The different dimension of Hofstede framework for assessing culture IN MEXICO

INDEX

Introduction………………………………………………………………………….2

Executive Summary……………………………………………………...….……….4

Literature Review……………………………………………………………....……4

Key findings, Discussion & Analysis………………………………….….…….…...6

Conclusions..........................................................................................................…...8

References…………………………………………………………………...............9

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 The different dimension of Hofstede framework for assessing culture IN MEXICO

INTRODUCTION

This assignment is all about studying certain topics in organization behavior and relating them to
some of the existing industrial scenario. Here we consider a non Asian country for our study.
Over here we study its culture and compare it with the Indian culture on the basis of Hofstedes
fame work then we could come to a rough conclusion about how it could impact the
organizations in both the countries.

About the countries

Here we are considering Mexico and India.

Mexico is spread over 2 million square km with the population of 100 million comprising of
90% of catholic. the official language is Spanish though they there are some traces of other Latin
American languages. The major industries are food and beverages, tobacco, chemical, iron, steel.
Mexico is famous for its different kind of carnivals that they celebrate which go as long as 10
days. Mexico cosine is another eye catcher and it is centered on three national staples - Tortillas,
beans and chilly pepper. Their culture has many resemblance with south Indian culture as both
belong to the Mayan culture. Lots of words sound similar `to our Sanskrit words as Spanish is
derived from Sanskrit ex tau ji/ tio, do/dos, roti/ tortilla.

Known as the 7th largest country in the world, India is the largest republic in the world
comprising of 1.17 billion people i.e. almost 1/6 of the total world population. It has got a vast
cultural heritage .80% of the people follow Hindu religion, 17% belong to Muslim
community,8% of christens .though Hindi
is the national language there are 14 other languages spoken throughout the country. Similar to
Mexico even Indians celebrate a large number of festivals which are spread over several days
which have specific importance. Indian food is famous all over the world especially for its spices
.it has got a variety of food culture which changes from place to place .agriculture is the main
occupation of the people as 70% of the people stay in rural areas. People still believe in
traditional values where in elders are respected and children’s are loved. Though it was a male
dominated country before now things are changing and the country is progressing well in most of
the fields. Few major concerns are low literacy rate, Castism and unemployment.

EXECUTIVE SUMMARY

This report shows how two different countries having such a vast difference in culture, religious
beliefs, habitat and appearance can still be related according to Hofstede analysis. The main aim
is to show in which way employees can excel in overseas business assignments. Most of the
times you don’t know what your customer wants from you .views and perceptions can known
only after doing this analysis which helps us in breaking the communication barrier and
promotes cooperation as the ultimate aim is to have as many as global assignments. So
personality profiling becomes quite essential as employees hold stable personality which
influence there mind-set towards organization setting and also towards business. Here as an

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 The different dimension of Hofstede framework for assessing culture IN MEXICO

example we consider Mexico as a non Asian country which is quit different in accordance with
us still then we can bring both of them so close to each other as economic partners. Finally it’s
all about how an organization can transform to bring enormous changes for an exceptional cause.

LITERATURE REVIEW

Dr. Geert Hostede has done an extensive research on how values in a work place are affected by
the culture of a given place. He was working as a psychologist at IBM from 1967 to 1973 where
he analyzed the data collected from 100,000 people from more than 40 countries and using these
results he developed a model that consists four major dimensions to differentiate between culture
and later added the 5th one to give it a complete scene.

By this analysis the person will understand better in terms of the differences between the cultures
with in the religions and also between counties.

His analysis discuss about each country with the following format

1) Power Distance Index

It tells us about the amount of similarities and dissimilarities between the people staying
in a given countries or society. Here everybody is given work but some are valued and
rest is left out. Leaders are socked for most of the opinions. The countries in which the
power distance is high people would hate to work. The plus point would be decisions are
taken at a faster rate. But the people who have power should act upon it. There is gap
between privileged and under privileged people. The people at the top level down treat
the low level people. Few examples for countries having low power distance are
New Zealand, Austria, Norway, Where as India, Mexico and France come under high
power index.

2) Individualism and Collectism

It emphasizes on the amount of reinforcement on individual or collective relationships. A

higher rank in individualism tells that indusial rights and individuality are given
importance in the community. People in such kind of society may tent to loose their
relationships. A low ranking implies that the societies have close relationships that is
every one takes care of the members in their group.

3) Masculinity v/s Femininity

It tells about the degree of the societal reinforcement done so that the traditional
masculinity works on male achievement, power and control. Higher the masculinity
index male dominancy is there in the society and females are less dominant. A lower rank
tells that female and male are treated equally in the society. Women take part in all the

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jobs in a society at par with men. Here success rate and advancement of the society will
be more.

4) Uncertainty Avoidance Index

A high uncertainty avoidance society always follow rules, they don’t take much risk.
They are guided by higher authorities who are always right. They always follow their
conscience. People are always in need of security. Conflicts are always avoided. In low
uncertainty avoidance index, people feel free to express themselves. Managers believe in
taking more risks. The society always recognizes people in it and gives them more
responsible tasks. Great Britain and Denmark come under low uncertainty, where as
Spain and Japan come under high uncertainty.

5) Long Term Orientation

It tells us about how a society takes on traditional values towards forward thinking.
Higher the long term orientation rank higher will be the respect for traditional value. This
tends towards long term rewards as the amount of hard work they put in today but the
business takes a longer time to develop in the society. A lower rank tells that the society
does not reinforce any concept of traditional; orientation. Here the society is bound to
change more rapidly as traditional values do not come in between.

Key findings, Discussion, Analysis

According to Hofstede analysis about India, it has got a large power distance society where as
the rest other things are quit normal. This implies the India is in an era of changes. The
traditional cast system has been questioned. But still a huge power distance rank tells us that
attitude of the people stills remains the same.

Key Findings for power distance index India is ranked at 77 which is the highest in terms of
Hofstede analysis where as the average of the world remains at 56.5.

Discussion this tells us that the power distance is high because of which disparity of wealth is
also high and the power in the society also remains high.

Analysis this condition will not only say that there is a need of a subvert in the people but we
can also say that it has become a part of the community for which people don’t appose.

Key. Findings India is ranked at 61 in terms of LTO where as the average of the world stands at
48.

Discussion A high LTO tells us that the community believes in traditional values and arenot
subjected to any changes.

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 The different dimension of Hofstede framework for assessing culture IN MEXICO

Analysis people of this society always have a long term goals. They are quiet economical and
they believe in hard work which is good for the society.

Key. Findings India has the third highest ranking in Masculinity index of Hofstede
Dimension and stands at 56, with the world average is just slightly below 51.

Discussion as the rank in masculinity index goes high difference between men and women is
at a larger extent in this type of community men are given more preferences than women.

Analysis this creates women group to become more and more aggressive towards men
which is not good for the society as there is disharmony at the working place

Key. Findings India has a lower rank Dimension in Uncertainty Avoidance i.e. at 40, as
compared to the world average of 65.

Discussion a low rank says people are conservative, not open minded and they never express
their ideas.

Analysis the society contains a very large umber of rules and regulations which hamper the
country when there is an emergency or when an unknown thing happens people cant react
immediately.

The Hofstede Dimension that relates most with the Hindu religion is a Power Distance (PDI),
which is same as Mexico in South America. All have greater level of Power Distance with a
higher relating cultural Dimension towards their religions.

Key. Findings Mexico has highest Hofstede Dimension in Uncertainty Avoidance (UAI)

Discussion to reduce the level of UAI many policies and rules are made so that things are
executed properly and always in control of the society.

Analysis the main aim over here is to control all the things so that unexpected things are
avoided because of this the community will not be in a position to change and this causes a risk
in the society.

Key. Findings Mexico is low in Individualism (IDV) ranking (30), slightly higher than
other South American countries with have an average of 21.

Discussion here people have close relationship with each other as the index is quit high and
we can find very less number of individuals in the society. Here people cany express their own
ideas which could be a major problem.

Analysis people are loyal to one another, they follow regulations, harmony prevails in the
society as everyone takes care of the people who are present in the group.

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 The different dimension of Hofstede framework for assessing culture IN MEXICO

Key. Findings Mexico comes second in Masculinity (MAS) ranking in South America (69).

Discussion by this we can tell that males take part in most of the roles in the society, females
are always suppressed.

Analysis women are quiet aggressive towards to men there is a certain level of disharmony
in the community as women get very less chances to take part in the societal roles.

Key. Findings There is one more Dimension in which Mexico’s rank is higher than other
neighbors is its Power Distance (PDI) which is at a rank of 81,as compared to an average of 70.

Discussion this tells that there is no proper distribution of work as well as money with in
the people. Rich people always become richer and poor man always remain poor.

Analysis when people don’t fight for their dignity and equal status in the society, the gap
between the poor and the rich gets increased and society as a whole does not live in harmony.
People are always dissatisfied.

In many of the South American countries, as well as Mexico, the population is mostly Catholic.
The mixture of Catholicism and cultural dimensions, shown in the Hofstede analysis above,
reinforce a way of life predicated in there beliefs which are there in the form of absolute ‘Truth”.
As he explains about the people with a large Uncertainty Avoidance Index, their attitude is,
“There can only be one Truth and we have it.”(Ref: journal from university of Dayton )

In a country like Mexico, we find that the major relating of Hofstede Dimension will be the
Uncertainty Avoidance (UAI). There are only a few countries out of which do not follow this
relation.

Conclusion

Based on data which we have we can tell that a large majority of religious countries intend
to have a low recognition for doubts. This makes a society that institutes rules, laws, regulations,
and strives so that the amount of insecurity within the population is bought down to a greater
extent. Here both Mexico and India are high on PDI, LTO and Masculinity. This indicates that
there is a large gap in the society. The society is male dominated. Money and status are given
more importance. In Individuality both the countries share low ranking. This indicates that
people believe in working together for success. India is low at uncertainty factor where as
Mexico is very high on it. It means that Indians are more relaxed and they don’t need rules and
regulations as compared to people in Mexico.

So this helps to know the mind set of the people, there behavior towards business. And by
knowing this we can improve the different ways that we have to behave with our customers so
that they are impressed and pleased to many a deal with us. So this way this analysis is really
helpful for an organization which is dealing with global assignments.

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