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LectureCultural dimension:
Yesterday, now or later?
Luis San AndresMast-Childs Tribology Professor
Texas A&M University
http://rotorlab.tamu.edu/me489
April 26, 2011
ME 489 Practices of Modern Engineering
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Lecture
Date:
Today Cultural dimensionsLong Term orientation – yesterday, Now or Later? Differences in thinking between the East and West
China is shrinking the idea of the West!
Assignments & reading:
Be ready to party on Thursday!
Other: complete ONE MINUTE PAPER – complete rankings of team members
Last Pick presents….
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China
A country with a long-long-long history: dynasties and empires, a peasant revolution and communism, opened to global market in early 1980s’
Chinese firsts: block printing, gun powder & rocketry, compass and watches, etc. Until 18th century more advanced technologically than the West. China did not have an industrial revolution.
For centuries Chinese culture (way of thinking) has influenced greatly the Far East (Japan, Korea, Taiwan, Hong-Kong, Singapore, etc).
What way of thinking?
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A little about China’s economic growth
2009 GDP US 14 Trillion, China: 4.91 Trillion
China overtook Britain and France in 2005 and Germany in 2007. In 2009, China surpassed Germany to become the world’s largest exporter. In 2nd quarter 2010, China surpassed Japan as the world’s second largest economy.
Growth averaged over 10 % for the last 30 years.
The per capita GDP in China is $3.6k in 2009, one 14th of the $46.k per person output in the US. Hard currency reserves 2 Trillion
China will surpass the US becoming the world’s largest economy in 2027. China will be twice as large as the US economy in 2050
http://factsanddetails.com/china.php?itemid=376&catid=9&subcatid=58#04
Source: The Economist
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Team Alpha reports
2011 GDP US 14 Trillion, China: 9.8 Trillion
Growth remains at 10 %
Average wages GDP $7.4 k (up from $ 5k in 2006).
Largest exporter of goods at ~$1.5 trillion dollars worth of goods and services with ~20% going to the USA
Why the fastest growth on earth?
Low manufacturing
costs + huge internal market
(1.5 billion)+ technology
The Economist
Trade balanceUSA: -605 $Bn (Jul 2010) (3.0% GDP Q2)China: +179 $Bn (Aug 2010) (10.3% GDP)
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China economy generates jobs elsewhere
China does not only EXPORT stuff!
It also imports technology and services.
The US has a + trade in particular services (know
how)
Source: The Economist
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The decline of Western science & technology?
GERD: % of GDP on R&D # technical papers
Asian countries (S Korea and China) are becoming not just more productive but also developing more technology. In 2011, China will have more patents than Japan!
A worry!
Source: The Economist
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Cultural dimensions
Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede
1.Power Distance2.Individualism / Collectivism3.Masculine / Feminine4.Uncertainty Avoidance
More equal than others
I, We, They
He, She, (S)he
What is different is dangerous
A 5th dimension appears from a Chinese Values Survey. (Uncertainty Avoidance has no equivalent in CVS)
Explains differencesIn thinking b/w East and West
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9Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede
Pragmatic rules for daily life
Teachings of Confucius
1. Society stability is based on unequal relationships between people
2. Family is prototype of all social organizations3. Virtuous behavior: do no treat others as one would not
like to be treated oneself4. Virtue derives from education, hard working, not
spending more than needed, being patient and persevering
Confucius, C. philosopher (~500 B.C.)
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10Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede
Teachings of Confucius
1.Society stability is based on unequal relationships between people
Must accept differences in status
Basic relationships father-son, brother-younger brother,
husband-wife, senior friend-junior friend
Mutual & complimentary obligationsRespect and obedience
Protection and consideration
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11Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede
Teachings of Confucius
2. Family is prototype of all social organizations
A person is NOT an individual, he/she is a member of a family.
HARMONY is found when everyone maintains face in the sense of dignity, self-respect and prestige.
Losing dignity (face) is like losing a nose, etc.
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12Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede
Teachings of Confucius
3. Virtuous behavior: do no treat others as one would not like to be treated oneself.Keep one’s place, respect authority.
The Golden rule in Western Values: Treat others as one would like to be treated
4. Virtue derives from education, hard working, not spending more than needed, being patient and persevering.
Everything must be done in moderation
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Long Term Orientation (LTO)
Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede
The fostering of virtues oriented towards future rewards – in particular perseverance and thrift.
The opposite pole (Short TO) fosters virtues related to the past and present, in particular respect for tradition, preservation of face, and fulfilling social obligations
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14Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede
http://www.clearlycultural.com/geert-hofstede-cultural-dimensions
Long Term Orientation
Map
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15Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede
39 countries Country SCORE RANK
Past & present,
Futurerewards
Country SCORE RANK
Most Asian countries
have high LTO scores
Long Term Orientation (LTO)
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16Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede
Explains the difference in thinking between the East and West.
Long term orientation- persistence- ordering relationships by status and observing this order- thrift- having a sense of shame
Short term orientation- personal steadiness and stability- protecting your ‘face’- respect for tradition- reciprocation of greetings, favors, and gifts
Long Term Orientation (LTO)
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Key Differences
LTOGeneral norm
Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede
Short-Term O Long-Term O
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Key Differences
LTOFamily
Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede
Short-Term O Long-Term O
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Key Differences
LTO
School
Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede
Short-Term O Long-Term O
Remember “Tiger
Mom” & US STORM
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Key Differences
LTO
Business &Economics
Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede
Short-Term O Long-Term O
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Key Differences
LTO
Religion&
Way of Thinking
Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede
Short-Term O Long-Term O
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22Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede
LTO
GN
P/c
apit
a
Short-term Long term
Long Term Orientation vs GNP growth
GrowthRATE
Note the emergence of
East AsianCountries(S Korea,
Taiwan, Singapore,
Japan)
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Understanding China
Guanxi Ability to forge solid relationships for mutual benefit and
understanding = BLOOD IS THICKER THAN WATER
Benefits & obligations extend beyond the realm of contracts and business.
Guanxi links family sphere to the business sphere. In high LTO societies, having one’s personal network of acquaintances is essential for success. One’s capital of guanxi lasts a lifetime, and would not want to damage it for short-term bottom-line reasons.
Cultures and Organizations: Software of the MindBy Geert Hofstede and Gert Jan Hofstede
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Guanxi example
Singapore, Straits Times, October 20, 2009
guanxi!
(See Corruptions Perceptions Index)
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GUANXI In China
Huanlin Zhu
April 21
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• Guanxi ---- ?---- Relationship
Ignores the culture implications
Guanxi
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Guanxi
• China -------- originates from agriculture
Tools, Techniques are from parents
• Wars from time to time
Government and society are not stable in the long history
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Guanxi
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• Fundamental element is family
• Two phrases
Renqing / Personal favors
Lianmian / face
Guanxi
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Personal
favors
important to
maintain a good
“Guanxi”
Guanxi
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Face “puff
oneself up to one's own cost”
Guanxi
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• Establish Guanxi through
Gift giving
Mutual help.
• Guanxi comes along with expectations and obligations.
Guanxi
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• Better Guanxi, Higher chance to get promotion, admission, or…
Guanxi
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Practices of Modern
Engineering© Luis San AndresTexas A&M University2011
http://rotorlab.tamu.edu/me489
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Questions?Next lecture
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World Values Map
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(not used)
the importance of education
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Satisfaction with life index
http://en.wikipedia.org/wiki/Satisfaction_with_Life_Indexhttp://www.squarecirclez.com/blog/database-of-happiness/1080
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GINI Coefficient
A measure of income inequality, the most unequal society will be one in which a single person receives 100% of the total income and the remaining people receive none (G=1); and the most equal society will be one in which every person receives the same income (G=0).
World CIA Report 2009