COMPARATIVE ANALYSIS OF CULTURE

CHINA VS. MALDIVES

AN APPLICATION OF HOSFTEDE’S CULTURAL MODEL

Introduction
Today it can be seen an extensive technology development undertaken the entire world and all
the business models are changing day by day with the newest technology in order to provide a
superior service to the customers. Although the technology has changed the business models for
a longer extent, still the culture has an immense impact of the business model and its conduct
within the society. So it is very important to identify the nature and the behavior of the culture in
the today’s world.

This will include a brief comparative analysis of the culture of two countries using the model of
Hofstede’s with the purpose of seeking the suitability of forming a subsidiary company in a
different nation.
Background information of the model
There are number of cultural models that can be referred in analyzing the cultural situation of the
countries and in the organizations. Hofstede’s six dimension of cultural model can be identified
as one of the most important cultural model. It has been found by the psychologist Dr. Geert
Hofstede in the late 1970s. Currently it became a recognized model for analyzing the cultural
differences. With the experience that he taken from working in more than 50 countries, he has
developed this model and in that he identified six dimensions namely the Power distance,
Individualism vs. collectivism, Masculinity vs. Femininity, Uncertainty avoidance index,
Pragmatic vs. normative and Indulgence vs. restraint.

Power
distance
index

Individualism
Indulgence vs.
collectivism

Masculinity
Long term
vs.
orientation
Femininity

Uncertainty
avoidance
index

Source: Hosftede’s Culturul Model

 Power Distance Index (PDI)

Power Distance Index alludes to the distinctions in the work culture according to the power
assigned to the employees. There are a few organizations which put stock in designating group
pioneers or group chiefs who are in charge of their separate groups and have the test of
extricating the best out of the individuals. The colleagues likewise need to regard their group
pioneers and work according to their requests and guidance.
  Masculinity vs. Femininity
This alludes to the impact of contrasts in male and female esteems on the way of life of the
organization. Organizations where male employees rule their female partners will take after
various arrangements when contrasted with organizations where females have a noteworthy say
in the basic leadership procedure of the organization. Male employees would be more forceful
when contrasted with the females who might be all the more minding and kindhearted. The
duties likewise change according to the sex of the workers. The female workers are never
appointed something which requires late sittings or successive travelling.

 Individualism vs. collectivism

There are a few organizations which unequivocally depend on collaboration. Here people with a
typical intrigue meet up and work as one as a group. These organizations trust that the yield is
constantly more when people trade their thoughts, talk about things among themselves to turn
out with imaginative thoughts. In such a situation the workers share a solid relationship and take
each other's assistance when required.

 Uncertainty avoidance index

Uncertainty avoidance index alludes to a culture where employees know how to react to strange
and unanticipated conditions. It manages the resilience level of the employees in both agreeable
and awkward circumstances. Organizations make a decent attempt to dodge such circumstances
and furthermore set up the employees to modify well in all conditions.

 Long term Orientation

There are a few organizations which center on long haul organization with the workers. In such
organizations individuals have a consistent approach and endeavor hard to satisfy the desires of
the administration. Employees get joined to the organization and don't take a gander at here and
now goals. In actuality, a few organizations have workers who are more worried about their
position and picture. They take after a culture where individuals proceed onward in a limited
capacity to focus time and nothing is done to hold them. The employees are concerned just with
their benefits and targets and leave as and when they show signs of improvement opportunity.
Background information of China
China is one of the largest countries which is located in the Asian continental .For a considerable
length of time China remained as a main human progress, outpacing whatever is left of the world
in expressions of the human experience and sciences, however in the nineteenth and mid
twentieth hundreds of years, the nation was assailed by common distress, real starvations,
military thrashings, and remote occupation. After World War II, the Communist Party of China
under MAO Zedong set up an absolutist communist framework that, while guaranteeing China's
sway, forced strict controls over regular day to day existence and cost the lives of a huge number
of individuals. After 1978, MAO's successor DENG Xiaoping and different pioneers
concentrated on showcase situated monetary improvement and by 2000 yield had quadrupled.
For a significant part of the populace, expectations for everyday comforts have enhanced
drastically however political controls stay tight. Since the mid-1990s, China has expanded its
worldwide effort and support in universal associations

Source: CIA World fact book, 2017, China

China is a country which has a comparatively a larger geographical area in the Asian continental
as depicted in the above graph.
Population

Source: CIA World fact book, 2017, China

There is an increasing trend of the population growth rate of China and it has depicted in the
above graph.

Religions

Religion

18.20%
Buddhi st
Chri stia n
Mus li m
5.10% Fol k rel i gi on
1.80% Hi ndu
52.80% Jewi sh
Unaffil i ated

0.10% 0.10% 21.90%

Source: CIA World fact book, 2017, China

The most majority of the China are unaffiliated religion.

Real growth rate of GDP

Source: CIA World fact book, 2017, China

With the economic recession of China, GDP real growth has been decreased in a significant ratio.

Comparative analysis of the local and foreign country

Application
Dimension
China Maldives
Power Distance Index (PDI) The society of In this country
China believes also the
that the inequalities are
inequalities being highly
among the accepted and the
people are in authorities and
acceptable and it the structures are
is very high in going to be
China. General worked and the
individuals are centralization is
influenced by the a popular and an
 formal highly
authorities and acceptable
they are not concept.
allowed to go
beyond the
authority.

China is a Maldives can be

masculine considered as
society where more towards to
they always the feminine
prefer the society where
success driven they always
life where as consider the
they works for quality of the life
Masculinity vs. Femininity late nights, target rather than the
achievements achievements
and they are and the success.
ready to sacrifice No room for
their freedom conflicts and if
and the leisure arisen those are
on the purpose solved by the
of working. compromisation
and negotiations.
Individualism vs. collectivism China can be Maldives also
considered as a can be identified
highly as a country
collectivist which is
culture and accepted the
people are tend collectivism
to make culture and it
decisions in a complemented
 group the group
perspective and working and the
are not society is based
motivated to on the extended
work and take families and the
decisions lonely. loyalty and the
relationships are
the trustable
sources.
Chinese people Maldives is in a
are adaptable high rank of
and flexible uncertainty
people and they avoidance index
Uncertainty avoidance index are in a low and always
score of consider the
uncertainty precision and the
avoidance index. punctuality as
the norms.
China is a Maldives is in a
country which culture of the
beliefs the long medium term
term orientation orientation and
and therefore they don’t think
Long term Orientation they prefer about the long
savings, term but not
investments, and about the short
the perseverance term.
to achieve the
results.
Indulgence Chinese people Maldives people
are considered as are not either
the restrained for indulgence or
 the socially restrained and
acceptable they consider the
norms both ends.

Importance of the comparative analysis will help to the business

Culture is the key for the business and based on the extent of identification and the definition of
the country’s culture the success of the business will depend on. Accordingly, from this analysis,
it has paid the attention on the nature and the behavior of the people in China, where as in
proceeding the business operations it will help to identify the power distance, individualism,
masculinity, the nature of uncertainty avoidance and the long term orientation of the business.

Conclusion
A comparative analysis has been conducted in between the China and Maldives and it has been
concluded that China is a country which has a high power distance, collectivist, task oriented,
long term oriented and restrained culture. When it compares to Maldives, it is also a country that
has a high power distance, with a collectivism culture, with a quality oriented culture and has a
greater extent to work strategies for uncertainty avoidance.

Accordingly, it has been concluded that, China has an acceptable and similar culture when
compares to the Maldives and it is better to open a subsidiary company in China and there’s a
huge propensity to being succeeded the business in the country.

References
Index Mundi, online accessed on 15th March 2018,
https://www.indexmundi.com/china/#Introduction

CIA World Fact Book online accessed on 15 th March 2018,

https://www.indexmundi.com/factbook/