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Chapter 2:- Cultural Awareness (51):o Almost everyone agrees that national cultures differ, but they disagreeon what the differences areo Daily routines, rules, codes of social relations, language, emotive expression, and concepts of luck vary within each cultureo Problem areas that can hinder managers’ cultural awareness are: Subconscious reactions to circumstances The assumption that all societal subgroups are similaro Some cultural differences are fairly obvious, others are not- Behavioral Practice affecting Business (57)o Issues in social stratification Stratification dictates a persons class, status and financial rewards within culture Individual qualifications and their limits:- In most societies individual achievements are important, but this is not always the case- Societies look at group affiliations differently, causing certain businesses functions to be carried out differentlyo In japan generally more weight is placed on seniority for an employee position than companies in the US because japan stresses cooperation over competition in the workplace- Group affiliations can be o Ascribed or acquired Ascribed= determined by birth (gender, family, age, ethnic or national origin) Acquired= based on associations (religion, political affiliation)o A reflection of class and status- Ethnic and racial groups- Gender based groupso In many parts of the world gender based barriersare being broken down- Age based groupso Legal age to drink is 21- Family-based groupso In some cultures the most important group membership is family (specifically Latin culture)o Family social status is based on the group rather than the individual- Relationship Preference (64):o Power distance There are national variations in the preference for autocratic or consultative management Employees preferences tend to differ in terms of interacting with bosses, subordinates, and peers from country to country High power distance- People prefer little consultation between the two tiers and one of two management styles; autocratic (ruling with unlimited authority) or paternalistic (regulating conduct by supplying needs)o Individualism vs. collectivism High individualism describes an employers preference to fulfillleisure time and improve skills outside the organization, receive direct monetary compensation as opposed to fringe benefits, engage in personal decision making and on the job challenges- In countries with high individualism, self-actualization opportunity is a prime motivator because employees want challenges High collectivism typifies an employee’s penchant for dependence on the organization through training, satisfactory workplace conditions, and good benefits- In countries with high collectivism, fulfilling security needs is a prime motivatoro Uncertainty avoidance In countries where uncertainty avoidance is high, most employees prefer to follow set rules even if breaking them maybe in the companies best interests They also tend to stay with current employers for a long time Superiors may need to be more precise in their directions to subordinates, who typically don’t want to be responsible for actions that counter the company’s interests Denmark and the UK have low uncertainty avoidance Belgium and Portugal rate high- Obtaining information (66): Low context versus High context cultures:o Low context cultures: people generally regard as relevant only firsthand information that bears directly on the subject at hand The united states and most of northern Europeo High context cultures: people tend to regard seemingly peripheral information as pertinent and to infer meanings fro things said either indirectly or casually. Most countries in southern Europeo It helps managers to know whether cultures favor Focused or broad information Sequential or simultaneous handling of situations Handling principles or small issues firsto When people form the two types of cultures have to deal with each other, low-context people may perceive high-context people as inefficient in their use of time, while the latter may perceive the former as overly aggressive- Idealism vs. Pragmatism (67):o Idealism: some cultures prefer to establish overall principles before they try and resolve small issues Can affect business: labor disputes tend to blur the focus on specific demands as workers tend to rely first on mass action, such as strikes, to publicize basic principleso Pragmatic: cultures in which people focus more on details than on abstract principles The united states Can affect business: labor negotiations tend to focus on well-defined issues (example: hourly pay increases)- Silent Language (69):o Spoken and written language is not our only means of communicating,we constantly exchange methods through a host of non-verbal cues that form a silent language Colors: - For a product to succeed, its colors must be consistent with the consumers frame of reference- Colors invoke distinct associations in different countries, such as being lucky/unluckyo Ex: yellow cabs in the US and black cabs in the UK Distance: - The accustomed distance people maintain during conversations- Sense of appropriate distance Time and Punctuality:- US businesspeople usually arrive early for business appointments, a few minutes late for dinner at someone’s home, and a bit later for large social gatherings- In another country, the concept of punctuality may be different Body Language:- Or kinesics- the way people walk, touch, and move their bodies Prestige:- Relates to a persons status, particularly in an organizational setting- Degree of Cultural Differences (70):o Some countries are much like other countries, usually because they share many characteristics such as language, religion, geographic location, ethnicity, and level of economic developmento Cultural Distance: using the cultural difference you can determine the cultural proximity between nations Ex: UK is close to the US while china is culturally distant When a company moves into a culturally similar foreign country, it should expect to encounter fewer cultural adjustments than when entering a dissimilar country Even among similar countries, significant cultural differences could still affect business dealings- Ex: women’s role in business in different Arab Countrieso Hidden Cultural Attitudes:  Even if a home and host country have seemingly similar cultures, people in the host country


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PSU IB 303 - Chapter 2

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