2.3.1 Social structure
Social structure includes a number of cultural features that can influence the quality of workers available to an international business. The more important of these are:
- ranking by ethnic, racial, economic, educational or caste background
Commonly cited examples are the position of native Indians in Latin America, Algerians in France, the Buraku people of Japan , the Osi of Nigeria, and the Dalits of India. In the US , which likes to consider itself classless, many barriers exist for such groups as Jews, African-Americans, Hispanics - and women. Such barriers effectively deny organisations considerable talent and may also lose potential customers.
A newspaper article by Macwan (2001, p. 11) in the Straits Times estimates there are 250 million people in South Asia 'condemned to servitude and segregation by caste discrimination'. For example, in India where the caste system was abolished in 1949, lower caste people known as the Dalits still exist and are discriminated against. Dalits make up 16% of India 's one billion population, that is, 160 million, or about eight times the population of Australia ! Read Figure 2.3 for examples of the difficulties faced by these so-called untouchables of the 21 st century.
- occupational status
Societies vary considerably in the status they accord different occupations. In Australia , top students have been, traditionally, attracted to the professions of medicine and law, but not to engineering. In Germany and Japan , engineering is a high status occupation. In Argentina , law and architecture are more prestigious than business or engineering.

Figure 2.3 Apartheid behind veil of caste in India
Source: Macwan 2001, p. 11.
Social rigidities such as those mentioned in this section are inimical to the economic progress of the societies in which they are present: at the organisational level, they lock out of management large numbers of high quality people. Now examine your textbook's discussion of social structure and social stratification.
In your text
Hill 2005, Chapter 3, pp. 93-98.
Activity 2.2
In this section, examples were given of the way in which some societies are stratified. Think about Australian society or that of your home country and answer the following questions:
- Are there identifiable classes?
- What is the basis of the class structure?
- Which group is at the top of the hierarchy and how did it get there?
- Do you approve of the present hierarchical structure?
- If yes, why do you approve?
- If no, what changes would you like to see occur?