Mast-Childs Tribology Professor ME 489 Practices of Modern Engineering Lecture Cultural dimension: Yesterday, now or later? April 26, 2011 Luis San Andres Mast-Childs Tribology Professor Texas A&M University http://rotorlab.tamu.edu/me489

Lecture Date: China is shrinking the idea of the West! Today Cultural dimensions Long Term orientation – yesterday, Now or Later? Differences in thinking between the East and West China is shrinking the idea of the West! Assignments & reading: Be ready to party on Thursday! Other: complete ONE MINUTE PAPER – complete rankings of team members Last Pick presents….

China A country with a long-long-long history: dynasties and empires, a peasant revolution and communism, opened to global market in early 1980s’ Chinese firsts: block printing, gun powder & rocketry, compass and watches, etc. Until 18th century more advanced technologically than the West. China did not have an industrial revolution. For centuries Chinese culture (way of thinking) has influenced greatly the Far East (Japan, Korea, Taiwan, Hong-Kong, Singapore, etc). What way of thinking?

A little about China’s economic growth Source: The Economist 2009 GDP US 14 Trillion, China: 4.91 Trillion China overtook Britain and France in 2005 and Germany in 2007. In 2009, China surpassed Germany to become the world’s largest exporter. In 2nd quarter 2010, China surpassed Japan as the world’s second largest economy. Growth averaged over 10 % for the last 30 years. The per capita GDP in China is $3.6k in 2009, one 14th of the $46.k per person output in the US. Hard currency reserves 2 Trillion China will surpass the US becoming the world’s largest economy in 2027. China will be twice as large as the US economy in 2050 http://factsanddetails.com/china.php?itemid=376&catid=9&subcatid=58#04

Team Alpha reports Why the fastest growth on earth? 2011 GDP US 14 Trillion, China: 9.8 Trillion Growth remains at 10 % Average wages GDP $7.4 k (up from $ 5k in 2006). Largest exporter of goods at ~$1.5 trillion dollars worth of goods and services with ~20% going to the USA Why the fastest growth on earth? Low manufacturing costs + huge internal market (1.5 billion)+ technology Trade balance USA: -605 $Bn (Jul 2010) (3.0% GDP Q2) China: +179 $Bn (Aug 2010) (10.3% GDP) The Economist

China economy generates jobs elsewhere China does not only EXPORT stuff! It also imports technology and services. The US has a + trade in particular services (know how) Source: The Economist

The decline of Western science & technology? GERD: % of GDP on R&D # technical papers Asian countries (S Korea and China) are becoming not just more productive but also developing more technology. In 2011, China will have more patents than Japan! A worry! Source: The Economist

In thinking b/w East and West Cultural dimensions Power Distance Individualism / Collectivism Masculine / Feminine Uncertainty Avoidance More equal than others I, We, They He, She, (S)he What is different is dangerous A 5th dimension appears from a Chinese Values Survey. (Uncertainty Avoidance has no equivalent in CVS) Explains differences In thinking b/w East and West Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede

Teachings of Confucius Pragmatic rules for daily life Society stability is based on unequal relationships between people Family is prototype of all social organizations Virtuous behavior: do no treat others as one would not like to be treated oneself Virtue derives from education, hard working, not spending more than needed, being patient and persevering Confucius, C. philosopher (~500 B.C.) Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede

Teachings of Confucius Society stability is based on unequal relationships between people Must accept differences in status Basic relationships father-son, brother-younger brother, husband-wife, senior friend-junior friend Mutual & complimentary obligations Respect and obedience Protection and consideration Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede

Teachings of Confucius 2. Family is prototype of all social organizations A person is NOT an individual, he/she is a member of a family. HARMONY is found when everyone maintains face in the sense of dignity, self-respect and prestige. Losing dignity (face) is like losing a nose, etc. Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede

Teachings of Confucius 3. Virtuous behavior: do no treat others as one would not like to be treated oneself. Keep one’s place, respect authority. The Golden rule in Western Values: Treat others as one would like to be treated 4. Virtue derives from education, hard working, not spending more than needed, being patient and persevering. Everything must be done in moderation Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede

Long Term Orientation (LTO) The fostering of virtues oriented towards future rewards – in particular perseverance and thrift. The opposite pole (Short TO) fosters virtues related to the past and present, in particular respect for tradition, preservation of face, and fulfilling social obligations Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede

Long Term Orientation Map http://www.clearlycultural.com/geert-hofstede-cultural-dimensions Long Term Orientation Map Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede

Long Term Orientation (LTO) 39 countries Country SCORE RANK Country SCORE RANK Future rewards Most Asian countries have high LTO scores Past & present, Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede

Long Term Orientation (LTO) Explains the difference in thinking between the East and West. Long term orientation - persistence - ordering relationships by status and observing this order - thrift - having a sense of shame Short term orientation - personal steadiness and stability - protecting your ‘face’ - respect for tradition - reciprocation of greetings, favors, and gifts Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede

LTO General norm Key Differences Short-Term O Long-Term O Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede

LTO Family Key Differences Short-Term O Long-Term O Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede

LTO School Key Differences Short-Term O Long-Term O Remember “Tiger Mom” & US STORM Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede

LTO Business & Economics Key Differences Short-Term O Long-Term O Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede

LTO Religion & Way of Thinking Key Differences Short-Term O Long-Term O Key Differences LTO Religion & Way of Thinking Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede

Long Term Orientation vs GNP growth Note the emergence of East Asian Countries (S Korea, Taiwan, Singapore, Japan) Growth RATE GNP/capita Short-term Long term LTO Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede

Understanding China Guanxi Ability to forge solid relationships for mutual benefit and understanding = BLOOD IS THICKER THAN WATER Benefits & obligations extend beyond the realm of contracts and business. Guanxi links family sphere to the business sphere. In high LTO societies, having one’s personal network of acquaintances is essential for success. One’s capital of guanxi lasts a lifetime, and would not want to damage it for short-term bottom-line reasons. Cultures and Organizations: Software of the Mind By Geert Hofstede and Gert Jan Hofstede

Guanxi example guanxi! (See Corruptions Perceptions Index) Singapore, Straits Times, October 20, 2009

GUANXI In China Huanlin Zhu April 21 25

Guanxi Guanxi ---- ?---- Relationship Ignores the culture implications

Guanxi China -------- originates from agriculture Tools, Techniques are from parents Wars from time to time Government and society are not stable in the long history

Blood is thicker than water Guanxi Rely on family Blood is thicker than water

Guanxi Fundamental element is family Two phrases Renqing / Personal favors Lianmian / face

important to maintain a good “Guanxi” Personal favors important to maintain a good “Guanxi”

Guanxi Face “puff oneself up to one's own cost”

Guanxi Establish Guanxi through Gift giving Mutual help. Guanxi comes along with expectations and obligations.

Guanxi Better Guanxi, Higher chance to get promotion, admission, or…

Practices of Modern Engineering © Luis San Andres Texas A&M University 2011 http://rotorlab.tamu.edu/me489

Questions? Next lecture

World Values Map

(not used) the importance of education

Satisfaction with life index http://en.wikipedia.org/wiki/Satisfaction_with_Life_Index http://www.squarecirclez.com/blog/database-of-happiness/1080

GINI Coefficient World CIA Report 2009 A measure of income inequality, the most unequal society will be one in which a single person receives 100% of the total income and the remaining people receive none (G=1); and the most equal society will be one in which every person receives the same income (G=0).