...complex whole which includes knowledge, belief, art, morals, law, customs, and any other capabilities and habits acquired by man as a member of society”, as an individual. Siew et al. argue that “culture is a complex and broad construct that is difficult to accurately measure” (2007). However, scholars have tried to theorize it through several frameworks. In this essay, Hofstede’s cultural dimensions and the GLOBE study dimensions are compared in order to assess the frameworks’ abilities to accurately measure culture. Hofstede’s cultural dimensions were created as a result of an empirical research of the employees of a global company in order to identify the different work motivations caused by the employees’ nationalities (2001, cited by De Mooji, 2013). The dimensions were constructed at the national level and thus their variables offer insights on nations. They do not correlate at individual or organizational level. However, scholars have misapplied Hofstede’s dimensions to individuals and organizations, which resulted in flawed conclusions at individual level (Venaik and Brewer, 2013). A criticism of Hofstede’s study is that the model is oversimplified and it doesn’t capture sufficient aspects of culture (Schwartz and Bilsky, 1990 cited by Venaik and Brewer, 2010). In addition, Tung (2008, cited by Venaik and Brewer, 2010) argues that the model...
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...20/03/2014 Week 3 Lecture Understanding Culture Chapter 3 from Deresky (2011) Understanding Culture Topic Objectives: • Define culture • To understand how culture affects all aspects of international 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...
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...Consideration of such things as gender, personalities, culture and perception are a must for each negotiation. Not doing so could result in loss of profitability and growth. Typically most distributors look overseas for manufacturers because of the cheaper labor rates abroad. This paper will evaluate negotiation styles of Chinese and American teams' negotiation for the lowest possible cell phone manufacturing price using Hofstede's cultural dimensions theories. Hofstede's theories use four dimensions to describe differences in cultures and negotiation styles including individualism-collectivism, power distance, career success vs. quality of life and uncertainty avoidance. The cultural differences of each team are described and then a scenario of how the negotiation would go is developed (Lewicki, Barry, & Saunders, 2010, "Chapter 16"). Review This essay will begin with a review of the two teams involved in the negotiation. The first team is an all-male team from the United States (University of Phoenix, 2014). This team is seeking a cell phone price of $6 per unit (University of Phoenix, 2014). The all-male American team are individualistic, have a low-power distance, possess a low-term...
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...(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; 6 (2): 91–127.; Nasif...
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...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 the behavior of organizations and institutions in predictable practice. The two sets of measurements indicate basic difficulties that any culture has to deal with but for which solutions are in dispute. They are similar in some respects and different in others. The frameworks can be grouped into several categories: Relations...
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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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...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; 6 (2): 91–127.; Nasif EG...
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...Hofstede’s Cultural Dimensions US vs. India by Edward A. Molnar January 19, 2013 Abstract This article acknowledges the six dimensions of Hofstede’s theory of cultural dimensions, and defines five of them for a comparison between the United States and India. This article shows for the most part, the definitions of Hofstede’s cultural dimensions are correct, but the article did identify some ambiguities while making the comparisons. Finally, future areas of possible research were identified that would assist in the removal of the ambiguities. Hofstede’s Cultural Dimensions US vs. India Geert Hofstede’s theory of cultural dimensions was a result of an analysis of a world-wide survey of employee values by IBM in the 1960’s and 1970’s. This theory describes the effects of a society’s culture on the values of that culture’s members and how those values relate to behavior. This is accomplished by using a structure resulting from factor analysis (Hofstede, 2011). This theory has been used as an example for several fields, particularly in cross-cultural psychology (Hofstede, 2011). Geert Hofstede’s original cultural dimensions theory had four dimensions from which cultural values could be analyzed. These four dimensions were: (a) individualism versus collectivism (IDV); (b) uncertainty avoidance (UAI); (c) power distance (PDI); (d) masculinity versus femininity (MAS). While Hofstede was performing research in Hong Kong he added the fifth dimension, long-term...
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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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...The Influence of the Culture dimension ‘Power Distance’ on product choice: A Cross Cultural Exploration of Effects of Country of Origin on the Choice of Branded Products by Adriana Cordeiro Socha A Thesis presented to The University of Guelph In partial fulfillment of requirements for the degree of Master of Science in Marketing and Consumer Studies Guelph, Ontario, Canada © Adriana Cordeiro Socha, September, 2012 ABSTRACT THE INFLUENCE OF THE CULTURE DIMENSION ‘POWER DISTANCE’ ON PRODUCT CHOICE: A CROSS CULTURAL EXPLORATION OF EFFECTS OF CULTURAL TRAITS ON THE CHOICE OF BRANDED FOREIGN PRODUCTS Adriana Cordeiro Socha University of Guelph, 2012 Advisor Dr. Brent McKenzie Committee Dr. Vinay Kanetkar Dr. Sara Mann This thesis investigates how cultural traits, such as the cultural dimension of Power Distance, influence preference for foreign made branded products. Cultural background influences several aspects of human behaviour, including the behaviours of consumers. In marketing, individual cultural differences affect consumers’ choice as well as their response to advertising message and brand associations. One example, impact on consumer choice, is related to the country of origin (COO) of the product. The effect of COO has been extensively explored in the literature. However, cultural frameworks like those of Hofstede (2001) have seldom been considered as a factor explaining the variability of consumers’ preference (or avoidance) for products originating in different...
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...IMF Home Page:http://www.imf.org/external/index.htm Country Risk Classification-OECD:http://www.oecd.org/tad/xcred/crc.htm World Trade Organization Home Page:http://www.wto.org/ “Industry Analysis: Recreation” article:http://www.valueline.com/Stocks/Industries/Industry_Analysis__Recreation.aspx Focus on the following areas: corruption, political stability, exchange rate stability, regulatory oversight, freedom of the press, and rule of law. Research other factors that you believe you should evaluate. Additionally, consider the importance of culture in evaluating risk. Then, go to the Hofstede Center’s Country Comparison cultural tool, located at http://geert-hofstede.com/china.html. Compare China to the U.S. on Hofstede’s six (6) key cultural dimensions scale by selecting “United States” from the “Comparison Country” drop-down menu. Write an eight to ten (8-10) page paper in which you: 1. Summarize the business that you have chosen, and provide a two to three (2-3) paragraph justification...
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...leadership as one who inspires organizational members to want to achieve. (Munley, 2011) Leadership is directing a team through communication to reach the organizational goals. Leadership communication is essential to businesses and organizations especially when companies are opening branches overseas, conducting business through conference calls or working with a manager from another country. With this new era of business relations companies are facing cultural differences, and these cultural differences need to be taken into consideration. Dutch social psychologist, Geert Hofstede, pioneered a study on cultural differences and developed the five dimensions of culture. The five dimensions are power/distance, individualism, masculinity, uncertainty/avoidance, and long term orientation. This paper will discuss the cultural dimensions of Japan and Denmark. It will be interesting to see the differences and the commonalities of Japan and Denmark of their vastly different cultures. Power Distance Power distance, PD, looks at the degree of equality between individuals in societies. The degree of equality can also be expressed by how cultures accept inequalities and how that power is distributed unequally. A high score for PD points to strong hierarchical societies. Whereas a low PD signifies shared power where supervisors and employers are considered relatively equal. Inequality is accepted with a rigid authoritative structure in countries with a high PD. MAKING INTERNATIONALISM...
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...Globalization Note Series Pankaj Ghemawat and Sebastian Reiche National Cultural Differences and Multinational Business The eminent Dutch psychologist, management researcher, and culture expert Geert Hofstede, early in his career, interviewed unsuccessfully for an engineering job with an American company. Later, he wrote of typical cross-cultural misunderstandings that crop up when American managers interview Dutch recruits and vice versa: “American applicants, to Dutch eyes, oversell themselves. Their CVs are worded in superlatives…during the interview they try to behave assertively, promising things they are very unlikely to realize…Dutch applicants in American eyes undersell themselves. They write modest and usually short CVs, counting on the interviewer to find out by asking how good they really are…they are very careful not to be seen as braggarts and not to make promises they are not absolutely sure they can fulfill. American interviewers know how to interpret American CVs and interviews and they tend to discount the information provided. Dutch interviewers, accustomed to Dutch applicants, tend to upgrade the information. To an uninitiated American interviewer an uninitiated Dutch applicant comes across as a sucker. To an uninitiated Dutch interviewer an uninitiated American applicant comes across as a braggart.”1 Cultural differences, while difficult to observe and measure, are obviously very important. Failure to appreciate and account for them can lead to embarrassing...
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...Company report on cross border offshoring management, cultural dimensions and gamification Table of Contents Table of Contents Executive Summary | p.5 | Chapter I – Introduction1.1 Purpose of the Report1.2 Effects of Globalization on Businesses’ 1.3 Company Background1.4 Outline of the Report | pp.6-7 | Chapter II – Cross Border and Offshoring Management 2.1 Introduction2.2 Defining culture2.3 Defining management and cross cultural management 2.4 Offshoring2.5 Key problems in cross cultural teams2.6 Conclusions | pp.8-11 | Chapter III – Analyzing and Explaining Cultural Dimensions3.1 Introduction3.2 Analysis of cultural dimensions and Country Comparisons 3.2.1 Power Distance 3.2.2 Uncertainty Avoidance 3.2.3 Long term orientation 3.2.4 Indulgence 3.2.5 Individualism 3.2.6 Masculinity 3.3 Limitations of Hofstede’s Dimensions | pp.12-17 | Chapter IV – Gamification4.1 Introduction4.2 Defining and Explaining gamification4.3 Gamification’s effects on business4.4 Examples of gamification4.5 Criticism – The dark side of gamification | pp.18-20 | Chapter V – Corporate Social Responsibility5.1 Introduction5.2 Defining and explaining CSR 5.3 The Foxconn and Apple scandal5.4 Recommendations and Actions | pp.21-22 | Chapter VI – Recommendations to Management | pp.23-24 | Chapter VII – Conclusions | pp.25 | References | pp.26-27 | Executive Summary Executive Summary This report provides an analysis and evaluation of...
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...University: Course: Tutor: Date: Hofstede developed the theory of cultural differences to describe the different effects that culture could have on an organisation. He classified cultures of different countries into five dimensions. The first was power distance which expounded on inequality and how different nations viewed it. He maintained that inequality is inevitable in societies, but some societies allow it to grow so that there can be difference in power, prestige and wealth. The inequality is formalised through hierarchies in the organisation. The second dimension is the uncertainty avoidance which explained how societies dealt with risks that may occur in the future and how the members of the society yearn to achieve certainty. Another dimension was masculinity versus femininity. He explained that in masculine societies, focus is on dominance and competition while feminine societies focus on humility, a society where people help each other out and with a high level of cooperation. The forth was Individualism versus collectivism. Individualism is where an individual only watches over himself or his close family members while collectivism refers to where there is concern for the whole group in the society (Hofstede, 1987). The last dimension is Long-Term Orientation (LTO) which was developed in the 90’s due to the realization that the Asian cultures were different from the western cultures. The countries with low LTO such as the US do not value tradition as much as...
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