Hofstede’s Dimensions:Review

1. Hofstede’s Dimensions:Review • Power Distance • Uncertainty Avoidance • Individualism/ Collectivism • Masculinity/Femininity • http://www.geert-hofstede.com/geert_hofstede_resources.shtml • This link will show you the values reached for 56 different countries as well as allowing you to compare any 2 countries.

2. Attitudinal Dimensions of Culture • Work value and attitude similarities • Smallest space analysis (SSA) yields clusters of countries similar to each other • Anglo-American (U.S., U.K., Australia) • Nordic (Norway, Finland, Denmark) • South American (Venezuela, Mexico, Chile) • Latin European (France, Belgium) • Germanic (Germany, Austria, Switzerland) • Other researchers have found other clusters, depending on variables used

3. Synthesis of Country Clusters Adapted from Figure 4–8: A Synthesis of Country Clusters

4. Ronen-Shenker quote: • As multinational companies increase their direct investment overseas, especially in less developed and consequently less studied areas, they will require more information concerning their local employees in order to implement effective types of interactions between the organization and the host country. The knowledge acquired thus far can help one to understand better the work values and attitudes of employees throughout the world. America theories work very well for Western nations. Are they equally applicable in non-Western countries? Clearly, more cluster research is called for, including research in countries from all parts of the globe.

5. GROUP EXERCISE • Go back to page 95 in your textbook. • Which of Hofstede’s dimensions of culture would you use to explain how the management approaches listed were affected by culture? 1/Centralized vs. Decentralized Decision Making 2/Safety vs. Risk 3/Individual vs.. Group Reward 4/Informal vs.. Formal Procedures 5/High vs.. Low Organizational Loyalty 6/Cooperation vs.. Competition 7/Short-term vs.. Long-term Horizons 8/Stability vs. Innovation

6. Trompenaars’ Cultural Dimensions VS. • Universalism: belief that ideas and practices can be applied everywhere in the world without modification • In countries with high universalism, focus is more on formal rules, business contracts are adhered to closely, people believe “a deal is a deal” • Includes Canada, U.S., Germany, U.K., Netherlands, France, Japan, Singapore, Thailand, and Hong Kong. Universalism Particularism

7. Trompenaars’ Cultural Dimensions VS. • Particularism: belief that circumstances dictate how ideas and practices should be applied and something cannot be done the same everywhere • In countries with high particularism, legal contracts often modified, well-acquainted people often change the way in which deals are executed • Includes China and South Korea Universalism Particularism

8. Trompenaars’ Cultural Dimensions VS. • Individualism: people regard themselves as individuals • In countries high on individualism, people stress personal and individual matters, and are more likely to make negotiated decisions on the spot by a representative, achieve things alone and assume great personal responsibility • Includes Canada, Thailand, U.K., U.S., Netherlands, France, Japan, China, Singapore, and Hong Kong Individualism Communitarianism

9. Trompenaars’ Cultural Dimensions VS. • Communitarianism: people regard themselves as part of a group • In countries high on communitarianism, people value group-related issues, refer decisions to committees, achieve things in groups and jointly assume responsibility • Includes Malaysia and Korea Individualism Communitarianism

10. Trompenaars’ Cultural Dimensions VS. • Neutral: culture in which emotions are held in • In high neutral culture countries, people try not to show their feelings, act stoically and maintain their composure • Includes Japan and the U.K. • Emotional: culture in which emotions are expressed openly and naturally • In high emotional culture countries, people smile a great deal, talk loudly when excited and greet each other with enthusiasm • Includes Mexico, the Netherlands and Switzerland Neutral Emotional

11. Trompenaars’ Cultural Dimensions VS. • Specific culture: individuals have a large public space shared with others and a small private space they guard closely and share only with close friends and associates • In high specific cultures, people are more open and extroverted, and there is a strong separation of work and private life • Includes Austria, U.K., U.S. and Switzerland Specific Diffuse

12. Trompenaars’ Cultural Dimensions VS. • Diffuse culture: public and private space are similar in size, individuals guard public space carefully because it is shared with private space • In high diffuse cultures, people often appear to be indirect and introverted, and work and private life often are closely linked • Includes Venezuela, China, and Spain Specific Diffuse

13. Trompenaars’ Cultural Dimensions VS. • Achievement culture: status is accorded based on how well people perform their functions • Includes Austria, U.S., Switzerland and the U.K. • Ascription culture: status is based on who or what a person is • Includes Venezuela, Indonesia, and China Achievement Ascription

14. Trompenaars’ Cultural Dimensions • Sequential approach • People do only one activity at a time, keep appointments strictly, prefer to follow plans as laid out (United States) • Synchronous approach • People tend to multi-task, view appointments as approximate, schedules are seen as subordinate to relationships (Mexico/Middle East) Time

15. Trompenaars’ Cultural Dimensions • Inner-directed: people believe in controlling outcomes • Includes U.S., Switzerland, Australia, Belgium, Indonesia, Hong Kong, Greece, Singapore, and Japan • Outer-directed: people believe on letting things take their own course • Includes China and many other Asian countries The Environment