...Hofstede’s Cultural Dimensions: A Comparison of Greece and U.S. Human Resource Management Approaches By Kelly M. Mistretta MBOL2 MBA 533, Human Resource in Management Dr. James C. Dumville Saint Leo University – Center for Online Learning September 9, 2012 Name: Kelly 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...
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...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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...Hofstede’s Cultural Dimensions: Jamaica Gerard Hendrik Hofstede was born on October 2, 1928 in The Netherlands. He received his PhD in social psychology in 1967. Dr. Hofstede founded and managed the Personnel Research Department at IBM International. IBM is where he began his research on culture, which led to his Cultural Dimensions Theory. Dr. Hofstede’s Cultural Dimensions Theory consists of a model on national culture. The national culture model is made up of six dimensions: Power Distance, Individualism, Masculinity, Uncertainty Avoidance, Long Term Orientation and Indulgence. Jamaica is an island located in the Caribbean Sea. The island is just over 4,200 square miles and is just south of Cuba. There are currently 2.9 million people living in Jamaica. The Arawaks, also called Tainos, originally inhabited the island. The Arawaks were from South America and called the island Xaymaca, which meant “land of wood and water”. Christopher Columbus landed on the island on May 5, 1494 after the Cubans described the island as “the land of blessed gold”. The island did not contain gold. Columbus claimed the land for Spain and enslaved the Arawaks. The Arawaks quickly died off from disease and the harsh conditions of their newfound enslavement. The Spanish used the island as a supply base. Horses, men, food and arms were shipped and stored in Jamaica to aid in the conquering of America. The English attacked Jamaica on May 10, 1655. The Spanish surrendered and fled...
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...According to Sweeney (2002), Geert Hofstede’s work on cultural dimension is considered to be very important to National Cultural attribute to a person’s value. However, in this article, the method of Hofstede's work are heavily criticised as the method used to formulate the notion are unreliable and misinterpreted as the author argues. Although the questionnaires used in Hofstede’s research were filled by 117,000 people, across 66 countries working in IBM, it is not guaranteed that these people effectively represent the national culture. Hofstede argued that values are formed in school and universities. Countering this argument the writer stated that, all schools and universities do not operate in the same standard. Furthermore, organizational culture also sufficiently influences the answers. Hence, questioning people from the same organization, performing similar job, doesn’t adequately support Hofstede’s methodology. The writer has mentioned in assumption two: the national is identifiable in the micro- local that triggers Hofstede’s argue in two ways where national culture is supposed to be carried by all individuals in a nation. Firstly, presupposition may not come with great outcome in all the time based on local sites of analysis. Apart from this, without supposition there are no valid grounds for treating local as representative of the national. Secondly, Hofstede defined occupational and organizational cultures as uniform. He also stated national culture only as average...
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...Professor Geert Hofstede is celebrated for his 1980s theory of the 5s dimensions. “Professor Geert Hofstede conducted one of the most comprehensive studies of how values in the workplace are influenced by culture” (geert-hofstede.com). In theory he discusses the factual evidence that culture is programmed by groups and diversities make collective differences large enough to categorize. Hofstede’s dimensions are useful to distinguish what is considered valuable to which groups/ societies. Hofstede was able to pinpoint areas that have toleration for each country. The five dimensions include: Power Distance (PDI): PDI measures the amount of acceptance dictated by the powerful for each culture. “In cultures with low power distance, people are likely to expect that power is distributed rather equally, and are furthermore also likely to accept that power is distributed to less powerful individuals” (businessmate.org). For instance, when the PDI is high for a country, people are most likely more accepting of the unbalanced nature. They have accepted the inequality as part of the rights of those with the power. PDI measures the extent to which a community will accept this division and inequality. Low Power distance would include equality factors like decentralized government with constant questioning of authority, conscious democratic structure where society is actively part of its management. High Power Distance societies are centralized hierarchical structures that reflect...
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...Examining HR Issues Based on Hofstede’s Cultural Dimensions In United States and India In today’s global market, external environment is a large influence on HRM activities. One of the factors that contribute significantly to this external environment is culture. Hofstede’s five dimensions can be used as the indices to compare and contrast the HR issues faced in United States and India. 1. Individualism versus collectivism : The typical traits of individualism include individualists viewing themselves as independent of the group that they are a part of. Goals and objectives to individualists involve prioritizing their own objective over group objective. Outlook and behavior includes placing one’s own personal attitude over social outlook. Individualists look after themselves and their direct families only. Collectivists on the other hand, identify themselves as a part of a group and are dependent on the group. Goals and objectives are group oriented. Outlook and behavior are driven by social norms. (Kulkarni, Hudson, Ramamoorthy, Marchev, Georgieva-Kondakova, Gorskov, 2010) When we identify this dimension to United States and India, United States is considered highly individualistic in culture. They are independent; individual rights take priority over obligations to others. They stay true to their own values and beliefs and pursue individual goals and interests. Indian culture on the other hand, is interdependent, collectivistic, where people are emotionally, economically...
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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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...the mobile phone industry is a billion dollar industry. As in any business, cell phone distributors look for the lowest possible purchase price from manufacturers to make the highest profit. This strategy is standard for companies in a global economy and negotiations must occur to get the lowest possible price. The difficulty is in negotiating with suppliers around the globe with different cultural backgrounds. 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...
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...Topic..................................................................................................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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...Topic..................................................................................................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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...statement with reference to contemporary research on cross-cultural negotiation and use examples to illustrate your analysis Introduction: Former President and charismatic leader of the United States John F. Kennedy once stated that, “We cannot negotiate with people who say what's mine is mine and what's yours is negotiable” (Kennedy, 1961). This timeless quotation epitomizes and typifies in essence what can commonly be regarded as cooperative negotiation. Formally, the term negotiation is commonly defined as two or more parties or groups deliberating amongst each other endeavoring to achieve a decisive result, which is mutually beneficial for both entities. When considering the process of negotiation across contrasting geographic locations or countries, negotiators have to understand the repercussions which heterogeneous cultures have in the final outcome of a potential deliberation. Culture is defined as the ‘unwritten rules of society’ (Hofstede et al, 2010) and most typically refers to those characteristics or values, which are unconsciously embedded in a large group of citizens through the ongoing processes of tradition and various forms of education. Understanding the pertinence of cultural differences and the significance which they bare in terms of cross-cultural negotiation, is essential to reaching an eventual agreement which is mutually beneficial between parties. However, an over-emphasis on cultural discrepancies may also lead to negotiations becoming protracted...
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...Hofstede's cultural framework [9], [10] Hofstede's (1980, 2001) cultural framework is built on the premise that people from around the world are guided by different attitudes, beliefs, customs, morals and ethical standards. Societies are based upon different traditions, rituals, and religions; and promote different views regarding family, work, social, and personal responsibilities. Hofstede's framework was originally comprised of four dimensions. The first dimension - individualism/collectivism - is widely acknowledged as a defining element of culture. In individualistic societies people are expected to look out after themselves, whereas in collectivist societies there is a greater emphasis on group welfare and loyalty. Individualists value independence and self-expression, and tend to believe that personal goals and interests are more important than group interests. In contrast, collectivists tend to view themselves as members of an extended family or organization, place group interests ahead of individual needs, and value reciprocation of favors and respect for tradition. The second dimension - uncertainty avoidance - represents the extent to which people feel uncomfortable or threatened by ambiguous and uncertain situations, and thus create belief systems and institutions in order to promote conformity. Societies with higher levels of uncertainty avoidance place greater value on security (e.g., financial, social), feel a greater need for consensus and written rules, and...
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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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...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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...1799 1799 ‘How are the concepts of culture and leadership linked?’ Introduction: This literature review will make use of four pieces of academic work to discuss how the concept of culture can intrinsically affect leadership. The 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...
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