Culture is an important element embedded in the society in a firm manner. By nature, culture is known to be extremely complex and dynamic and is known to be having a significant impact on every single element, party and authority of the society. Culture is also known to be having a major contribution in the success of business organizations. Performance of business activities at the international level can contribute in providing new opportunities for business that can be exploited in order to initiate growth and earn more amount of profit. However, it is important to note that it is not an easy task and is affected by a number of challenges and risks that have to be dealt with by the business in order to be successful in the international market. One of such challenge is the barriers of culture. Differences in culture are known to be having differences in values, and at times, these differences end up being stark. In the business organizations, styles of marketing and communication are different in accordance with different cultural values. As a significant example, politeness being considered in the United States of America may not be considered polite in China. Hence, in order to deal with this problem, it is extremely important for learning the intricacies in culture with respect to the place at which business is being conducted.
2. Table of Contents
Introduction................................................................................................................................2
Part A: Hofstede‟s Work on Culture..........................................................................................2
Contribution by Hofstede: Dimensions of Culture................................................................3
Criticism.................................................................................................................................4
Part B: Culture Shock and Failed Expatriates in China.............................................................5
Defining Culture Shock .........................................................................................................5
Expatriate Failure in China ....................................................................................................6
Recommendation for Reducing Cultural Shock ....................................................................7
Conclusion .................................................................................................................................8
References..................................................................................................................................9
3. Introduction
Culture is an important element embedded in the society in a firm manner. By nature, culture
is known to be extremely complex and dynamic and is known to be having a significant
impact on every single element, party and authority of the society. Culture is also known to
be having a major contribution in the success of business organizations. Performance of
business activities at the international level can contribute in providing new opportunities for
business that can be exploited in order to initiate growth and earn more amount of profit.
However, it is important to note that it is not an easy task and is affected by a number of
challenges and risks that have to be dealt with by the business in order to be successful in the
international market. One of such challenge is the barriers of culture. Differences in culture
are known to be having differences in values, and at times, these differences end up being
stark. In the business organizations, styles of marketing and communication are different in
accordance with different cultural values. As a significant example, politeness being
considered in the United States of America may not be considered polite in China. Hence, in
order to deal with this problem, it is extremely important for learning the intricacies in culture
with respect to the place at which business is being conducted.
This essay will be focusing on two main parts. The first part of this essay will be critically
assessing the contributions made by the work of Hofstede (1980) in the regions of cross-
cultural organizations and groups. This will also be including the criticisms faced by this
particular work. The next part of the essay will be defining and understanding the term
“culture shock” and evaluating the contribution made by this in failed expatriates in China. In
addition to this, this essay will be describing the ways in which there can be reduction in
culture shock when there is performance of overseas assignment in the industry of China.
Part A: Hofstede’s Work on Culture
The work done by Hofstede on culture is known to be the most recognized work that has ever
existed in the cultural field. His analysis and observations contribute in providing
practitioners and scholars with an extremely important insight within the dynamics found in
relationships cross- culture (Hofstede 1986). Hofstede is a highly influential Dutch writer
who showed interest within the interface between cultures of organizations and the nations.
The work done by him contribute in indicating that groups of culture have a persistent impact
on the behaviour of societies and organization. As stated by Hofstede, culture is referred to as
the programming of human mind in a collective manner that differentiates him or her from
members in other groups of humans (Hofstede 1987). With respect to this sense, culture is
4. referred to as the system holding values in a collective manner. Culture is an important
element embedded in the society in a firm manner. By nature, culture is known to be
extremely complex and dynamic and is known to be having a significant impact on every
single element, party and authority of the society. Culture is also known to be having a major
contribution in the success of business organizations.
Contribution by Hofstede: Dimensions of Culture
In a previous study, 100,000 individual employees of IBM had been analysed by Hofstede
and all of these from more than 40 different cultural background. This contributed in
emergence of a generalized framework of features, by which there can be a significant
description on cultures all across the globe. (Hofstede 1988) However, it is not necessary that
all individuals belonging to these cultures may compulsorily be conforming to this types of a
framework.
This particular study contributed in suggesting that culture can be considered as being highly
complicated but it cannot be considered as being chaotic in nature as there can be observation
of adequately defined patterns. It is important to note that these contribute in marketing the
different practices and values of culture. The work of Hofstede contributed in identifying this
particular framework being correspondent to five main issues in social life that are considered
as dimensions of value or the problems (Hofstede 1986). These are virtue, truth, gender,
hierarchy and identity. These have been identified as the five main problems present in the
society that are being responded to for the production of culture in the society. These five
problems had been the base for presenting the five dimensions of culture.
Identity is related to the relationship between the group and the individual that can be related
with the concepts of collectivism and individualism (Hofstede 1985). Collectivism is
referred to as adapting poverty and restricted resources, whereas, individualism is referred to
as adapting wealth and resources. As there is increase in the wealth of society, a move is
made towards individualism, but also stay collective while dealing with the challenges in the
society with respect to scarcity of resources (Hofstede 1988).
Hierarchy is known to be the nature and limit on inequality between groups and people, and
even if or not, it is considered being considered as natural. This has a significant relationship
with the distance of power that varies across different nations in accordance with prosperity.
This is generally known to be large in nations that are less wealthy and smaller in nations
having more wealth (Hofstede 1988).
5. Gender is a problem due to the unequal distributions of role between women and men that is
known to maintain consistency with tough societies as more emphasis is laid to achieve and
to fight, and less emphasis is laid to compromise and care (Hofstede 1986). Where the equal
distribution of role is more, there is a society that is more feminized. Unequal distribution of
roles results in masculine societies. In addition to this, equal distribution of roles results in
feminine societies (Hofstede 1988).
There is a close relationship between anxiety and looking for the truth. Cultures that show
concern towards Truth are mostly known to be unfriendly to other nations and cultures. This
means that these nations consider difference or change as being dangerous. According to
Hofstede this has been referred to as avoidance of uncertainty in contrast to tolerance of
uncertainty (Hofstede 1988).
Virtue in the value of some cultures is known to be more than knowing the truth. This
particular aspect is known to be revolving across choices amongst the present and future
virtue that means short- term orientation versus long- term orientation that means the
orientation of time (Hofstede 1988).
Considering these dimension, according to Hofstede, appreciation of complexity involved in
interaction between cross culture assists to expose ethnocentricity when in relation with the
culture that are different across different nations. It is important to note that while
communicating cross- culturally, there must be separation of interpretation and observation.
Being sensitive to culture refers to the fact that there is delay in attribution until there is better
understanding with respect to the context of culture from which there is emergence of
behaviour in an individual (Hofstede 1987).
Criticism
Considering the work of Hofstede it has been criticized that Hofstede does not result in
suggesting that the categories of value derived in his work are known to be the only values in
culture that arise out of consequence. The work done by him contribute in indicating that
groups of culture have a persistent impact on the behaviour of societies and organization.
Further ahead, it has been criticized that the incorporation of these values has been done by
considering the ideas of other researchers. The application of the results cannot be done to
differences in individuals or also in differences between different country and regions. The
contribution made can be considered as being aggregate and the application of these can only
be done to the gross differences in culture being defined by the borders in geography
6. (Hofstede 1988). In addition to these shortcoming, the theory on values related to work in
context with cross- culture cannot be applied to behaviour on consumption in context with
cross culture. There is a significant need for increasing the compatibility with the already
present research conducted on behaviour of consumption and values. The research of
Hofstede is known to be fundamentally lying within the point that nations have already been
distinguished on dimension that is not compulsorily exhaustive or exclusive.
However, it is important to note that it is not an easy task and is affected by a number of
challenges and risks that have to be dealt with by the business in order to be successful in the
international market. One of such challenge is the barriers of culture (Louie 2006).
Differences in culture are known to be having differences in values, and at times, these
differences end up being stark. In the business organizations, styles of marketing and
communication are different in accordance with different cultural values (Hortum 1989). As a
significant example, politeness being considered in the United States of America may not be
considered polite in China. Such points have been ignore in the work done by Hofstede.
Part B: Culture Shock and Failed Expatriates in China
In the present era of economic globalization, large number of business expatriates are being
sent for making investments cross- nations and conducting operations overseas. However, the
adaption of expatriate are not always known to successful in environment having different
cultural backgrounds (Welch 2003). This is because there is a need for adjusting towards both
environments, the life environment as well as the local environment of work that are mostly
extremely challenging and different.
Defining Culture Shock
According to the anthropologist Kalervo Oberg, who was the first to introduce the term,
culture shock is referred to as the anxiety that is an outcome from the loss of all familiar
symbols and signs of social intercourses including norms, customers, facial expressions,
gestures acquired in an unconscious manner while growing up in the society (Tian 2007).
Considering the theoretical context, culture shock is referred to as the stress being induced by
the each and every difference in behavioural expectation, and the uncertainty accompanied
that must be coped up with the individuals (Welch 2003). Therefore, culture shock is referred
to as the depression, aggression, anger, severe physical reactions towards the platform of new
culture, and even totally withdrawing these reaction. Obviously, these reactions result in
hampering communication between different cultures. Further ahead, Solomon (1994)
defined culture shock as a psychological and emotional reaction towards the hidden clashes,
7. conflicts in value, ambiguity and confusion that take place due to the ways being
fundamentally different in order to perceive the world and to interact between cultures
socially.
Differences in culture are known to be having differences in values, and at times, these
differences end up being stark. In the business organizations, styles of marketing and
communication are different in accordance with different cultural values (Welch 2003). As a
significant example, politeness being considered in the United States of America may not be
considered polite in China. Hence, in order to deal with this problem, it is extremely
important for learning the intricacies in culture with respect to the place at which business is
being conducted.
It is normal for expatriate managers with less experience to face problems in the major
differences of culture in nations they have been posted to (Tian 2007). These expatriate
managers consider working in overseas operations for the performance of three main function
that are to fill vacancies of staff, development of management system, and development of
the organizational system. As a matter of fact, almost 40 per cent of expatriates from America
end up returning earlier in comparison with the time planned for the stay. These are mainly
because several difficulties are faced to adjust in different cultural or physical environments,
issues in the maturity level of emotions and personality, and several other factors that lead
towards the situation of cultural shock (Sparrow 2003). In accordance to this, it can be stated
that for avoiding the state of cultural shock, one must consider adjustment as expatriates that
adjust in a well manner are known to be more committed to and more competent in their
newly shifted as they have the ability of reducing their stress because of better integration in
the culture.
Expatriate Failure in China
As there is lack of experienced and qualified staff members in China, it is hard for engaging
local employees in the initial stage and a number of multinational organizations have utilized
the top management team of expatriates for the establishment of their business operation.
However, a number of organizations have ended up facing high rate of failure in expatriates.
Majority of the expatriates ended up returning earlier or were known to having poor
performance of job in China (Ailon 2008). Considering the rates of failure in expatriate in the
multinational organizations of Japan, Europe and United States of America contributes in
showing that approximately 76 per cent of multinational organizations of United States of
America end up facing the failure rate of 15 per cent to 45 per cent. In addition to this, the
8. same rate in Japan and Europe are comparatively higher by 5 per cent in comparison with that
of US. Some expatriates from the organizations being sent to China showed reluctance for
contributing towards the process of localization in China due to the problem of culture shock
(Gao 2006). They were known to be resisting to train up the local staff of China and had not
been motivated for helping the local managers for the preparation of their new jobs. With
respect to this event, the members of local staff ended up gaining less chance for progressing
and qualifying that had consequently resulted in worsening the shortage of talent in China for
other multinational organization. In addition to this, the failure of expatriate results in
substantively increasing the amount of cost being involved for business organizations that
included indirect as well as direct cost. It has been reported that the compensation package of
expatriate are basically more costly in comparison with the compensation package available
for expatriate (Jandt, 2007). As a significant example, a manager of expatriate in China
typically have been receiving a minimum of four times more than what is being offered to the
local managers in additional benefits and the total amounts of salary. Therefore, it can be
stated that due to the significant involvement of culture shock in China, the programs of
expatriate ended up failing and did not result in improving the situation in the tight market of
talent in China. In addition to this, it also result in causing a major pressure of finance for the
business organizations (Pedersen and Hofstede 2002). In accordance to this, it can be stated
that for avoiding the state of cultural shock, one must consider adjustment as expatriates that
adjust in a well manner are known to be more committed to and more competent in their
newly shifted as they have the ability of reducing their stress because of better integration in
the culture.
Recommendation for Reducing Cultural Shock
Followed by the increased involvement of expatriates and challenge of cultural shock,
business organizations all across the globe have been considering to assist global expatriates
for performing their work in an efficient manner even in diversified platform of culture and
nations. Due to this particular need, organizations across the globe have started providing
training of cross culture. This training can contribute in smoothening the progress being made
while adjusting efficiently and performing in a significant manner, and is also important for
dealing with strategic and financial issues (Sparrow 2003). In addition to this, training is
known to be positive with respect to the fact that it will contribute in diminishing the
experience of cultural shock amongst expatriated in different and new cultural setting.
9. In accordance to this, it can be stated that for avoiding the state of cultural shock, one must
consider adjustment as expatriates that adjust in a well manner are known to be more
committed to and more competent in their newly shifted as they have the ability of reducing
their stress because of better integration in the culture (Stone, 1991). Culture shock has been
known for decreasing the capability of expatriates in China for the performance in the setting
of culture for a long duration of time that owes towards the inconsistency being perceived
amongst the expectations of expatriates as to how there must be proceeding of matters and
the actual way in which this takes place.
Conclusion
The work done by Hofstede on culture is known to be the most recognized work that has ever
existed in the cultural field. His analysis and observations contribute in providing
practitioners and scholars with an extremely important insight within the dynamics found in
relationships cross- culture. The work of Hofstede contributed in identifying this particular
framework being correspondent to five main issues in social life that are considered as
dimensions of value or the problems. These are virtue, truth, gender, hierarchy and identity.
These have been identified as the five main problems present in the society that are being
responded to for the production of culture in the society (Tian 2007). These five problems
had been the base for presenting the five dimensions of culture. However, it is important to
note that it is not an easy task and is affected by a number of challenges and risks that have to
be dealt with by the business in order to be successful in the international market.
One of such challenge is the barriers of culture. Differences in culture are known to be having
differences in values, and at times, these differences end up being stark (Twaronite 2009). In
the present era of economic globalization, large number of business expatriates are being sent
for making investments cross- nations and conducting operations overseas. However, the
adaption of expatriate are not always known to successful in environment having different
cultural backgrounds. As a significant example, a manager of expatriate in China typically
have been receiving a minimum of four times more than what is being offered to the local
managers in additional benefits and the total amounts of salary (Welch 2003). Therefore, it
can be stated that due to the significant involvement of culture shock in China, the programs
of expatriate ended up failing and did not result in improving the situation in the tight market
of talent in China.
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