Chapter 4 - The sociocultural framework

Question 1

The sociocultural framework: Culture

Answer 1

• Shared beliefs, values, customers and behaviour evident in a society that is transmitted from generation to generation through a multitude of channels
• Hofstede’s definition – collective programming of the mind which distinguishes the members of one category to another and influences how people think and behave

Question 2

Hofstede’s and national cultures/ impact on businesses

Answer 2

• Hofstede concluded that the norms and valued embedded in national culture were a powerful influence on workplace culture and that different approaches would be necessary when managing people from different backgrounds
• It is unwise to assume that an organisational culture that is successful in one context would be equally successful in another
• Big countries do not have a single culture but rather a variety of cultures that can significantly vary from region to region.

Question 3

The sociocultural framework: Dimensions of culture (5)

Answer 3

• Individualism: The degree to which people in a country act as individuals rather than as members of a group
• Uncertainty avoidance: Extent to which people prefer structured to unstructured situations – cultures who stick to rules have low uncertainty avoidance
• Masculinity: Degree to which masculine values such as competition, assertiveness, money dominate over feminine values like cooperation, quality of life and human relationships
• Power distance: Degree of inequality accepted as normal in society – high power distance has high levels of inequality and hierarchy
• Long term/short term: Whether businesses make decisions on long term (pragmatic) or short term (normative)

Question 4

The sociocultural framework: Implications on business

Answer 4

• Centralized corporate control – more likely in large power distance
• Collectivism – favor group rewards, job hopping and individual remuneration more common
• Masculine – favor competition and survival of the fittest
• Uncertainty avoiding culture – comfortable with strict adherence to rules, principles
• Religion – influences on attitudes/beliefs that regulate behaviour
• Language – businesses will be interested in speakers of a particular language especially when they congregate in a big group

Question 5

The sociocultural framework: Social models

Answer 5

• Liberal social model: Distinction between deserving and undeserving poor
  o Commitment to keep taxes low and encourage people to stay in work
  o Low levels of welfare provision
  o Belief people can better themselves through their own efforts
• Corporatist model: Emphasises importance of work
  o Benefits are based on individual contributions
  o Strong belief in partnership between government and welfare groups to avoid and reconcile conflicts
• Social democratic model: Support provided through generous welfare benefits
  o Governments commit themselves to generating and maintaining high levels of employment and low levels of unemployment
  o Commitment to helping families and mothers wishing to work is heavily financed by high levels of taxation

Question 6

The sociocultural framework: Population

Answer 6

• Population size – impacted by death rate, birth rate and net migration
  o Death rate – declining due to medical advances
  o Birth rate – changing role of women, wealthier countries means birth rate decreases, increasing incomes reduce need for large families
  o Migration – increasing and has lead to increase in labour force in developing countries
• Ageing population
  o Increased life expectancy and falling birth rates mean average age of population in many countries will rise
  o Could lead to labour shortages, wage inflation, increase pressures of tax/public expenditure
  o Future – taxes will have to rise to meet costs of pensions, health care