Week 2: Culture, Religion and Social

Organizations
GMS 691: The Asian Business Environment
 Agenda

• Recap: Last week

• Group formation
• Group report
• Week 2
 What is culture?

• Culture is defined as the collective mental programming of the human mind which
distinguishes one group of people from another. This programming influences patterns
of thinking which are reflected in the meaning people attach to various aspects of
life and which become crystallized in the institutions of a society (Source: https://www.hofstede-
insights.com/product/compare-countries/).

• 6 dimensions:
• Power distance
• Individualism
• Masculinity
• Uncertainty avoidance
• Long-term orientation
• Indulgence
 Culture Dimensions

1. Power Distance: the extent to which the less powerful members of institutions and organizations within a country
expect and accept that power is distributed unequally.
• Higher score = society accepts power distance
• Lower score = society does not accepts power distance

2. Individualism: the degree of interdependence a society maintains among its members.

• High score = individualistic society
• Low score = collectivist society

3. Masculinity: what motivates people, wanting to be the best (Masculine) or liking what you do (Feminine).
• High score (Masculine) = society driven by competition, achievement and success, with success being defined by the
winner / best in field – a value system that starts in school and continues throughout organisational life.
• Low score (Feminine) = dominant values in society are caring for others and quality of life. A Feminine society is one
where quality of life is the sign of success and standing out from the crowd is not admirable.

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 Culture Dimensions

4. Uncertainty avoidance: the score reflects the extent to which the members of a culture feel threatened by ambiguous
or unknown situations and create beliefs and institutions to avoid these.
• High score = high uncertainty avoidance
• Low score = low uncertainty avoidance

5. Long-term orientation: how every society has to maintain some links with its own past while dealing with the
challenges of the present and future, and societies prioritize these two existential goals differently
• High score = pragmatic approach - encourage thrift and efforts in modern education as a way to prepare for the
future.
• Low score = normative approach - maintain time-honoured traditions and norms while viewing societal change with
suspicion

6. Indulgence: extent to which people try to control their desires and impulses, based on the way they were raised.
• High score = relatively weak control - “Indulgence”
• Low score = relatively strong control - “Restraint”

Source: https://www.hofstede-insights.com/product/compare-countries/
Culture dimension scores

Source: https://www.hofstede-
insights.com/country-
comparison/china,india,japan,south-korea/
 China
1. Power distance: (score = 80 = high)
• Society that believes that inequalities amongst people are acceptable.
• The subordinate-superior relationship tends to be polarized and there is no defense against power abuse by superiors.
• Individuals are influenced by formal authority and sanctions and are in general optimistic about people’s capacity for leadership and
initiative. People should not have aspirations beyond their rank

2. Individualism: (score = 20 = low)

• Highly collectivist culture where people act in the interests of the group and not necessarily of themselves.
• In-group considerations affect hiring and promotions and promotions with closer in-groups (such as family) are getting preferential
treatment.
• Employee commitment to the organization (but not necessarily to the people in the organization) is low.
• Whereas relationships with colleagues are cooperative for in-groups they are cold or even hostile to out-groups.
• Personal relationships prevail over task and company.

3. Masculinity: (score = 66 = high)

• Success oriented and driven. The need to ensure success can be exemplified by the fact that many Chinese will sacrifice family and
leisure priorities to work. Service people (such as hairdressers) will provide services until very late at night.
• Leisure time is not so important. The migrated farmer workers will leave their families behind in faraway places in order to obtain
better work and pay in the cities.
• Another example is that Chinese students care very much about their exam scores and ranking as this is the main criteria to achieve
success or not.
Source: https://www.hofstede-insights.com/product/compare-countries/
 China (cont..)
4. Uncertainty avoidance: (score = 30 = low)
• Truth may be relative though in the immediate social circles there is concern for Truth with a capital T and rules (but not necessarily
laws) abound.
• Adherence to laws and rules may be flexible to suit the actual situation and pragmatism is a fact of life.
• The Chinese are comfortable with ambiguity; the Chinese language is full of ambiguous meanings that can be difficult for Western
people to follow.
• Chinese are adaptable and entrepreneurial. Majority (70% -80%) of Chinese businesses tend to be small to medium sized and family
owned.

5. Long-term orientation: (score = 87 = high)

• A very pragmatic culture.
• People believe that truth depends very much on situation, context and time.
• Ability to adapt traditions easily to changed conditions, a strong propensity to save and invest, thriftiness, and perseverance in
achieving results.

6. Indulgence: (score = 24 = low)

• Restrained society.
• Tendency to cynicism and pessimism.
• Do not put much emphasis on leisure time and control the gratification of their desires.
• Perception that their actions are Restrained by social norms and feel that indulging themselves is somewhat wrong.

Source: https://www.hofstede-insights.com/product/compare-countries/
Link: https://www.ft.com/content/d5f01f68-9cbc-11e8-88de-49c908b1f264
 India
1. Power distance: (score = 77 = high)
• Appreciation for hierarchy; top-down structure in society and organizations.
• Real Power is centralized even though it may not appear to be and managers count on the obedience of their team members.
• Employees expect to be directed clearly as to their functions and what is expected of them.
• Control is familiar, even a psychological security, and attitude towards managers are formal even if one is on first name basis.
• Communication is top down and directive in its style and often feedback which is negative is never offered up the ladder.
2. Individualism: (score = 48 = intermediate)
• Society with both collectivistic and Individualist traits.
• Collectivist side - high preference for belonging to a larger social framework in which individuals are expected to act in accordance to the greater good
of one’s defined in-group(s). Actions of the individual are influenced by various concepts such as the opinion of one’s family, extended family,
neighbours, work group and other such wider social networks that one has some affiliation toward. To be rejected by one’s peers or to be thought lowly
of by one’s extended and immediate in-groups, leaves him or her rudderless and with a sense of intense emptiness. The employer/employee
relationship is one of expectations based on expectations – Loyalty by the employee and almost familial protection by the Employer. Hiring and
promotion decisions are often made based on relationships which are the key to everything in a Collectivist society.
• Individualist side - result of its dominant religion/philosophy – Hinduism. The Hindus believe in a cycle of death and rebirth, with the manner of each
rebirth being dependent upon how the individual lived the preceding life. People are, therefore, individually responsible for the way they lead their lives
and the impact it will have upon their rebirth. This focus on individualism interacts with the otherwise collectivist tendencies of the Indian society which
leads to its intermediate score on this dimension.
3. Masculinity: (score = 56 = high)
• Very masculine in terms of visual display of success and power.
• The designer brand label, the flash and ostentation that goes with advertising one’s success, is widely practiced.
• However, India is also a spiritual country with millions of deities and various religious philosophies. It is also an ancient country with one of the longest
surviving cultures which gives it ample lessons in the value of humility and abstinence. This often reigns in people from indulging in Masculine displays
to the extent that they might be naturally inclined to.

Source: https://www.hofstede-insights.com/product/compare-countries/
 India (cont..)
4. Uncertainty avoidance: (score = 40 = medium low)
• Preference for avoiding uncertainty. In India, there is acceptance of imperfection; nothing has to be perfect nor has to go exactly as planned. India is
traditionally a patient country where tolerance for the unexpected is high ; even welcomed as a break from monotony.
• People generally do not feel driven and compelled to take action-initiatives and comfortably settle into established rolls and routines without
questioning.
• Rules are often in place just to be circumvented and one relies on innovative methods to “bypass the system”.
• A word used often is “adjust” and means a wide range of things, from turning a blind eye to rules being flouted to finding a unique and inventive
solution to a seemingly insurmountable problem. It is this attitude that is both the cause of misery as well as the most empowering aspect of the
country. There is a saying that “nothing is impossible” in India, so long as one knows how to “adjust”.
5. Long-term orientation: (score = 51 = intermediate)
• The concept of “karma” dominates religious and philosophical thought.
• Time is not linear, and thus is not as important as to western societies which typically score low on this dimension.
• Have a great tolerance for religious views from all over the world.
• Hinduism is often considered a philosophy more than even a religion; an amalgamation of ideas, views, practices and esoteric beliefs. In India there is an
acceptance that there are many truths and often depends on the seeker.
• Societies that have a high score on pragmatism typically forgive a lack of punctuality, a changing game-plan based on changing reality and a general
comfort with discovering the fated path as one goes along rather than playing to an exact plan.
6. Indulgence: (score = 26 = low)
• Is a culture of Restraint.
• Societies with a low score in this dimension have a tendency to cynicism and pessimism.
• Do not put much emphasis on leisure time and control the gratification of their desires.
• People have the perception that their actions are Restrained by social norms and feel that indulging themselves is somewhat wrong.
Link: https://www.ukibc.com/india-guide/how-india/business-culture/
Source: https://www.hofstede-insights.com/product/compare-countries/
 Japan
1. Power distance: (score = 54 = intermediate)
• Are always conscious of their hierarchical position in any social setting and act accordingly. However, it is not as hierarchical as other Asian cultures.
• Some foreigners experience Japan as extremely hierarchical because of their business experience of painstakingly slow decision making process: all the
decisions must be confirmed by each hierarchical layer and finally by the top management in Tokyo.
• Paradoxically, the slow decision making process shows that no one top guy who can take decision like in more hierarchical societies.
• Meritocratic society - strong notion in the education system - everybody is born equal and anyone can get ahead and become if works hard enough.
2. Individualism: (score = 46 = intermediate)
• Society shows many of the characteristics of a collectivistic society: such as putting harmony of group above the expression of individual opinions and
people have a strong sense of shame for losing face.
• However, it is not as collectivistic as most of her Asian neighbours. The most popular explanation for this is that Japanese society does not have extended
family system which forms a base of more collectivistic societies such as China and Korea.
• Japan has been a paternalistic society and the family name and asset was inherited from father to the eldest son.
• Paradoxal example - famous for their loyalty to their companies, while Chinese seem to job hop more easily. However, company loyalty is something, which
people have chosen for themselves, which is an Individualist thing to do.
• Japanese are collectivistic by Western standards and Individualist by Asian standards. They are more private and reserved than most other Asians.
3. Masculinity: (score = 95 = high)
• in combination with their mild collectivism, do not see assertive and competitive individual behaviors which we often associate with Masculine culture.
• Severe competition between groups. From very young age at kindergartens, children learn to compete on sports day for their groups (traditionally red team
against white team).
• In corporate Japan, employees are most motivated when they are fighting in a winning team against their competitors.
• Expression of masculinity – drive for excellence and perfection in their material production (monodukuri) and in material services (hotels and restaurants)
and presentation (gift wrapping and food presentation) in every aspect of life.
• Notorious Japanese workaholism is another expression of their Masculinity. It is still hard for women to climb up the corporate ladders in Japan with their
Masculine norm of hard and long working hours.
Source: https://www.hofstede-insights.com/product/compare-countries/
 Japan (cont..)
4. Uncertainty avoidance: (score = 92 = high)
• Constantly threatened by natural disasters from earthquakes, tsunamis (this is a Japanese word used internationally), typhoons to volcano eruptions.
• Prepare themselves for any uncertain situation - not only for the sudden natural disasters but also for every other aspects of society.
• Anything you do is prescribed for maximum predictability. From cradle to grave, life is highly ritualized and you have a lot of ceremonies. For example, there
is opening and closing ceremonies of every school year which are conducted almost exactly the same way everywhere in Japan.
• At weddings, funerals and other important social events, what people wear and behavior prescribed in great detail in etiquette books.
• School teachers and public servants are reluctant to do things without precedence.
• In corporate Japan, a lot of time and effort is put into feasibility studies and all the risk factors must be worked out before any project can start. Managers
ask for all the detailed facts and figures before taking any decision. This high need for Uncertainty Avoidance is one of the reasons why changes are so
difficult to realize in Japan.
5. Long-term orientation: (score = 88 = high)
• Japanese see their life as a very short moment in a long history of mankind. From this perspective, some kind of fatalism is not strange to the Japanese. You
do your best in your life time and that is all what you can do.
• Notion of the one and only almighty God is not familiar to Japanese. People live their lives guided by virtues and practical good examples.
• In corporate Japan, you see long term orientation in the constantly high rate of investment in R&D even in economically difficult times, higher own capital
rate, priority to steady growth of market share rather than to a quarterly profit, and so on. They all serve the durability of the companies. The idea behind it
is that the companies are not here to make money every quarter for the share holders, but to serve the stake holders and society at large for many
generations to come (e.g. Matsuhista).
6. Indulgence: (score = 42 = low)
• Is a culture of Restraint.
• Societies with a low score in this dimension have a tendency to cynicism and pessimism.
• Do not put much emphasis on leisure time and control the gratification of their desires.
• People have the perception that their actions are Restrained by social norms and feel that indulging themselves is somewhat wrong.
Link: http://japan-forward.com/japanese-culture-101-learning-the-basics-of-japanese-etiquette-in-a-fun-video-series/
Link: https://www.americanexpress.com/en-us/business/trends-and-insights/articles/doing-business-in-japan-10-etiquette-rules-you-should-know/
Source: https://www.hofstede-insights.com/product/compare-countries/
 South Korea
1. Power distance: (score = 60 = slightly hierarchical)
• This means that people accept a hierarchical order in which everybody has a place and which needs no further justification.
• Hierarchy in an organization is seen as reflecting inherent inequalities, centralization is popular, subordinates expect to be told what to do and the ideal
boss is a benevolent autocrat

2. Individualism: (score = 18 = low = collectivistic)

• This is manifest in a close long-term commitment to the member ‘group’, be that a family, extended family, or extended relationships.
• Loyalty in a collectivist culture is paramount, and over-rides most other societal rules and regulations.
• The society fosters strong relationships where everyone takes responsibility for fellow members of their group.
• In collectivist societies offence leads to shame and loss of face, employer/employee relationships are perceived in moral terms (like a family link), hiring and
promotion decisions take account of the employee’s in-group, management is the management of groups.

3. Masculinity: (score = 39 = low = feminine)

• In Feminine countries the focus is on “working in order to live”, managers strive for consensus, people value equality, solidarity and quality in their working
lives.
• Conflicts are resolved by compromise and negotiation. Incentives such as free time and flexibility are favoured.
• Focus is on well-being, status is not shown.
• An effective manager is a supportive one, and decision making is achieved through involvement.

Source: https://www.hofstede-insights.com/product/compare-countries/
 South Korea (cont..)
4. Uncertainty avoidance: (score = 85 = high)
• Countries exhibiting high Uncertainty Avoidance maintain rigid codes of belief and behaviour and are intolerant of unorthodox behaviour and ideas.
• In these cultures there is an emotional need for rules (even if the rules never seem to work) time is money, people have an inner urge to be busy and
work hard, precision and punctuality are the norm, innovation may be resisted, security is an important element in individual motivation.

5. Long-term orientation: (score = 100 = high = pragmatic)

• Notion of the one and only almighty God is not familiar to South Koreans.
• People live their lives guided by virtues and practical good examples.
• In corporate South Korea, you see long term orientation in the, higher own capital rate, priority to steady growth of market share rather than to a
quarterly profit, and so on. They all serve the durability of the companies.
• The idea behind it is that the companies are not here to make money every quarter for the share holders, but to serve the stake holders and society at
large for many generations to come.

6. Indulgence: (score = 29 = low)

• Is a culture of Restraint.
• Societies with a low score in this dimension have a tendency to cynicism and pessimism.
• Do not put much emphasis on leisure time and control the gratification of their desires.
• People have the perception that their actions are Restrained by social norms and feel that indulging themselves is somewhat wrong.

Link: https://www.tradecommissioner.gc.ca/korea-republic-coree-republique/market-facts-faits-sur-le-marche/87892.aspx?lang=eng
Source: https://www.hofstede-insights.com/product/compare-countries/
 China
Language: Mainly putonghua, or Standard Chinese, based on northern Chinese (the Beijing
dialect known as Mandarin); local dialects and languages are also used

Ethnic Groups: Han majority; Others – Zhuang, Hui, Manchu etc.

Public holidays
• January 1 (New Year's Day)
• February 4-10 (Chinese New Year)
• April 5-7 (Qingming Festival)
• May 1 (Labour Day)
• June 7-9 (Dragon Boat Festival)
• September 13-15 (Mid- Autumn Festival)
• October 1-7 (National Day).
 China (cont..)
• Traditionally Buddhism and Taoism

• Protestant and Catholic followers have begun to

occupy China's eastern regions, while western
regions like Xinjiang and Gansu are predominately
Muslim.

• Significant increase in Christianity especially

Protestant – 100 million Christians

Link: https://www.businessinsider.com/new-religious-breakdown-in-china-14

Link: https://www.economist.com/analects/2014/11/11/crosses-to-bear
 India
Languages
• Hindi is the official language and the primary tongue of 30% of the population.
English is an additional language used for official purposes and also used widely
in business circles.
• Individual states may legislate an official language – 22 official languages

Public Holidays
• Republic Day (January 26); Independence Day (August 15); Mahatma Gandhi’s
birthday (October 2); also major Hindu, Sikh, Muslim, Christian and other
religious holidays
 India
Religions
• Hindu (79.8% in 2011 census)
• Muslim (14.2%)
• Christian (2.3%)
• Sikh (1.7%)
• Buddhist (0.7%)
• Jain (0.4%)

Links: http://www.pewresearch.org/fact-tank/2018/06/29/5-facts-about-religion-in-india/
 Japan
Language: Japanese
Ethnic Groups: Mainly Japanese; minuscule minority of Korean, Chinese etc.
Public holidays
• January 1st (New Year)
• January 14th (Coming of Age Day); February 11th (National Foundation Day)
• March 21st (Vernal Equinox)
• April 29th and May 3rd-6th (Golden Week holidays)
• July 15th (Marine Day)
• August 11th-12th (Mountain Day)
• September 16th (Respect for the Aged Day)
• September 23rd (Autumnal Equinox)
• October 14th (Sports Day)
• November 3rd-4th (Culture Day)
• November 23rd (Labour Thanksgiving)
 Japan
Religion: Mainly Shinto and Buddhism

Link: https://berkleycenter.georgetown.edu/posts/the-japanese-ness-of-religion-in-japan
Link: https://www.japan-guide.com/e/e629.html
 South Korea
Language: Korean
Public holidays
• January 1 (New Year’s Day)
• February 4- 6 (Lunar New Year)
• March 1 (Independence Movement Day)
• May 5-6 (Children’s Day)
• May 12th (Buddha’s birthday)
• June 6 (Memorial Day)
• August 15 (Liberation Day)
• September 12-14 (Chuseok holidays)
• October 3 (National Foundation Day)
• October 9 (Hangeul Day)
• December 25 (Christmas Day)
 South Korea
Religion:
• Growth in Christianity
• Decline of Buddhism
• Lately increase in atheism especially amongst the
younger segment

Link: http://www.pewresearch.org/fact-tank/2014/08/12/6-facts-about-christianity-
in-south-korea/
Link: https://www.aljazeera.com/indepth/features/2017/05/young-south-koreans-
turning-religion-170524144746222.html
Class Exercise
• Pick a product / service
• Think about market entry
• Which country will you pick?