...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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...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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...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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...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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...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 (University of Phoenix, 2014). The all-male American team are individualistic, have a low-power distance, possess a low-term...
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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 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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...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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...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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......................................................................4 2.0 Theoretical Framework.........................................................................................................5 3.0 Discussion of Central 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...
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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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...Hofstede’s Power Structures in Society “Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster. For those who work in international business, it is sometimes amazing how different people in other cultures behave. We tend to have a human instinct that 'deep inside' all people are the same - but they are not. Therefore, if we go into another country and make decisions based on how we operate in our own home country - the chances are we'll make some very bad decisions.” We tend to have a human instinct that 'deep inside' all people are the same - but they are not. Therefore, if we go into another country and make decisions based on how we operate in our own home country - the Prof. Geert Hofstede, Emeritus Professor, Maastricht University. Hofstede’s studies include the identification and definition of groups, tribes, territories, national minorities or nations and he argues that they all possess specific features and behavior which can be opposed to other similar groups. Hofstede's IBM study in the 70s of the position of management, collaboration, organization, individualism, etc. have been widely used by companies when different cultures meet. Hofstede's framework for assessing culture includes the following five dimensions: 1. Power Distance 2. Individualism vs. collectivism 3. Masculinity vs. femininity 4. Uncertainty avoidance 5. Long vs. short term orientation The...
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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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......................................................................4 2.0 Theoretical Framework.........................................................................................................5 3.0 Discussion of Central 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...
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...EMPL 3270: NEGOTIATION – THEORY & PRACTICE RESEARCH ESSAY Q2: According to Fells (2012, p.207) “As a negotiation unfolds, it is easy to attribute any behaviour, particularly behaviour that is different to your own, to culture and so ignore the many similarities”. Consider this 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...
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