Cultural concepts and variables:1.

Why Cultural Issues are critical for business List 5 cultural concepts family system. What are implications on business organization including behavioral dynamics? 2. Cultural concepts:A. Protestant work ethics B. Family structure, joint family vs. nuclear family C. Individualism vs. group orientations D. Ascription vs. achievement E. Work motives and importance of occupation F. Concept of trust G. Proxemics & Kinesics

Theoretical framework
3. Dimensions of Kluckhon and Strodtbeck: A. Time orientation B. Activity orientation C. Human relationship with nature. (2) D. Interrelationship between human. 4. Sitaram and Codgdell relative importance of values. 5. Allport, Vernon and Lidzey Individual values. Hofstede dimensions:6. Hofstede Hermes study define its four original dimensions and enumerate five business relevance. FonTrompenaars dimensions:Individualism and collectivism Universalism and Particularism

7. Human resource management issue:A. Compensation B. Training // (Training for international positions) C. Recruitment and offshore job post. // Staffing models (ethnocentrism) & international recruitment.

8. Define A. B. C. D. 9. 10. 11. 12. 13. 14. 15.

Universalism vs. Particulaism of FonsTrompenaars Cultural shock (2) & entry reentry adjustments Dilemma between ethics, law and profit for a business entity. Implications of high context low context communication style in the international negotiations. (Edward Hall) culture concept (3) Ethics is related to morality than with legal system. Morality is contextual different interpretation in different culture. So ethics in international business is misnomer. Expat manager 4 critical factors. Length of stay, job novelty, cultural novelty and degree of interactions with locals. Protestant work ethics. Modern religion more economic prosperity. Eastern cultural concept fatalism or karma have reflection in West locus of control. Silence language in international business. India is ascription oriented society. But in business we tend to be achievement oriented. Joint family oriented society have pyramid type hierarchy. Centralize decision making and less market diversity and less occupational mobility.

Class notes:-

Culture and social milieu

Manifestations Value, Belief, Attitude, Family type, Space orientations, Lifestyle, Proxemics, Kinesics Haptic, Chemonices Languages Behaviors, Fatalism Social manifestations Communications, Etiquette Artifacts Religion

Effect Stereotypes, Individual Equality, Hierarchy of occupation, Stratifications Aspirations Best jobs Organizations structure Relations Work ethics, values Decision making Ascription Individualistic vs group orientations Trust negotiation, delegations, interpersonal relations Work motives motivation, economic gains Management style Communication content and context. Silent language Fatalism attribution of success and failure Time management Punctuality and polychromic Space privacy. Official status Attitude towards profit / business Market dynamics

CONCEPTUAL FRAMEWORK:I CULTURAL UNIVERSAL GEORGE MUNDOCK - 81 VAIABLES - GREETING ETC II KLUCKHON AND STRODTBECK Related with nature Master, worship Time orientation past decisions, future orientation Basic human nature all are necessary good and evil Activity orientations ideas addition, write article, control Concept of space private, public and mix Human relationship individual, group status, hierarchy

A. B. C. D. E. F.

III ALL PORT, VERNON AND LINDEY - VALUE Six dimension to human being What value predominant over time Theoretical, Economic, Aesthetic, Social, Political, Religious, Spiritual

IV SITARAM & COGDELL VALUE PRIORITIES 5 possible groups- Black, East, West, Africa, Islam East is karma oriented, Gratitude; West is aggressive

Hofstede Dimensions:-

Power
High India, Malaysia

Distance
Effect on politics, Govt., Labor Union, Social mobility, Social change, Learning, Delegation, Organization structure, Wage difference, Management style PD refers to degree of inequality that exists and is accepted among the people with and without power. High PD means society accepts an unequal distribution of power and people understands their place in system. Low PD means that power is shared and well dispersed. This also means that the society members view themselves as equal. Centralized companies, Strong hierarchies, Large gaps in compensation, authority and respect. TIPS: Acknowledge a leaders power. Be aware you need to go Top for answers. Flatter organizations, Supervisor and employees are considered equals. TIPS: Use teamwork. Involve as many as people for decision making.

Hi PD Lo PD

Collectivism
Central America Panama Guatemala Hi IDV

Individualism (IDV)
Effect on Political power, press freedom, Income equality, Labor union, Occupational mobility, Work, Ethics, Time usage, Joint family, We, Security, Social network IDV refers to strength of ties people have to others within the community. This indicates loose connection between people. Little sharing of responsibility between people beyond family & few close friends. High valuation on people time & need for freedom Respect privacy. Enjoy challenges and expectation for reward for hardwork. Tips: Acknowledge accomplishment. Dont ask for too much personal information. Encourage debate and expression of own idea. Strong group cohesion, large loyalty & people take more responsibility of well-being of each other. Emphasis on team building skills, work for intrinsic rewards, Harmony more important than honesty. Tips: Shows respect for age and wisdom. Suppress feelings and emotions to work in harmony. Respect tradition and introduce change slowly.

Lo IDV

Masculinity
High Japan Size of company, career priorities, Conflict resolution, Notion of gender, religious affinity, Family structure, Materialism, School Priority, Performance, Job gender, segregation This refers to how much society sticks to traditional male and female roles. Men expected to be tough. Dont expect women managers. People are strong and assertive. Defined distinction between men and women work Roles are blurred. Men & women work equally. Tips: Ensure no gender discrimination. Equal treatment.

Hi MAS JAPAN Lo MAS Sweden

Uncertainty
High Japan, Germany Low Britain Hi UA

avoidance
Size of company, Political structure, Dependency on government, Tolerance to dissent, Managers age, Specialist, Theoretical knowledge, Notion of stress, Aggressiveness, Generation gaps, Fear of failure, Older democracy style This relates to degree of anxiety society members feel in uncertain situations. They are governs by laws and seek collective truth. Formal business conduct with lot of rules and policies. Need and expect structure. Tips: Be clear and concise about your expectations. Express your emotions through hands and gesture. Few rules and people find truth themselves Informal business attitude. More concern with long term strategy than with daily basis. Accept change and risk. Low uncertainty avoidance cultures accept and feel comfortable in unstructured situations or changeable environments and try to have as few rules as possible. Tips: Do not impose rules and structure unnecessarily. Minimize your emotional response.

Lo UA

Long term orientation

Confucius dynamism, Hierarchy of relationships, Family as prototype of all organization, Knowledge, Order, Hardwork, Thrift, Perseverance, Harmony, Patriotism, Face saving, Respect tradition, True friendship, Optimism Refers to how much society values long standing as compared to short term.

Indulgence vs. restraints

Control over life, importance to leisure, thriftiness, discipline, personality, optimism, effect on CVD, Birth rate, Decision, Social network, Gender role, smiling suspected.

FIVE TYPES OF RELATIONSHIPS IN CHINA:1. Father son 2. Teacher student 3. Master servant 4. Elder younger brother Competitive Advantage of different cultural profiles in international competition:-

POWER DISTANCE UNCERTANITY AVOIDANCE COLLECTIVISM Feminity

SMALL Acceptance of responsibility Good in innovation Employee commitment high Personal service, Custom made product, agriculture,

LARGER More discipline Precision Management mobility high for individualistic society More discipline

Short coming of Hofstede models:1. Biased sample IBM employees only participated in survey. All do not represent national culture. Sample size and matching is key. 2. Instruments: Proper language translations, equivalence of scaling, 3. Administration Research setting, stimuli, Biased

Tons Trompenaars Dimensions:Universalism/ Particularism Individualism/ Collectivisms Neutral / emotional Specific/ Diffuse Achievement/ Ascription Synchronic/ Sequential External- Internal What is more important, rules or relationships? Do we function in a group or as individuals? Do we display our emotions? Express disagreements openly. How separate we keep our private and working lives?

Do we have to prove ourselves to receive status or is it given to us?

Respect expertise & pay for performance. Age & gender is no bar. Do we do things one at a time or several things at once? Locus of control. Do we control our environment or are we controlled by it? Universalism: Belief that ideas and practice can be applied anywhere in the world without modification. More focus on formal rules. Particularism: Belief that circumstances governs if ideas and practice can be applied everywhere. This focus on relationships Specific: Culture in which people have larger public space which they readily share with others and smaller private space which they guard closely. So these groups maintain separate private and public life, People are open & extrovert. Diffuse: Culture in which public and private life space is equal. People are introvert & close.

Cross culture research

1. 2. 3. 4. 5. Ethnocentric Polycentric Comparative Geocentric Synergistic Home theories X,Y, Z Management style different Front/ top loader machine Culture specific pattern Hofstede

Ethics in international businesses

Conventional wisdom Sources of ethical norms of an individual Sources of ethical norms of a corporate entity PROFIT/ LAW/ ETHICS

Theory of ethics& ethics in international business:-

Unilateralism Rights Justice Egoism

Only ends matter. Employment not child rights Legal (Law Kasab case), Moral (ND Tiwari case), Positive (Friend harness u help), Negative rights (Private matter) Fair for all (Luxury tax) Whats for me Ethical absolutism vs. relativism PCN (parent country national, Home country national and third country national.

HR in international business:-

Recruitment
Effect of ascription and achievement Meaning of equal opportunity Restriction on expat Question on personal information Interpretation and importance of value, personality, attitude and aspiration Interpretation of nonverbal cues.

Expat assignment
Culture shock Culture novelty Degree of interface Job novelty Length of stay Stages of culture shock Re-entry Brownouts Expat failure 4-stages of culture shock

0-6 months; 1 year; 3 years; Ineffective completion. Brownout vs. Expat failure Not to complete assignment

Expat compensation parity Cross culture training CCT Issues

Evaluation Immersion approach, orientation 1. Approach to tip of ice berg Ethnocentric training, Content delivery, Learning style, Learning climate, Respect to trainer, Ceremonies Indian training example based, lot of case studies

Performance evaluation
Evaluation Definition of performance, objective of the system Standardization vs. localization Methodology (person vs. issues) Basis of determination Parity Comparability Competitiveness Internal and external Relative cost of local vs. expat vs. outsourced

Compensation benefits

Labor relations
Cost of labor Degree of unionization Union management relations-conflict-trust-power Degree of state interface political ideology International pressure groups Labor conditions

Communication and
Verbal

Negotiation
Hall and Hall High-low context/ content Direct indirect : Richard lewis 1. Linear active 2. Reactive & 3. Multi active Formal Informal Proxemics, Kinesics, Haptic Chemonics, Clothing, Appearance, Posture (slouch), Head, hand & eye movement. Facial expressions. Sound (laugh), Way of talking (introvert)

Non verbal

Negotiation
Form of agreement Negotiation tactics Ploys Persuade, Concede Legal, Specific, Onboard, Threat, Promise, questions, interrupt, disclose, offer, warn, appeal, Stall, escalate, good guys, bad guys, we are poor, friends, silence, no, Sensitivity of time Team or loner Use of interpreter

Proxemics Public space Social space Personal space Intimate space

Given by Edward Hall, it is subcategory of nonverbal communication; it is defined as the study of spatial distance between individuals in different cultures. : 12 to 25 feet: For embracing, touching or whispering. : 4 to 10 feet: For interactions among acquaintances. : 2 to 4 feet: For interactions among good friends or family members. : Upto 1 foot: For embracing, touching or whispering. Personal territory can be vary based on the culture. Saudi Arabia: Maintain close distance. Appear to be pushy. Netherland: You would be going chasing them, as their personal space is equal to our social space. USA: In public transport, people try to maintain gap even with their elbows and knees & dont even look each other. In japan which is very cramp country, in train people share seats till they are packed together tight.

Chronemics

It is study of time in nonverbal communication. The way that an individual would perceive and value time, structure our time and react to time is a powerful communication tool, and helps set the stage for the communication process. Time perceptions include punctuality, willingness to wait, and interactions. It means that one thing is done at a time and time is segmented into precise, small units. Under this system time is scheduled, arranged and managed. Examples: United States, Germany, the United Kingdom, Turkey, South Korea, Japan, Jamaica, Canada, Switzerland. A polychronic time system is a system where several things can be done at once, and a more fluid approach is taken to scheduling time. Examples:Latin American, African, Asian and Arab cultures. Saudi Arabia, Egypt, China, Mexico, New Orleans, the Philippines, Pakistan, India, and many in Africa.

Monochronic time system

Polychronic Time

Monochronic People
Do one thing at a time Concentrate on the job Take time commitments (deadlines, schedules) seriously Are low-context and need information Committed to the job Adhere religiously to plans Are concerned about not disturbing others; follow rules of privacy and consideration
Show great respect for private property; seldom borrow or lend

Polychronic People
Do many things at once Are highly distractible and subject to interruptions Consider an objective to be achieved, if possible Are high-context and already have information Are committed to people and human relationships Change plans often and easily Are more concerned with those who are closely related than with privacy
Borrow and lend things often and easily

Emphasize promptness Are accustomed to short-term relationships

Base promptness on the relationship Have strong tendency to build lifetime relationships

Kinesics

Kinesics is the nonverbal communication which is interpretation of body language such as facial expressions, posture, stance, movement and gestures or whole/ part of body.

Haptics

Hapticsis any form of nonverbal communication involving touch Latin America, people greet each other with one kiss on the cheek, for example in Argentina. In Spain, people greet each other with two kisses on the cheek. In Colombia, shaking hands or verbal greeting is common and probably without hugging.

Purpose of CC M 1. Increase effectiveness 2. Understand issues Characteristics of culture 1. Learned 2. Shared 3. Trans-generational 4. Pattern 5. Adaptive 6. Symbolic The Protestant work ethic is a concept in which emphasizes hard work, frugality and diligence. Existential: Non conformailty, seek autonomous, loyal to self Pragmatic: Ambitious, Hardwork

Cultural universalism is an element, pattern, trait, or institution that is common to all human cultures worldwide.

Universals of Culture by George P. Murdock American Anthropologist, 1945 compendium

From: Consilience, E.O. Wilson, 1998. p.147 age-grading athletic sports bodily adornment calendar cleanliness training community organization cooking cooperative labor cosmology courtship dancing decorative art divination division of labor dream interpretation education eschatology ethics ethnobotany etiquette faith healing family feasting fire making folklore food taboos funeral rites games gestures gift giving government greetings hair styles hospitality housing hygiene incest taboos inheritance rules joking kin groups kinship nomenclature language law luck superstitions magic marriage mealtimes medicine obstetrics penal sanctions personal names population policy postnatal care pregnancy usages property rights propitiation of supernatural beings puberty customs religious ritual residence rules sexual restrictions soul concepts status differentiation surgery tool making trade visiting weaving weather control

Ethnocentrism is judging another culture solely by the values and standards of one's own culture. Ethnocentric individuals judge other groups relative to their own ethnic group or culture, especially with concern for language, behavior, customs, and religion. Culture shock is the personal disorientation a person might feel when experiencing an unfamiliar way of life due to immigration or a visit to a new country. The most common problems include: information overload, language barrier, generation gap, technology gap, skill interdependence, formulation dependency, homesickness (cultural), infinite regress (homesickness), boredom (job dependency), response ability. Honeymoon phase During this period, the differences between the old and new culture are seen in a romantic light. For example, in moving to a new country, an individual might love the new food, the pace of life, and the locals' habits. During the first few weeks, most people are fascinated by the new culture. Negotiation phase After some time (usually around three months, depending on the individual), differences between the old and new culture become apparent and may create anxiety. Excitement may eventually give way to unpleasant feelings of frustration and anger as one continues to experience unfavorable events that may be perceived as strange and offensive to one's cultural attitude. Adjustment phase Again, after some time (usually 6 to 12 months), one grows accustomed to the new culture and develops routines. One knows what to expect in most situations and the host country no longer feels all that new. One becomes concerned with basic living again, and things become more "normal". One starts to develop problem-solving skills for dealing with the culture and begins to accept the culture's ways with a positive attitude. Mastery phase In the mastery stage individuals are able to participate fully and comfortably in the host culture. Mastery does not mean total conversion; people often keep many traits from their earlier culture, such as accents and languages. Reverse Culture Shock ("Re-entry Shock", or "own culture shock") may take place returning to one's home culture after growing accustomed to a new one can produce the same effects as described above. These are results from the psychosomatic and psychological consequences of the readjustment process to the primary culture.

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