..........................................8 4.0 Conclusions and Recommendations.....................................................................................13 References..................................................................................................................................14 List of Figures Fig: 2.0 Diagrammatic representations of Hofstede’s cultural dimensions...............................7 AN ANALYSIS OF THE CULTURE OF AN ORGANIZATION 1.0 Background to the Organization Organization culture is a predominant aspect of an organization’s internal environment Azhar (2003). Culture, to some extent, influences performance and efficiency in an organization Rousseau (2000). Every organization has its unique culture that differs from that of other corporate Schein (2004). For purposes of this report I chose IKEA group, I will conduct an in-depth analysis of its culture using the appropriate cultural analysis frameworks and dimensions. IKEA group is a multinational corporation that has a strong corporate culture that is entrenched in its core values. IKEA has its roots in Sweden; it was incorporated as Inter IKEA Systems B. V. in 1983 in the Netherlands. The primary goal or idea of founding IKEA was to make it conceptualize and operationalize IKEA business model in what has...
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..........................................8 4.0 Conclusions and Recommendations.....................................................................................13 References..................................................................................................................................14 List of Figures Fig: 2.0 Diagrammatic representations of Hofstede’s cultural dimensions...............................7 AN ANALYSIS OF THE CULTURE OF AN ORGANIZATION 1.0 Background to the Organization Organization culture is a predominant aspect of an organization’s internal environment Azhar (2003). Culture, to some extent, influences performance and efficiency in an organization Rousseau (2000). Every organization has its unique culture that differs from that of other corporate Schein (2004). For purposes of this report I chose IKEA group, I will conduct an in-depth analysis of its culture using the appropriate cultural analysis frameworks and dimensions. IKEA group is a multinational corporation that has a strong corporate culture that is entrenched in its core values. IKEA has its roots in Sweden; it was incorporated as Inter IKEA Systems B. V. in 1983 in the Netherlands. The primary goal or idea of founding IKEA was to make it conceptualize and operationalize IKEA business model in what has...
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...Journal of Business Research 60 (2007) 277 – 284 Hofstede's dimensions of culture in international marketing studies Ana Maria Soares a,⁎, Minoo Farhangmehr a,1 , Aviv Shoham b,2 a School of Economics and Management, University of Minho, 4710-057, Braga, Portugal b Graduate School of Management, University of Haifa, Haifa, 31905, Israel Received 1 March 2006; received in revised form 1 August 2006; accepted 1 October 2006 Abstract Growth of research addressing the relationship between culture and consumption is exponential [Ogden D., Ogden J. and Schau HJ. Exploring the impact of culture and acculturation on consumer purchase decisions: toward a microcultural perspective. Academy Marketing Science Review 2004;3.]. However culture is an elusive concept posing considerable difficulties for cross-cultural research [Clark T. International Marketing and national character: A review and proposal for an integrative theory. Journal of Marketing 1990; Oct.: 66–79.; Dawar N., Parker P. and Price L. A cross-cultural study of interpersonal information exchange. Journal of International Business Studies 1996; 27(3): 497–516.; Manrai L. and Manrai A. Current issues in the cross-cultural and cross-national consumer research. Journal of International Consumer Marketing 1996; 8 (3/4): 9–22.; McCort D. and Malhotra NK. Culture and consumer behavior: Toward an understanding of cross-cultural consumer behavior in International Marketing. Journal of International Consumer Marketing...
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.........................................................................................................................13 References..................................................................................................................................15 An Analysis of the Culture of an Organization 1.0 Background to the Organization Every organization has a personality that is unique, that individual character in the society is its culture (Barker, 2010). My company of choice for analysis is The Hongkong and Shanghai Banking Corporation (HSBC). I have used this bank to discuss the central topic in my report.As I have found it to have a strong corporate culture that has continued to improve its efficiency, value, performance and ratings over the years. HSBBC is a privately based organization; it was incorporated in 1865 with a primary objective of increasing trade and commerce between Europe and China. The headquarters of HSBC are located in London, it is among the largest banks in the world, and it has been rated as the second most important of all financial institutions in the world. This bank has a worldwide network comprising of approximately 10,000 branches in seventy-seven countries. Around 1997-2000, HSBC undertook a turnaround strategy, the primary goal of this strategy was to enable this bank retain its position among the top...
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...Journal of Business Research 60 (2007) 277 – 284 Hofstede's dimensions of culture in international marketing studies Ana Maria Soares a,⁎, Minoo Farhangmehr a,1 , Aviv Shoham b,2 a School of Economics and Management, University of Minho, 4710-057, Braga, Portugal b Graduate School of Management, University of Haifa, Haifa, 31905, Israel Received 1 March 2006; received in revised form 1 August 2006; accepted 1 October 2006 Abstract Growth of research addressing the relationship between culture and consumption is exponential [Ogden D., Ogden J. and Schau HJ. Exploring the impact of culture and acculturation on consumer purchase decisions: toward a microcultural perspective. Academy Marketing Science Review 2004;3.]. However culture is an elusive concept posing considerable difficulties for cross-cultural research [Clark T. International Marketing and national character: A review and proposal for an integrative theory. Journal of Marketing 1990; Oct.: 66–79.; Dawar N., Parker P. and Price L. A cross-cultural study of interpersonal information exchange. Journal of International Business Studies 1996; 27(3): 497–516.; Manrai L. and Manrai A. Current issues in the cross-cultural and cross-national consumer research. Journal of International Consumer Marketing 1996; 8 (3/4): 9–22.; McCort D. and Malhotra NK. Culture and consumer behavior: Toward an understanding of cross-cultural consumer behavior in International Marketing. Journal of International Consumer Marketing 1993;...
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...(1997). Transformational leadership focuses mainly on inspiring and stimulating the followers. Transformational leadership contains also four components: Idealized influence (Charisma), Inspirational motivation, Intellectual stimulation and Individualized consideration. The second part focuses on different studies on national culture: Hofstede (1983), Schwartz (1990) and Inglehart (1997). Each study has different values and dimensions, both all three studies show some similarities. The first similar dimension contains: Hofstede’s Power distance, Schwartz’ Hierarchy versus Egalitarianism and Inglehart’s Survival and measures the degree to which the people in a national culture accept and expect the unequal distribution of power. The second similar dimension contains: Hofstede’s Individualism, Schwartz’ Autonomy versus Embeddedness and Inglehart’s Self-Expression and measures the degree to which an individual is integrated into groups. The third part of this thesis focuses on the connection between leadership and national culture. The GLOBE project stated that cultural values affect leaders and their behavior and leaders are most likely to...
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...international management? Culture A set of shared values, understandings, assumptions, and goals that are learned from earlier generations, imposed by present members of a society, and passed on to succeeding generations. A critical skill for managing people and processes in other countries is cultural savvy that is, a working knowledge of the cultural variables affecting management decisions. Managers have often seriously underestimated the significance of cultural factors. According to numerous accounts, many blunders made in international operations can be attributed to a lack of cultural sensitivity. Examples abound. Scott Russell, senior vice president for human resources at Cendant Mobility in Danbury, Connecticut, recounts the following An American company in Japan charged its Japanese HR manager with reducing the workforce. The Japanese manager studied the issue but couldn’t find a solution within cultural Japanese parameters; so when he came back to the Americans, he reduced the workforce by resigning—which was not what they wanted.. Cultural sensitivity, or cultural empathy, is an awareness and an honest caring about another individual’s culture. Such sensitivity requires the ability to understand the perspective of those living in other (and very different) societies and the willingness to put oneself in another’s shoes. International managers can benefit greatly from understanding the nature, dimensions, and variables of a specific culture and how these...
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...Hofstede’s Six Cultural Dimensions Princess Smith BUS 600 Management Communications with Technology Tools Instructor: Brian Shaw March 10, 2013 Hofstede’s Six Cultural Dimensions “Hofstede’s research has been instrumental in furthering an understanding of cross-cultural management theory and practice, revealing that members of different societies hold divergent values concerning the nature of organizations and interpersonal relationship within them.” (Fernandez, Carlson, Stepina, & Nicholson, 1997). His work involves the identification of key work-related dimensions of national culture and six cultural dimensions such as power distance, uncertainty avoidance, individualism, masculinity, pragmatism, and indulgence. “Conducting business in today's modern business environment presents exciting opportunities for businesses and individuals.” (Baack, 2012). These dimensions, when considered together, were viewed as providing a framework for understanding how a culture resolves some of their most basic problems of life within organizations. Using the Hofstede Center, I did a cultural survey report on Australia and China which happens to be two of my favorite countries; one of which I have visited in the past. This type of report can be helpful in comparing the U.S.’s culture to others as well and how the U.S.’s culture can influence the way I understand the world around me. Culture has a very significant influence of people, especially managers and executives in...
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...Scientific criticism to Geert Hofstede’s research Cross-cultural issues in European Human Resource Management Contents Abstract 2 Introduction 2 Hofstede’s findings 2 Hofstede’s Framework of Cultures 3 Power Distance (PD) 3 Individualism - Collectivism (IC) 3 Masculinity - Femininity (MF) 4 Uncertainty Avoidance (UA) 4 Long/short term orientation (LTO) 5 Some aspects of Hofstede’s model having provoked scientific criticism 5 Methodological issues 6 Cultural Homogeneity 7 National Divisions 7 Number and bipolarity of dimensions 7 Out-dated concept 8 Political Influences 9 Conclusion 9 References 10 Abstract The high level of multiculturalism in the field of business indicates to raise awareness about cultural understanding. Researches in that line major refer to Greert Hofstede, who analyzes dynamics of cross-cultural groups and organizations. Undoubtedly, his model is as widely cited as criticized, because it is well-known pioneering research of national culture differences and their consequences. In this short paper, I am going to examine Hofstede’s findings and the reason why his work faces criticism. Introduction Culture in business has been of utmost interest for the last two decades, and with increasing national diversity in nowadays business environment, culture itself is regarded as an important dimension. The beginning of a pilot study in that sphere refers to the Dutch social psychologist Greert Hofstede and his...
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...management • To be able to distinguish the major dimensions which define cultural differences among societies or groups • To emphasize the need for international managers to have cultural intelligence in order to interact successfully in international environment • Know how to use culture to define attitudes and behaviours at work • Be aware of the interaction between culture and internet. 2 Culture “A set of shared values, understandings, assumptions, and goals that are learned from earlier generations, imposed by present members of a society, and passed on to succeeding generations.” Examples: – Evidence of culture is in peoples language, music, food, beliefs etc. • Related concept: – Culture shock • A state of confusion of not knowing how to behave in a foreign unfamiliar culture. Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall 3 1 20/03/2014 Culture and its importance Studies show multinationals face major management issues for poor intercultural skills of international managers. Research shows that cross cultural differences are cause of failed negotiations and interactions, resulting in losses to major multinationals of over billions of dollars! Furthermore, examples can be drawn from historical failures of Daimler-Chrysler as a result of cultural mismatch between the Germans and Americans, EBay in Japan, Google in Europe and many others. Cultural Empathy & Cultural Intelligence (CQ) • Cultural Empathy – It is an awareness and an honest...
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...Multinational Companies 4 Interpersonal Acumen and Leadership Communication in MNCs 4 Various Dimensions of Societal Culture and Effective Leadership 5 Cross-Cultural Dimensions of Leadership Communication in Achieving Goals 9 Recognition of Cross-Cultural Leadership for Attaining Goals 9 Conclusion 10 References 12 Introduction Business scenario at present is changing. This change in business environment has been dealt from different aspects in the form of emerging markets, globalization, exponential rate of change, different competitors, new technologies and many such. In short, it is to be identified that all these aspects lead to development of the concept called multiculturalism. Multiculturalism surely affects multinational companies and ultimately people and business worldwide. Due to changing business environment considerable changes in leadership communication styles have also taken place to cope up with the dynamic market trends. There had been a significant change in management and control focus to that of alignment focus. Also, significant change has occurred in the communication styles as different modes of communication and system of close interaction between the management and the rest of the organization are being introduced. As an inevitable consequence, the culture in multinational companies has now shifted from one-culture thought process to cross-cultural thinking (Mobley and Dorfman, 2003). a. Shift from Control Focus to Alignment – Now days...
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...Cultural Dimensions Theory MGMT455 Unit 3 Assignment Cultural Dimensions Theory A Dutch social psychologist and anthropologist named Geert Hofstede studied how different cultures interact with one another. The framework for assessing the many differences between nations and cultures was established by him and called the cultural dimensions theory. The theory uses six cultural dimensions to place a value on them. The six cultural dimensions are power, collectivism, uncertainty avoidance, masculinity, temporal orientation, and indulgence. The data Hofstede gathered was based on surveys conducted by IBM, a US technology and consulting firm (Cultural, 2013). The power dimension such as equality versus inequality analyzes the way people feel about the power distribution. The individualism versus collectivism dimension is not political rather it refers to a group, not an individual. The uncertainty avoidance dimension measures how the society will deal with unknown circumstances, events, and stress change can bring. The masculinity versus femininity dimension measures the stereotypical masculine values and the feminine values and their level of importance within the culture. The long- versus short-term orientation dimension describes the time horizon of a society. The indulgence versus restraint dimension measures a culture’s ability to meet the immediate needs of its members (Cultural, 2013). In the Individuality dimension, the US is leading 91 to 67 over Germany. This...
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...Groups……………………………………………………………….9 * Preliminary Results…………………………………………………………………..10 * Invariance Testing……………………………………………………………………12 * Structural Modeling…………………………………………...……………………..14 Discussion………………………………………………………………………………….…….16 Conclusions………………………………………………………………………………………18 References……………………………………………………………………………………..…20 Abstracts In this paper, I analyze the market for organic products in eight European countries, based on differences in their respective value systems. With a significant sample of 8014 consumers, I first identify international segments in the European organic products market using the Values Theory. Then I apply the Theory of Planned Behavior to examine how European consumers use attitudes, subjective norms and perceived behavioral control to form their purchase intention for organic products. Results show that subjective norms are the main underlying factor driving consumer behavior concerning these products. This effect is higher for the group of countries whose citizens score higher on Schwartz's value scale. In this segment of countries, people are more likely to be affected by what others think, which means that the best approach is to increase social awareness of the relevance of purchasing organic products. Organic products represent a potentially profitable opportunity for companies with an international horizon. Results are also useful for consumers and public administrations. 1. Introduction The increasing concern...
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...researchers worldwide. The GLOBE Project was introduced in my first article (click here). In this third article, I will overview GLOBE’s findings about how business values and practices vary across nations and cultures. Cultural Dimensions, the Measuring Rods of Cross-Cultural ResearchAs I explained in my first article, the first major question addressed by the GLOBE researchers was which measurement standards to use so that they could be precise about the similarities and differences among numerous societal and organizational cultures. After a thoroughgoing literature review as well as two pilot studies, the team identified nine "cultural dimensions" that would serve as their units of measurement, or (in research language) "independent variables."Cultural dimensions have been around as long as the field of intercultural research (i.e., since the early 1960s). They provide concepts and terminology that enable all of us to become aware of, to measure, and to talk knowledgeably about the values and practices found in a human culture – and about the similarities and differences among human cultures. What exactly is a cultural dimension? It’s a concept that is depicted graphically as a continuum. In most cases, only the two ends of the continuum are named. Here, graphically, is one of the cultural dimensions actually used by the GLOBE research team.Of course, the meaning of “assertive” must be precisely defined. Also to be developed and pilot-tested are ways of carefully...
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...distinguishes the members of one group or category of people from another.” Culture is an important factor in Business, cultures will differ from one another and its hard to compare, this makes it difficult for managers of multinationals to be able to be knowledgeable about these cultures and how they can put this into practice when dealing with organisational structures and processes. From a young age a child will start to develop work related values, this can be picked up from their parents and each child’s values will depend upon their culture. From this the child will then grow up and enter the working world with their values still being used, this can cause clashes within business as different cultures will have different values. Originally working for IBM, Hofstede sent out a questionnaire to 117,000 people. The aim of the questionnaire was that they wanted to find out how to manage subsidiaries and how culture impacted this. IBM was aiming to find out if they had to be different. In Hofstedes original theory he developed four dimensions; Indivusalism/Collectivism, Masculinity, Power Distance and Uncertainty Avoidance. Individualism is the extent to which people define themselves as individuals or part of a larger group, which would normally come under as countries such as the United States. Individualism consisted of decision-making, reward systems, ethics and organisational concern. A high indivualism score means that there is a lack of interpersonal connection and responsibility...
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