BUS 305

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

2. 4-2
Learning Objectives
• LO1 Describe what culture is.
• LO2 Explain the significance of culture differences
for international business.
• LO3 Describe Hall’s concept of high and low context.
• LO4 Describe Hofstede’s framework.
• LO5 Outline Trompenaar’s dimensions.
• LO6 Discuss the sociocultural aspects of culture as a
phenomenon.
• LO1 Describe what culture is.
• LO2 Explain the significance of culture differences
for international business.
• LO3 Describe Hall’s concept of high and low context.
• LO4 Describe Hofstede’s framework.
• LO5 Outline Trompenaar’s dimensions.
• LO6 Discuss the sociocultural aspects of culture as a
phenomenon.

3. 4-3
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.

4. 4-4
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

5. 4-5
How Do Business People
Learn about Cultures?
Anthropologist E. T. Hall claims:
1. Spend a lifetime in a culture, or
2. Undergo extensive cultural training AND
learn the language
Anthropologist E. T. Hall claims:
1. Spend a lifetime in a culture, or
2. Undergo extensive cultural training AND
learn the language

6. 4-6
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?

7. 4-7
Frameworks to Compare Cultures
Frameworks help
managers
understand
behavioral patterns
across cultural
borders.
Frameworks help
managers
understand
behavioral patterns
across cultural
borders.
3 Theoretical
Frameworks:
1. Hall:
• Simple, but powerful
1. Hofstede:
• Empirical
1. Trompenaars:
• Based in social sciences
3 Theoretical
Frameworks:
1. Hall:
• Simple, but powerful
1. Hofstede:
• Empirical
1. Trompenaars:
• Based in social sciences

8. 4-8
Hall’s High and Low Context
Context
• the relevant
environment
• beyond explicit
communication
Context
• the relevant
environment
• beyond explicit
communication
• 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

9. 4-9

10. 4-10

11. 4-11
Hofstede’s Five Dimensions
• Individualism-Collectivism
– Degree of group integration
• 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
• 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

12. 4-12

13. 4-13

14. 4-14

15. 4-15

16. 4-16
Trompenaars’ Seven Dimensions
• Universalism vs. Particularism / rules vs.
relationships
– Unversalist – rules apply to everyone
– Particularist – context determines which rules apply to whom
• 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
– Unversalist – rules apply to everyone
– Particularist – context determines which rules apply to whom
• 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

17. 4-17
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?

18. 4-18

19. 4-19
Sociocultural Aspects of Culture
• Effects of culture in all aspects, incl:
– Aesthetics
– Religion
– Material Culture
– Language
– Gift Giving
– Societal Organization
• Effects of culture in all aspects, incl:
– Aesthetics
– Religion
– Material Culture
– Language
– Gift Giving
– Societal Organization

20. 4-20
Aesthetics
• A culture’s sense of
beauty and good
taste, expressed in
everything, incl:
– Art
– Drama
– Music
– Folklore
– Dance
– Material culture
• 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)

21. 4-21
Religion
• Religion is basic to the attitudes and beliefs of
every world culture.
• Knowledge of local religion shows respect for
the local culture
• Inappropriate use of religious references and
values may show disrespect of culture’s core
values
• Religion is basic to the attitudes and beliefs of
every world culture.
• Knowledge of local religion shows respect for
the local culture
• Inappropriate use of religious references and
values may show disrespect of culture’s core
values

22. 4-22

23. 4-23
Language
Verbal and Nonverbal
• Every culture has language and dialects
• Verbal language distinguish cultures
• Every culture has language and dialects
• Verbal language distinguish cultures
• 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

24. 4-24
Nonverbal Language
• More intensive in HCs
• Gestures an accessible
form of non-verbal
language
• Gestures do not always
translate—
BE CAREFUL
• More intensive in HCs
• Gestures an accessible
form of non-verbal
language
• Gestures do not always
translate—
BE CAREFUL
• Physical space part of
nonverbal language
– Work space issues
• Open vs. private
• Size
• Location
• Hierarchy ordering
– Conversational space
• Normal distance between
people
• > in LC
• Physical space part of
nonverbal language
– Work space issues
• Open vs. private
• Size
• Location
• Hierarchy ordering
– Conversational space
• Normal distance between
people
• > in LC

25. 4-25
Special Focus: Gift Giving
Gift Giving Issues to Consider:
– What is an acceptable gift in the culture?
– What is the role of the gift?
– When is it given?
– How is it presented?
– 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?
– When is it given?
– How is it presented?
– What is acceptable wrapping?
– When should it be opened?
– Will the gift be seen as a bribe?

26. 4-26
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?