International sociocultural environment

1. International sociocultural environment

2. Definitions of culture • ‘Culture should be regarded as the set of distinctive spiritual, material, intellectual and emotional features of society or a social group, and that it encompasses, in addition to art and literature, ways of living together, value systems, traditions and beliefs’ (UNESCO 2002). • Culture… is that complex whole which includes knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by man as member of society. (Encyclopædia Britannica 2000).

3. http://www.youtube.com/watch?v=8tIUilYX56E&feature=BFa&list=PL636501B39E70CBA8&index=5http://www.youtube.com/watch?v=8tIUilYX56E&feature=BFa&list=PL636501B39E70CBA8&index=5 • 4 min high & low Contexts

4. High context cultures – Edward Hall • Define personality more in terms of the group than the individual • Low boundaries in terms of personal space • Initiate and receive more bodily contact when talking • Are polychronic, i.e. time has non-linear aspects so punctuality and scheduling are low priority.

5. Low context cultures – Edward Hall • Are more individualistic than group • High boundaries in terms of personal space • Convey more information via explicit codes rather than non-verbal language • Are monochronic, i.e. time is linear so punctuality and scheduling are high priority.

6. Hofstede’s five cultural dimensions • Individualism (versus collectivism) • Power distance • Uncertainty avoidance • Masculinity/Femininity • Long-term orientation (versus short-term).

7. Societies - Hofstede • United States, the United Kingdom, Australia, Canada, New Zealand and the Netherlands tend to be relatively individualist in their values. • Mexico, Greece, Hong Kong, Taiwan, Peru, Singapore, Colombia and Pakistan tend to be relatively collectivist in their values.

8. Power distance - Hofstede • Philippines, Mexico, Venezuela, India, Singapore, France, Spain, Japan and Brazil tend to be relatively power respecting (large power distance). • Austria, Israel, Denmark, New Zealand, Ireland, Great Britain, Germany, Australia, Canada and the USA have small power distance. • http://www.youtube.com/watch?v=jU2gp3QjnNU

9. Uncertainty Avoidance - Hofstede • Nordic and Anglo-Saxon countries as well as most other Asian and sub-Saharan countries exhibit weak uncertainty avoidance. • Latin, Mediterranean and Central and Eastern European countries, Japan, South Korea and Pakistan exhibit strong uncertainty avoidance.

10. Masculinity/Femininity - Hofstede • Masculinity refers to cultures in which the social gender roles are clearly distinct; men are supposed to be more assertive and acquisitive, valuing material possessions and money. • Femininity refers to cultures in which social gender roles overlap; both men and women are supposed to be modest, tender and concerned with the quality of life.

11. Long-term orientation • Long-term orientation means focusing on the future, delaying immediate gratification by practising persistence and thriftiness. • E.g. China, Hong Kong, Taiwan, Japan and South Korea…

12. Short-term orientation • Short-term orientation means a greater focus on the present and a more immediate gratification of need, such as spending to support current consumption even if this means borrowing money. • E.g. Pakistan, Philippines and Bangladesh and all Western countries…

13. Impacts of different cultural dimensions at the workplace (1)

14. Impacts of different cultural dimensions at the workplace (2)

15. Impacts of different cultural dimensions at the workplace (3)

16. Impacts of different cultural dimensions at the workplace (4)

17. Power distance and international business practice • E.g. a firm from a country with a small power distance, such as the UK or US when negotiating in a joint venture, may send a team of experts who are relatively junior. If this team is sent to a large power distance (power-respecting) culture, such as India, this may be viewed as an insult. • http://www.youtube.com/watch?v=BrJTf97Ev8o&feature=rellist&playnext=1&list=PL636501B39E70CBA8 • 5 min

18. Uncertainty avoidance and international business practice • E.g. Japanese firms, such as Toyota & Honda operating in uncertainty accepting countries such as Canada and the United States have been forced to modify their pay and promotion policies because North American workers are more oriented towards an individualistic ‘pay me what I’m worth’ attitude and are less worried about job insecurity.

19. Interpreting high-context communications

20. Video break • http://www.youtube.com/watch?v=I0AKSSAdsHQ&feature=related • 1.5 min Mistakes of Americans in Business • http://www.youtube.com/watch?v=LZVzMQGc6cY&feature=related • 6 min Selling to Hispanics…Multicultural marketing • http://www.youtube.com/watch?v=U9XoD9V9Bvg&feature=related • 6 min 10 Tips on doing business in Arab cultures

21. Four key strategies for multicultural teams • Brett et al. (2006) put forth four key strategies. • Adaptation: team members adapt practices or attitudes themselves, without changing the team membership or the tasks allocated. • Structural intervention; formally re-organising the team or redistributing tasks. • Managerial intervention: leader(s) intervene to establish norms of behaviour and decision making which take account of the multicultural characteristics of the team. • Exit: removing one or more members from the team.