Cross-cultural Studies (Chapter 7)

What is culture?

- Culture is the collection of values, beliefs, behaviors, customs and attitudes that distinguish one society
from another.

Culture shock & Reverse culture shock

- Culture shock is a psychological phenomenon arising from being in a different culture, may lead to feeling
of fear, helplessness, irritability and disoriented. For example,
- Reverse culture shock is the shock suffered by some people when they return home after a number of
years overseas. This can result in unexpected difficulty in readjusting to the culture and values of the home
country, now that the previously familiar become unfamiliar. For example,

Culture sensitivity / Culture awareness / Culture empathy

- It can be defined as a state of heightened awareness for the values and frames of reference of the host
culture.
- Managers with higher level of cultural sensitivity tend to be less narrow-minded in their thinking and care
often willing to examine the way management practices might be implemented in dissimilar cultures.
- It is also an awareness and an honest caring about another individual’s culture.
- Such sensitivity requires the ability to understand the perspective of those living in other societies and the
willingness to put oneself in another’s shoes.
- Parochialism – is the belief that there is no other way of doing things except that found within one’s own
culture, that is, that there is no better alternative
- Ethnocentrism – is similar to parochialism, and tends to reflect a sense of superiority, and ethnocentric
individuals believe that their ways of doing things are the best, no matter which cultures are involved.
- Geocentrism – Different from both, reflects a belief that it is necessary to be responsive to local cultures
and markets.

How to improve cultural sensitivity?

(i) Teambuilding
Organization can take a group of employees with different cultural background, values, personalities and
behaviors, and involve them in teambuilding exercises. Teambuilding activities get people working
together in order to complete a fun but challenging task. For example, building a bridge or carrying a
member over a stretch of land. In this kind of activities, people get to know each other, understand their
differences, embrace them and make the best use of them.
(ii) Job Rotation
Cross-cultural Studies (Chapter 7)

The organization can do job rotation also. Job rotation basically is moving an employee from one job to
another inside the company, and from one team to another. This not only exposes them to different tasks
and responsibilities, but also to different people. For example, an administrative employee might spend
part of the week looking after the reception area of a business, dealing with customers and enquiries.
(iii) Training
Organization can hold training classes to teach them about different cultural practices. These classes
should be framed in a way that allow employees to learn how to deal with working in an increasingly
diverse global economy and society. For example, if the company does a great deal with China business,
the company can get some formal training from someone who has worked in China.
(iv) Celebrate traditional holiday, food and festivals
Celebrating diversity can help increase cultural awareness and acceptance. It can be started by including
the holidays and festivals of other cultures in a company through an email or news bulletin, and then
celebrate them at work when appropriate. Through this event, the employees can learn different cultures
from one another. For example, different culture of the employees can bring their different tradition food
to each other so that other employees can more understand their culture.
(v) Workshop
People’s cultural backgrounds can shape the ways that they interact with others. Therefore, managers or
staff leaders should organise a workshop in a company to let the members to share their cultural
differences in order to promote individuality and understanding of where certain behaviours may come
from. For example, German people do not smile usually and this might lead to confusion to Malaysia
where they thought German people are impolite. Through this workshop, German can explain it is their
culture.

Characteristics of culture

(i) Learned behavior

 Culture reflects learned behavior that is transmitted from one member of a society to another.
 Some elements of culture are transmitted intergenerationally, as when parents teach their children
table manners.
 Other elements are transmitted intergenerationally, as when seniors educate incoming freshman
about a school’s tradition.
(ii) Interrelated elements
 The elements of culture are interrelated. For example, Japan’s group-oriented, hierarchical society
stresses harmony and loyalty, which has historically translated into lifetime employment and
minimal job switching.
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(iii) Adaptive
 Because culture is learned behavior, it is adaptive. That is, the culture changes in response to
external forces that affect the society.
 For example, Uni life than more on to organizational environment or organization culture.
(iv) Shared
 Culture is shared by members of a society and indeed defines the membership of the society
 Individual who share a culture are members of a society, those who do not are outside the
boundaries of the society.

Elements of culture (How they influence international business)

(i) Language
 Language is one of the most important factors that have impacts on international business, since
language is the crucial medium for business partners to communicate with each other and understand
their ideas.
 There are some taboo words and idioms in every language, which are likely to cause problems.
 For instance, some specific numbers are treated differently in different areas. The number “3” enjoys
both praise and abuse alike. In Monaco, people like this number very much because they believe it
will bring them prosperity. The Hong Kong people like this number, too, because in Cantonese, “3”
is homophonic with “promotion”. But the Europeans generally consider it ominous.
(ii) Communication
 Communication across cultural boundaries, whether verbally or nonverbally is a particularly important
skill for international managers.
 The chances of miscommunication increase substantially when the people are from different cultures.
 For example, a contract between Boeing and a Japanese supplier called for the fuselage panels to have a
“mirror finish”.
 Because of culture differences, nonverbal forms of communication often can lead to misunderstanding.
 For example, nodding one’s head means “yes” in United State but “no” in Bulgaria.
(iii) Religion
Many international companies ignore the influence of religion. Most cultures find in religion a reason for
being. It is important to identify the difference between the shared beliefs, for example, in Islam,
Buddhism, or Christianity. An example of the effect of religious beliefs on international marketing is the
ban of pork products and alcoholic beverages in the Middle East. The international market manager must
be aware of religious division in the countries of operation.
(iv) Values and Attitudes
Cross-cultural Studies (Chapter 7)

 Cultural attitudes toward such factors as time, age, education and status reflects these values and in turn
shape the behavior of and opportunities available to international business operating in a given culture.
 Attitudes about time differ across cultures. In US, Canada and British business people arrive at 1.55pm
for a meeting scheduled 2.00pm. However, in Japan and Arab, the initial meeting focus on whether the
parties can be trusted and can work together comfortably.
 Important cultural differences exist in attitudes towards age. Many US identifying young as “fast-trackers”.
However, in Asian and Arab cultures, age is respected.
 A country’s formal system of public and private education is an important transmitter and reflection of
the cultural values of its society. For example, US primary and secondary school emphasize the role of
individual and stress the development of self-reliance, creativity and self-esteem.
 Status is the means by which is achieved and inherited or through personal accomplishments. For example,
Japan’s status depends on the status of the group to which he or she belongs. In India, status is affected
by one’s caste.
(v) Social Structure
 Societies differ, however, in the way they define family and in the relative important they place on the
individual’s role within groups. For example, US view of family ties and responsibilities focus on the
nuclear family. In other cultures, like Asian culture, the extended family is far more important
 These differing social attitudes are reflected in the important of the family to business. In US, firm
discourage nepotism, and the competence of a man who married the boss’s daughter is routinely
questioned by co-workers. In Arab-owned firms, however, family ties are crucial and hiring relative is a
common.
 Cultures also differ in the importance of the individual relative to the group. For example, US promotes
individualism while Japan role to serve as a group.