Cultures and Organizations: Software of the Mind

Cultures and Organizations:Software of the Mind By Geert Hofstede Presented by: Natalie Balaziuk, Beth Roszkowski, Michelle Yeager

Hofstede’s Background • Born in Netherlands in 1928 • Founded and managed the Personnel Research Department of IBM Europe • Co-founder of IRIC (Institute for Research on Intercultural Cooperation • Most cited non-American in the field of Management in the US Social Sciences Citation Index

Software of the Mind 101 • Hofstede’s intent • Mental Programs: Software of the Mind • Three levels of Mental Programs • What does this mean? • Memory and Forgetting (Knowledge Structures)

IBM Study Conducted in 1974 IBM employees-50 countries and 3 multicountry regions National Cultures Dimensions IRIC Study Conducted 1985-1987 20 organizational units in 2 countries Organizational Culture Dimensions Studies

Dimensions of National Culture • Power Distance • Individualism vs. Collectivism • Masculinity vs. Femininity • Uncertainty Avoidance • Confucian Dynamism (Long-term orientation vs. Short-term orientation)

Large Power Distance Employees afraid of bosses Depend on their bosses Large emotional distance Small Power Distance Approach and challenge bosses Bosses consult with staff Small emotional distance Power Distance

Individualism Interests of the individual outweigh the interests of the group Individual is independent One must look after himself/herself Collectivism Interests of the group outweigh the interests of the individual Group is one’s identity Group=protection Individualism vs. Collectivism

Individualism Personal time Freedom Challenge Collectivism Training Physical conditions Use of skills Individualism vs. Collectivism (Ranking)

Masculinity Social gender roles are defined Men are assertive & tough Women are modest & concerned with quality of life High difference between the genders Femininity Social gender roles overlap Men and women are both modest & concerned with quality of life Little difference between genders Masculinity vs. Femininity

Masculinity Earnings Recognition Advancement Challenge Femininity Manager Cooperation Living area Employment security Masculinity vs. Femininity (Ranking)

Uncertainty Avoidance • Strong uncertainty avoidance vs. Weak uncertainty avoidance • Uncertainty avoidance  Risk avoidance • Unique coping mechanisms • Stress among men and women

Confucian Dynamism • AKA- long-term vs. short-term orientation • 5th dimension revealed through another study- Chinese value survey (CVS) • Administered to 100 students in 23 countries • Findings of study • Related to economic growth

Long-term orientation Persistence Ordering relationships by status and observing this order Thrift Having a sense of shame =High economic growth Short-term orientation Personal steadiness and stability Protecting one’s “face” Respect for tradition Reciprocation of greetings, favors, and gifts =Less economic growth Confucian Dynamism (Ratings)

IRIC Study • IBM vs. IRIC • National Values vs. Organizational Practices • Organizational Practices as “Communities of Practice”

Dimensions of Organizational Practice • Process-Oriented vs. Results-Oriented • Employee-Oriented vs. Job-Oriented • Parochial vs. Professional • Open System vs. Closed System • Loose Control vs. Tight Control • Pragmatic vs. Normative

Practical Implications of IRIC Findings • Structural Changes • Process Changes • Personnel Changes • Cultural Training

Positive Well reviewed Hofstede succeeds in his main goal Timely publication of Culture’s Consequences Negative Limits of study Sweeping generalizations Western bias IRIC study-criticisms Critiques

Discussion • Where do you think the United States ranks among the five dimensions of national culture? • Do you think national values can change over time? • What are the practical implications of these findings? • Do you think that increasing globalization and advancements in technology will lead to a narrower spectrum of national values? • Is it possible for someone to identify with more than one national culture?

Sources Consulted: Bing, John W. (2004). Hofstede’s consequences: The impact of his work on consulting and business practices. Academy of Management Executive, 18 (1), 80-87. Hofstede, Geert. (1991). Cultures & organizations: Software of the mind: Intercultural cooperation and its importance for survival. New York: McGraw-Hill. Hofstede, Geert. Geert Hofstede about himself. (n.d.) Retrieved November 2004 from http://spitswww.uvt.nl/web/iric/hofstede/index.htm Hoppe, Michael H. (2004). An interview with Geert Hofstede. Academy of Management Executive, 18 (1), 75-79. International Business Center. Geert Hofstede. (n.d.) Retrieve November 2004 from http://geert-hofstede.international-business-center.com/

Sources Consulted (cont.): Kieser, Alfred. (1994). Book reviews. Organization Studies, 15 (3), 457-461. Mintu, Alma T. (1993). Cultures and organizations. Journal of International Business Studies, 23 (2), 362-366. Mumford, Alice. (1992). Cultures and organizations. Industrial & Commercial Training, 24 (2), vi-vii. Søndergaard, Mikael. (1994). Research note: Hofstede’s consequences: a study of reviews, citations, and replications. Organization Studies, 15 (3), 447-456. Torrington, Derek. (1992). Book reviews. Employee Relations, 14 (3), 71-72. Triandis, Harry C. (1993). Reviews on cultural phenomena. Administrative Science Quarterly, 38 (1), 132-135.

Cultures and Organizations: Software of the Mind