ADM 3318 Lecture Notes - Lecture 2: Geert Hofstede, Individualism, Gross National Income
16 Jun 2018
School
Department
Course
Professor
Culture Impact
Culture
Culture is basically the world's personality
Society's personality in all its colours
§
○
It’s a complex while which includes knowledge, belief, art, morals, law,
custom, and other capabilities acquired by man as member of society -
Edward Taylor
○
The collective programming of the mind distinguishes the members of one
human group from another … culture, includes systems of values - Geert
Hofstede
○
•
Business Criticality
Being aware of cultural circumstances caves valuable resources - time,
money, effort
○
Almost as important, "face" or "credibility" - a very key component of a
brand/business/organization and - an individual
○
The more culture intense - the more the risks are
If a specific culture requires a specific way of greeting, and a specific
way of work, it needs to be known
§
○
•
Values vs. Norms
Values
Provides a context in which norms are established and justified
§
○
Norms
Social rules governing people's actions towards each other in
society
Folkways - routine conventions
□
Mores - central to society
□
§
○
•
Culture and the State
One Society is not necessarily One Culture is not necessarily One Country
○
Nation States are essentially society's Political Creations
A nation state is the most specific sense of a country where a
distinct cultural or ethnic group inhabit a territory
§
○
•
Some multicultural countries
Canada
○
Sri Lanka
○
Singapore
○
India
○
UK
○
Kenya
○
Iraq
○
Mauritius
○
•
What makes Culture?
Culture Norms and Values
Social Strictures
Individuals
Basic block
®
Individualism
®
Me, myself and I
®
Entrepreneurial
®
□
Groups
Shared sense of identity
®
Expectations of behaviour
®
Structured interactions
®
□
Stratification
Strata
Parameters of family background, occupation,
income
◊
You are "born" into a social strata
◊
®
Social Mobility
Possibility of movement out of strata
◊
Caste
Closed system
}
Often occupation related
}
◊
Class
Determined by family and economic
achievements
}
◊
®
□
§
Religion
Shared beliefs and rituals and deemed "sacred"□
Moral principles and values drive "ethics" in terms of what is
good and "correct behaviour"
□
Religions is connected with theocratic states
It has implications for business
®
□
Religion is also the anchor of the political state of many
countries
□
Religions are a strong influence on culture and not the other
way around
□
§
Political Ideology
Democracy
Universal franchise, regular elections, Freedom of
expression, freedom of religion, for the people and by
the people, fair courts
®
□
Totalitarian
Based on collectivism, which advocates that socialism
can be achieved only though a totalitarian dictatorship
®
□
Implications
Legal systems
Common law
Over time, people have accepted some laws
that aren't exact
}
◊
Civil law
These are exact laws created over time
}
◊
Theocratic law
◊
®
□
§
Language
Largest Spoken Mother Tongue
Chinese
®
Spanish
®
English
®
□
Most Widely Spoken
English
®
Spanish
®
Russian
®
Arabic
®
□
§
Education
Key impact
Country level competitiveness - directly impacts
learning, research, innovation
®
Skilled educated manpower - a deep assortment for any
economy
Even more so in a knowledge based society
◊
®
□
§
Economic Ideology
Market economy - Driven y market forces□
Command economy - Government determines allocation of
resources
□
Mixed Economy - Some sectors are controlled, some are left
free for the private sector
□
Socialist Democracy or Socialism - A social organization that
advocates that the means of production, distribution, and
exchange should be regulated as the community as a whole
□
Determinants of Economic Development
Political, and legal systems have a strong influence
Gross National Income (GNI)
This is the sum of a nation's gross domestic
product and the net income it receives
overseas
}
◊
Purchase Power Parity (PPP)
How much you can purchase in two
different countries with the same amount
of money ($10)
}
◊
®
□
Corruption
Dishonest or fraudulent conduct by those in power
®
□
Spread of market based systems dependant on
Clear laws governing rights
®
Property rights
®
Intellectual property
®
Profit repatriation, sharing
®
Employment guidelines, rules
®
□
§
○
•
Culture and the Workplace - The Business Imperative
Hofstede Research - Five determinant dimensions of Society's Culture -
That seemingly influence business
Individualism vs. Collectivism
Common good vs. individual good
®
Belief in "distribution"
®
Contrasting view in most western societies
®
Individual success vs. group success
®
Are the people in the country only concerned with themselves
or the community as a whole?
□
§
Uncertainty Avoidance
Rules to enforce behaviour and outcomes
®
Risk understanding and belief
®
Premium on performance
®
How uncomfortable is society with uncertainty?□
§
Power Distance
Class separation - upper vs lower class
®
To what extend the society lays norms about the most power
and the least power?
□
Does the society accept this?□
§
Masculinity vs. Femininity
Communication - "Levels" of aspiration
®
Is the country gender neutral?□
Do members of society take jobs that are known as more
"manly" jobs?
□
§
Orientation - Long Term vs. Short Term
Focus on future rewards or values linked to the past
and present
®
Is the country worried with the long term or short term
effects?
□
§
Indulgence
The state or attitude of being indulgent or tolerant□
§
○
•
Culture Change
Culture is not a constant
Constantly evolving
§
Symbolic
§
○
Cultural literacy - Understanding
Adjustments, orientation to value systems and norms - ethics at
play
§
Deal negotiation
§
Organization structure
§
Product name, style
§
Attitudes towards class
§
Competitive nature
§
○
•
Class 2 -Jan. 10th
Wednesday, January 10, 2018
08:24
Culture Impact
Culture
Culture is basically the world's personality
Society's personality in all its colours
§
○
It’s a complex while which includes knowledge, belief, art, morals, law,
custom, and other capabilities acquired by man as member of society -
Edward Taylor
○
The collective programming of the mind distinguishes the members of one
human group from another … culture, includes systems of values - Geert
Hofstede
○
•
Business Criticality
Being aware of cultural circumstances caves valuable resources - time,
money, effort
○
Almost as important, "face" or "credibility" - a very key component of a
brand/business/organization and - an individual
○
The more culture intense - the more the risks are
If a specific culture requires a specific way of greeting, and a specific
way of work, it needs to be known
§
○
•
Values vs. Norms
Values
Provides a context in which norms are established and justified
§
○
Norms
Social rules governing people's actions towards each other in
society
Folkways - routine conventions□
Mores - central to society□
§
○
•
Culture and the State
One Society is not necessarily One Culture is not necessarily One Country
○
Nation States are essentially society's Political Creations
A nation state is the most specific sense of a country where a
distinct cultural or ethnic group inhabit a territory
§
○
•
Some multicultural countries
Canada
○
Sri Lanka
○
Singapore
○
India
○
UK
○
Kenya
○
Iraq
○
Mauritius
○
•
What makes Culture?
Culture Norms and Values
Social Strictures
Individuals
Basic block
®
Individualism
®
Me, myself and I
®
Entrepreneurial
®
□
Groups
Shared sense of identity
®
Expectations of behaviour
®
Structured interactions
®
□
Stratification
Strata
Parameters of family background, occupation,
income
◊
You are "born" into a social strata
◊
®
Social Mobility
Possibility of movement out of strata
◊
Caste
Closed system
}
Often occupation related
}
◊
Class
Determined by family and economic
achievements
}
◊
®
□
§
Religion
Shared beliefs and rituals and deemed "sacred"
□
Moral principles and values drive "ethics" in terms of what is
good and "correct behaviour"
□
Religions is connected with theocratic states
It has implications for business
®
□
Religion is also the anchor of the political state of many
countries
□
Religions are a strong influence on culture and not the other
way around
□
§
Political Ideology
Democracy
Universal franchise, regular elections, Freedom of
expression, freedom of religion, for the people and by
the people, fair courts
®
□
Totalitarian
Based on collectivism, which advocates that socialism
can be achieved only though a totalitarian dictatorship
®
□
Implications
Legal systems
Common law
Over time, people have accepted some laws
that aren't exact
}
◊
Civil law
These are exact laws created over time
}
◊
Theocratic law
◊
®
□
§
Language
Largest Spoken Mother Tongue
Chinese
®
Spanish
®
English
®
□
Most Widely Spoken
English
®
Spanish
®
Russian
®
Arabic
®
□
§
Education
Key impact
Country level competitiveness - directly impacts
learning, research, innovation
®
Skilled educated manpower - a deep assortment for any
economy
Even more so in a knowledge based society
◊
®
□
§
Economic Ideology
Market economy - Driven y market forces□
Command economy - Government determines allocation of
resources
□
Mixed Economy - Some sectors are controlled, some are left
free for the private sector
□
Socialist Democracy or Socialism - A social organization that
advocates that the means of production, distribution, and
exchange should be regulated as the community as a whole
□
Determinants of Economic Development
Political, and legal systems have a strong influence
Gross National Income (GNI)
This is the sum of a nation's gross domestic
product and the net income it receives
overseas
}
◊
Purchase Power Parity (PPP)
How much you can purchase in two
different countries with the same amount
of money ($10)
}
◊
®
□
Corruption
Dishonest or fraudulent conduct by those in power
®
□
Spread of market based systems dependant on
Clear laws governing rights
®
Property rights
®
Intellectual property
®
Profit repatriation, sharing
®
Employment guidelines, rules
®
□
§
○
•
Culture and the Workplace - The Business Imperative
Hofstede Research - Five determinant dimensions of Society's Culture -
That seemingly influence business
Individualism vs. Collectivism
Common good vs. individual good
®
Belief in "distribution"
®
Contrasting view in most western societies
®
Individual success vs. group success
®
Are the people in the country only concerned with themselves
or the community as a whole?
□
§
Uncertainty Avoidance
Rules to enforce behaviour and outcomes
®
Risk understanding and belief
®
Premium on performance
®
How uncomfortable is society with uncertainty?□
§
Power Distance
Class separation - upper vs lower class
®
To what extend the society lays norms about the most power
and the least power?
□
Does the society accept this?□
§
Masculinity vs. Femininity
Communication - "Levels" of aspiration
®
Is the country gender neutral?□
Do members of society take jobs that are known as more
"manly" jobs?
□
§
Orientation - Long Term vs. Short Term
Focus on future rewards or values linked to the past
and present
®
Is the country worried with the long term or short term
effects?
□
§
Indulgence
The state or attitude of being indulgent or tolerant□
§
○
•
Culture Change
Culture is not a constant
Constantly evolving
§
Symbolic
§
○
Cultural literacy - Understanding
Adjustments, orientation to value systems and norms - ethics at
play
§
Deal negotiation
§
Organization structure
§
Product name, style
§
Attitudes towards class
§
Competitive nature
§
○
•
Class 2 -Jan. 10th
Wednesday, January 10, 2018 08:24
Document Summary
It"s a complex while which includes knowledge, belief, art, morals, law, custom, and other capabilities acquired by man as member of society - The collective programming of the mind distinguishes the members of one human group from another culture, includes systems of values - geert. Being aware of cultural circumstances caves valuable resources - time, money, effort. Almost as important, face or credibility - a very key component of a brand/business/organization and - an individual. The more culture intense - the more the risks are. If a specific culture requires a specific way of greeting, and a specific way of work, it needs to be known. Provides a context in which norms are established and justified. Social rules governing people"s actions towards each other in society. One society is not necessarily one culture is not necessarily one country. A nation state is the most specific sense of a country where a distinct cultural or ethnic group inhabit a territory.
