...Hofstede’s Cultural Dimensions | China and the comparison to Germany | | | | Dennis Keidat | 01.04.2013 | | Gerard Hendrik Hofstede (born October 2, 1928 in Haarlem) is a Dutch expert in cultural studies [GHW]. Hofstede (1980) surveyed 88,000 IBM employees working in 66 countries and then ranked the countries on different cultural dimensions. His research resulted in four dimensions (power distance; individualism versus collectivism; uncertainty avoidance; and masculinity and femininity). In the beginning, China was not included in this study but later Bond and Hofstede looked at Chinese values. From this research they included a fifth cultural value dimension called: long-term versus short-term orientation [SKR]. Power Distance Index (PDI) The Power Distance index shows how less powerful individuals accept and expect an unequal distribution of power. High power distance means that power is unevenly distributed; low power distance means that power is more evenly distributed [TIP]. According to Geert Hofstede’s 5 dimensions China is located in the higher ranking at 80. That means that this society “believes that inequalities amongst people are acceptable” [GER]. The Power is centralised and the management is autocratic. The subordinate-superior relationship tends to be cleaved and “there is no defence against power abuse by superiors” [GER]. This means that “people are less willing to challenge authority which is likely due to old communism beliefs which still have...
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...Hofstede’s Five Dimension comparison of Germany and China Hofstede’s Five Dimensions Hofstede’s five dimensions are a useful tool to give someone an insight of different cultures. These elements give a country’s behaviour tendencies rather than an exact prescription. There are weaknesses to Hofstede’s Five Dimension theory as it may too easily encourage stereotyping. Even in countries as small as the UK, not all citizens are alike – e.g. it is argued that the culture in the North of England is quite different to the South. Hofstede has also been criticized for being too simplistic; however Hofstede’s theory does give us a general base to work from. 74 countries are listed on Hofstede’s website from which information can be drawn to make comparisons not only between countries but against the world average to give a broader picture. The following graph gives a comparison between Germany and China. It also allows for assessment against the Asian average and World average and our own British culture as benchmarks. Hofstede Comparison: UK, Germany, China Asian Average and World Average [pic] Comparison of Germany and China [pic] Power Distance Index Germany 35 LOW China 80 HIGH Individualism Germany 67 HIGH China 66 LOW Masculinity Germany 66 HIGH China 66 HIGH Uncertainty Avoidance Germany 65 HIGH China 30 LOW Long Term Orientation Germany 31LOW China 118 HIGH Power Distance Index – PDI Power Distance measures equality...
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...| Cross-cultural Issues in International Business | Siemens Cross-cultural Issues in China | | | 12/8/2011 | | Table of Contents 1. Introduction ………………………………………………………………………p. 3 2. National culture …………………………………………………………………..p. 3 3.1. Influence of national culture on an organization……………………………..p. 3 3.2. The effect of cultural values on management ………………………………..p. 4 3. Key Dimensions to analyze culture ………………………………………………p. 9 4.3. Hofstede’s dimensions ……………………………………………………….p. 9 4.4. Applying Hofstede’s dimensions on German and Chinese cultures …………p. 12 4. The concept of guanxi …………………………………………………………….p. 14 5. Other effects on organizations in different nations ……………………………….p. 16 6. Solutions to Cross-cultural Issues in International Business ……………………...p.17 7. References …………………………………………………………………………p.20 8. Appendix 1. INTRODUCTION From entry-level workers to boardroom executives, everyone seems to be expanding their business internationally nowadays. (Steers, R., 2010). They all are searching for business opportunities in other nations beside theirs so as to extend their business due to their geographical reach. In addition, when it comes to terms with these chances, they have to deal with many problems, one of which is the national culture. (Leung et al., 2005). Moreover, there are a number of problems that an international business...
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...culture. Cultural difference is the biggest barrier in doing business in the world market. Hofstede (1993) believes that the spread of business onto the global stage brings the issue of national and regional differences to the forefront. Hofstede measures culture in five dimensions and teaches that cooperation across cultures is essential to human survival. These five dimensions are Power distance, individualism, masculinity, uncertainty avoidance , and long term orientation. In this paper, I plan to present some similarities as well as some differences in the culture of the United States of America and China based on Hofstede’s dimensions. The United States of America is frequently investigated in cross cultural research due to its economic power and because of its cultural representativeness. China as the largest market, and possibly the most appealing market in Asia, is entering into global collaboration with a wide range of foreign partners. There are only two dimensions were the two countries are even close to being similar and they are masculinity and uncertainty avoidance. A masculine society is driven by success and achievement. A company with masculine culture operates assertively and competitively. If the country is ranked lower on this scale they are referred to as a feminine society which means that caring for others and quality of life are of a greater value. There was only a four point difference on the chart for this dimension. The USA is at 62 and China is at 66...
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...Culture Impact on German Negotiation Style Chen Shuqi SEIB Abstract As the increasing frequency of international trades， international negotiation skills draw a lot of attention. Regarded as a major barrier for cross-cultural communication, understanding culture difference is of signification . This essay will firstly introduce the study history and relevant definitions of international negotiation and how culture factors impact on negotiation style. Considering the gradual closed trade relationship between Germany and China and the commonly acknowledged differences of national cultures between them, this essay would firstly analyzes images of Germans for the general Chinese in a book, Die Langnasen . Further, it clarifies German negotiation style basing on analysis from Hofstede's cultural dimensions theory. We find out that some of German business behaviors from the theory don’t fit with our general impression as the book concludes. After discussion about the deficiency of the theory or possible stereotype of the book, we try to present a modification of the prevalent impression about German negotiation style, and give some suggestion about how to carry out a better international business negotiation with Germans. It may be possible to provide us a better understanding in successful negotiation process with Germans. Key words: International negotiation, German culture, German negotiation style 德国文化对其谈判风格的影响 陈舒祺 国际商务英语学院 2011级国际商务管理 摘 要: 随着跨国贸易的频率迅速增长，国际商务谈判技巧尤为重要。...
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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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...Geert Hofstede™ Cultural Dimensions Source: http://www.geert-hofstede.com/hofstede_dimensions.php http://geert-hofstede.com/dimensions.html 1. Power Distance (PDI) This dimension expresses the degree to which the less powerful members of a society accept and expect that power is distributed unequally. The fundamental issue here is how a society handles inequalities among people. People in societies exhibiting a large degree of power distance accept a hierarchical order in which everybody has a place and which needs no further justification. In societies with low power distance, people strive to equalise the distribution of power and demand justification for inequalities of power. < an example of Power Distance by Geert Hofstede 2. Individualism versus collectivism (IDV) The high side of this dimension, called Individualism, can be defined as a preference for a loosely-knit social framework in which individuals are expected to take care of themselves and their immediate families only. Its opposite, Collectivism, represents a preference for a tightly-knit framework in society in which individuals can expect their relatives or members of a particular in-group to look after them in exchange for unquestioning loyalty. A society's position on this dimension is reflected in whether people’s self-image is defined in terms of “I” or “we.” < 3. Masculinity versus femininity (MAS) The masculinity side of this dimension represents a preference in society for achievement...
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...Cultural differences among U.S. and International Businesses Businesses that choose to compete internationally will face many barriers in their operations abroad. Success on a global scale requires knowledge of cultural differences, which may include languages, customs and values even holidays. These differences among nations are vast, ranging, and absolutely vital to understand. When business people understand and respect these social and cultural differences it creates an avenue where international business can be successful. A lack of understanding and sensitivity to cultural differences across cultures can lead to business failures. Culture is a potential stumbling block for many organizations thus the knowledge and understanding of its ins and outs should remain a top priority. In 1980, Hofstede created a model of cultural dimensions, which has become very popular and widely referenced. He identified five cultural dimensions differentiating people based on their country of residence. His cultural dimensions included power distance, uncertainty avoidance, individualism, masculinity, and long-term orientation. (Hofstede, 1980) Power distance dimension is subject to the distribution of power within the culture. High power society represents a small minority of the citizens, maintaining significant portions of power and prestige. Thus, power and prestige are more equally distributed in a low power distance culture. Uncertainty avoidance is the degree to which members...
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... in Fifteen Countries By Geert Hofstede Geert Hofstede discusses in the article the causes of the failure of newly formed joint ventrues. He says that when the goals of the leaders are not clear to both parties the new venture is alost certain to get into trouble. He says that “such fundamental goal disparitires oftern go unrecognized or remain taboo.”1 It is for this very reason that joint ventures often fail. Hofstede’s five levels of cultural dimensions shed light on the differences of foreign investment. Semenov analyzed the differences in economic governance among 18 developed countries Western countries and proved direct links between systems of governance and Hofstede’s original four cultures value dimensions of Power Distance, Uncertainty Avoidance, Individualism and Masculinity. Kogut and Singh in the article have found a way to measure cultural distance between countries and a ...
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...country has a different understanding of education. I will also concentrate on the influence of culture on education in China and in the United States (U.S.) with special emphasis on Hofstede’s Cultural Dimensions, because culture and history can lead the way in understanding the differences among student’s higher education. 1.2 Objectives The paper investigates the differences between the education in China and the U.S. against the background of dramatical differences in culture and history. First the country-specific Cultural Dimensions by Hofstede need to be elaborated to reveal a basic approach for the understanding of a nation’s culture. Based on Hofstede’s Cultural Dimensions and the history the effect on education and instructional strategies in China and the U.S. will be discussed. 1.3 Course of the Investigation To achieve the objectives the course of the investigation will be carried out in three steps. In the first step the conceptual background on the topic will be defined to provide a basis. Chapter 2 describes the theory and the five Dimensions of Hofstede’s Culture’s Consequences. In the second step the explanations focus on practical applications of the paper. First the elaboration of Hofstede’s Cultural Dimensions to the education (Chapter 3.1) and the impact of the historical roots on the development of higher education in China and the United States (Chapter 3.2) will be discussed. Following, the outstanding differences in education will be presented...
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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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...Introduction to proposal Sanctuary Soft, a young started up security software company in United Stated is planning to expand to overseas due to the need of providing the worldwide service to its client and the pressure by its shareholder. After the meeting between the company’s CEO and larger shareholders, they are distressed in whether stay in the US market or expand overseas. The four potential countries favour by Sanctuary Soft in its expansion plan included China, India, Germany and United Kingdom. In order to select a proper country for Sanctuary Soft’s first foreign expansion, this report will provide a detail explanation regard to the motivation of the first internationalization of Sanctuary Soft; the market opportunity of four possible foreign countries, and the expansion strategy in order to decide a proper countries for Sanctuary Soft’s first foreign penetration. Finally, this report will suggest some IHRM strategy/principle that Sanctuary Soft needs to consider in its selected foreign subsidiary. The motivation for internationalization The major motivations for Sanctuary Soft become a multinational company (MNCs) is to explore foreign opportunities, so as to accumulate specific knowledge in order to build their capabilities to provide service to its global basis clients. The larger clients who use the information security system are often having global presence. Therefore Sanctuary Soft needs to acquire new ideas and skills in the overseas market in order to...
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...relocate their managers to run the business. Managing a business entity with a diverse workforce towards achieving a common goal is problematic. People have their own ways (cultures) of doing things. As a result, most managers consult Hofstede’s four-dimension model to manage efficiently. The dimensions are power distance, uncertainty avoidance, individualism/collectivism, and masculinity/femininity. By observing how different cultures act based on these dimensions, they come up with solutions to solve conflicts. However, Hofstede’s model is not as efficient as perceived by most people across the world. Although Fernandez et al. (1997, p. 52) resonates with Hofstede, he highlights why the managers should exercise caution while using his findings to manage workforce in the modern day life. In his recent study on reexamination of Hofstede’s country classifications, Fernandez et al. (1997) reveals that significant changes have taken place since Hofstede’s original study. He finds out that many of the countries examined in the present study showed a shift in ranking when compared with Hofstede’s initial data. His study proves that the nation’s core work-related values change when subjected to external environmental changes. Unlike Hofstede, Fernandez et al. (1997) study doesn’t use data from selected middle-class IBM employees. His study collects data from advanced business students and as well as working individuals from different organizations and countries. His sample helps him...
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...grown and seen successes and failures in the international environment. It also will look at reasons behind the failures in relation to culture, using the venture into the world’s third largest retail market, Germany as the main focus for the essay. Firstly, this essay will look at culture and some theories that surround it and also look at different dimensions that make up culture. The definition of culture according to the Oxford Dictionary (1992) is: “the arts and other manifestations of human intellectual achievement regarded collectively or a refined understanding or appreciation of culture”. The theory that has been chosen to outline culture is Geert Hofstede’s five dimensions. The reason Hofstede’s theory has been used as an example in this case is because of the extensive research that he has put into developing his theories, as well as its relevance to the Wal-Mart failure in Germany. Between the years of 1967 and 1973, while Hofstede was working at international company IBM as a psychologist, he did a survey of over 100,000 employees in 40 different countries. From these results he was able to come up with four dimensions that can help people to understand the intercultural differences within regions and between counties. The four dimensions that Hofstede came...
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...entry in countries of significance to U.S. companies, this thesis provides a comprehensive overview of prevalent business strategies of U.S. trading partners as well as a forecast of their international business policies. Diverse macro-environmental variables, such as economy, culture, and regulations result in varying barriers to entry for U.S. based firms to conduct business in U.S trading partners’ countries. This thesis will determine how these macro-environmental factors foster or stunt growth and strategies governments employ to attract businesses. Degree Type Open Access Senior Honors Thesis Department Marketing First Advisor Harash Sachdev Keywords International trade, Foreign trade regulation, Investments, Foreign China, Investments, Foreign India, Investments, Foreign Hungary, United States Foreign economic relations Subject Categories International Business This open access senior honors thesis is available at DigitalCommons@EMU: http://commons.emich.edu/honors/167 U.S. Business and Global Barriers to Entry Eastern Michigan University Honors College Senior Thesis By Caitlin Long Sponsored by...
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