Hofstede - Cultural differences in international management

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Hofstede’s Study on Work Related-Values Concept, Methods, Results, and<br />Critique<br />

Agenda<br />2<br />Culture defined<br />Hofstede’s cultural dimensions<br />1) Power Distance<br />2) Uncertainty Avoidanc...

Culture Defined<br />

Culture and international business<br />Why culture is important?<br />Impacts the way strategic moves are presented.<br /...

Culture<br /> “There are truths on this side of the Pyrenees that are falsehoods on the other” <br />Blaise Pascal<br />5...

Globalization<br />6<br />

What is culture?<br />Main features of culture:<br />Culture is shared<br />Culture is intangible<br />Culture is confi...

Levels of culture<br />National Culture<br />Business Culture <br />Organizational and Occupational Culture<br />8<br />

Key Cultural Issues<br />Cultural Etiquette – the manners and behavior that are expected in a given situation<br />Cult...

Contingency management<br />Determining the problem or goal in terms of home country culture, habits and norms. <br />Dete...

Universal cultural variables<br />Kinship<br />Politics<br />Economy<br />Religion<br />Recreation<br />Education<br...

Universal cultural variables<br />Kinship<br />Politics<br />Economy<br />Religion<br />Recreation<br />Education<br...

Universal cultural variables<br />Kinship<br />Politics<br />Economy<br />Religion<br />Recreation<br />Education<br...

Universal cultural variables<br />Kinship<br />Politics<br />Economy<br />Religion<br />Recreation<br />Education<br...

Universal cultural variables<br />Kinship<br />Politics<br />Economy<br />Religion<br />Recreation<br />Education<br...

Universal cultural variables<br />Kinship<br />Politics<br />Economy<br />Religion<br />Recreation<br />Education<br...

Hofstede’s Cultural Dimensions<br />

Hofstede’s Cultural Dimensions<br />Prof. Geert Hofstede<br />“Culture is more often a source of conflict than of synergy....

Hofstede’s Cultural Dimensions<br />Prof. Geert Hofstede<br />Conducted perhaps the most comprehensive study of how value...

Hofstede’s Cultural Dimensions<br />Hofstede’s work ...

Power Distance<br />Power distance - The extent to which the less powerful members of institutions and organizations withi...

Power Distance<br />High power distance<br />22<br />Low power distance<br />Inequalities among people should be minimized...

Power Distance<br />23<br />High<br />Malaysia<br />Arab Countries<br />Mexico<br />India<br />France<br />Italy<br />Japa...

Power Distance<br />Example<br />A company from Austria (low power distance) is considering entering the Mexican (high pow...

Power Distance<br />Example (cont.)<br />Communication tips for the Austrian manager: <br />Give clear and explicit direct...

Uncertainty Avoidance<br />Uncertainty avoidance – The extent to which members of a society feel threaten by uncertain or ...

Uncertainty Avoidance<br />Strong uncertainty avoidance<br />27<br />Weak uncertainty avoidance<br />Uncertainty: normal f...

Uncertainty Avoidance<br />28<br />High<br />Greece<br />Japan<br />France<br />Korea<br />Arab Countries<br />Germany<br ...

Uncertainty Avoidance<br />29<br />Example<br /><ul><li>A company from France (high uncertainty avoidance) is considering ...

Uncertainty Avoidance<br />Example (cont.)<br />Communication tips for the French manager: <br />Try to be more flexible o...

Individualism<br />Individualism – Thetendency of people to look after themselves and their immediate family and neglect t...

Individualism<br />32<br />High individualism<br />Low individualism<br />Individuals learn to think in terms of “we”<br /...

Individualism<br />33<br />High<br />Australia<br />US<br />UK<br />Canada<br />France<br />Germany<br />Spain<br />Japan<...

Individualism<br />34<br />Example<br /><ul><li>A company from UK (high individualism) is considering investing in Mexico ...

Individualism<br />Example (cont.)<br />Communication tips for the UK manager: <br />Note that individuals have a strong s...

Masculinity<br />Masculinity – The tendency within a society to emphasize traditional gender roles<br />36<br />

Masculinity<br />37<br /> High masculinity<br />Low masculinity<br />Dominant values: caring for others and preservat...

Masculinity<br />38<br />High<br />Japan<br />Mexico<br />Germany<br />UK<br />US<br />Arabia<br />France<br />Korea<br />...

Masculinity<br />39<br />Example<br /><ul><li>A company from Denmark ( low masculinity) is considering investing in Mexico...

Masculinity<br />Example (cont.)<br />Communication tips for the Danish manager : <br />Be aware that people will discuss ...

Long- term orientation<br />Long- term orientation – A basic orientation towards time that values patience<br />41<br />

Long- term orientation<br />42<br /> Long-term orientation<br />Short- term orientation<br />Respect for traditions<b...

Implications<br />

Work Centrality<br />How important is work?<br />44<br />

What do people value in work?<br />45<br />

Employees and Leaders<br />46<br />

Employees and Leaders<br />47<br />

Leadership Styles<br />48<br />Power Distance<br />Uncertainty Avoidance<br />

Leadership Styles<br />49<br />Power Distance<br />Uncertainty Avoidance<br />

Leadership Styles<br />50<br />Power Distance<br />Uncertainty Avoidance<br />

Leadership Styles<br />51<br />Power Distance<br />Uncertainty Avoidance<br />

Organizational Structures<br />Adhocracy<br />Flat organizational pyramid<br />People can tolerate ambiguity in organizati...

Organizational Structures<br />Adhocracy<br />Professional Bureaucracy<br />Standardization of skills<br />Centralized dec...

Organizational Structures<br />Adhocracy<br />Professional Bureaucracy<br />Full Bureaucracy<br />The most formalized<br /...

Organizational Structures<br />Adhocracy<br />Professional Bureaucracy<br />Full Bureaucracy<br />Family Bureaucracy<br />...

Criticism<br />

Criticism<br />Single company<br />Time dependent<br />Business culture, <br />not values culture<br />Western bias<br />5...

Discussion Questions<br />58<br />

Discussion Questions<br />Do you notice any cultural differences among your classmates? How do those differences affect th...

Discussion Questions<br />Do you notice any cultural differences among your classmates? How do those differences affect th...

References<br />

References<br />62<br /> Cullen, J. (2002). Multinational Management, 2nd ed. Ohio: Sounth-Western Thomson Learning.<br />...

Thank you for your attention!<br />63<br />

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