote smooth, harmonious relationships. They prefer an indirect and polite face-saving style that emphasizes a mutual sense of care and respect for others. They are on guard not to embarrass or offend others. This helps explain why Japanese people hesitate to say “no” when expressing disagreement. They are more likely to say “it is different,” an ambiguous response. In East Asian cultures, showing impatience, frustration, irritation, or anger disrupts harmony and is considered rude and offensive. Asians tend to be soft-spoken, and people typically are sensitive to context and nonverbal cues (body language). At a business luncheon in Tokyo, for example, the boss is almost always the senior-looking individual seated farthest from the entrance to the room, because in Japan, superiors are given such favored seating to show respect. To succeed in Asian cultures, it is critical to have a keen eye for nonverbal signs and body language. Negotiations tend to be slow and ritualistic, and agreement is founded on trust. Hall’s work gained renewed importance because of the explosion of business between Asia and elsewhere.
• #23: Individualism versus collectivism refers to whether a person functions primarily as an individual or as part of a group. In individualistic societies, ties among people are relatively loose, and each person tends to focus on his or her own self-interest. These societies prefer individualism over group conformity. Competition for resources is the norm, and those who compete best are rewarded financially. Australia, Canada, the United Kingdom, and the United States tend to be strongly individualistic societies. In collectivist societies, by contrast, ties among individuals are more important than individualism. Business is conducted in the context of a group in which others’ views are strongly considered. The group is all-important, as life is fundamentally a cooperative experience. Conformity and compromise help maintain group harmony. China, Panama, and South Korea are examples of strongly collectivist societies.
• #24: Power distance describes how a society deals with the inequalities in power that exist among people. In societies with low power distance, the gaps between the powerful and weak are minimal. In Denmark and Sweden, for example, governments institute tax and social welfare systems that ensure their nationals are relatively equal in terms of income and power. The United States also scores relatively low on power distance. Societies characterized by high power distance are relatively indifferent to inequalities and allow them to grow over time. There are substantial gaps between the powerful and the weak. Guatemala, Malaysia, the Philippines, and several Middle East countries are examples of countries that exhibit high power distance. The Apply Your Understanding exercise at the end of this chapter illustrates high power distance with an Ethical Dilemma on the relationship between an executive and a maid in Colombia. Social stratification affects power distance. In Japan, almost everybody belongs to the middle class, while in India the upper stratum controls most of the decision making and buying power. In companies, the degree of centralization of authority and autocratic leadership determines power distance. In high power-distance firms, autocratic management styles focus power at the top and grant little autonomy to lower-level employees. In low power-distance firms, managers and subordinates are relatively equal and cooperate to achieve organizational goals.
• #25: Uncertainty avoidance refers to the extent to which people can tolerate risk and uncertainty in their lives. People in societies with high uncertainty avoidance create institutions that minimize risk and ensure financial security. Companies emphasize stable careers and produce many rules to regulate worker actions and minimize ambiguity. Managers may be slow to make decisions as they investigate the nature and potential outcomes of several options. Belgium, France, and Japan are countries that score high on uncertainty avoidance. Societies that score low on uncertainty avoidance socialize their members to accept and become accustomed to uncertainty. Managers are entrepreneurial and relatively comfortable taking risks, and they make decisions relatively quickly. People accept each day as it comes and take their jobs in stride because they are less concerned about ensuring their future. They tend to tolerate behavior and opinions different from their own because they do not feel threatened by them. India, Ireland, Jamaica, and the United States are leading examples of countries with low uncertainty avoidance.
• #26: Masculinity versus femininity refers to a society’s orientation based on traditional male and female values. Masculine cultures tend to value competitiveness, assertiveness, ambition, and the accumulation of wealth. They are characterized by men and women who are assertive and focused on career and earning money and may care little for others. Typical examples include Australia and Japan. The United States is a moderately masculine society. Hispanic cultures are relatively masculine and display a zest for action, daring, and competitiveness. In business, the masculinity dimension manifests as self-confidence, proactiveness, and leadership. Conversely, in feminine cultures, such as the Scandinavian countries, both men and women emphasize nurturing roles, interdependence among people, and caring for less fortunate people. Welfare systems are highly developed and education is subsidized.
• #27: The Hofstede framework suffers from some limitations. First, the study is The four dimensions of cultural orientation that Hofstede proposed have been widely accepted. They provide a tool to interpret cultural differences and a foundation for classifying countries. Yet, the Hofstede framework suffers from some limitations. First, the study is based on data collected from 1968 to 1972. Much has changed since then, including successive phases of globalization, widespread exposure to transnational media, technological advances, and changes in the role of women in the workforce. The framework fails to account for the convergence of cultural values that has occurred during the last several decades. Second, Hofstede’s findings are based on the employees of a single company—IBM—in a single industry, making it difficult to generalize. Third, the data were collected using questionnaires, which is not effective for probing some of the deep issues that surround culture. Finally, Hofstede did not capture all potential dimensions of culture. Partly in response to this last criticism, Hofstede eventually added a fifth dimension to his framework: long-term versus short-term orientation. This refers to the degree to which people and organizations defer gratification to achieve long-term success. That is, firms and people in cultures with a long-term orientation tend to take the long view to planning and living. They focus on years and decades. The long-term dimension is best illustrated by the so-called Asian values—traditional cultural orientations of several Asian societies, including China, Japan, and Singapore. These values are partly based on the teachings of the Chinese philosopher Confucius, who lived about 2,500 years ago. Scholars credit such values for the East Asian miracle, the remarkable economic growth and modernization of East Asian nations during the last several decades. By contrast, the United States and most other Western countries emphasize a short-term orientation. The Hofstede framework should be viewed as only a general guide, useful for a deeper understanding in cross-national interactions with business partners, customers, and value-chain members.
• #28: In deal-oriented cultures, managers focus on the task at hand and prefer getting down to business. At the extreme, such managers may even avoid small talk and other preliminaries. They prefer to seal agreements with a legalistic contract, and take an impersonal approach to settling disputes. Leading examples of deal-oriented cultures include those of Australia, northern Europe, and North America. By contrast, in relationship-oriented cultures, managers put more value on affiliations with people. To these managers, it is important to build trust and rapport and get to know the other party in business interactions. For example, it took nine years for Volkswagen to negotiate the opening of a car factory in China, a strongly relationship-oriented society. For the Chinese, Japanese, and many in Latin America, relationships are more important than the deal. Trust is valued in business agreements. In China, the concept of guanxi (literally “connections”) is deeply rooted in ancient Confucian philosophy, which values social hierarchy and reciprocal obligations. It stresses the importance of relationships within the family and between superiors and subordinates.
• #29: Cross-cultural risk is exacerbated by ethnocentric orientation— using our own culture as the standard for judging other cultures. Most of us are raised in a single culture; we have a tendency to view the world primarily from our own perspective. Ethnocentric tendencies are widespread and entail the belief that one’s own race, religion, or ethnic group is somehow superior to others. Polycentric orientation refers to a host-country mind-set in which the manager develops a strong affinity with the country in which she or he conducts business. Geocentric orientation refers to a global mind-set in which the manager is able to understand a business or market without regard to country boundaries. Geocentric tendencies are like a cognitive orientation that combines an openness to, and awareness of, diversity across cultures. Managers with a geocentric orientation make a deliberate effort to develop skills for successful social behavior with members of other cultures. They adopt new ways of thinking, learn to analyze cultures, and avoid the temptation to judge different behavior as somehow inferior.
• #30: Successful managers acquire a base of knowledge about the values, attitudes, and lifestyles of the cultures with which they interact. Managers study the political and economic background of target countries—their history, current national affairs, and perceptions about other cultures. Such knowledge facilitates understanding about the partner’s mind-set, organization, and objectives. Decisions and events become substantially easier to interpret. Sincere interest in the target culture helps establish trust and respect, laying the foundation for open and productive relationships. Even modest attempts to speak the local language are welcome. Higher levels of language proficiency pave the way for acquiring competitive advantages. In the long run, managers who can converse in multiple languages are more likely to negotiate successfully and have positive business interactions. Problems arise when managers make ethnocentric assumptions that foreigners think and behave just like the folks back home. Ethnocentric assumptions lead to poor business strategies in both planning and execution. Managers new to international business can find the behavior of a foreigner odd and perhaps improper. For example, it is easy to be offended when a foreign counterpart does not appreciate our food, history, entertainment, or everyday traditions. In this way, cultural bias can be a significant barrier to successful interpersonal communication. Working effectively with counterparts from other cultures requires you to make an investment in your professional development. Each culture has its own ways of conducting business transactions, negotiations, and dispute resolution. You’re exposed to high levels of ambiguity regarding concepts and relationships that can be understood in a variety of ways. To be successful in international business, you should strive for cross-cultural proficiency.
• #31: A person’s own culture conditions how he or she reacts to different values, behavior, or systems, so most people unconsciously assume those in other countries experience the world as they do. They view their own culture as the norm; everything else may seem strange. This is known as the self-reference criterion—the tendency to view other cultures through the lens of our own culture. Understanding the self-reference criterion is a critical first step to avoiding cultural bias and ethnocentric reactions. Critical incident analysis (CIA) is a method that managers use to analyze awkward situations in cross-cultural encounters. CIA encourages a more effective approach to cultural differences by helping managers develop objectivity and empathy for other points of view.
• #32: Cross-cultural proficiency is characterized by four key personality traits: ■ Tolerance for ambiguity—the ability to tolerate uncertainty and apparent lack of clarity in the thinking and actions of others. Perceptiveness—the ability to closely observe and appreciate subtle information in the speech and behavior of others. ■ Valuing personal relationships—the ability to recognize the importance of interpersonal relationships, which is often much more important than achieving one-time goals or winning arguments. ■ Flexibility and adaptability—the ability to be creative in devising innovative solutions, to be open-minded about outcomes, and to show grace under pressure.