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"Culture is more often a source of conflict than of synergy.

Cultural differences are a nuisance at best and often a disaster.³


V O     ñas born on

  . He received
his M.Sc. from the Delft Institute
of Technology in 1953, his Ph.D.
from Groningen University in 1967.
Hofstede served in the Netherlands
Army from 1953 to 1955. In 1955,
he married Maaike A. Van den
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dimensions ñere arrived in his 1980 publication, "Culture's consequences:
International differences in ñork-related values." The study took existing
survey data (sample size of 116,000) collected from a multinational
corporation (IBM). The result ñas a score in each of the dimensions for 40
different countries.
V As ñith any generalized study, the results may or may not be applicable to specific
individuals or events. In addition, although the Hofstede's results are categorized by
country, often there is more than one cultural group ñithin that country. In these
cases there may be significant deviation from the study's result.
V An example is Canada, ñhere the majority of English speaking population and the
minority French speaking population in Quebec has moderate cultural differences.
V Geert Hofstede's dimensions analysis can assist the business person or traveler in
better understanding the intercultural differences ñithin regions and betñeen
V focuses on the degree of equality, or inequality,
betñeen people in the country's society.
V High poñer distance cultures are characterized
by bosses ñho have much more poñer than
their subordinates, poñer holders ñho are
entitled to privileges and subordinates ñho
consider superiors as a different kind of people.
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V Climate, measured by geographical latitude. Cultures in high-
latitude climate (moderate or cold climates) tend to have loñ
PDI scores. Cultures that have tropical climate tend to have
high PDI scores.
V Population: Generally, the more people ñithin the culture, the
greater the poñer distance is likely to be .
V Distribution of Wealth: The more unequally the ñealth is
distributed ñithin a culture, the greater the culture's poñer
V Most evident are family customs, the relationships betñeen
students and teachers, the young and the elderly, language
systems and organizational practices.
V High poñer-distance cultures create:
V Hierarchical organizational structures.
V Loyal and committed subordinate ñorkers.
V Autocratic relationships betñeen managers and subordinates

V Loñ Poñer Distance Organizations just as ñith loñ poñer distance cultures are
V characterized by leadership styles that empoñer subordinates and treat them ñith respect.
V These characteristics are evident in Good to Great (Jim Collins, 2001) companies, such as Kimberly-Clark,
General Electric, Walgreens, and Gillette. On the other hand, high poñer distance organizations have cultures
ñhere the leadership styles are more authoritarian, ñith little regard for any initiatives from subordinates. In
such organizations, subordinates ñork for these leaders out of fear and are ready to jump ship as soon as the
opportunity presents itself. A retrospective revieñ of the leadership styles of companies such as Enron Inc.,
WorldCom, and Tyco Inc. shoñs very high PDIs.
V focuses on the degree the society reinforces individual or collective, achievement and
interpersonal relationships.
V A High Individualism ranking indicates that individuality and individual rights are
paramount ñithin the society
V This is the opposite of collectivism and describes the extent to ñhich individuals are
integrated into groups. Where individuals are high, people expect to take care only of
themselves and their immediate families and their relatives to look after them and be
more loyal to them, in exchange. Members of individualistic societies also place
emphasis on self respect; members of collectivist cultures place more importance on
fitting in harmoniously and face saving.
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V Economic development. Wealthy cultures
tend to be individualistic, ñhereas poor
cultures tend to be collectivistic.
V Climate. Cultures in colder climate tend to
be individualistic, ñhereas cultures in
ñarmer climates tend to be collectivisticà
V Collectivistic cultures tend to be group-oriented, impose a large psychological
distance betñeen in group and out group members and in group members are
expected to have unquestioning loyalty to their group.
V In a conflict situation, members of the collectivistic cultures are likely to use
avoidance, intermediaries, or other face-saving techniques.
V Conversely, people in the individualistic cultures do not perceive a large
psychological distance betñeen in group and out group members.
V They value self-expression, see speaking out as a means of resolving problems, and
are likely to use confrontational strategies ñhen dealing ñith interpersonal
V If one thing is settled, it is that Apple is the epitome of American individualism.
V More than probably any business leader in modern history, Apple's CEO Steve Jobs
individual leadership has defined Apple's design, focus, innovation, and business model,
and made Apple one of the most successful and influential companies on the planet.
V Another thing that is settled is that Google is the epitome of modern-day collectivism.
V Google's ñell-knoñn collectivist mission is to "organize all the ñorld's information and
make it universally accessible and useful."
V Google's ñell-knoñn collectivist approach makes most all of its products and services,
including its Android mobile operating system, free to the masses, ñhile at the same
time opposing any concept of individual customer service.
V Google CEO Eric Schmidt also has clearly declared Google's collectivist purpose: "The
goal of the company is not to monetize anything, the goal is to change the ñorld."
V focuses on the degree the society reinforces, or does not
reinforce, the traditional masculine ñork role model of male
achievement, control, and poñer.
V A High Masculinity ranking indicates the country
experiences a high degree of gender differentiation.
V This is the extent to ñhich the dominant values in society
are male-values such as assertiveness, the acquisition of
money and goods, and not caring for others.
V Masculine societies also define gender roles more rigidly
than do µfeminine¶ societies.
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V Climate: Masculine cultures tend to live in ñarmer climate near the equator and
feminine cultures are likely to locate in colder climates añay from the equator.
V Members of high MAS cultures believe that men should be assertive and ñomen
should be nurturing. Sex roles are clearly differentiated, and sexual inequality is
seen as beneficial. The reverse is true for members in the feminine cultures
V Feminity Organizations are flat, doñnplay rules and standards
,exhibit attentiveness and responsiveness to the needs of
others and they express relational orientations.
V Masculine organisations are more hierarchical, rely on
impersonal rules and standards , adopt an instrumental
orientation and vieñ members as means of goal
V focuses on the level of tolerance for
uncertainty and ambiguity ñithin the
society - i.e. unstructured situations.
V This creates a rule-oriented society
that institutes lañs, rules, regulations,
and controls in order to reduce the
amount of uncertainty.
V Higher uncertainty avoidance indicates that people like to control the future. It is
associated ñith being dogmatic, authoritarian, traditional and superstitious.
V Looking at fifty countries, the uncertainty avoidance index plotted against the
poñer distance index reveals several clusters of countries that are characterized by
strong uncertainty avoidance and large poñer distance. Most latin American and
European countries fall into this category but:
V Countries such as Singapore, Hongkong and India combine large poñer distance
ñith ñeak uncertainity avoidance, ñhile Scandinavian and Anglo Saxon countries
and typically countries ñith small poñer distance and ñeak uncertainty avoidance
V No clear-cut predictors.
V But in general, high UAI cultures tend to be those that are beginning to
modernize and are characterized by a high rate of change.
V Conversely, loñ UAI cultures tend to have reached the level of
modernization or have more stable or predictable in their rate of change
V High UAI cultures tend to develop many rules to control social behaviors.
Loñ UAI cultures need feñ rules to control social behaviors.
V High uncertainty-avoidance cultures create:
V Formalized procedures to minimize unpredictability.
V Clearly defined roles for employees.
V Focus on security and trust.
V Based on marked cultural differences among 40 countries, Hofstede recommends :
V That American management theory should be adapted to local cultures rather than
imposed on them.
V Behavior concepts of David Mclelland, A Masloñ, F Herzberg and Victor Vroom
developed their achievement needs, Tño factor and expectancy theories
respectively ñithin US cultural context. Hofstede believes it is not proper to expect
those theories to apply automatically on absolutely different cultures.
V Hofstede¶s research does not attempt to tell international managers hoñ to apply
various management techniques in different cultures. But it suggests for cultural
adaptation of American management theories and practices.

V It is also knoñn as Long-Term Orientation. It ranges
from long term orientation to short term orientation
V . This dimension refers to the selective promotion of
particular set of ethics found in Confucian teachings
V Particular teachings that lead to economic
development include thrift, perseverance, a sense of
shame, and folloñing hierarch. Other Confucian
teachings are less emphasized such as tradition, and
protecting face.
V Long-Term Orientation (LTO) focuses on the degree the society
embraces, or does not embrace, long-term devotion to traditional,
forñard thinking values. High Long-Term Orientation ranking
indicates the country prescribes to the values of long-term
commitments and respect for tradition. This is thought to support a
strong ñork ethic ñhere long-term reñards are expected as a result
of today's hard ñork.
V This is a recent addition to the Hofstede model, added as a neñ
dimension to the model in the second edition (2001).
V There is a general thrift and dislike of ñaste.
V This leads to creating of products that are
economic in production and reliable in use.
V It also leads to careful economy ñith finances
and consequent profitable firms and nations.
V A high level of savings and reduced borroñing
leads to more financially stable institutions.
V There is a general perseverance and
tenacity in pursuing a goal.
V Once something has been decided as
requiring action, people ñill ñork
through disappointment and difficult
problems in order to reach the desired
end position.
V ·elationships are clearly defined, ñith strong
hierarchies that people observe very carefully.
V With a clear poñer relationship, people do not spend
time arguing and challenging orders -- they move
into the persistence that may be required to achieve
the goals that have been set for them by their
V If goals are not reached, then it is considered
shameful -- a fact ñhich leads to persistence.
V Likeñise, shame drives relationships, ñhere to
be seen to fail or otherñise lose face is highly
V Thrift, also, is affected by shame, as a cultural
thriftiness highlights individual overspending
V Setting things for a long period or
anticipating future for a longer or bigger
V Family Oriented means that a person in particular likes to
spend time ñith biological relatives like children, cousins,
siblings, parents, grandparents, etc. Family Oriented people
also like to have big families probably 3 kids or more.

In addition family oriented can also apply to a product,

service, film etc. "those movies over there are family
oriented." "that theme park is family oriented

So in short, if you are family oriented... you like family

friendly things.

Also, things in the community that are advertised as "fun

for the ñhole family" or "safe for kids" are often family
oriented events.
V anticipating or making provision for the
future; progressive
V There is no doubt that the tño kinds of culture both exert poñerful
influences on people. It is anything but rare for employees, especially
those of foreign companies, to be facing conflicts betñeen them. A
company¶s culture may be informal ñhile a country¶s culture could be
rather formal. A company may be encouraging and reñarding risk-taking
in a country ñhere people are generally risk-averse. Or, vice versa.
V ¦  

V An explicit recognition by the parent organization that its particular ñays are neither
universally better nor ñorse than others but are different and likely to exhibit strengths and
ñeaknesses, particularly abroad
V An explicit recognition by the parent organization that its foreign subsidiaries may have
other preferred ñays of managing people that are neither intrinsically better nor ñorse, but
could possibly be more effective locally.
V Willingness by headquarters staff not only to acknoñledge cultural differences, but also to
take active steps to ensure these are discussed and incorporated ñhere appropriate.
V The building of a genuine belief by all parties involved that more creative and effective ñays
of managing people could be developed as a result of cross cultural training.
V The national culture of the country ñithin ñhich an organization is based
ñill impact hoñ a company operates. The home country is a significant
environmental factor for the company. This poses unique problems for
multi-national companies. When a multinational company attempts to
bring it¶s corporate culture to a neñ country that is clearly different from
the national culture of the host country, problems may result.
V The influences of national cultures shape strong value systems
among their members.
V The resulting shared values, preferences, and behaviors of
population groups differ ñidely betñeen countries.
V That is frequently also the case betñeen different subgroups ñithin
a country, so keep in mind that the term ³national culture´ can be
V It may only be referring to part of the people in a given country.
V Culture is a completely different component that contributes
significantly to organizational functioning.

V The benefit of cultivating a pronounced organizational culture is that

it helps establish common values and align behaviors among
V Many multinational companies use employee handbooks, corporate
ethics guidelines, ñritten value definitions, and other tools for their
employees ñorld-ñide in order to drive this kind of alignment
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V Universalism is about finding broad and general rules. When no rules fit, it finds the best rule.
V Particularism is about finding exceptions. When no rules fit, it judges the case on its oñn merits, rather
than trying to force-fit an existing rule.
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V Analyzing decomposes to find the detail. It assumes that God is in the details and that decomposition is
the ñay to success. It sees people ñho look at the big picture as being out of touch ñith reality.
V Integrating brings things together to build the big picture. It assumes that if you have your head in the
ñeeds you ñill miss the true understanding.
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V Individualism is about the rights of the individual. It seeks to let each person groñ or fail on their oñn,
and sees group-focus as denuding the individual of their inalienable rights.
V Communitarianism is about the rights of the group or society. It seeks to put the family, group, company
and country before the individual. It sees individualism as selfish and short-sighted.
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