Chapter 04

SocioculturalForces

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

4-2

What Is Culture?1. Culture is learned; we are not born with culture.2. Aspects of culture are interrelated.3. Culture is shared, patterned, and mutually

constructed through social interaction.4. Culture defines the boundaries of different

groups.

1. Culture is learned; we are not born with culture.2. Aspects of culture are interrelated.3. Culture is shared, patterned, and mutually

constructed through social interaction.4. Culture defines the boundaries of different

groups.

LO1

4-3

People Live within Cultural Frameworks

• Sociocultural:– Description of the

social world through which we observe the effects of culture

• Sociocultural:– Description of the

social world through which we observe the effects of culture

• Ethnocentricity:– Assumption that

one’s own culture is superior to other cultures

• Ethnocentricity:– Assumption that

one’s own culture is superior to other cultures

LO1

4-4

Culture Affects all Business Functions

• Marketing:– What motivates people to buy and what do they prefer to buy?

• Human Resources:– What are the local Sociocultural motivators of employees?

• Production:– How do people work in groups? How do groups acquire

resources?

• Accounting & Finance:– Controls are based on the perception of trust in people– Formal controls – compliance through rules and sanctions– Informal controls – compliance through social norms

• Preferred Leadership Styles:– Relationship between leader and followers

• Hierarchical? Lateral? Paternalistic? Heroic?

• Marketing:– What motivates people to buy and what do they prefer to buy?

• Human Resources:– What are the local Sociocultural motivators of employees?

• Production:– How do people work in groups? How do groups acquire

resources?

• Accounting & Finance:– Controls are based on the perception of trust in people– Formal controls – compliance through rules and sanctions– Informal controls – compliance through social norms

• Preferred Leadership Styles:– Relationship between leader and followers

• Hierarchical? Lateral? Paternalistic? Heroic?

LO2

4-5

Hall’s High and Low Context• Cultural

classification based on communication styles and context – the relevant environment beyond explicit communication (body language, speaker’s location, order of speakers, etc.)

• Cultural classification based on communication styles and context – the relevant environment beyond explicit communication (body language, speaker’s location, order of speakers, etc.)

• High Context Cultures (HC)– Implicit and indirect communication;

Context is critical– Polychronic (simultaneous activities;

multi-tasking)– Asia, Latin America, Middle East

• Low Context Cultures (LC)– Explicit communication, direct and

to-the-point– Monochronic – linear, tangible, tied

to “Time is money,” uses schedules– North America

• High Context Cultures (HC)– Implicit and indirect communication;

Context is critical– Polychronic (simultaneous activities;

multi-tasking)– Asia, Latin America, Middle East

• Low Context Cultures (LC)– Explicit communication, direct and

to-the-point– Monochronic – linear, tangible, tied

to “Time is money,” uses schedules– North America

LO2

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Hofstede’s Five Dimensions• Individualism-Collectivism

– Degree of group integration within cultures

• Power Distance– Expectation and acceptance of unequal power

distribution

• Uncertainty Avoidance– Comfort with uncertainty

• Masculinity-Femininity– Distribution of roles between genders

• Long-Term Orientation/Confucian Dynamism– Level of perseverance in overcoming obstacles not

overcome with will or strength

• Individualism-Collectivism– Degree of group integration within cultures

• Power Distance– Expectation and acceptance of unequal power

distribution

• Uncertainty Avoidance– Comfort with uncertainty

• Masculinity-Femininity– Distribution of roles between genders

• Long-Term Orientation/Confucian Dynamism– Level of perseverance in overcoming obstacles not

overcome with will or strength

LO4

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Trompenaars’ Seven Dimensions

• Universalism vs. Particularism (rules vs. relationships in regulating behavior)– Unversalist – concepts apply to everyone– Particulartist – context determines which rules apply

• Individualism vs. Communitarianism– Communitarianism – the group benefits from actions

• Neutral vs. Affective (unemotional vs. emotional)– Display of emotion

• Specific vs. Diffuse– Private life: small in specific vs. large in diffuse—

undifferentiated from public life

• Universalism vs. Particularism (rules vs. relationships in regulating behavior)– Unversalist – concepts apply to everyone– Particulartist – context determines which rules apply

• Individualism vs. Communitarianism– Communitarianism – the group benefits from actions

• Neutral vs. Affective (unemotional vs. emotional)– Display of emotion

• Specific vs. Diffuse– Private life: small in specific vs. large in diffuse—

undifferentiated from public life

LO5

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Trompenaars’ Seven Dimensions

• Achievement vs. Ascription– Status based on what a person does vs. who a person is

• Attitudes towards Time – 2 aspects– Focus on past, present or future– Actions sequential (linear) or synchronous (polychronic)

• Attitudes toward Environment– In harmony with nature or in control of nature?

• Achievement vs. Ascription– Status based on what a person does vs. who a person is

• Attitudes towards Time – 2 aspects– Focus on past, present or future– Actions sequential (linear) or synchronous (polychronic)

• Attitudes toward Environment– In harmony with nature or in control of nature?

LO5

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Sociocultural Aspects of Culture

• Effects of culture shown in:– Aesthetics– Religion– Material Culture– Language– Gift Giving– Societal Organization

• Effects of culture shown in:– Aesthetics– Religion– Material Culture– Language– Gift Giving– Societal Organization

LO6

The details are on

pages 71 to 77 in the text.

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Aesthetics• A culture’s sense of

beauty and good taste expressed in everything, incl:– Art– Drama– Music– Folklore– Dance

• Material Culture or Artifacts– All human-made

objects– How people make

things (technology)– Who makes what

and why (economics)

• Material Culture or Artifacts– All human-made

objects– How people make

things (technology)– Who makes what

and why (economics)

LO6

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Language is both Verbal and Nonverbal

• Every culture has language and dialects.• Verbal language distinguishes cultures from each

other.

• Every culture has language and dialects.• Verbal language distinguishes cultures from each

other.

• Not understanding the language is a barrier • Even attempt to speak the language important

• Not understanding the language is a barrier • Even attempt to speak the language important

• English the “Language of Business”• Many prefer to speak their own language• Speaking the native language yields competitive

edge

• English the “Language of Business”• Many prefer to speak their own language• Speaking the native language yields competitive

edge

LO6

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Nonverbal Language• HCs use unspoken

language more than LCs

• Gestures are a common form of cross-cultural communication.

• BE CAREFUL – gestures do NOT mean the same across cultures!!

• HCs use unspoken language more than LCs

• Gestures are a common form of cross-cultural communication.

• BE CAREFUL – gestures do NOT mean the same across cultures!!

• Physical space is a component of language:– Work space issues:

• Open vs. private• Size• Location• Placement of superiors

and subordinates

– Conversational space:

• The comfortable distance between people

• Physical space is a component of language:– Work space issues:

• Open vs. private• Size• Location• Placement of superiors

and subordinates

– Conversational space:

• The comfortable distance between people

LO6

4-13

Special Focus: Gift Giving• Gift Giving Issues to Consider:

– What is an acceptable gift in the culture?– What is the role of the gift? What does it

represent?– When is it given?– How is it to be presented?– Should it be wrapped? What is acceptable

wrapping?– When should it be opened?– Will the gift be seen as a bribe?

• Gift Giving Issues to Consider:– What is an acceptable gift in the culture?– What is the role of the gift? What does it

represent?– When is it given?– How is it to be presented?– Should it be wrapped? What is acceptable

wrapping?– When should it be opened?– Will the gift be seen as a bribe?

LO6

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GLOBAL gauntlet• When in Rome,

Should you “Do as the Romans do”…and feel comfortable about it?

• When in Rome, Should you “Do as the Romans do”…and feel comfortable about it?

• When in another country, should you comply with local practices and social customs?

• What about local laws?• What do you do when

local laws, norms or customs conflict with those from your home country?

• When in another country, should you comply with local practices and social customs?

• What about local laws?• What do you do when

local laws, norms or customs conflict with those from your home country?