Cultural and social influences UNIT 7.2 INTRO TO BUSINESS Cultural and social influences

Section 2.1 understanding Culture

culture Learned norms based on values, attitudes, and beliefs of a group of people

Values – strongly held concepts that are present in a culture Values – strongly held concepts that are present in a culture. Values are connected to powerful emotions Ex: In the US, many people value freedom Norms – are social rules that affect behaviors and actions, and represent culture values. Values & Norms

Examples of Cultural Values United States Japan Arab Countries Family security Family harmony Parental guidance Age Authority Compromise Devotion Patience Indirectness Hospitality Belonging Group harmony Collectiveness Age/seniority Group consensus Cooperation Quality Patience Indirectness Go-between Freedom Independence Self-reliance Equality Individualism Competition Efficiency Time Directness Openness Examples of Cultural Values

Folkways ad mores – are cultural customs that dictate how people act socially. USA you are invited to a dinner at 7PM and it is normal to show up on time or a few minute early In Great Britain that same invite for 7PM your guest will show up between 7:30 and 8:00PM Copyright © 2011 Pearson Education

Things that shape your Role: ROLE - is the part a person plays in social institutions. Things that shape your Role: Norms Values Education Religion Gender Roles Class Customs Folkways and Mores Copyright © 2011 Pearson Education

value Dimensions of culture Power distance Individualism or collectivism Gender differentiation Uncertainty avoidance Short-term and long-term orientation

Power distance The extent to which less powerful members of institutions and organizations accept that power is distributed unequally High power distance countries: people may blindly obey the orders of their superiors and are less likely to question authority. Companies tend to use centralized decision-making and tall organization structures (many levels of management) Low power distance countries: flatter and decentralized organization structures, smaller ratio of supervisors. Employees are more likely to question their bosses. Participative management may be used.

Individualism and Collectivism Individualism: Tendency of people to look after themselves and their immediate family only Countries high in individualism: High individual initiative. Promotions are based on achievement. Salaries are based on market value. Collectivism: Tendency of people to belong to groups or collectives and to look after each other in exchange for loyalty Countries high in collectivism: Low individual initiative. Salaries and promotions may be based on seniority

Gender differentiation Masculinity: the dominant social values are success, money and things Countries high in masculinity: People place great importance on earnings, recognition, advancement, challenge, and wealth. High job stress. Femininity: the dominant social values are caring for others and the quality of life Countries high in femininity: great importance on cooperation, friendly atmosphere, employment security, and the natural environment. Low job stress.

Uncertainty Avoidance Uncertainty avoidance: Extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid such situations High uncertainty avoidance countries: less willing to take risks Low uncertainty avoidance countries: more willing to accept risk, which could lead to success

Short-term and long-term orientation Short-term Results: emphasis on high sales that provide immediate benefits Long-term Results: focus on factors such as customer loyalty (relationship based)

Sub-cultures Groups within a culture may be part of a sub- culture that varies in some ways from the national culture. Ex: suburban men who enjoy football or golf People who have worked outside their own country or have friends from other cultures may pick up some attitudes or behaviors from the other culture.

Section 2.2 participating IN CULTURE Copyright © 2011 Pearson Education

Religious Organizations Social institutions Organizations that represent the patterns of activity that express the culture of a country Educational Systems Religious Organizations Gender Roles Class Systems Degrees of Mobility

Culture shock A reaction that newcomers to a culture may experience 3 Road Blocks to adjusting to a new culture: Culture baggage - your beliefs, values, and assumptions that people carry Culture bias - a preconceived attitude of favoring or disliking a particular culture Stereotyping - the practice of identifying a person or group by a single trait

Cultural diversity A means of gaining global competitive advantage by bringing together people of diverse backgrounds and experience

Impact of Cultural Differences International trade depends on our response to and acceptance of cultural differences. Culture is the sum of a country’s way of life, beliefs, and customs. IMPACT OF CULTUREAL DIFFERENCES Culture influences what can and can not be done, of what is acceptable and unacceptable. Culture can be learned. Operating in different cultures requires research that looks at important social and environmental issues and demographic characteristics that shape the market. Greetings Handshakes are common in most countries, but they are not all done the same way. A single shake in France is acceptable. Eye contact is polite in most cultures, in some however averting your eyes is a sign of respect.

Dealing with People Conducting successful business in foreign countries involves learning what is important to their populations as well as its cultural nuances. Punctuality The value of punctuality depends on the cultures: some cultures value timeliness, some do not. It is important to understand this before visiting foreign countries. Other characteristics to recognize are working at an acceptable pace, having good manners, and learning to avoid waits and disappointments.

Good Manners In the United States, and some European countries, business is completed at a quick and efficient pace. Most other countries prefer to get to know people before any business is done. Decision Making In North America, decision making is typically top-down. In other cultures, decisions are made from the bottom up.