HUMAN AND CULTURAL ENVIRONMENT

PGDIB - I

TOPICS TO BE DISCUSSED:

What is Culture? Elements of Culture:

Language or Communication Religion Education Value and Attitudes Social Institutions or Structure Customs or Traditions

CULTURE

Culture is entire set of social norms shaping human behavior.

Culture represents entire sets of social norms and responses that dominates the behavior of persons living in a particular geographic or political boundary.

LANGUAGE OR COMMUNICATION

Language is a medium through which message is conveyed.

Language may be Verbal or Non-Verbal.

Verbal communication Verbal Communication is one in

which pronunciation of words is used.

The presence of more than one language group is an important signal about the diversity of a country’s population.

Most widely spoken languages in the world are English, followed by French, Spanish, and Chinese.

Verbal communication Learning the local language of the

Country in which business is to be expanded yield considerable advantage.

While the dominance of a language internationally gives an advantage to people for whom it is native language, failure by them to learn a second language puts them at a relative disadvantage on certain foreign lands.

Non-verbal communication Non-Verbal Communication is

nothing but the unspoken language. It includes facial expression, hand

gestures, eye contact, body positioning, and body postures.

International Business people should avoid gesturing in foreign culture unless they are sure of a gesture’s meaning in that culture.

RELIGION Religion is the system of shared

beliefs and rituals. It effects the way in which

members of a society relate to each other and to outsiders.

It shapes the attitude of people towards work, consumption, individual responsibility and planning for the future.

RELIGION

The Religions mostly followed in the world are: Christianity Hinduism Islam Buddhism

Christianity Categories of Christianity:

Catholics Protestants

While protestants gives weightage to accumulation of wealth, the Catholics oppose it.

Protestants Ethics: High saving rate, Constant striving for efficiency, & reinvestment of profits to improve future productivity.

Hinduism Emphasis on spiritual accomplishment

rather than economic success. Hinduism provides little support for

capitalist activities such as investment, wealth accumulation, and constant quest for higher productivity.

Hinduism also support Indian’s Caste system that comes in the way of mobility of the work force.

Islam Islam, while supportive of capitalism,

places more emphasis on the individual’s obligations to the society.

Earn profit as long as profit is justly earned and not based on the exploitation of others.

Other ways in which Islam effects the business are: Purdah system, Ramzan prayes, etc.

Buddhism

Beliefs in spiritual achievements and not in material achievements.

Unlike Hinduism, Buddhism does not support the caste system.

Education Education has a close relationship

with the availability of skilled manpower.

The level of Education in a particular culture depends primarily on the literacy rate and on the enrollment in schools and colleges.

If the level of Education is higher in a society, it is easy for multinational firms to operate there.

Value and Attitudes Values: principles and standards

accepted by members. Values are beliefs and norms

prevalent in a particular society. Attitude: actions, thoughts, and

feelings that results from those values.

Values determine largely the attitude and behavior of individuals towards work, status, change, and so on.

Social Institutions or Structure

Two dimensions of social structure which are of particular importance to IB are: Individual v/s Group Social Stratification

Individual v/s Group Individualism: Encourages Entrepreneurial

activities and dynamism. High degree of managerial mobility. Lack of Loyalty, and commitment of

individuals to a particular company. Difficult to build teams within an

Organization. Ex: USA

Individual v/s Group Groupism: Close coperation between

individuals within the organization. Low degree of managerial mobility. Loyalty and Commitment to

Organization. Lack of dynamism and

Entrepreneurship.

Individual v/s Group

Managers build up knowledge, experience and a network of interpersonal relations.

Ex: Japan.

Social Stratification

Social Stratification is very much apparent (visible) in Person’s buying habit.

When an International Manager operates in a Foreign Land, he or she takes into account which segment of the society is the major buyer of the product.

Customs (Tradition) Customs and manners vary from one

society to another. It is basic necessity of an International

Manager to be aware of varying Customs and Manners.

Ex: In the US, Silence is taken as negation (denial), while it is not so in Japan.

In Britain, Instant Coffee is preferred while in US, both ground Coffee and Instant Coffee is popular.

References

International Business By V Sharan Chapter – 11 [11.1(11.1.1,11.1.2)]