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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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Hofstede - Cultural differences in international management

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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

Published in: Education, Technology, Business
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Hofstede - Cultural differences in international management

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

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