Week 4 Feb 9, 2014

HOFESTEDES FRAMEWORK FOR

ASSESSING CULTURES

Culture is
the collective programming of the mind
which distinguishes the members of one
group from another.

-Geert Hofstede

Cultural Dimensions

1. Power Distance
2. Uncertainty Avoidance
3. Individualism
4. Masculinity
5. Long Term Orientation

Why is culture important?

Because it impacts the way strategic moves

are presented
It influences management, decision making ,

negotiations
Culture makes international business difficult

or easy

Main features of culture

1. It is shared
2. It is intangible
3. It is confirmed by others

Levels of culture
National culture

Business Culture

Organizational Culture

Key Cultural Issues

Cultural Etiquette the manners & behaviour that
are expected in a given situation
Cultural Stereotypes our beliefs about others,
their attitudes & behaviour
Ethnocentrism - the world as we see it
Relativism all cultures are good: it implies cultural
sensitivity & having a self reference criteria

Universal Cultural Values

Kinship
Economy
Education
Politics
Religion
Recreation

Power Distance

The extent to which less powerful

members of institutions & organizations

within a country expect and accept that
power is distributed unequally

Power Distance
Low Power Distance

High Power Distance

Inequalities among people should

Inequalities both
expected/desired
Less powerful dependent on
more powerful
Hierarchy reflects inequality
Centralization is popular
Wide Salary range
Subordinates expect to be told
Ideal boss is a benevolent
autocrat or Good Father
Privileges/ status both
expected & popular

be minimized
Interdependence between less &
more powerful people
Org Hierarchy means inequality of
roles
Decentralization is popular
Narrow Salary range
Subordinates expect to be
consulted
Ideal boss is a resourceful
democrat
Privileges/ status are not approved of

Uncertainty Avoidance

The extent to which members of society

feel threatened by uncertain or

unknown situations

Uncertainty Avoidance (UA)

Weak UA

Strong UA

Uncertainty = normal feature of

life & is accepted as it comes
Low stress subjective feeling of
well being
Aggression & emotions not to be
shown
Comfortable in ambiguous
situations & with unfamiliar risk
More rules than necessary not
desirable
Precision/punctuality needs be
learned
Tolerance for innovation
Motivation is by achievement

Uncertainty = a continuous,
ongoing threat that must be
fought
High stress subjective feeling of
anxiety
Aggression/Emotion may be
shown at proper times
Fear of ambiguous
situations/unfamiliar risk
Emotional need for rules even if
they never work
Precision/Punctuality come
naturally
Resistance to innovation

Individualism

The tendency of people to look after

themselves & their immediate family &

neglect the needs of society

Individualism
Low Individualism

High Individualism

Individuals learn to think of

We
High context communication
Diplomas provide entry to
higher status groups
Relationship- Employeremployee perceived in moral
terms, like a family
Hiring & promotion decisions
take employee ingroup into
account
Management is management of
groups
Relationship prevails over task

Individuals learn to think of I

Low context communication
Diplomas increase economic &
self worth
Relationship- Employeremployee is a contract based on
mutual advantage
Hiring & promotion supposed
to be based on skills & rules only
Management is management of
individuals
Task prevails over Relationship

Masculinity

The tendency within a society to

emphasize traditional gender roles

Masculinity
Low Masculinity

High Masculinity

Dominant values Caring for

others & preservation
People/warm relations important
Sympathy for the weak
In family both parents deal with
facts & feelings
Stress on equality, solidarity &
quality of work life
Managers use intuition & strive
for consensus
Resolution of conflict by
compromise & negotiation

Dominant values Material

success & progress
Money & things are important
Sympathy for the strong
In family both fathers deal with
facts & mothers with feelings
Stress on equity, performance
based competition among
colleagues
Managers expected to be
decisive/assertive
Resolution of conflict by fighting
them out

Long Term Orientation (LTO)

A basic orientation towards time that

values patience

Long Term Orientation

Short Term Orientation STO
Respect for traditions
Little money available for
investment
Quick results expected
Respect for social & status
obligations regardless of cost
Concern with possessing the
truth

Long Term Orientation - LTO

Adaptation of traditions to
a modern context
Funds available for
investment
Perseverance towards slow
results
Respect for social & status
obligations within limits
Concern with respecting the
demands of virtue