Managing with culture in Brazil

November 2003
Geert Hofstede
Differences between countries
Identity
language
religion
visible
Culture
software of
the minds
invisible
Institutions
rules, laws
organizations
visible
History
CULTURE in the
anthropological sense
Collective programming of the mind
distinguishing the members of one
group or category of people from
another
group/category can be nation,
organization, department,
occupation, gender, generation
Manifestations of culture
Values
• Values are strong emotions with a
minus and a plus pole
• Like evil-good, abnormal-normal,
dangerous-safe, dirty-clean, immoral-
moral, indecent-decent, unnatural-
natural, paradoxical-logical, ugly-
beautiful, irrational-rational
• What is rational is a matter of values
Values are learned early in life
and often unconscious
• Humans are born incompletely programmed
• During the first 10 years of our lives we are
super-receptive for complex programming
• This programming is provided by our social
environment and includes all basic values
• After age 10, basic values don’t change –
not even if we migrate to another country
Practices are learned and
unlearned throughout life and
nearly always conscious
• Similar practices can be learned by
persons with very different values
• Practice learning is also provided by
our social environment
• Organizations function through shared
practices, rarely shared values
National versus organizational
cultures
• National cultures oppose otherwise similar
individuals, institutions and organizations
across countries. Example: different
national subsidiaries of same company
• Organizational (or corporate) cultures
oppose different organizations within the
same countries. Example: different
companies within the same country
National versus organizational
cultures
• National culture differences are rooted in
values learned before age 10
• They pass from generation to generation
• For organizations, they are given facts
• Organizational cultures are rooted in
practices learned on the job
• Given enough management effort, they can
be changed
Research into national cultures
Culture's Consequences, Geert Hofstede, 1980, 2001
5 dimensions
1. Inequality: more or less?
Power Distance large vs. small
2. The unfamiliar: fight or tolerate?
Uncertainty Avoidance strong vs. weak
3. Relation with in-group: loose or tight?
Individualism vs. Collectivism
4. Emotional gender roles: different or same?
Masculinity vs. Femininity
5. Need gratification: later or now?
Long vs. Short term orientation
Dimension scores for > 70 countries
from IBM subsidiaries around 1970,
and extensions
• 6 major replications on different populations
(elites, employees of other corporations,
airline pilots, consumers, civil servants)
• Results very stable – even if cultures shift,
countries shift together so relative scores
remain valid
• Validation of dimensions against results of
other cross-national studies – over 400
significant correlations
Scores for Brazil and ranking
versus other countries
ranks: 1= highest
• Power distance 69, rank 26 of 74
• Uncertainty avoidance 76, rank 31 of 74
both above average
• Individualism 38, rank 39 of 74
• Masculinity 49, rank 37 of 74
both average
• Long term orientation 65, rank 7 of 39
fairly high
National culture dimension :
Power Distance
• Extent to which the less powerful
members of institutions and
organizations expect and accept
that power is distributed unequally
• Transferred to children by parents
and other elders
Large Power Distance
• Inequality is normal
• Superiors are
superior beings
• Power comes before
good and evil
• Respect is a key
virtue
• Centralization
• Subordinates expect
to be told
Small Power Distance
• Inequality is wrong
• Hierarchy is for
practical purposes
• Use of power should
be legitimate
• Independence is a
key virtue
• Decentralization
• Subordinates expect
to be consulted
National culture dimension :
Uncertainty Avoidance
• Extent to which the members of a
culture feel threatened by ambiguous
and unknown situations
• Not to be confused with risk
avoidance: risk is to uncertainty as
fear is to anxiety. Uncertainty and
anxiety are diffuse feelings – anything
may happen
Strong Uncertainty Av.
• What is different, is
dangerous
• Need for rules, even
if impractical
• Expression of
emotions is normal
• Formalization
• Innovations slow
• Little job change
• Xenophobia
Weak Uncertainty Av.
• What is different, is
curious
• Rules may be
broken if necessary
• Emotions should be
controlled
• Deregulation
• Innovations fast
• Easy job change
• Tolerance
SMALL PD, WEAK UA LARGE PD, WEAK UA
SMALL PD, STRONG UA LARGE PD, STRONG UA
NORDIC CTRS
USA, ANGLO CTRS
NETHERLANDS
GERMAN SPK CTRS
HUNGARY
ISRAEL
CHINA
INDIA
BRAZlL, LATIN CTRS
EAST EUROPE
JAPAN, KOREA
SMALL PD, WEAK UA
market
LARGE PD, WEAK UA
family
machine
SMALL PD, STRONG UA
pyramid
LARGE PD, STRONG UA
NORDIC CTRS
USA, ANGLO CTRS
NETHERLANDS
GERMAN SPK CTRS
HUNGARY
ISRAEL
CHINA
INDIA
lmplicit
organization
models
BRAZlL, LATIN CTRS
EAST EUROPE
JAPAN, KOREA
National culture dimension :
Individualism vs. Collectivism
• Individualism: A society in which the ties
between individuals are loose: everyone
expected to look after self and
immediate family
• Collectivism: A society in which
individuals from birth onwards are part
of strong in-groups which last a lifetime
Individualist
• “I” consciousness
• Identity based in
individual
• Nuclear or one-
parent family
• Universalism: others
classified as
individuals
• Task over relations
• Low context
communication
• Confrontations can
be healthy
Collectivist
• “We” consciousness
• Identity based in
social system
• Extended family
living close
• Particularism: others
classified as ingroup
or outgroup
• Relations over task
• High context
communication
• In-group harmony
must be maintained
National culture dimension :
Masculinity vs. Femininity
• Masculinity: A society in which emotional
gender roles are distinct: men are
supposed to be assertive, tough and
focused on material success, women on
the quality of life
• Femininity: A society in which emotional
gender roles overlap: both men and women
are supposed to be modest, tender, and
focused on the quality of life
Masculinity
• Girls, boys very
differently socialized
• Live in order to work
• Job prevails over
family life
• Stress what you do
• Ambition is virtue
• Sympathy for strong
• Admire heroes
• Human Resources
• Conflicts resolved by
fighting
Femininity
• Girls, boys same
socialization
• Work in order to live
• Job takes family life
into account
• Stress who you are
• Modesty is virtue
• Sympathy for weak
• Jealous of heroes
• Co-workers
• Conflicts resolved by
compromise
COLLECTIVIST,FEMININE COLLECTIVIST,MASCULINE
INDIVIDUALIST, FEMININE INDIVIDUALIST,MASCULINE
THAILAND, KOREA
COSTA RICA, CHILE
RUSSIA, BULGARIA
PORTUGAL, SPAIN
BRAZlL
CHINA, JAPAN
MEXICO, VENEZUELA
ARAB WORLD
GREECE
FRANCE
NETHERLANDS
NORDIC COUNTRIES
CZECHIA, HUNGARY
POLAND, ITALY
GERMAN SPK CTRIES
USA, ANGLO COUNTRIES
National culture dimension : Long-
term vs. Short-term Orientation
• Long Term Orientation is directed at
the future and seeks future rewards
through perseverance and thrift
• Short Term Orientation is directed at
the past and present through respect
for tradition, fulfilling social obligations
and seeking immediate rewards
LONG TERM ORIENTATION
CHINA
JAPAN
KOREA
BRAZlL
INDIA
NETHERLANDS
NORDIC COUNTRIES
FRANCE
GERMANY
USA
BRITAIN
AFRICAN COUNTRIES
MUSLIM COUNTRIES
SHORT TERM ORIENTATION
Regional cultures in Brazil
• Survey Industrial Marketing Institute with
ITIM Brazil and IRIC Netherlands
• 14,054 employees of companies in
industry, commerce and services in all
26 states + distrito federal
• Differences between states small in
Power Distance, Individualism and Long
Term Orientation
• Larger differences in Uncertainty
Avoidance and Masculinity
Regional culture clusters
SE Espirito Santo
SE Minas Gerais
SE Rio de Janeiro
SE São Paulo
CW Distrito Federal
NE Alagoas
S Paraná
S Rio Grande do Sul
S Santa Catarina
N Pará
NE Bahia
CW Goiás
CW Mato Grosso do Sul
NE Maranhão
NE Piaui
N Acre
N Amazonas
N Amapá
N Rondonia
NE Ceará
NE Paraíba
NE Rio Grande do Norte
NE Sergipe
CW Mato Grosso
not in any cluster:
N Roraima
N Tocantins
NE Pernambuco
Regional culture cluster profiles
power uncert indiv mascu lterm
SE urban + 3 + 6 + 3 - 8 - 3
South + 4 - 1 + 3 + 3 + 2
CW-NE - 2 + 1 + 1 -15 + 1
N-NE 0 - 1 - 4 + 1 + 1
Roraima + 66
Tocantins - 8 - 35 + 21
Pernambuco - 13 + 9
Regional culture cluster profiles
• SE urban: hierarchical, stressed,
individualist, caring, short-term
• South: hierarchical, individualist,
competitive
• CW-NE: egalitarian, very caring
• N-NE: collectivist
Uncertainty Avoidance and Masculinity
for 24 Brazilian States
Research into Business goals
• “Goals of successful business persons in your
country”
• As perceived by evening MBA students with
full-time day jobs
• 21 groups, 16 universities, 15 countries, period
1995-99
• List of 15 possible goals
• Clustering of universities and countries based
on their answers
• Country scores correlated with PDI, UAI, IDV,
LTO, GNP/capita
Research: Hofstede et al, 2002
Business goals - example of country
differences
relatively most important ascribed goals
in USA in BraziI
Growth of the business Family interests
This year’s profits Personal wealth
Personal wealth Power
Power This year’s profits
Stay within the law Game & gambling spirit
Respect ethical norms Growth of the business
Managing with culture
There is no such thing as a universal
economic rationality (or a universal
psychology)
NATIONALITY
constrains
RATIONALITY
New York, 1997
Lisboa, 1997
California,2001

Differences between countries

History

Identity language religion visible

Culture software of the minds invisible

Institutions rules, laws organizations visible

CULTURE in the anthropological sense
Collective programming of the mind distinguishing the members of one group or category of people from another JURXSFDWHJRU\ FDQ EH QDWLRQ RUJDQL]DWLRQ GHSDUWPHQW RFFXSDWLRQ JHQGHU JHQHUDWLRQ

Manifestations of culture .

irrational-rational • What is rational is a matter of values . paradoxical-logical. unnaturalnatural. dangerous-safe. dirty-clean.Values • Values are strong emotions with a minus and a plus pole • Like evil-good. abnormal-normal. immoralmoral. uglybeautiful. indecent-decent.

Values are learned early in life and often unconscious • Humans are born incompletely programmed • During the first 10 years of our lives we are super-receptive for complex programming • This programming is provided by our social environment and includes all basic values • After age 10. basic values don’t change – not even if we migrate to another country .

Practices are learned and unlearned throughout life and nearly always conscious • Similar practices can be learned by persons with very different values • Practice learning is also provided by our social environment • Organizations function through shared practices. rarely shared values .

Example: different national subsidiaries of same company • Organizational (or corporate) cultures oppose different organizations within the same countries. institutions and organizations across countries.National versus organizational cultures • National cultures oppose otherwise similar individuals. Example: different companies within the same country .

they can be changed .National versus organizational cultures • National culture differences are rooted in values learned before age 10 • They pass from generation to generation • For organizations. they are given facts • Organizational cultures are rooted in practices learned on the job • Given enough management effort.

Femininity Need gratification: later or now? Long vs. 4. Short term orientation . Geert Hofstede. small The unfamiliar: fight or tolerate? Uncertainty Avoidance strong vs. 3. 2001 1. 1980. 5 dimensions Inequality: more or less? Power Distance large vs. Collectivism Emotional gender roles: different or same? Masculinity vs. 2.Research into national cultures &XOWXUH¶V &RQVHTXHQFHV. 5. weak Relation with in-group: loose or tight? Individualism vs.

countries shift together so relative scores remain valid • Validation of dimensions against results of other cross-national studies – over 400 significant correlations . consumers. employees of other corporations. civil servants) • Results very stable – even if cultures shift. airline pilots.Dimension scores for > 70 countries from IBM subsidiaries around 1970. DQG H[WHQVLRQV • 6 major replications on different populations (elites.

rank 39 of 74 Masculinity 49.Scores for Brazil and ranking versus other countries • • • • • ranks: 1= highest Power distance 69. rank 26 of 74 Uncertainty avoidance 76. rank 7 of 39 fairly high . rank 31 of 74 both above average Individualism 38. rank 37 of 74 both average Long term orientation 65.

National culture dimension : Power Distance • Extent to which the less powerful members of institutions and organizations expect and accept that power is distributed unequally • Transferred to children by parents and other elders .

/DUJH 3RZHU 'LVWDQFH • Inequality is normal • Superiors are superior beings • Power comes before good and evil • Respect is a key virtue • Centralization • Subordinates expect to be told 6PDOO 3RZHU 'LVWDQFH • Inequality is wrong • Hierarchy is for practical purposes • Use of power should be legitimate • Independence is a key virtue • Decentralization • Subordinates expect to be consulted .

Uncertainty and anxiety are diffuse feelings – anything may happen .National culture dimension : Uncertainty Avoidance • Extent to which the members of a culture feel threatened by ambiguous and unknown situations • Not to be confused with risk avoidance: risk is to uncertainty as fear is to anxiety.

even if impractical • Expression of emotions is normal • Formalization • Innovations slow • Little job change • Xenophobia :HDN 8QFHUWDLQW\ $Y • What is different. is dangerous • Need for rules.6WURQJ 8QFHUWDLQW\ $Y • What is different. is curious • Rules may be broken if necessary • Emotions should be controlled • Deregulation • Innovations fast • Easy job change • Tolerance .

ANGLO CTRS NETHERLANDS LARGE PD. KOREA LARGE PD. LATIN CTRS EAST EUROPE JAPAN. STRONG UA %5$=. STRONG UA .SMALL PD./. WEAK UA NORDIC CTRS USA. WEAK UA CHINA INDIA GERMAN SPK CTRS HUNGARY ISRAEL SMALL PD.

/. WEAK UA LARGE PD. WEAK UA PDUNHW NORDIC CTRS USA.SMALL PD.PSOLFLW RUJDQL]DWLRQ %5$=. STRONG UA . STRONG UA S\UDPLG LARGE PD. ANGLO CTRS NETHERLANDS GERMAN SPK CTRS HUNGARY ISRAEL IDPLO\ CHINA INDIA . KOREA EAST EUROPE PDFKLQH SMALL PD. LATIN CTRS PRGHOV JAPAN.

National culture dimension : Individualism vs. Collectivism • Individualism: A society in which the ties between individuals are loose: everyone expected to look after self and immediate family • Collectivism: A society in which individuals from birth onwards are part of strong in-groups which last a lifetime .

QGLYLGXDOLVW “I” consciousness Identity based in individual Nuclear or oneparent family Universalism: others classified as individuals Task over relations Low context communication Confrontations can be healthy • • • • • • • &ROOHFWLYLVW “We” consciousness Identity based in social system Extended family living close Particularism: others classified as ingroup or outgroup Relations over task High context communication In-group harmony must be maintained .• • • • • • • .

National culture dimension : Masculinity vs. and focused on the quality of life . tender. women on the quality of life • Femininity: A society in which emotional gender roles overlap: both men and women are supposed to be modest. Femininity • Masculinity: A society in which emotional gender roles are distinct: men are supposed to be assertive. tough and focused on material success.

boys same socialization Work in order to live Job takes family life into account Stress who you are Modesty is virtue Sympathy for weak Jealous of heroes Co-workers Conflicts resolved by compromise .• • • • • • • • • 0DVFXOLQLW\ Girls. boys very differently socialized Live in order to work Job prevails over family life Stress what you do Ambition is virtue Sympathy for strong Admire heroes Human Resources Conflicts resolved by fighting • • • • • • • • • )HPLQLQLW\ Girls.

COLLECTIVIST. FEMININE POLAND. ITALY GERMAN SPK CTRIES USA.MASCULINE CHINA.FEMININE THAILAND. KOREA COSTA RICA. JAPAN MEXICO. ANGLO COUNTRIES INDIVIDUALIST.MASCULINE . CHILE RUSSIA. VENEZUELA ARAB WORLD GREECE %5$=. BULGARIA PORTUGAL./ CZECHIA. SPAIN COLLECTIVIST. HUNGARY FRANCE NETHERLANDS NORDIC COUNTRIES INDIVIDUALIST.

Short-term Orientation • Long Term Orientation is directed at the future and seeks future rewards through perseverance and thrift • Short Term Orientation is directed at the past and present through respect for tradition.National culture dimension : Longterm vs. fulfilling social obligations and seeking immediate rewards .

LONG TERM ORIENTATION CHINA JAPAN KOREA %5$=./ INDIA NETHERLANDS NORDIC COUNTRIES FRANCE GERMANY USA BRITAIN AFRICAN COUNTRIES MUSLIM COUNTRIES SHORT TERM ORIENTATION .

commerce and services in all 26 states + distrito federal • Differences between states small in Power Distance. Individualism and Long Term Orientation • Larger differences in Uncertainty Avoidance and Masculinity .054 employees of companies in industry.Regional cultures in Brazil • Survey Industrial Marketing Institute with ITIM Brazil and IRIC Netherlands • 14.

Regional culture clusters SE Espirito Santo SE Minas Gerais SE Rio de Janeiro SE São Paulo CW Distrito Federal NE Alagoas S S S N NE CW CW NE NE Paraná Rio Grande do Sul Santa Catarina Pará Bahia Goiás Mato Grosso do Sul Maranhão Piaui N Acre N Amazonas N Amapá N Rondonia NE Ceará NE Paraíba NE Rio Grande do Norte NE Sergipe CW Mato Grosso QRW LQ DQ\ FOXVWHU N Roraima N Tocantins NE Pernambuco .

Regional culture cluster profiles SE urban South CW-NE N-NE Roraima Tocantins Pernambuco power uncert +3 +6 +4 -1 -2 +1 0 -1 indiv mascu lterm +3 -8 -3 +3 +3 +2 +1 -15 + 1 -4 +1 +1           .

individualist. stressed. individualist. caring. very caring • N-NE: collectivist . short-term • South: hierarchical. competitive • CW-NE: egalitarian.Regional culture cluster profiles • SE urban: hierarchical.

Uncertainty Avoidance and Masculinity for 24 Brazilian States .

LTO. GNP/capita 5HVHDUFK +RIVWHGH HW DO  . IDV. period 1995-99 • List of 15 possible goals • Clustering of universities and countries based on their answers • Country scores correlated with PDI. 16 universities. UAI. 15 countries.5HVHDUFK LQWR %XVLQHVV JRDOV • “Goals of successful business persons in your country” • As perceived by evening MBA students with full-time day jobs • 21 groups.

example of country differences UHODWLYHO\ PRVW LPSRUWDQW DVFULEHG JRDOV LQ 86$ LQ %UD]LO Growth of the business Family interests This year’s profits Personal wealth Personal wealth Power Power This year’s profits Stay within the law Game & gambling spirit Respect ethical norms Growth of the business .Business goals .

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1997 .New York.

Lisboa. 1997 .

2001 .California.