Social environment ii


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Discussion on Dimensions.of National culture

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Social environment ii

  1. 1. Social and Cultural Environment Course Instructor: Sneha Sharma
  2. 2. High and Low Context Culture
  3. 3. High Context cultures  They use a lot more context in communication.  Less verbally explicit communication and rely on context cues like body language.  More indirect and tend to avoid disharmony and conflict.  Japan, Asia, Middle East, South America are examples of high context cultures.
  4. 4. Low context cultures  More direct, value independence and tend to use a lot of written and explicit communication.  Customary to end discussions with a written agreement or contract.  Eg. North America, Great Britain, German speaking countries, Scandinavian countries tend to be low context.
  5. 5. Hofstede's Dimensions Source
  6. 6. Power distance  This dimension deals with the fact that all individuals in societies are not equal – it expresses the attitude of the culture towards these inequalities amongst us.  Power distance is defined as the extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed inequally.
  7. 7. Individualism  The fundamental issue addressed by this dimension is the degree of interdependence a society maintains among its members. It has to do with whether people´s self-image is defined in terms of “I” or “We”.  In Individualist societies people are supposed to look after themselves and their direct family only.  In Collectivist societies people belong to „in groups‟ that take care of them in exchange
  8. 8. Individualism  For a collectivist, to be rejected by one‟s peers or to be thought lowly of by one‟s extended and immediate in-groups, leaves him or her rudderless and with a sense of intense emptyness.  The employer/employee relationship is one of expectations based on expectations – Loyalty by the employee and almost familial protection by the Employer. Hiring and promotion decisions are often made based on relationships which are the key to everything in a Collectivist society.
  9. 9. Masculinity / Feminity  A high score (masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the winner / best in field – a value system that starts in school and continues throughout organisational behaviour.  A low score (feminine) on the dimension means that the dominant values in society are caring for others and quality of life.  A feminine society is one where quality of life is the sign of success and standing out from the crowd is not admirable. The fundamental issue here is what motivates people, wanting to be the best (masculine)
  10. 10. Uncertainty avoidance  The dimension Uncertainty Avoidance has to do with the way that a society deals with the fact that the future can never be known: should we try to control the future or just let it happen? This ambiguity brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways.  The extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try
  11. 11. Uncertainty avoidance  Rules are often in place just to be circumvented and one relies on innovative methods to “bypass the system”.  A word used often is “adjust” and means a wide range of things. It is this attitude that is both the cause of misery as well as the most empowering aspect of the country. There is a saying that “nothing
  12. 12. Long term orientation  The long term orientation dimension is closely related to the teachings of Confucius and can be interpreted as dealing with society‟s search for virtue,  the extent to which a society shows a pragmatic future-oriented perspective rather than a conventional historical short-term point of view.
  13. 13. Hofstede's Factors India USA UK Japan China South Korea Saudi Arabia PDI 77 40 35 54 80 60 95 IDV 48 91 89 46 20 18 25 MAS 56 62 66 95 66 39 60 UAI 40 46 35 92 30 85 80 LTO 61 29 25 80 118 75
  14. 14. Hofstede's Dimension Within the Company With consumers Individualism vs. collectivism Who will be take responsibility for actions and results. Will consumers be willing to try a new product? Who will try the new product? What is the process of product acceptance Power distance How will subordinates interact with Managers and vice versa. In a B2B sales situation, will a subordinate be willing to approach their manager with a new Application of Hofstede's Dimensions in International Marketing
  15. 15. Hofstede's Dimension Within the Company With consumers Masculinity How do the employees expect to be spoken too? What happens if you are too brash! How are purchase decisions made? Are they made quickly and assertively or only after a period of thought? Uncertainty avoidance How will employees deal with change? Will they willingly accept change? How willing are consumers to accept a new product? Are they happy with the old product and not likely to change? Long-Term/ Short-Term Orientation Will employees embrace change? Or will the employees not accept change, Are consumer willing to pay more for a product they perceive to be superior and will last longer? Or do they want
  16. 16. The End