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Flashcards in Chapter 4 - The sociocultural framework Deck (6):

The sociocultural framework: Culture

- 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


Hofstede’s and national cultures/ impact on businesses

- 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.


The sociocultural framework: Dimensions of culture (5)

- 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)


The sociocultural framework: Implications on business

- 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


The sociocultural framework: Social models

- 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


The sociocultural framework: Population

- 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