cultural environment

CULTURAL ENVIRONMENT : 

CULTURAL ENVIRONMENT A S KRISHNA REDDY MBA,ASST PROF

What is Culture? : 

What is Culture?

Definition: : 

Definition: “The thought and behavioral patterns that members of a society learn through language and other forms of symbolic interaction-their customs, habits, beliefs, and values, the common view points which bind them together as a social entity, Culture change gradually, picking up new ideas and dropping old ones, but many of the cultures of the past have been so persistent and self-contained that the impact of any sudden change tears them apart, uprooting their people psychologically”.

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Cultural meanings are created by people Construction of cultural meanings is more obvious at the level of smaller groups Cultural meanings are constantly in motion and can be subject to rapid changes Social groups differ in the amount of freedom people have to adopt and use certain cultural meanings

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The following characteristics of culture are worth knowing: Learned: Culture in not inherited or biologically based, it is acquired by learning and experience. Shared Transgenerational Symbolic Adaptive

Levels of culture : 

Levels of culture National culture Business culture Organizational culture Occupational culture

Impact of culture on business : 

Impact of culture on business Culture creates people Culture and globalization Culture determines goods and services Family The view of scientific methods

Language : 

Language Language is the means by which we communicate verbally. We use it for socialization and for communicating how values and norms are expressed and understood. There are approximately 20 different language families that cut across national borders. Not only are words different, but also syntax and usages are also quite different between language families.

Language : 

Language Chapter 6: The Cultural Environment The artifacts that surround language: Linguistics – or the meanings of words Proxemics – or the distance that speakers stand from one another Pragmatics – the cultural interpretations of words, gestures, and nonverbals Nonverbals – The gestures and body language that accompanies spoken words English has become the business world’s lingua franca, and the number one foreign language taught in other countries

Language : 

Language Exhibit 6-3: Numbers of speakers of major languages of the world (estimated)

Religion : 

Religion Religion contains key values and norms that are reflected in adherents’ way of life. People try to adopt business practices that will satisfy religious tenets without sacrificing modern practices in business.

Religion : 

Religion Exhibit 6-5: Adherents to major world religions, by geographic region, 1996 (in millions)

Hofstede’s Dimensions of Culture : 

Hofstede’s Dimensions of Culture Geert Hofstede’s cultural typology is the most often used. It is based upon a study of 100,000 IBM employees who work in IBM divisions throughout the world. Hofstede’s survey revealed four underlying dimensions of culture: Power Distance Uncertainty Avoidance Individualism/Collectivism Masculinity/Femininity Long-Term Orientation

Power Distance (PD) : 

Power Distance (PD) Power Distance is the extent to which hierarchical differences are accepted in society and articulated in term of deference to higher and lower social and decision levels in organization. Artifacts of high PD: Centralization # Org. Levels- Height # Supervisors Wage Differentials Values, White & Blue Collar Work

Power Distance (PD) : 

Power Distance (PD) Chapter 6: The Cultural Environment Exhibit 6-6: Power distance: country examples and organizational implications

Uncertainty Avoidance (UA) : 

Uncertainty Avoidance (UA) Uncertainty Avoidance is the extent to which uncertainty and ambiguity are tolerated. Artifacts of high UA: Standardization Structured activities Written rules Specialists No risk tolerance Ritualistic behavior

Uncertainty Avoidance (UA) : 

Uncertainty Avoidance (UA) Exhibit 6-8: Uncertainty avoidance: country examples and organizational implications

Individualism/Collectivism (I/C) : 

Individualism/Collectivism (I/C) I/C is the extent to which the self or the group constitutes the center point of identification for the individual. Individual self interest is pursued individually, or as a part of a group. Artifacts of I/C Firm as “family” Utilitarian decision making Group performance

Individualism/Collectivism (I/C) : 

Individualism/Collectivism (I/C) Exhibit 6-9: Individualism/collectivism: country examples and organizational implications

Masculinity-Femininity (M/F) : 

Masculinity-Femininity (M/F) Refers to the extent to which traditional masculine values, like aggressiveness and assertiveness, are valued. Artifacts of M/F Sex Roles Minimized More Women In Jobs Interpersonal Skills Rewarded Intuitive Skills Rewarded Social Rewards Valued

Masculinity-Femininity (M/F) : 

Masculinity-Femininity (M/F) Chapter 6: The Cultural Environment Exhibit 6-10: Masculinity/femininity: country examples and organizational implications

Long-Term Orientation (LTO) : 

Long-Term Orientation (LTO) Originally called Confucian Dynamism because of anchoring in the Confucian value system. Represents such values as thrift, persistence, and traditional respect of social obligations. Organizations likely to adopt longer planning horizon, with individuals ready to delay gratification.

Long-Term Orientation (LTO) : 

Long-Term Orientation (LTO) Exhibit 6-11: Country scores on Confucian dynamism (long-term orientation)

Criticism of Hofstede : 

Criticism of Hofstede Hofstede has been subject to broad criticism. Among the criticisms: Single company’s data, with a large Multinational Enterprise having a strong corporate culture. Time dependent results, which are an artifact of the time of data collection and analysis. Business culture, not values culture, representing a reflection of business culture at IBM and not national culture of the countries IBM operates within.

Criticism of Hofstede : 

Criticism of Hofstede Non-exhaustive, doesn’t identify all the cultural dimensions possible, but just a few. Partial geographic coverages, cover only a portion of the world’s cultures and countries. Western bias, which values western business ideals.

Corporate Culture : 

Corporate Culture Corporate Culture is the culture adopted, developed and disseminated in an organization. Corporate culture can deviate from national norms, but that depends upon the strength of culture and the values and practices tied to it.

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Aesthetics What is or is not acceptable as good taste varies widely in cultures. The symbolism of colors, forms, and music carries different meanings in different cultures.

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Education Assessing the educational level of a culture literacy rates enrollment in secondary or higher education qualitative aspects ofemphasizing science Education affects employee training competition for labor product characteristics

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Secondary = Percentage of relevant age group receiving full time secondary education. Scores in excess of 100% indicate adults also participating in that education. University = Percentage of population 20 - 24 years old enrolled in higher education Literacy = Percentage of Population over 15 years old Source: The World Competitiveness Report 1996 (Lausanne: IMD, 1996), pp. 560, 561, 567. Education *See text for complete listing of countries and statistics. Educational Statistics of Selected Countries (in %)*