Case Study 1

How Hofstede’s national cultural dimensions and GLOBE’s societal cultural variation
dimensions applicable in this case study?

According to Robert J. House (2004), one of the Globe’s societal cultural dimensions
was humane orientation. This term was defined as the degree to which
organization or society encourages and rewards individuals for being fair, altruistic,
friendly, generous, caring and kind to each other. The dimension was applied in case
study where Scott and his team received a warm welcome with a huge banner
across the company’s gate from delegation of Chinese. CEO, Mr Chen also
emphasized the importance of mutual understanding, goodwill, trust and long-term
relationships during a meeting. Second dimension of globe’s cultural that shown in
this case study was assertiveness. It defined as the degree which individuals are
assertive, confrontational, and aggressive in their relationship with others. A
communique was drafted after first meeting which listed detail on Chinese interest
while Scott Company’s interest only slightly mentioned.

According to Hofstede et al (2010), U.S are one of the short-term orientation

that focus on main work values which include freedom, rights, achievement, and
thinking for oneself. They tend to be more analytical thinking and leisure time is
important in their perception. It applied in case study when Scott and his team push
the Chinese for schedule to start the negotiation while Scott’s boss also give him a
call every day to check on the status of their negotiation. Hofstede’s national cultural
dimensions also mentioned that U.S was individualism where employees are seen
as “economic persons” who will pursue the employer’s interest if it coincides with
their self-interest, task prevails over relationship. Scott was shocked by the
encouragement of Chinese to take senior officials of the local planning approval
commission out for a luxurious dinner for the purpose of building up good
relationship with them. It was seems annoyed in the perception of Scott because his
company’s strict policy not to engage in this kind of activity.

Reference:

Hofstede, G., Hofstede, G. J. & Minkov, M. (2010) Cultures and Organizations:

Software of The Mind. 3rd Ed. New York: McGraw Hill

House, R. J., & Global Leadership and Organizational Behavior Effectiveness

Research Program. (2004). Culture, leadership, and organizations: The GLOBE study
of 62 societies. Thousand Oaks, Calif: Sage Publications.
Question 5

Other comments and/or recommendations of the case study (if any)

Cultural variation seems to be the most important aspects of when a business was
linked internationally. Misunderstanding on a minor subject might bring confusion
and bad impression to both parties which lead to the failure of contract negotiation
and a loss to certain companies. This study case was a good example which shown
on the failure of cross-culture business when both parties fail to understand each
other culture. Hence, in my perception, to solved this kind of issues, one must hired
an intermediaries to explain the local culture for the negotiator from foreign
countries, it can reduced the confusion happens between two parties which bring
benefits and profits to both parties afterwards.