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What is culture?
knowledge, belief, values, laws, customs, and other capabilities of one group that distinguishes it from other groups. In other words, culture is the way of life of a society
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key elements of culture
language and communication, religion, values, social structure, attitudes
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List, define, and compare three levels of
culture
national culture- time, language, food, nature, face, religion, hostede's. business: eye contact, decision making speed, implementation speed, collective or individual responsibility. corporate: evaluation, reward, promotion criteria, time frame
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which type of market culture is best for IB?
Adhocracy and Market culture proved more successful in the contemporary global world
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christianity
protestant work ethic, Max Weber suggested that it was this ethic and its focus on hard work, wealth creation, and frugality, that caused capitalism
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islam
one true omnipotent God, people do not own property and business practice is prescribed
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hindu
spiritual growth and development, may require material and physical self-denial, Promotion and adding new responsibilities may not be the goal of an employee, or may be infeasible due to the employee's caste
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buddhism
emphasize wealth creation, and so entrepreneurial behavior is not stressed. However, because Buddhism does not support the caste system, individuals do have some mobility and can work with different classes
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Confucianism
china- loyalty, reciprocal obligations, and honesty - may all lead to a lowering of the cost of doing business in Confucian societies
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low context cultures
explicit, short relationships, diffused authority, binding agreements
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high context cultures
long relationships, nonverbal, authority is responsible for subordinate action, agreements are flexible, slow change
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Hofstede: US, France, and Japan
US has lower power distance than Japan and France. US has much lower uncertainty avoidance than France and Japan. US has much higher individualism than France and Japan. France has more masculinity than US and Japan.
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ethnocentrism
one’s own culture is better or superior to other cultures.
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polycentrism
it is important to understand the differences in cultures and act accordingly. Managers try to accommodate the cultural differences and its local responsiveness are often organized in a decentralized structure.
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geocentrism
change could be made in certain cultures and in others one has to adapt to the host culture.
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