IAH3
IAH3
practices.
The following points were raised in the chapter:
The information, convictions, artwork, morality, laws, conventions, and other skills that individuals
acquire as members of a society make up the multifaceted phenomenon known as culture.
A culture's core elements are its conventions and values. Abstract notions of what a community deems to
be desirable, moral, and good are called values.Norms are societal laws and regulations that specify
proper conduct in specific circumstances.
Political forces, economic philosophies, social structures, religion, language, and education all have an
impact on values and standards. Furthermore, country's norms and esteem systems may have an impact on
how much it costs to conduct business there.
The fundamental social structure of a society can be referred to as its social structure. The individual-
group scale and the division dimension are the two fundamental points along which social systems vary.
In particular communities, an individual serves as the fundamental unit of a social structure. Those
cultures place the greatest value on an individual's accomplishments. The group is the fundamental unit of
societal structure in other societies. In these societies, belonging to a group and achieving things together
are highly valued.
Nearly each community is divided into several classes. Low upward mobility and a significant degree of
stratification are traits of class-conscious civilizations. Low levels of stratification and high levels of
social mobility are features of less class-conscious ancient cultures.
A system of rituals and common thoughts that concentrate on the sacred can be categorized as religion. A
collection of moral precepts, or values, that serve to direct and mold behavior can be referred to as an
ethical system. The four main religions of the world are Buddhism, Hinduism, Islam, and Christianity.
Different spiritual and ethical systems' value systems have varying effects on business practices.
One of a culture's distinguishing features is its language. It has depths that are both spoken and unsaid.
Humans typically discover several cultures in nations where multiple languages are spoken.
Academic education is the means by which people acquire skills and knowledge and are socialized into
the norms and values of a given community. The primary source of a nation's competitive advantage is
education.
Geert Hofstede investigated the relationship between workplace culture and values. Separation of powers,
avoiding uncertainties, individuality against collective thinking, maleness versus femininity, and
permanent versus short-term thinking were the five dimensions he recognized as summarizing various
civilizations.
Culture changes, sometimes slowly, but it never stays the same. Globalization and economic advancement
are two significant forces driving cultural change.
As significant as culture is to individuals, businesses, and society as a whole, it is likely less significant
than political, legal, and economic systems in explaining the differences in economic growth throughout
countries. While cultural differences are important, their significance in the economic domain should not
be overstated. For instance, as we previously mentioned, Max Weber contended that Hinduism's austere
teachings do not promote entrepreneurship. This is an intriguing idea, but there has been a surge in Indian
entrepreneurship in recent years, especially in the information technology space, where the country is a
major player on the international stage. Social stratification based on caste and the austere ideals of
Hinduism don't seem to have discouraged entrepreneurship in this field.Being ignorant is one risk an
international business faces. Companies that operate internationally should think about hiring citizens of
the host nation, cultivate a team of cosmopolitan executives, and avoid the pitfalls of ethnocentric
behavior in order to foster cross-cultural literacy.