Hofstede - Cultural differences in international management
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Andreea Dicu, Carmen Neghina, Alina Oprea, Teodora Vasileva ...

Andreea Dicu, Carmen Neghina, Alina Oprea, Teodora Vasileva

Hofstede’s Study on Work Related-Values Concept, Methods, Results, and
Critique

Culture defined
Hofstede’s cultural dimensions
Implications for management
Criticism

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  • Full Name Full Name Comment goes here.
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  • Wow... a thoughtful work done!. I was looking for a detailed explanation of Hofstede´s work and found them no where. This is a great knowledge sharing...
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  • awesome work! really helpful
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  • Dear Carmen and other contributors,

    First of all, I would like to thank you for a good representation of Hofstede´s work. As one of two officially endorsed consultancies seeing people apply his knowledge in a correct manner is great.

    Please do realize that Hofstede´s work can be defined in both national cultural differences and organisational cultural differences. In a work-life situation you can not look at one or the other: The combination is what matters.

    For more information you can visit www.geert-hofstede.com, our official website where we also provide additional information about applying the model in a business setting.

    Or contact us directly via info@thehofstedecentre.com /info@itim.org

    With kind regards,
    Egbert Schram
    Managing director of the Hofstede Centre and itim international
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  • Can I please have the ppt?
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  • excellent
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  • Culture is very important to the practice of international business.Impacts the way strategic moves are presented.Influences decisions.The lens through which motivation occurs. Management, decision making, and negotiations are all influenced through culture. Culture influences nearly all business functions from accounting to finance to production to service.To understand the others To develop better negotiation and business strategiesTo gain business advantageThe desire to consume and enjoy foreign products and ideasAdopt new technology and practicesGrowth of cross-cultural contactsThe achievement of free circulation by people of all nationsCulture is what makes international business practice difficult or easy, depending on how similar or different cutures are. Culture is both divisive and unifying.
  • The diversity of values and truths All businesses ultimately comes down to transactions or interactions between individuals. The success of the transaction depends almost entirely on how well managers understand each other
  • Norms + Values+ Beliefs= CultureCulture = the pervasive and shared beliefs, norms, and values that guide the everyday life of a groupCultural norms = prescribed and proscribed behaviors, telling us what we can do and what we cannot doCultural values = values that tell us such things as what is good, what is beautiful, what is holy, and what are legitimate goals for lifeCultural beliefs = our understandings about what is trueCultural symbols = these may be physical (national flags, holy artifacts/ office size, cultural symbols) Cultural rituals = ceremonies, such as baptism, graduation, or the tricks played on a new worker, or the pledge to a sorority or fraternityCultural stories = these include such things as nursery thymes and traditional legends.
  • National culture is the dominant culture within the political boundaries of the nation-state. It usually represents the culture of the people with the greatest population or the greatest political or economic power.Business culture represents norms, values and beliefs that pertain to all aspects of doing business in a culture. Business cultures tell people the correct, acceptable ways to conduct business in a society.Business cultures are not separate from the broader national culture. The national culture constraints and guides the development of business culture in a societyBusiness culture affects all aspects of work and organizational life: how managers select and promote employees, how they lead and motivate their subordinates, structure their organizations, select and formulate their strategies, and negotiate. Corporate Culture is the culture adopted, developed and disseminated in an organization. Corporate culture can deviate from national norms, but that depends upon the strength of culture and the values and practices tied to it. Occupational and organizational cultures are distinct cultures of occupational groups such as physicians, lawyers, accountants and craftspeople. They are the norms, values, beliefs and expected ways of behaving for people in the same occupational group, regardless of what organization they work for.

Hofstede - Cultural differences in international management Presentation Transcript

  • 1. Hofstede’s Study on Work Related-Values Concept, Methods, Results, and
    Critique
  • 2. Agenda
    2
    Culture defined
    Hofstede’s cultural dimensions
    1) Power Distance
    2) Uncertainty Avoidance
    3) Individualism
    4) Masculinity
    5) Long-term orientation
    Implications for management
    Criticism
  • 3. Culture Defined
  • 4. Culture and international business
    Why culture is important?
    Impacts the way strategic moves are presented.
    Influences management, decision making, negotiations
    Culture makes international business difficult or easy
    4
  • 5. Culture
    “There are truths on this side of the Pyrenees that are falsehoods on the other”
    Blaise Pascal
    5
  • 6. Globalization
    6
  • 7. What is culture?
    Main features of culture:
    Culture is shared
    Culture is intangible
    Culture is confirmed by others
    7
  • 8. Levels of culture
    National Culture
    Business Culture
    Organizational and Occupational Culture
    8
  • 9. Key Cultural Issues
    Cultural Etiquette – the manners and behavior that are expected in a given situation
    Cultural Stereotypes – our beliefs about others, their attitudes and behavior
    Ethnocentrism – looking at the world from a perspective shaped by our own culture
    Relativism– all cultures are good
    Cultural sensitivity
    Self-reference criteria
    9
  • 10. Contingency management
    Determining the problem or goal in terms of home country culture, habits and norms.
    Determining the same problem or goal in terms of host country culture, habits and norms.
    Isolating the SRC influence on the problem and how it complicates the issue.
    Redefining the problem without the SRC influence and solving it according to the specific foreign market situation.
    10
  • 11. Universal cultural variables
    Kinship
    Politics
    Economy
    Religion
    Recreation
    Education
    11
  • 12. Universal cultural variables
    Kinship
    Politics
    Economy
    Religion
    Recreation
    Education
    12
  • 13. Universal cultural variables
    Kinship
    Politics
    Economy
    Religion
    Recreation
    Education
    13
  • 14. Universal cultural variables
    Kinship
    Politics
    Economy
    Religion
    Recreation
    Education
    14
  • 15. Universal cultural variables
    Kinship
    Politics
    Economy
    Religion
    Recreation
    Education
    15
  • 16. Universal cultural variables
    Kinship
    Politics
    Economy
    Religion
    Recreation
    Education
    16
  • 17. Hofstede’s Cultural Dimensions
  • 18. Hofstede’s Cultural Dimensions
    Prof. Geert Hofstede
    “Culture is more often a source of conflict than of synergy.
    Cultural differences are a nuisance at best and often a
    disaster.”   
    18
  • 19. Hofstede’s Cultural Dimensions
    Prof. Geert Hofstede
    Conducted perhaps the most comprehensive study of how values in the workplace are influenced by culture
    Analyzed a large data base of employee values scores collected by IBM (HERMES)
    1967 – 1973
    more than 50 countries
    Developed a model that identifies four primary Dimensions to assist in differentiating cultures:
    Power distance
    Uncertainty avoidance
    Individualism
    Masculinity
    + Long-term orientation (added later)
    19
  • 20. Hofstede’s Cultural Dimensions
    Hofstede’s work
    20
  • 21. Power Distance
    Power distance - The extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally
    21
  • 22. Power Distance
    High power distance
    22
    Low power distance
    Inequalities among people should be minimized
    Interdependence between less and more powerful people
    Hierarchy in organizations means an inequality of roles
    Decentralization is popular
    Narrow salary range
    Subordinated expect to be consulted
    The ideal boss is a resourceful democrat
    Privileges and status are disapproved
    Inequalities among people are both expected and desired
    Less powerful people should be depended on the more powerful
    Hierarchy in organizations reflects the existential inequality
    Centralization is popular
    Wide salary range
    Subordinated expect to be told what to do
    The ideal boss is a benevolent autocrat or good father
    Privileges and status are both expected and popular
  • 23. Power Distance
    23
    High
    Malaysia
    Arab Countries
    Mexico
    India
    France
    Italy
    Japan
    Spain
    Argentina
    US
    Germany
    UK
    Denmark
    Israel
    Austria
    Orientation towards authority
    Low
  • 24. Power Distance
    Example
    A company from Austria (low power distance) is considering entering the Mexican (high power distance) market.
    24
    Power Distance Index
  • 25. Power Distance
    Example (cont.)
    Communication tips for the Austrian manager:
    Give clear and explicit directions to those working with him
    Deadlines should be highlighted and stressed
    Do not expect subordinates to take initiative
    Be more authoritarian in his management style
    Show respect and deference to those higher up the ladder
    25
  • 26. Uncertainty Avoidance
    Uncertainty avoidance – The extent to which members of a society feel threaten by uncertain or unknown situations.
    26
  • 27. Uncertainty Avoidance
    Strong uncertainty avoidance
    27
    Weak uncertainty avoidance
    Uncertainty: normal feature of life and each day is accepted as it comes
    Low stress – subjective feeling of well-being
    Aggression and emotions must not be shown
    Comfortable in ambiguous situations and with unfamiliar risk
    There should not be more rules than necessary
    Precision and punctuality have to be learned
    Tolerance to innovation
    Motivation by achievement
    Uncertainty : continuous threat that must be fought
    High stress – subjective feeling of anxiety
    Aggression and emotions may be shown at proper times
    Fear of ambiguous situations and of unfamiliar risk
    Emotional need for rules, even if they never work
    Precision and punctuality come naturally
    Resistance to innovation
    Motivation by security
  • 28. Uncertainty Avoidance
    28
    High
    Greece
    Japan
    France
    Korea
    Arab Countries
    Germany
    Australia
    Canada
    USUK
    India
    Denmark
    Singapore
    Desire for stability
    Low
  • 29. Uncertainty Avoidance
    29
    Example
    • A company from France (high uncertainty avoidance) is considering investing in Denmark (low uncertainty avoidance)
    Uncertainty Avoidance Index
  • 30. Uncertainty Avoidance
    Example (cont.)
    Communication tips for the French manager:
    Try to be more flexible or open in his approach to new ideas than he may be used to
    Be prepared to push through agreed plans quickly as they would be expected to be realized as soon as possible
    Allow employees the autonomy and space to execute their tasks on their own; only guidelines and resources will be expected of him
    30
  • 31. Individualism
    Individualism – Thetendency of people to look after themselves and their immediate family and neglect the needs of society
    31
  • 32. Individualism
    32
    High individualism
    Low individualism
    Individuals learn to think in terms of “we”
    High-context communication
    Diplomas provide entry to higher status groups
    Relationship employer- employee is perceived in moral terms, like a family
    Hiring and promotion decisions take employees’ ingroup into account
    Management is management of groups
    Relationship prevails over task
    Individuals learn to think in terms of “I”
    Low-context communication
    Diplomas increase economic worth and/or self- respect
    Relationship employer-employee is a contract based on mutual advantage
    Hiring and promotion are supposed to be based on skills and rules only
    Management is management of individuals
    Task prevails over relationship
  • 33. Individualism
    33
    High
    Australia
    US
    UK
    Canada
    France
    Germany
    Spain
    Japan
    MexicoItaly
    Korea
    Singapore
    Low
  • 34. Individualism
    34
    Example
    • A company from UK (high individualism) is considering investing in Mexico (low individualism)
    Individualism Index
  • 35. Individualism
    Example (cont.)
    Communication tips for the UK manager:
    Note that individuals have a strong sense of responsibility for their family
    Remember that praise should be directed to a team rather than individuals
    Understand that promotions depend upon seniority and experience
    Be aware that the decision making process will be rather slow, as many members across the hierarchy need to be consulted
    35
  • 36. Masculinity
    Masculinity – The tendency within a society to emphasize traditional gender roles
    36
  • 37. Masculinity
    37
    High masculinity
    Low masculinity
    Dominant values: caring for others and preservation
    People and warm relationships are important
    Sympathy for the weak
    In family, both fathers and mothers deal with facts and feelings
    Stress on equality, solidarity , and quality of work life
    Managers use intuition and strive for consensus
    Resolution of conflicts by compromise and negotiation
    Dominant values: material success and progress
    Money and things are important
    Sympathy for the strong
    In family, fathers deal with facts and mothers with feelings
    Stress on equity, competition among colleagues and performance
    Managers are expected to be decisive and assertive
    Resolution of conflicts by fighting them out
  • 38. Masculinity
    38
    High
    Japan
    Mexico
    Germany
    UK
    US
    Arabia
    France
    Korea
    PortugalDenmark
    Sweden
    Low
  • 39. Masculinity
    39
    Example
    • A company from Denmark ( low masculinity) is considering investing in Mexico (high masculinity)
    Masculinity Index
  • 40. Masculinity
    Example (cont.)
    Communication tips for the Danish manager :
    Be aware that people will discuss business anytime, even at social gatherings
    Avoid asking personal questions in business situations
    Take into account that people are not interested in developing closer friendships
    Communicate directly, unemotionally and concisely
    In order to assess others use professional identity, not family or contacts
    40
  • 41. Long- term orientation
    Long- term orientation – A basic orientation towards time that values patience
    41
  • 42. Long- term orientation
    42
    Long-term orientation
    Short- term orientation
    Respect for traditions
    Little money available for investment
    Quick results expected
    Respect for social and status obligations regardless of cost
    Concern with possessing the Truth
    Adaptation of traditions to a modern context
    Funds available for investment
    Perseverance towards slow results
    Respect for social and status obligations within limits
    Concern with respecting the demands of Virtue
  • 43. Implications
  • 44. Work Centrality
    How important is work?
    44
  • 45. What do people value in work?
    45
  • 46. Employees and Leaders
    46
  • 47. Employees and Leaders
    47
  • 48. Leadership Styles
    48
    Power Distance
    Uncertainty Avoidance
  • 49. Leadership Styles
    49
    Power Distance
    Uncertainty Avoidance
  • 50. Leadership Styles
    50
    Power Distance
    Uncertainty Avoidance
  • 51. Leadership Styles
    51
    Power Distance
    Uncertainty Avoidance
  • 52. Organizational Structures
    Adhocracy
    Flat organizational pyramid
    People can tolerate ambiguity in organizational roles
    Less need for formalized rules and regulations
    Distance between management and workers tends to be small
    Professional Bureaucracy
    Full Bureaucracy
    Family Bureaucracy
    52
    Power Distance
    Uncertainty Avoidance
  • 53. Organizational Structures
    Adhocracy
    Professional Bureaucracy
    Standardization of skills
    Centralized decision making
    Order and compartmentalization
    Full Bureaucracy
    Family Bureaucracy
    53
    Power Distance
    Uncertainty Avoidance
  • 54. Organizational Structures
    Adhocracy
    Professional Bureaucracy
    Full Bureaucracy
    The most formalized
    Organization dominated by rules, procedures and hierarchical relationships
    Standardization of the work process
    Predictability & control
    Family Bureaucracy
    54
    Power Distance
    Uncertainty Avoidance
  • 55. Organizational Structures
    Adhocracy
    Professional Bureaucracy
    Full Bureaucracy
    Family Bureaucracy
    Parallels an extended family: dominant father figure
    Small
    Less specialization of roles
    Control: personal supervision
    Direct contact
    Highly centralized decision making
    55
    Power Distance
    Uncertainty Avoidance
  • 56. Criticism
  • 57. Criticism
    Single company
    Time dependent
    Business culture,
    not values culture
    Western bias
    57
    Non-exhaustive
    Partial geographic coverage
    Attitudinal rather than behavioral measures
    Ecological fallacy
  • 58. Discussion Questions
    58
  • 59. Discussion Questions
    Do you notice any cultural differences among your classmates? How do those differences affect the class environment and your group projects?
    Give some examples of cultural differences in the interpretation of body language. What is the role of such nonverbal communication in business relationships?
    59
  • 60. Discussion Questions
    Do you notice any cultural differences among your classmates? How do those differences affect the class environment and your group projects?
    Give some examples of cultural differences in the interpretation of body language. What is the role of such nonverbal communication in business relationships?
    60
  • 61. References
  • 62. References
    62
    Cullen, J. (2002). Multinational Management, 2nd ed. Ohio: Sounth-Western Thomson Learning.
    Deresky, H. (2003). International Management , 4th ed. New Jersey: Prentice Hall.
    Harris, P. & Moran, R. (2000). Managing cultural differences. Houston: Gulf Publishing Company.
    Hofstede, G. (1982). Culture’s Consequences. International Differences in Work-Related Values. Newbury Park: SAGE Publications.
    Hofstede, G. (1997). Cultures and organizations: software of the mind. New York: McGraw Hill.
    Intercultural Business Communication. Retrieved March 1, 2008 from Kwintessential Cross Cultural Solutions
    Website: http://www.kwintessential.co.uk/intercultural-business-communication/tool.php?culture1=17&culture2=17
  • 63. Thank you for your attention!
    63