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Mod 2 Cultureii

The document summarizes Geert Hofstede's seminal study of how cultural values influence workplace behavior. Hofstede studied over 100,000 IBM employees in 40 countries, identifying 4-5 dimensions along which cultural values differ: Power Distance, Individualism, Masculinity, Uncertainty Avoidance, and Long-Term Orientation. Countries receive scores on each dimension, showing their relative cultural orientations. The study found management practices must adapt to cultural differences in these values. It also notes culture evolves over time with globalization and discusses implications for cross-cultural management.

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muneerpp
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187 views

Mod 2 Cultureii

The document summarizes Geert Hofstede's seminal study of how cultural values influence workplace behavior. Hofstede studied over 100,000 IBM employees in 40 countries, identifying 4-5 dimensions along which cultural values differ: Power Distance, Individualism, Masculinity, Uncertainty Avoidance, and Long-Term Orientation. Countries receive scores on each dimension, showing their relative cultural orientations. The study found management practices must adapt to cultural differences in these values. It also notes culture evolves over time with globalization and discusses implications for cross-cultural management.

Uploaded by

muneerpp
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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CULTU

RE
LANGUAGE
CULTURE & THE
WORKPLACE
 Foran international
business in a different
country the most important
thing to know is how a
society’s culture affects the
values found in the
workplace

 Management process and


practices may need to vary
as per the differences in
culture and work-related
values
THE FAMOUS
STUDY
How culture relates to values
in the workplace
GEERT HOFSTEDE
 Dr. Geert Hofstede
conducted perhaps the most
comprehensive study of how
values in the workplace are
influenced by culture.

 From 1967 to 1973, while


working at IBM as a
psychologist, he collected
and analyzed data from over
100,000 individuals from
forty countries
 From those results, and later
additions, Hofstede
developed a model that
identifies four primary
dimensions to differentiate
cultures. He later added a
fifth dimension, Long-term
Outlook.
POWER DISTANCE INDEX
 Power Distance Index (PDI)
focuses on the degree of equality, or
inequality, between people in the
country's society.

 A High Power Distance ranking


indicates that inequalities of power
and wealth have been allowed to
grow within the society. These
societies are more likely to follow a
caste system that does not allow
significant upward mobility of its
citizens.

 A Low Power Distance ranking


indicates the society de-emphasizes
the differences between citizen's
power and wealth. In these societies
equality and opportunity for
everyone is stressed.
  
INDIVIDUALISM (IDV)

 Individualism (IDV) focuses on the


degree the society reinforces
individual or collective, achievement
and interpersonal relationships.

 A High Individualism ranking


indicates that individuality and
individual rights are paramount
within the society. Individuals in
these societies may tend to form a
larger number of looser
relationships.

 A Low Individualism ranking


typifies societies of a more
collectivist nature with close ties
between individuals. These cultures
reinforce extended families and
collectives where everyone takes
responsibility for fellow members of
their group.
MASCULINITY (MAS)
 Masculinity (MAS) focuses on the
degree the society reinforces, or
does not reinforce, the traditional
masculine work role model of male
achievement, control, and power.

 A High Masculinity ranking


indicates the country experiences a
high degree of gender
differentiation. In these cultures,
males dominate a significant portion
of the society and power structure,
with females being controlled by
male domination.

 A Low Masculinity ranking


indicates the country has a low level
of differentiation and discrimination
between genders. In these cultures,
females are treated equally to
males in all aspects of the society.
UNCERTAINTY AVOIDANCE
INDEX

 Uncertainty Avoidance Index


(UAI) focuses on the level of
tolerance for uncertainty and
ambiguity within the society - i.e.
unstructured situations.
 A High Uncertainty Avoidance
ranking indicates the country has a
low tolerance for uncertainty and
ambiguity. This creates a rule-
oriented society that institutes laws,
rules, regulations, and controls in
order to reduce the amount of
uncertainty.
 A Low Uncertainty Avoidance
ranking indicates the country has
less concern about ambiguity and
uncertainty and has more tolerance
for a variety of opinions. This is
reflected in a society that is less
rule-oriented, more readily accepts
change, and takes more and greater
 Geert Hofstede added the
following fifth (5th) dimension
after conducting an additional
international study using a
survey instrument developed
with Chinese employees and
managers.

 That survey resulted in addition


of the Confucian dynamism.

 Subsequently, Hofstede
described that dimension as a
culture's long-term Orientation.
LONG-TERM
ORIENTATION

 Long-Term Orientation (LTO)


focuses on the degree the society
embraces, or does not embrace,
long-term devotion to traditional,
forward thinking values.

 High Long-Term Orientation


ranking indicates the country
prescribes to the values of long-
term commitments and respect for
tradition. This is thought to support
a strong work ethic where long-term
rewards are expected as a result of
today's hard work. However,
business may take longer to develop
in this society, particularly for an
"outsider".

 A Low Long-Term Orientation


ranking indicates the country does
not reinforce the concept of long-
term, traditional orientation. In this
culture, change can occur more
rapidly as long-term traditions and
commitments do not become
impediments to change.
 Hofstede created an index for
each of these four dimensions
ranged from 0 to 100

 See the index


CULTURAL CHANGE

 Culture
is not a constant; it
evolves over time
 Since 1960s American values toward the role
of women have changed
 Japan moved toward greater individualism in
the workplace
 Globalization
will continue to
have impacts on cultures
around the world
 Is the world moving toward greater cultural
convergence or divergence?
 Are the values of collectivistic culture
incompatible with economic progress and
development
CULTURAL CHANGE
MANAGERIAL IMPLICATIONS

 Cross-cultural literacy
 The danger of ethnocentrism
 Culture
and competitive
advantage
 Valuesystems and norms
influence the cost of doing
business in a country
(transaction costs)
 How determinative is culture for
economic success?
 How important is culture in

shaping the foreign investment


decisions of MNCs?
 Culture and business ethics

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