CROSS-CULTURAL MANAGEMENT

(212QT2904)

DISCUSSION ACTIVITIES
29TH MARCH, 2022

TEAM: KRUNGTHEP MAHANAKHON

N.O NAME STUDENT’S CODE ROLE

1 Le Thanh Hai K194081062 Leader

2 Nguyễn Ngọc Phương Quỳnh K194081101 Member

3 Dang Thanh Thao K194081103 Member

4 Le Thuc Khanh K194081142 Member

5 Nguyễn Thị Lan Anh K194081048 Member

CHARACTERISTICS OF HOFSTEDE’S CULTURAL DIMENSIONS

1. High Power Distance versus Low Power Distance:

Definition: Power Distance Index (PDI) - the degree to which members of society
expect and accept an uneven distribution of authority, resources, and privileges. The
threads of this dimension of culture run through social institutions and organizations
such as schools, political bodies, the family, and the workplace.

Criteria High Power Distance Low Power Distance

Organizational ● Very centralized. ● Flat organizational

structures ● Tall hierarchies with clear hierarchies.
levels of managers and ● Decentralized structures.
subordinates.

Managerial ● Concentration of authority at ● Dispersed authority.

authority the top. ● Managers rely on personal
● Managers rely on formal experience.
rules to manage. ● More consultative or
● Authoritative managerial collaborative forms of
style and decision making. decision-making.

Relationship ● Subordinates expect to be ● Subordinates are often

with told what to do. expected to be consulted.
supervisors ● A perfect boss is seen as one ● An ideal manager is seen as
who is an autocrat. a democratic leader.
● Information sharing is ● Openness to sharing
constrained by hierarchy. information.
 Other issues ● Wide salary gap between the ● The low salary gap between
top and bottom of the the top and bottom of the
organization. company.
● Managers often feel ● Managers feel paid
underpaid and dissatisfied adequately and are satisfied.
with their careers.

Countries ➢ Malaysia (104) ➢ Austria (11)

➢ Slovak Republic (104) ➢ Denmark (18)
➢ Philippines (95) ➢ New Zealand (22)
➢ Russia (93) ➢ Ireland (28)
➢ Romania (90) ➢ Norway (31)

Example Mexico has high power The United Kingdom has

country distance scores. In Mexico, the low power distances. In the
concern for hierarchy and UK, people do not expect
inequality in organizations is power differences, and
rooted in early socialization in everyone is seen as equal.
the family and school.
Furthermore, children are
expected to obey their parents
and elders. When they enter
school, teachers assume the
dominant role. Children must
show respect, and they seldom
challenge a teacher’s authority.
As these individuals take on
work roles, the allegiance to
teachers is transferred to
bosses. Thus, people in Mexico
will seldom question their
supervisors.

2. Individualism versus Collectivism:

Definition: Individualism - collectivism is the degree to which a society emphasizes

an individual’s accomplishments and self-interest, versus the accomplishments and
interests of groups.

Criteria Low Individualism/ High High Individualism/ Low

Collectivism Collectivism

Relationship ● Employees act in the interest of ● Employees act in their own

with in-group (members of the family interests
companies or same university) ● Employee commitment to
● Employee commitment to organizations low
company relatively high ● Employee-employer
● Employee-employer relationship based on the
 relationships is almost like a market
family link

Human ● Hiring and promotion takes ● Hiring and promotions

resource, in-group into consideration based on rules
management ● Better to reward based on ● Family relationships
equality (give everyone the same unimportant in hiring
reward) rather than equity (base ● Better to reward based on
reward on work effort). Relatives equity
of employees preferred in hiring ● Training done best
● Training best when focused at individually
group level

Other issues ● Belief in collective decisions ● Belief in individual decision

● Treating friends better than making
others is normal ● Treating friends better than
● Support of teamwork others at the workplace is
● Less mobility across considered unethical
occupations ● More mobility across
● Personal relationships very occupations within
critical in business company
● Tasks and company prevail
over personal relationships
in business

Countries ➢ Serbia (25) ➢ United States (91)

➢ Hong Kong (25) ➢ Australia (90)
➢ Malaysia (26) ➢ Great Britain (89)
➢ Slovenia (27) ➢ Netherlands (80)
➢ Portugal (27) ➢ Canada (80)

Example Venezuela values the overall good
country of and loyalty to the group.
Venezuelans clearly
distinguish between in-groups and
out-groups and are expected to
subordinate their individual
interests for
the benefit of their in-groups (e.g.,
family, organization).
The UK maintains loose social
structures that are
characterized by independence,
the importance of individuals’
rights and the recognition of
personal initiative and
achievement.

3. High Uncertainty Avoidance Index versus Low Uncertainty Avoidance

Index:

Definition: Uncertainty Avoidance Index measures levels of uncertainty avoidance so

that countries could be compared to one another. A low score on the uncertainty
avoidance index indicates that the people in the country are more comfortable with
ambiguity, more entrepreneurial, more likely to take risks, and less dependent on
structure rules. Countries with high uncertainty avoidance scores desire more
stability, more structured rules and social norms, and are less comfortable taking
risks.

The dimension Uncertainty Avoidance has to do with the way that a society deals
with the fact that the future can never be known: should we try to control the future
or just let it happen? This ambiguity brings with it anxiety and different cultures
have learnt to deal with this anxiety in different ways.

Criteria High Uncertainty Low Uncertainty

Avoidance Index Avoidance Index

Social Norms ● Conservatism, law and ● Openness to change,

order innovation
● Xenophobic ● Tolerance of diversity
● Express emotions ● Suppress emotions

Politics / ● Weak interest in politics ● High interest in politics

Legal System ● Citizen protest ● Citizen protest accepted
repressed ● Fewer and general laws
● More and specific laws and regulations
and regulations

Religion ● Catholic, Islam, ● Protestant, Buddhism,

Judaism, Shintoism Taoism, Hinduism
● Aggressively ● Little persecution for
fundamentalist beliefs
● Ritualized / Ceremonial ● Avoid ritualization and
ceremony

School ● Teachers have all ● Teachers may say “don’t

answers know”
● Structured learning ● Open-ended learning

Family ● Traditional gender roles ● Fewer gender roles

● Children taught world is ● Children taught world is
hostile benevolent

Countries ➢ Greece (112) ➢ Singapore (8)

➢ Japan (92) ➢ Denmark (23)
➢ France (86) ➢ Great Britain (35)
➢ Mexico (82) ➢ The United States (46)
➢ Israel (81)
➢ Germany (65)

Example In Germany, there is a strong In Singapore people abide by

country preference for deductive rather
than inductive approaches, be
it in thinking, presenting, or
planning: a systematic
overview has to be given in
many rules not because they
have need for structure but
because of high PDI.
Singaporeans call their society
a “Fine country. You’ll get a
 order to proceed. This is also fine for everything”.
reflected by the law system.
Details are equally important
to create certainty that a
certain topic or project is
well-thought-out. In
combination with their low
Power Distance, where the
certainty of their own decisions
is not covered by the larger
responsibility of the boss,
Germans prefer to compensate
for their higher uncertainty by
strongly relying on expertise.

4. Masculinity versus Femininity:

Definition: This dimension focuses on how extent to which a society stresses

achievement or nurture. Masculinity is seen to be the trait which emphasizes
ambition, acquisition of wealth, and differentiated gender roles. Femininity is seen
to be the trait which stresses caring and nurturing behaviors, sexuality equality,
environmental awareness, and more fluid gender roles.

Hoftstede’s definitions:
Masculinity stands for a society in which social gender roles are clearly distinct: Men
are supposed to be assertive, tough, and focused on material success; women are
supposed to be more modest, tender, and concerned with the quality of life.
Femininity stands for a society in which social gender roles overlap: Both men and
women are supposed to be modest, tender, and concerned with the quality of life.

Criteria Masculinity (High Femininity (Low

Masculine) Masculine)

Social Norms ● Ego oriented ● Relationship oriented

● Money and things are ● Quality of life and
important people are important
● Live in order to work ● Work in order to live

Politics and ● Economic growth high ● Environment protection

Economics priority high priority
● Conflict solved through ● Conflict solved through
force negotiation

Religion ● Most important in life ● Less important in life

● Only men can be priests ● Both men and women
as priests
 Work ● Larger gender wage gap ● Smaller gender wage
● Fewer women in gap
management ● More women in
● Preference for higher management
pay ● Preference for fewer
working hours

Family and ● Traditional family ● Flexible family structure

School structure ● Both boys and girls cry;
● Girls cry, boys don’t; neither fight
boys fight, girls don’t ● Failing a minor accident
● Failing is a disaster

Countries ➢ Japan (95) ➢ Sweden (5)

➢ Hungary (88) ➢ Norway (8)
➢ Austria (79) ➢ Netherlands (14)
➢ Venezuela (73) ➢ Denmark (16)
➢ Italy (70) ➢ Costa Rica (21)
➢ Switzerland (70)

Example Austria is a Masculine society Sweden: An effective manager

country – highly success oriented and
driven. In Masculine countries,
people “live in order to work”,
managers are expected to be
decisive, the emphasis is on
equity, competition and
performance. Conflicts are
resolved by fighting them out.
A clear example of this
dimension is seen around
election time, with ferocious,
no-holds barred battles
between candidates.
is supportive to his/her people,
and decision making is
achieved through involvement.
Managers strive for consensus
and people value equality,
solidarity and quality in their
working lives. Conflicts are
resolved by compromise and
negotiation and Swedes are
known for their long
discussions until consensus
has been reached. Incentives
such as free time and flexible
work hours and place are
favored. The whole culture is
based around ‘lagom’, which
means something like not too
much, not too little, not too
noticeable, everything in
moderation. Lagom ensures
that everybody has enough and
nobody goes without. Lagom is
enforced in society by “Jante
Law” which should keep people
“in place” at all times. It is a
fictional law and a
Scandinavian concept which
counsels people not to boast or
try to lift themselves above

5. Long-term orientation versus Short-term orientation:
Definition: This refers to how a culture maintains links to its past and history when
addressing current and future challenges. Low scores indicate normative cultures,
which tend to uphold long-standing customs and view change with skepticism.
Criteria Long term orientation
Working ● Set long-term goals,
long-term vision and
missions within 5 to 10
years.
● Financial statements
and income statements
are usually prepared at
the end of the year.
Cultural life ● Inherits and promotes
good traditions from a
long time ago,
preserving the teachings
and living standards left
by its ancestors.
● Having the custom of
worshiping ancestors
from many generations
ago, traditional festivals
are always remembered
by the people.
● Having a sense of shame
Countries Vietnam (57)
China (87)
Japan (88)
Indonesia (62)
Italy (61)
Example In a Vietnamese company, the
country Administrative Council always
set long term goal for short
term and long term to guide
the company's development.
others.
Short term orientation
● Businesses’ profit-loss
reports are published
periodically
● Companies assess their
success on a short-term
basis. It also encourages
employees to aim for
quick results at work.
● Susceptible to scrutinize
new knowledge to see if
it is accurate.
● Extremely practical, as
shown by the "can-do"
mentality.
● Reciprocation of
greetings, favors, and
gifts.
● Personal steadiness and
stability
Chile (31)
Angola (15)
Australia (21)
Thailand (32)
Brazil (44)
Americans are susceptible to
scrutinizing new knowledge to
see if it is accurate. As a result,
most Americans are not
pragmatic, but this should not
be confused with the fact that
they are extremely practical, as
shown by the "can-do"
mentality discussed earlier.
6. Indulgence versus Restraint:
Definition: Indulgence is a societal dimension that describes people's ability to
suppress their innate human urges and impulses. High indulgence scores indicate a
society with little influence over these human impulses, while low indulgence scores
indicate a society with a lot of restraint.
Criteria Indulgence
Cultural life - Children were able to unleash
creativity and play as they
pleased
- Move out of their parent's
independence when old.
Education at - Children can do what they
home want almost.
Education at - Children are always
school encouraged to ask the question
- Learning and playing time
are extremely scientific and
balanced, the training program
focuses on outside fun
extracurricular activities.
Work - Reflected by the following
contradictory attitudes and
behavior: "Work hard and play
hard".
- Tend to spend most of the
year traveling during winter or
other holidays, even months to
Restraint
- Not put much of an emphasis
on leisure time and are able to
control their desires.
- Societies of restraint also feel
that their actions are
restrained by social norms and
that indulging themselves in
wrong.
- Children have been educated
on what should and should not
be done from an early age.
- Children must always obey
their parents, play safe games
that their parents allow.
Outside games or other
interesting games that are
deemed not good by the
parents will not be allowed to
play by the child.
- Follow the teacher's advice
instead of asking questions to
solve their problems.
- After learning time in school,
they are forced to join extra
classes instead of taking part in
other activities or relaxing.
- Heavily feudal by barriers →
not confident enough to make
breakthroughs.
- Spend most of their time in
the office or at work instead of
spending time on leisure and
travel activities.
- Do not spend the money they
earn on entertainment
activities like in Western
 half a year.
Countries Angola (83)
Canada (68)
Brazil (59)
Chile (68)
Example In working, Americans are
country reflected by the following
contradictory attitudes and
behavior: "Work hard and play
hard". They tend to spend most
of the year traveling during
winter or other holidays, even
months to half a year.
countries, but to save money
for their children.
Egypt (4)
China (24)
France (48)
Vietnam(35)
In business, Vietnamese people
also spend most of their time
in the office or at work instead
of spending time on leisure
and travel activities. They often
do not spend the money they
earn on entertainment
activities like in Western
countries, but to save money
for their children.