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CORPORATE CULTURE ANALYSIS (HOFSTEDE’S CULTURAL DIMENSIONS): SOUTH KOREA



                                   POWER DISTANCE
“The extent to which the less powerful members of institutions...expect and accept that power is
                                    distributed unequally”

  Score         High/Low                        South Korean Corporate Culture


   60             High             Acceptance of hierarchical order in corporate structure

                                   Employees will rely on instructions from superiors

                                   Hierarchical status is more important that professional
                                    performance

                                   Movement and communication between hierarchical levels
                                    is limited


                                    INDIVIDUALISM
           “The degree of interdependence a society maintains among its members”

  Score        High/Low                         South Korean Corporate Culture


   18             Low              Individual desires supplanted for good of the collective

                                   Strong sense of collective obligation and responsibility

                                   Loyalty and commitment to member ‘group’

                                   Employer/employee relationships perceived as ‘Family Link’
                                    or moral relationship


                                      MASCULINITY
 “What motivates people: wanting to be the best (masculinity) or liking what you do (feminine)”

  Score        High/Low                        South Korean Corporate Culture


   39             Low             Value placed on personal relationships and quality of life

                                  Managers strive for consensus and use consensus decision-
                                   making approaches

                                  Conflict resolution takes place in the form of compromise
                                   and negotiation

                                  Social focus on ‘working to live’ not ‘living to work’
UNCERTAINTY AVOIDANCE
“What extent to which the members...feel threatened by ambiguous or unknown situations and
                 have created beliefs and institutions that try to avoid these”


Score          High/Low                         South Korean Corporate Culture


  85             High             Maintain rigid codes of conduct and behaviour

                                  Demonstrate intolerance of deviation from such behaviour

                                  Resistance to innovation

                                  Emotional need for rules and precision

                                  Security is an important element in individual motivation


                              LONG TERM ORIENTATION
      “The extent to which a society shows pragmatic future-orientated perspective rather than
                          conventional historical short-term point of view”


Score      High/Low                           South Korean Corporate Culture


 75          High            Confucian doctrine embedded in culture (social and corporate)

                             Strategies will reflect long-term profit and growths/lower attainment
                              of goals

                             Corporate focus on priority of steady growth of market share rather
                              than quarterly profit

                             Ethos of serving stakeholder and society in a long-term context
Dimension          South Korea   Score   UK     Score


   Power Distance          High        60     Low     35


    Individualism          Low         18     High    89


     Masculinity           Low         39     High    66


Uncertainty Avoidance      High        85     Low     35


Long-term Orientation      High        75     Low     25

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Hofstede handout

  • 1. CORPORATE CULTURE ANALYSIS (HOFSTEDE’S CULTURAL DIMENSIONS): SOUTH KOREA POWER DISTANCE “The extent to which the less powerful members of institutions...expect and accept that power is distributed unequally” Score High/Low South Korean Corporate Culture 60 High  Acceptance of hierarchical order in corporate structure  Employees will rely on instructions from superiors  Hierarchical status is more important that professional performance  Movement and communication between hierarchical levels is limited INDIVIDUALISM “The degree of interdependence a society maintains among its members” Score High/Low South Korean Corporate Culture 18 Low  Individual desires supplanted for good of the collective  Strong sense of collective obligation and responsibility  Loyalty and commitment to member ‘group’  Employer/employee relationships perceived as ‘Family Link’ or moral relationship MASCULINITY “What motivates people: wanting to be the best (masculinity) or liking what you do (feminine)” Score High/Low South Korean Corporate Culture 39 Low  Value placed on personal relationships and quality of life  Managers strive for consensus and use consensus decision- making approaches  Conflict resolution takes place in the form of compromise and negotiation  Social focus on ‘working to live’ not ‘living to work’
  • 2. UNCERTAINTY AVOIDANCE “What extent to which the members...feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these” Score High/Low South Korean Corporate Culture 85 High  Maintain rigid codes of conduct and behaviour  Demonstrate intolerance of deviation from such behaviour  Resistance to innovation  Emotional need for rules and precision  Security is an important element in individual motivation LONG TERM ORIENTATION “The extent to which a society shows pragmatic future-orientated perspective rather than conventional historical short-term point of view” Score High/Low South Korean Corporate Culture 75 High  Confucian doctrine embedded in culture (social and corporate)  Strategies will reflect long-term profit and growths/lower attainment of goals  Corporate focus on priority of steady growth of market share rather than quarterly profit  Ethos of serving stakeholder and society in a long-term context
  • 3. Dimension South Korea Score UK Score Power Distance High 60 Low 35 Individualism Low 18 High 89 Masculinity Low 39 High 66 Uncertainty Avoidance High 85 Low 35 Long-term Orientation High 75 Low 25