...people are used to different customs and traditions and they differ from a country to another and this also reflects in the ways of doing business. In fact, laws, regulations and standards (whether social or professional) are based on the said country’s culture. In order to assess the cultural differences between different countries, we recourse to two frameworks: the Hofstede model and the 7-D model. In this report, we are going to present the challenges faced in three different countries: Argentina, the United Kingdom and Morocco. Hofstede model: Hofstede model, as described by Cullen and Parboteeah, is a model mainly based on differences in values and beliefs regarding world and has become a ‘standard’ to assess cultural differences (Cullen, 2014). This model uses five dimensions to describe national culture: power distance, uncertainty avoidance, individualism, masculinity and long-term orientation (pragmatism). The figure below shows an application of the Hofstede model on Morocco, United Kingdom and Argentina. Figure 1: Hofstede Cultural dimensions comparison between Morocco, Argentina and the UK (Hofstede Center) As we can see above, Morocco scored (70) more than the UK (35) and Argentina (49). This means that in people in Morocco tend to accept inequalities between social classes in terms of power. In order words, do not care about whether power is distributed equally and it is normal that you find power concentrated in the...
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...Hofstede Model of Cultural Dimensions The main part of Prof. Geert Hofstede’s study or Model of Cultural Dimensions is “how values in the workplace are influenced by culture.” From 1967 to 1973 Prof. Hofstede collected and analyzed data base of employees value scores. Actually this data was collected by IBM from more than 70 countries. The total number of countries was divided into 3 parts to make the analysis easy. In first part they considered largest 40 countries to analyze data. Then he extended the analysis to remaining 40 countries and 3 regions. Based on IBM study replications and extensions, international population and cultural factors includes 74 countries for Prof. Geert Hofstede’s ranking scores from 2001. The four primary Dimensions of Hofstede’s Model to assist in differentiating cultures are: Power Distance – PDI, Individualism – IDV, Masculinity – MAS, and Uncertainty Avoidance – UAI Additional fifth Dimension developed after study with Chinese employees and managers and applied for 23 countries- Based on Confucian dynamism (Long-Term Orientation – LTO) The dimensions are related to the other country, cultural, and religious paradigms. About Hofstede (Small Biography) Name: Gerard Hendrik Hofstede Dutch organizational sociologist Studied: the interactions between national cultures and organizational cultures Date of Birth: 3 October 1928 Place of Birth: Haarlem Work: Author of several books including Culture’s Consequences and Cultures and Organizations...
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... Table of Contents 1. Introduction…………………………………………………………..………2 2. Background of Unilever…………………………………………………...2 3. Hofstede culture dimension theory ……………………………………..3 4. General culture of Unilever……………………………………..…………4 5. Hofstede Culture model of Vietnam, UK and Unilever Vietnam ……5 6. Issues of Labor in Vietnam Operations…………………………………8 7. Efforts taken by the company to deal with the labor issue…………9 8. Advantages of establishing a good culture policy …………………..10 9. Conclusion………………………………………………………………….11 10. Reference………………………………………………………………….12 Introduction Cross-cultural relationships are imperative for businesses to expand operations. It is imperative to understand the nuances of each culture. Only then can businesses thrive in a new environment (Hofstede, 2011) The Hofstede culture analysis determines the traces of each work culture. From this the differences between the cultures can be worked out. For the purpose of this analysis the organizational culture of Unilever in Vietnam has been studied. The global Unilver culture and the culture of Unilver Vietnam will be examined in this report. The Culture of Unilever, its Corporate Social Responsibility practices will be be studied. It will compare with the existing theoretical models like the Hofstede culture models. The labor issues operation supply in Unilever Vietnam operations has been discussed in this analysis. The rectification process undertaken by the...
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...Geert Hofstede said “culture is the collective programming of the mind which 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....
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...Mexico: Cultural Analysis This paper is a cultural analysis of the Mexican culture through the lens of the 5-D Model developed by Professor Geert Hofstede. The five dimensions of the model include: Power Distance (PDI), Individualism versus Collectivism (IDV), Masculinity versus Femininity (MAS), Uncertainty Avoidance (UAI), and Long term versus short term orientation. In recent years a sixth dimension named Indulgence versus Restraint has been added. There are no rankings for this dimension as it has only been recently added and researched (Hofstede, 2012). This Model gives one an important tool for gaining insights into given cultures which can improve business opportunities and interactions (International business etiquette, manners and culture, 2012). Power Distance Index (PDI) is the degree to which the less powerful members of a society accept and expect that power is distributed unequally. The issue is how a society handles inequalities. Mexico, ranking 81on the PDI, is a hierarchical society. Regionally, Mexico ranks higher on PDI than the United States (rank 39) and Canada (rank 40), whose ranks indicate that their cultures strive to equalize the distribution of power and demand justification for inequalities of power. Globally, however, countries vary greatly in PDI, (average PDI rank of 60; Clearly Cultural, 2012). One must consider the PDI rank when doing business with a given country in a certain region. For example, Mexican businesses hoping to successfully...
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...Satterlee (2014, p. 43) “The dimensions of culture may be categorized as Communication, Religion, Ethics, Values and Attitudes, Manners, Customs, Social Structures and Organizations, and Education”. In the late 1960s and early 1970s an IBM sociologist named, Geert Hofstede, studying the diversity of his company, concluded that aside from individuals, a country can have a culture or personality that can be scored and compared with other countries. His theory of cultural dimensions includes only five categories: Power distance, Individualism, Masculinity, Uncertainty Avoidance and Long Term Orientation (Dimensions of national cultures, 2015). MAJOR ARTICLE SUMMARY The article I selected is from the December, 2011, issue of the journal Online Reading in Psychology and Culture: International association of Cross-Cultural Psychology. The article is titled, ‘Dimensionalizing Cultures: The Hofstede Model in Context’ by Geert Hofstede. The article begins with Mr. Hofstede describing his work at IBM. In the 1967 to 1973 time period, Mr. Hofstede was given access to a large database of 100,000 surveys from IBM and IBM contractors. Since IBM and its subsidiaries were multinational, this information gave Mr. Hofstede a unique picture of how people from ~50 different countries characterized themselves, their country, and their employer. His analysis led him to develop the five categories of his theory of cultural dimensions. The article details the five categories...
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...MKT 505 ASSIGNMENT 1 GLOBAL BUSINESS TODAY To purchase this visit here: http://www.activitymode.com/product/mkt-505-assignment-1-global-business-today/ Contact us at: SUPPORT@ACTIVITYMODE.COM MKT 505 ASSIGNMENT 1 GLOBAL BUSINESS TODAY MKT 505 Assignment 1 - Global Business Today – The Hofstede Study Refer to Hofstede model in Chapter 4 of the Textbook and the Global Business Today Interaction, and complete this assignment.Note: the Global Business Today Interaction can be found in the online course shell. Write a three to four (3-4) page paper in which you: 1. Create a problem statement for the client, Azure Sky Tea, based on the Hofstede model. 2. Classify possible combinations of countries for location of the Azure Sky Tea’s offices based on the Hofstede model. Include a discussion of the home country’s (U.S.) relative position on the Hofstede scales as compared to other countries.Note: Utilize the Hofsetede module to include all parameters (i.e., individualism, uncertainty, power distance, masculinity) for the classification. 3. Choose two (2) countries as potential locations for the Azure Sky Tea’s new international offices. Next, develop a set of specific recommendations for the company. In your recommendations: a. Include the preliminary data that you gathered in the previous question. More Details hidden... Activity mode aims to provide quality study notes and tutorials to the students of MKT 505 Assignment 1 Global Business Today in order to ace...
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...What difficulties might the international manager experience in trying to apply Hofstede's model? Culture is the learned way in which a society understands, decides and communicates.”(Hollensen, 2007). Hofstede, a Dutch academic wished to find an explanation for cultural differences across the world, in relation to society and business. He began by researching why various concepts of motivation did not work in the same manner in all countries. Hofstede based his studies on an extensive IBM database, receiving 116,000 questionnaires from IBM employees from over 70 countries, and in 20 languages. The gathering and evaluation of this study took 6 years, at the end of which, Hofstede concluded that the way people in different countries perceive and interpret their world varies along 4 dimensions. Hofstede’s model is known as the 4+1 model due to the addition of another dimension some years later. Theoretically this model appears to be effective in business context, however, after in-depth analysis, it can be seen that difficulties may arise for the international manager when trying to apply it. The first dimension, Power Distance, refers to the degree of inequality between people in both physical and educational conditions in a culture. In ‘High Power distance’ societies, the power is concentrated amongst the few highest people, of who make all the decisions. Therefore, the others in society have no choice but to obey, and carry out the decisions made. Differences in...
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...Journal of Comparative International Management 2009, Vol. 12, no.2, 73-89 ©2009 Management futures Printed in canada Cross-cultural Communication and Multicultural Team Performance: A German and American Comparison by Steven W. Congden University of Hartford, U.S.A. Alexei V. Matveev College of Staten Island – CUNY, U.S.A David E. Desplaces College of Charleston, U.S.A. This study builds on work by Matveev & Nelson (2004) which investigated the relationship between cross-cultural communication competence and multicultural team performance using American and Russian managers. This study examines the impact of national culture on German and American subjects. While a relationship between cross-cultural communication competence and multicultural team performance was found, it did not differ by overall national culture. Of the four dimensions of cross-cultural communication competence, only Cultural Empathy was found to be significantly different between Germans and Americans. No differences were found for the dimensions of Interpersonal Skills, Team Effectiveness, and Cultural Uncertainty. 1. Introduction Worldwide intercultural cooperation drives corporate growth and development across the globe resulting in a heightened demand for a qualified but diverse workforce. researchers have documented that the successful performance of multicultural teams is a vital and contributing factor to organizational success (Jackson, may, & Whitney, 1995; Snow, Snell, davison, & hambrick...
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...International Management EA ------------------------------------------------- Assignment 12407210 - Hang Nguyen Title Compare and contrast cultural frameworks developed by Geert Hofstede and Fons Trompenaars. I - Introduction Different national cultures comprise different cultural value systems. The value systems are generated from a conception, or as noted previous beliefs, of existing means or resources, and necessities. Cultures have various standards and some factors such as behaviors, traditions or communication of one culture can be observed as irrelevant or sometimes even threatening by other cultures. These uncertainties can bring into being cultural gaps between people within a workforce. Not only do the variety of cultural structure interacting together increase the potential for conflict or disagreement, but also methods of control disputation among the cultures. The project manager must be able to handleconfrontation using different styles, depending on the circumstances, in order to effectively manage a diverse team. This paper discusses the most well-known and accepted theories of cultural differences and illustrates them with cases from international project management. Two leading studies of cross-cultural management have been conducted by Geert Hofstede and FonsTrompenaars. Both frameworksoffer a set of cultural dimensions along which core values can be obtained. These structures influence on human thinking, feeling, performance, and...
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...The Nature of Organizations and the Contemporary Environment TUI UNIVERSITY ABSTRACT The Nature of Organizations and the Contemporary Environment World English Dictionary states that culture is the shared behaviors and beliefs of a particular social, ethnic, or age group, and an environment can be defined as the external conditions or surrounding in which people live or work. Organizational culture is a system of shared meaning and beliefs held by organizational members that determines how they act, (Robbins & Coulter 2003). It also refers to working language and habits. Most times the environment will determine an organization’s culture but each environment is vastly different. One of the keys to being successful in a different environment with strong cultural beliefs is to be aware of the cultural differences within the environment. The right level of knowledge will determine success or failure. Cultural values, assumptions and beliefs affect organizational performance and management. The organizational culture affects employee and managers behaviours. Poor organizational culture affects the management of an organization negatively. Also, the business environment affects performance and management differently. Managers should understand culture and environment a firm operates in order to manage effectively (Green, 2011). Linda. Myers had what seemed to be all of the right credentials on paper that would make her the ideal candidate...
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...Mistretta Title: Hofstede’s Cultural Dimensions: A Comparison of Greece and U.S. Human Resource Management Approaches Date: September 9, 2012 Abstract Globalization continues to become more important in the business culture in our world. No longer can management focus only on companies within their own country. Businesses are forced to compete with companies from other countries. With the increased global competition, a business must understand other cultures if they hope to remain competitive and have continued success. There are several models that show the influence of cultural differences between nations. Hofstede’s model, called the theory of cultural relativity of organization practices is the most recognized model. Hofstede’s model focuses on cultural influences and work behaviors in five different dimensions. Each dimension has important implications in understanding business. This paper will compare the Hofstede analysis of Greece and the United States. Biographical Sketch Kelly Mistretta is currently an MBA student at Saint Leo University. Mistretta has a BA in Accounting and plans to obtain an MBA to equip her with improved business skills to better contribute to society. Mistretta’s career goal includes obtaining a position in which she is able to assist non-profit organizations within her area with their accounting needs. HOFSTEDE’S CULTURAL DEMINSIONS: A COMPARISON OF GREECE AND U.S. HUMAN RESOURCE APPROACHES In today’s society, there is a...
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...literature finds that the link between culture and leadership is an important, yet complicated relationship. I will begin by discussing and defining the central concepts of culture and leadership. I will then explain and analyse the significance of culture upon leadership. Finally I will review Hofstede’s cultural framework to assess its significance and relevance to the topic at hand. Culture: To begin, culture is a phenomenon that carries multiple definitions. A simplistic view sees it as “how things are done around here”(Ouchi and Johnson, 1978 p.293). Culture can also encompass the behaviours, attitudes, norms, morals and unconscious values instilled within a group of individuals (Schien, 1985). Hofstede himself defines culture as the “collective mental programming” (Hofstede, 1980 pp.43) of individuals bound by some form of common orientation or geographical boundary. Culture shapes everything within society, and as an extension, leadership. Leadership is another interlinked concept, commonly defined as a relationship by which followers are influenced, and inherent changes are made towards a collective purpose (Daft and Lane, 2005). Moreover leadership refers to the “core set of traits, behaviours, skills, or characteristics that cuts across situations, cultures, philosophies, and moral systems” (Shanthi, 2009 pp.2). Leadership is directly influenced by culture and vice versa. Culture can be a key determinant upon; how leaders decide upon their leadership style, how leaders...
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...Topic 1: Analyze the role of cultural factors that can create comparative advantage for a company. Give some relevant examples. CONTENT Facing with the diversity of the market as well as the establishment of more and more enterprises, managers’ pressure is weighed on how to make their firms different and attract more customers compared to other companies. In the opinion of Michael Porter, entrepreneurs who only focus on two objectives of growth and product diversification strategy does not guarantee long-term success for business. It is important for any business organization to build a sustainable comparative strength. Since then the concept of “Comparative advantage” was born with the sense that the specific value of the enterprise will help businesses reach high performance and always be unforgettable. There are many factors that create comparative advantages for business and one of the basic elements and also plays the important role is the cultural factors. It is supposed that culture is the promotion of the ability and the fullest expression of human nature. Hence, culture exists in any human activity such as economy, politic, society, communication, behavior, or in the innermost thoughts. Each nation brings its own different cultural values, creating the cultural diversity. This has caused not only difficulties for multinational companies to be able to adapt but also an opportunity for businesses to learn, thus make the particular policies that create comparative...
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...1.Create a problem statement for the client, Azure Sky Tea, based on the Hofstede model. Problem Statement Azure Sky Tea is an herbal tea company located in the Rocky Mountains of the United States. Azure Sky Tea has nine percent of market shares and is looking to increase market share by expanding into different markets. The problem that Azure Sky Tea company is facing is that they are trying to find a market that suitable with their low key culture. In order to find suitable countries one must find the countries on the Hofstede that score similar in all of the four dimensions to the United States scores. It is important to find two countries that are similar to the United States because, Azure Sky Tea wants to operate their office with the same cultures. 2. Classify possible combinations of countries for location of the Azure Sky Tea’s offices based on the Hofstede model. Include a discussion of the home country’s (U.S.) relative position on the Hofstede scales as compared to other countries. Note: Utilize the Hofsetede module to include all parameters (i.e., individualism, uncertainty, power distance, masculinity) for the classification. The Hofstede Model is a model that gives a score about the culture in terms of four dimensions such as, individualism, power distance, masculinity, and uncertainty avoidance index. A high power distance score indicates that people accept the difference in power between their superior and themselves and power is concentrated...
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