Chapter 3 Contrasting Cultural Values

3-2 Copyright © 2014 Pearson Education, Inc.2 Topics Semantic Differences Attribution and Perception Attitudes Toward Women Work Attitudes Attitudes Toward Ethics Religious Influences Individualism and Collectivism

3-3 Copyright © 2014 Pearson Education, Inc.3 What are Values? Values are the social principles, goals, or standards accepted by persons in a culture. Values are learned by contacts with the family, teachers, and religious leaders. The media also may influence one’s value system.

3-4 Copyright © 2014 Pearson Education, Inc.4 Cultural Contrasts in Values AmericansJapaneseArabs 1. FreedomBelongingFamily security 2. IndependenceGroup harmonyFamily harmony 3. Self-relianceCollectivismParental guidance 4. EqualityAge/SeniorityAge 5. IndividualismGroup consensusAuthority

3-5 Societal Clusters Societies that are Charismatic/Value Based from Higher to Lower: –Anglo –Latin America –Southern Asia –Germanic Europe –Nordic Europe –Sub-Sahara Arabs –Latin Europe –Eastern Europe –Confucian Asia –Middle East Copyright © 2014 Pearson Education, Inc.5

3-6 Societal Clusters Team Orientation from High to Low: –Latin America –Eastern Europe –Southern Asia –Nordic Europe –Anglo –Sub-Sahara Arabs –Germanic Europe –Confucian Asia –Middle East Copyright © 2014 Pearson Education, Inc.6

3-7 Societal Clusters Participative from Higher to Lower: –Germanic Europe –Nordic Europe –Anglo –Latin America –Latin Europe –Sub-Sahara Arabs –Eastern Europe –Southern Asia –Confucian Asia –Middle East Copyright © 2014 Pearson Education, Inc.7

3-8 Societal Clusters Humane Oriented from Higher to Lower: –Southern Asia –Sub-Sahara Arabs –Anglo –Confucian Asia –Latin America –Eastern Europe –Germanic Europe –Latin Europe –Nordic Europe Copyright © 2014 Pearson Education, Inc.8

3-9 Societal Clusters Autonomous Cluster from Higher to Lower: –Eastern Europe –Germanic Europe –Confucian Asia –Southern Asia –Nordic Europe –Anglo –Middle East –Latin Europe –Sub-Sahara Arabs –Latin America Copyright © 2014 Pearson Education, Inc.9

3-10 Societal Clusters Self-Protective from Higher to Lower: –Southern Asia –Middle East –Confucian Asia –Eastern Europe –Latin America –Sub-Sahara Arabs –Latin Europe –Anglo –Germanic Europe –Nordic Europe (House, Hanges, Javidan, Dorfman, & Gupta, 2004, p. 682 ) Copyright © 2014 Pearson Education, Inc. 10

3-11 Copyright © 2014 Pearson Education, Inc.11 Semantic Differences Semantics - the study of the meaning of words; involves the way behavior is influenced by words and nonverbal means of communication. Example: A U.S. American, while traveling in Bolivia, observed that drivers rarely stopped at the red octagonal sign with the word “alto,” the Spanish word for “stop.” A local Bolivian explained that in that country, the stop sign is more a recommendation than a traffic law.

3-12 Copyright © 2014 Pearson Education, Inc.12 Attribution and Perception Attribution - the ability to look at social behavior from another culture’s view Attribution training - involves making people aware of their own cultural context and how it differs from that of the host country Perception - the learned meaning of sensory images Uncertainty-reduction theory - “involves the creation of proactive predictions and retroactive explanations about our own and others’ behavior, beliefs, and attitudes.” (Gudykunst & Ting-Toomy, 1988, p. 22)

3-13 Copyright © 2014 Pearson Education, Inc.13 Uncertainty Avoidance Uncertainty avoidance is defined as the extent to which the members of a culture feel threatened by uncertain or unknown situations. –Creates uncertainty –Creates anxiety – Is reinforced by family, school, and government

3-14 Copyright © 2014 Pearson Education, Inc.14 Uncertainty Avoidance High uncertainty avoidance cultures –Latin America –Some European Countries –Japan –South Korea

3-15 Copyright © 2014 Pearson Education, Inc.15 Uncertainty Avoidance Countries with low or weak uncertainty avoidance –United States of America –India –United Kingdom –Denmark –Singapore

3-16 Copyright © 2014 Pearson Education, Inc.16 Differences Between Weak/Strong Uncertainty Avoidance Societies Weak Uncertainty AvoidanceStrong Uncertainty Avoidance Citizen protest acceptableCitizen protest should be repressed Civil servants positive towardCivil servants negative toward political process political process Positive attitudes toward youngNegative attitudes toward young people people One group’s truth should not beThere is only one truth - ours imposed on others Human rights: nobody should beReligious, political, ideological persecuted for their beliefs fundamentalism and intolerance Scientific opponents can beScientific opponents cannot be personal friends personal friends

3-17 Copyright © 2014 Pearson Education, Inc.17 GLOBE Uncertainty Avoidance Defined as tendency towards orderliness, consistency, structure, and regulation Related to societal, economic, and organizational values Higher values found with higher team orientation, humane orientation, and self- protective leadership Lower values found with lower participative and charismatic leadership values

3-18 Copyright © 2014 Pearson Education, Inc.18 Attitudes Toward Women Influenced by cultural roots –U.S. women are supposed to have the same rights as men. – Kenya women are considered subordinate to men. Gender differences in the U.S. workplace are de-emphasized - women are accepted at higher levels in government and in many companies.

3-19 Copyright © 2014 Pearson Education, Inc.19 U.S. women have taken two-thirds of new jobs created; they are starting new businesses at twice the rate of men. In France, one-fifth of small businesses are owned by women; in Canada, the rate is one-third. The U.S. and Canada lead the world in the number of women in executive positions; Northern and Western Europe, Australia, and New Zealand also have high numbers of women managers.

3-20 Copyright © 2014 Pearson Education, Inc.20 Percentage of Women in Top Management Positions The Russian Federation42% European Union30% Australia23% United Kingdom21% United States20% Japan 7%

3-21 Copyright © 2014 Pearson Education, Inc.21 Work Attitudes Work ethic - hard work is applauded and rewarded; not working is viewed negatively. U.S. persons value work; executives work –56 hours per week. –take 14 days of vacation a year. European persons work –36 to 41 hours per week. –take 4 to 6 weeks of vacation a year.

3-22 Copyright © 2014 Pearson Education, Inc Weekly Hours Worked Country Weekly Working Hours Singapore47.3 India46.9 China46.8 Mexico44.5 South Korea43.4 United States42.3 Switzerland42.0 Brazil41.3 Japan40.7 United Kingdom40.7 Germany40.3

3-23 Copyright © 2014 Pearson Education, Inc.23 Cultural Attitudes Toward Work Europeans –Relaxed –Vacation during month of August –Do not work weekends or holidays (The French take longer vacations than people of any other country.) Australians –Value free time –Value short work week Japanese –Work Monday through Friday, often 18 hours a day –Work until their boss leaves

3-24 Copyright © 2014 Pearson Education, Inc.24 Attitudes Toward Ethics Ethical behavior means acting with integrity, honesty, competence, respect, fairness, trust, courage, and responsibility. Ethical standards are guidelines established to convey what is perceived to be correct or incorrect behavior by most people in a society.

3-25 Copyright © 2014 Pearson Education, Inc.25 Ethics: The Four-Way Test Is it the truth? Is it fair to all concerned? Will it build goodwill and better friendships? Will it be beneficial to all concerned?

3-26 Copyright © 2014 Pearson Education, Inc.26 Personal vs. Societal Ethics Personal ethics –may vary from person to person –often influenced by religious beliefs, cultural backgrounds, or personal experience Societal ethics –rules of conduct shared by most people in a culture –agreed-upon standards of behavior

3-27 Copyright © 2014 Pearson Education, Inc.27 Global View of Ethics Ethical relativism – ethical principles vary with the culture. Ethical universalism – certain values are universal across cultures regardless of race, gender, culture, or religion.

3-28 Copyright © 2014 Pearson Education, Inc.28 Standards of Business Ethics are Culturally Relative The Islamic standard of ethics is based on participating in religious ceremonies, adhering to codes of sexual behavior, and honoring one’s parents. South Africans and the Chinese use “backdoor connections” for conducting business. In Brazil and Spain, unorthodox accounting and taxation practices are used. The nonsanctity of legal contracts causes problems when dealing with the Chinese, Koreans, and Japanese.

3-29 Copyright © 2014 Pearson Education, Inc.29 Suggested Approach to International Business Ethics Identify in writing individual and corporate ethical values. Involve all employees in the development of a corporate code of ethics. Assure that all workers understand the company’s ethical values. Monitor compliance with the code of ethics.

3-30 Copyright © 2014 Pearson Education, Inc.30 Religious Influences In the U.S., Australia, and Europe, lifestyle and religion are separate. In northern Africa and southern Asia, religion is a lifestyle and directly affects work. The separation of church and state is followed in the U.S. In Islamic countries religion affects all aspects of life.

3-31 Copyright © 2014 Pearson Education, Inc.31 Religious Influences Muslims stop work five times a day to pray. Religion is not a significant part of life in China; the ideology of communism endorses atheism. Nonliterate religions are practiced by Native Hawaiians and by people of Zaire. Religion affects what people eat in some countries: –beef is not eaten by Hindus –pork is eaten by neither Muslims nor Orthodox Jews

3-32 Copyright © 2014 Pearson Education, Inc.32 Individualism and Collectivism Individualism - attitude of valuing ourselves as separate individuals with responsibility for our own destinies and actions Collectivism - emphasizes common interests, conformity, cooperation, and interdependence The Hofstede and GLOBE studies –Hofstede uses a linear scale –GLOBE has multiple levels In-group collectivism Institutional collectivism

3-33 Copyright © 2014 Pearson Education, Inc.33 Power Distance Inequality within society –Power, wealth, status, and social position –Physical –Intellectual Index measures the degree of acceptance of unequal distribution of power Both Hofstede and GLOBE agree on this construct

3-34 Copyright © 2014 Pearson Education, Inc.34 Gender Indices Hofstede’s Masculinity and Femininity Index measures assertiveness versus modesty. GLOBE study on gender egalitarianism measures roles for which men and women are suited. –Denmark and New Zealand most gender egalitarian; Eastern Europe and Nordic Europe –Iran and Qatar are the least gender egalitarian; Middle East, Confucian Asia, Germanic Europe

3-35 Copyright © 2014 Pearson Education, Inc.35 Long-term versus Short-term Goals—Future Orientation Long-term orientation –Concerned with future, perseverance, thrift, hard work, learning, openness, accountability, self-discipline –Family and work are not separated Short-term orientation –Concerned with bottom line, control systems, respecting tradition, and preserving face –Fulfilling social obligations

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