1. Chapter 04 Sociocultural Forces McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 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

3. 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. 4-4 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

5. 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.) 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

6. 4-6 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

7. 4-7 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

8. 4-8 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

9. 4-9 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.

10. 4-10 Aesthetics A culture’s sense of beauty and good taste expressed in everything, incl: –Art –Drama –Music –Folklore –Dance 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

11. 4-11 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

12. 4-12 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

13. 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

14. 4-14 GLOBAL gauntlet 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?