Six dimensions of Hofstede In cultures with high power distance, the social structure resembles a rigid pyramid.. They tend tomaintain social harmony and fulfill one's role within the gr
Trang 1DA NANG UNIVERSITY OF ECONOMICS INTERNATIONAL BUSINESS FACULTY
GROUP ASSIGNMENT REPORT
COURSE: ORGANIZATIONAL BEHAVIOR
2 Truong Le Tinh Giang
3 Nguyen Phuong Linh
4 Nguyen Nguyen Yen Nhi
5 Nguyen Thi My Tam
Da Nang, 4/2024
Trang 2TABLE OF CONTENTS
A CONTENT 1
I CULTURE VALUE OF VIETNAM 1
1 Theory of Hofstede’s dimension 1
1.1 Six dimensions of Hofstede 1
1.2 Modification of six dimension through the year 5
1.3 The difference between Hofstede and Robbins’s perpectives 8
2 Culture value of VietNam 9
2.1 Power distance [6] 9
2.2 Individualism versus Collectivism 10
2.3 Motivation towards achievement and success 11
2.4 Uncertainty avoidance 11
2.5 Long and short term orientation 12
2.6 Indulgence & Restrained 12
II Organizational culture of Vinamilk 13
1 Introduction of Vinamilk 13
1.1 Vision 13
1.2 Mission 13
1.3 Core value 14
1.4 Business philosophy 15
1.5 Buyers 15
1.6 Providers 15
1.7 Competitors 16
1.8 Substitues and complementary 18
1.9 Organizational chart 18
2 Organizational structure of Vinamilk 20
3 How VietNamese culture could have influence on culture of Vinamilk 25
B REFERENCES 28
Trang 3TABLE OF IMAGES
Figure 1 Score of 6 cultural dimensions of Vietnam 9
Figure 2 Top 10 most sustainable dairy brands globally 13
Figure 3 Six core values of Vinamilk 14
Figure 4 Vinamilk- International standard farm system 16
Figure 5 Market share of the dairy industry in 2022 17
Figure 6 Vinamilk organizational structure 19
Figure 7 Employee satisfaction rate in 2020 24
Figure 8 New recruitment rate versus turnover rate 25
Trang 4A CONTENT
I CULTURE VALUE OF VIETNAM
1 Theory of Hofstede’s dimension
1.1 Six dimensions of Hofstede
In cultures with high power distance, the social structure resembles a rigid pyramid
At the top reside those with authority, and deference flows downwards Decisions are made
by those at the top, and information filters down through layers of supervisors Consultationwith lower-level employees is minimal, and leaders are expected to be decisive Thesecultures see a need for many supervisors to ensure adherence to the hierarchy and maintainorder This can lead to a feeling of constant oversight for lower-level employees People inhigh power distance cultures accept that some are born to lead and others to follow Theorganizational structure is viewed as a mirror of the natural order, with inherent differencesjustifying positions within the hierarchy Leaders are seen as possessing superior qualitiesthat entitle them to their power Respect for elders and authority figures is instilled from ayoung age Children are expected to obey their parents without question, and teachers arerevered as possessors of superior knowledge Challenging their authority is seen asdisrespectful Compensation is seen as a clear indicator of one's position in the hierarchy.Large salary gaps exist between top and bottom earners, reflecting the vast difference inperceived power and status
In constract, in societies with low power distance, hierarchy takes a backseat tocollaboration and equality People believe everyone deserves a fair shot, and socialstructures are designed to reflect this Decisions are made through consultation andparticipation Information flows freely, and lower-level employees are encouraged tocontribute ideas Leaders are seen as facilitators rather than dictators Fewer supervisorsexist, fostering a sense of trust and autonomy among employees These cultures strive tominimize inequality, believing everyone has something valuable to contribute Exploitationbased on power imbalances is frowned upon Parents and children are seen as partners inthe learning process Open communication and mutual respect are emphasized Childrenare encouraged to ask questions and express their opinions Pay gaps between top andbottom earners are narrower, reflecting the belief that everyone deserves a decent standard
of living
c Example
have low power distance cultures These countries place emphasis on the individualand prioritize equality
- Countries with high power distance cultures such as China, Belgium, France,Malaysia, and the Arab world usually believe that there is nothing wrong withinequality and everyone has specific positions
Trang 51.1.2 Uncertainty avoidance
a Definition
The extent to which people feel threatened by ambiguous situations and havecreated beliefs and institutions that try to avoid these risk, change, uncertainty,unpredictable situations
b Characteristics
In high uncertainty avoidance cultures The unpredictable nature of life is a constantsource of anxiety Anything outside the familiar comfort zone is viewed with suspicion andpotential fear People who deviate from the established norms are seen as threats to thesocial order This can manifest in a lack of tolerance for unconventional ideas, behaviors,
or lifestyles Detailed plans, established procedures, and well-defined roles create a sense ofcontrol and minimize the potential for surprises Safety and security, both physical andfinancial, are paramount People in these cultures are more likely to prioritize establishedsystems and proven methods over taking risks that could jeopardize their well-being.Saving for the future and having a secure job are highly valued People may resist newideas, customs, or technologies because they disrupt familiar routines and requireadaptation to the unknown Open conflict is seen as disruptive and potentially destabilizing
to the social fabric People are more likely to prioritize finding common ground andbuilding consensus, even if it means sacrificing some individual preferences or opinions
In societies with low uncertainty avoidance, life is an adventure to be embraced, not
a threat to be controlled People in these cultures view the unknown with curiosity and asense of possibility The unpredictable nature of life is seen as a normal part of the journey,not something to be feared People are comfortable with ambiguity and adapt readily tochanging circumstances They embrace the motto "take things as they come." People withdifferent ideas or behaviors are seen as a source of novelty and potential innovation Open-ended situations and a lack of clear-cut answers are viewed as opportunities for creativityand problem-solving People are comfortable figuring things out as they go, andimprovisation is valued Taking calculated risks and venturing outside comfort zones areseen as essential for growth and development New ideas and approaches are not justtolerated, they're actively encouraged These cultures celebrate creativity and innovation asthe driving forces behind progress Open debate and even healthy conflict are seen asconstructive forces that can lead to better solutions and a deeper understanding of differentviewpoints
c Example
- Countries with high uncertainty avoidance scores include Italy, Korea, Mexico,Belgium, Russia,
India, China, Singapore,
1.1.3 Individualism versus Collectivism
a Definition
family only; expect to achieve for him/herself rather than the needs of a particulargroup or family; not strong connections between individuals
- Collectivism is the tendency of people to belong to groups or collectives and to lookafter each other in exchange for loyalty
Trang 6b Characteristics
Individualistic societies prioritize the "I" mentality People see themselves as uniqueindividuals with their own goals, desires, and aspirations They strive for self-reliance andpersonal fulfillment Success is measured by individual achievements and contributions.Individuals make choices based on their own needs and priorities, balancing them withsocial norms and legal frameworks Parents encourage children to develop their ownopinions and life paths Relationships are important, but completing tasks and achievinggoals often takes precedence People may form temporary teams based on specific projects,valuing efficiency and expertise Innovation and entrepreneurship are encouraged Peopleare celebrated for taking risks, being proactive, and achieving success through their ownefforts In this societies diplomas are seen as tools for self-improvement and economicadvancement Education empowers individuals to pursue their chosen careers andcontribute meaningfully to society Partners are chosen based on personal compatibility,emotional connection, and shared values Love marriages are the norm, with individualhappiness at the forefront.Additionally, People with disabilities are seen as valued members
of society, and efforts are made to ensure their inclusion and participation Focus is on theirabilities and potential contributions
Collectivistic societies, on the other hand, emphasize the "we" mentality Individualidentity is intertwined with the social group, be it family, clan, or community The well-being and honor of the group take precedence over individual desires They tend tomaintain social harmony and fulfill one's role within the group are central values Respectfor elders and obedience to authority figures are paramount Building and maintainingstrong relationships within the group is seen as essential Tasks are often completedcollaboratively, with a focus on collective achievement Individual achievements arecelebrated as reflecting positively on the entire group Moral principles may varydepending on the group's traditions and needs Loyalty and obedience to the group arehighly valued, even if it conflicts with broader societal norms.Futhermore, education isseen as a means for the entire group to elevate its social status Diplomas open doors tobetter opportunities for the collective, not just the individual Partners may be chosen based
on family connections and the benefit of the wider group This can ensure social stabilityand continuity of traditions Lastly, people with disabilities may be seen as a reflection onthe family's honor There may be a focus on protecting the family's image, even if it meanslimiting opportunities for disabled individuals
c Example
- Countries with high score in individualism include USA, Australia, Germany, theNetherlands,
1.1.4 Masculinity versus Femininity
a Definition
- Masculinity stands for a society in which social gender roles are clearly distinct: Menare supposed to be assertive, tough, and focused on material success; women aresupposed to be more modest, tender, and concerned with the quality of life
women are supposed to be modest, tender, and concerned with the quality of life [2]
Trang 7b Characteristics
In masculine societies they value competition, assertiveness, and material success.Men are expected to be the breadwinners, and ambition is highly encouraged Work takesprecedence over personal life ("live to work") Success brings social status andsympathy.There's a clear separation of what's considered masculine and feminine Men areseen as tough, decisive leaders, while women are nurturing and supportive Independence isvalued Managers are expected to be assertive and decisive
On the other hand, in feminine societies cooperation, environmental awareness, andquality of life are central Both men and women can be nurturing figures Service andhelping others are strong motivators Work serves to support a good life ("work to live").Sympathy extends to those less fortunate There's less emphasis on rigid genderexpectations Both men and women can take on traditionally masculine or feminine roles.Interdependence and building consensus are important Managers might be morecollaborative and use intuition alongside logic
c Example
- Countries with masculinity characteristics include Japan, Austria, Venezuela,
1.1.5 Long-term orientation versus short-term orientation
b Characteristics
Long-Term Oriented (LTO) societies are woven from a unique set of values andpractices that prioritize the future over the immediate These societies cultivate a culture ofresourcefulness, robust social networks, and a shared vision for long-term success LTOsocieties champion frugality and minimizing waste This extends beyond personalbudgeting to encompass responsible use of energy, materials, and financial resources.Imagine a society where lights are routinely switched off in unoccupied rooms, and publictransport is a preferred mode of travel due to its efficiency People are willing to forgoimmediate comfort or enjoyment for long-term benefits Saving for education, investing in
a home, or prioritizing infrastructure projects over flashy new gadgets exemplify thisprinciple Individuals are expected to manage resources responsibly and work diligentlytowards their future goals Educational systems often emphasize delayed gratification,teaching students the value of perseverance and planning for the long term Owner-managers and workers share a common vision for the long-term success of the company.This fosters collaboration and loyalty
Short-Term Oriented (STO) societies operate at a brisk pace, valuing immediateresults and individual achievement Social pressures often encourage spending and keeping
up with trends Businesses might prioritize marketing and short-term sales to capitalize onthis Imagine a society filled with trendy advertisements and a focus on the latest gadgets.Efforts are geared towards producing rapid results There might be less emphasis on long-term planning and a preference for projects with immediate payoffs Think of a businessculture that prioritizes meeting quarterly sales targets over long-term product development
Trang 8Achievement, self-determination, and individual success are highly valued People areoften ambitious and motivated by personal accomplishment Picture a society whereindividuals take pride in their careers and strive to climb the corporate ladder quickly.Loyalty to employers, colleagues, or even friends can be more transactional, based onperceived benefits and immediate needs Job hopping and changing careers might be morecommon Rewards and recognition are often tied directly to individual performance andimmediate contributions This can create a competitive and results-oriented workenvironment
leisure time is more important, and there is greater freedom and personal control
freedom, and leisure are not given the same importance
b Characteristics
Indulgent societies prioritize personal happiness and enjoyment Leisure activities,sports participation, and positive emotions are highly valued Imagine a society withgenerous vacation policies, a thriving entertainment industry, and a strong emphasis onwork-life balance People are encouraged to pursue their passions and create a fulfillinglife Freedom of expression, personal control, and individual choice are paramount Peoplefeel empowered to make their own decisions and shape their own destinies Picture aculture that celebrates individuality, encourages open communication, and prioritizespersonal fulfillment There might be less emphasis on rigid social hierarchies and more onindividual potential
In restraint socities Hard work, discipline, and fulfilling one's obligations are centralvalues Leisure time and personal happiness might be seen as secondary to duty and socialresponsibility Imagine a society with a strong work ethic, where individuals prioritizefulfilling their roles within the family and community Collectivism and social harmonymight be more emphasized than individual desires There might be a stronger belief inexternal forces like fate, tradition, or religion shaping one's life This can lead to a sense ofless personal control and a focus on fulfilling one's predetermined role Think of a societywith strong emphasis on following established norms and traditions, where respectingauthority and fulfilling societal expectations take precedence over individual pursuits
c Example
- Countries with restraint characteristics include Egypt, Russia, India, China
1.2 Modification of six dimension through the year
1.2.1 Formation of four first dimensions
The development of Hofstede's six-dimensional model of culture can be traced back
to a significant survey conducted at IBM's personal research center, which Hofstede
Trang 9managed until 1971 This survey aimed to explore the variations in ethnic values amongIBM employees in the corporation's subsidiaries across numerous countries worldwide.From 1967 to 1973, an extensive survey was carried out in 40 major countries, and laterexpanded to include 10 additional countries and 3 territories With a sample size of 117,000employees, the survey collected responses to a standardized questionnaire, allowing for acomparative analysis of cultural values across different countries.
Hofstede's pioneering work at IBM marked one of the first attempts toquantitatively explain observed cultural differences His analysis helped identify andcategorize systematic variations across cultures into four primary dimensions:
distributed unequally within a society and the level of acceptance or expectation ofhierarchical structures
emphasis placed on individual interests and autonomy versus collective goals andinterdependence within a society
Femininity, now renamed): This dimension explores the value placed on competitiveness, assertiveness, and material success (previously associated with masculinity), as well as compassion, quality of life, and nurturing (previously associated with femininity) The renaming of this dimension reflects an acknowledgement of the evolving understanding of gender as a non-binary concept The name of this dimension was changed by Hofstede Insights around late
2023 or early 2024 as "not timely anymore" as it "caused discomfort among some
of our customers and website visitors for treating gender as a binary concept"
a society tolerates ambiguity, uncertainty, and risk, and the degree to which it seeksstructured and predictable situations
Hofstede's model provides valuable insights into how different societies approachfour fundamental anthropological challenges: risk response, relationships betweenindividuals or groups, the physical impact of gender differences, and the emotional impact
of gender differences By quantifying and categorizing cultural dimensions, the modeloffers a framework for understanding and comparing cultural values across diversesocieties
It is worth noting that over time, Hofstede's model has expanded to includeadditional dimensions, such as Long-Term versus Short-Term Orientation (LTO) andIndulgence versus Restraint, which were identified through subsequent research andanalysis by scholars like Misho Minkov These dimensions further enrich ourunderstanding of cultural variations and enhance the applicability of the model in differentcultural contexts [3]
1.2.2 Formation of long-term versus short-term orientation (LTO).
In the late 1980s, following the publication of Geert Hofstede's influential work,
"Culture's Consequences," he had an encounter with Michael Harris Bond, who wasaffiliated with the Chinese University of Hong Kong at the time Bond and his colleagueshad recently conducted a study that compared the values of male and female psychologystudents from ten different national or ethnic groups in the Asia-Pacific region
Trang 10Remarkably, when Bond analyzed the data using a similar approach to Hofstede's analysis
of the IBM dataset, he also identified four significant dimensions
Both Hofstede and Bond found these findings intriguing and enlightening Thesurvey results clearly demonstrated that people's ways of thinking were profoundlyinfluenced by their cultural backgrounds However, they were also faced with a challenge
—the potential Western bias in their research approach To address this issue, Bond soughtthe expertise of his colleagues from Hong Kong and Taiwan to develop a list offundamental values that were specific to Chinese culture This collaborative effort led to thecreation of the Chinese Value Survey (CVS) The CVS questionnaire was translated intomultiple languages and administered to one hundred male and female students in each oftwenty-three countries worldwide
Through rigorous statistical analysis of the CVS data, four distinct dimensionsemerged Interestingly, across the twenty overlapping countries, three of the dimensionsidentified in the CVS aligned with dimensions previously identified in the IBM surveys.These dimensions captured aspects such as power distance, individualism versuscollectivism, and masculinity versus femininity However, the fourth dimension in the CVSdid not correlate with the fourth dimension in the IBM framework, as there was no apparentequivalent of uncertainty avoidance in the CVS Instead, the fourth CVS dimensioncombined values that encompassed both a future-oriented perspective and an emphasis onthe past and present Recognizing the significance of this unique dimension, Hofstedelabeled it as "long-term versus short-term orientation" (LTO) and adopted it as a fifthuniversal dimension in 1988
This collaboration between Hofstede and Bond, along with the integration of theChinese Value Survey, brought forth new insights into cultural dimensions and furtherexpanded our understanding of cross-cultural differences The identification of the LTOdimension highlighted the importance of considering a society's temporal orientation whenexamining cultural values This development added depth and complexity to the existingframework of cultural dimensions and underscored the need for a comprehensive andnuanced approach to studying cultural variations
1.2.3 Formation of indulgence versus restraint (IND)
In the early 1980s, a significant endeavor took place as divinity departments at sixEuropean universities joined forces to conduct the "European Values Survey." Thisinitiative aimed to assess the prevailing values within the populations of their respectivecountries Over time, under the guidance of Ronald Inglehart, this survey evolved into therenowned World Values Survey (WVS), encompassing a vast number of countries—over100—and exploring a diverse range of topics
The World Values Survey (WVS) has become an invaluable resource for studyingcultural differences, alongside other prominent data sources such as the European SocialSurvey and the Economic and Social Survey of Asia and the Pacific Geert Hofstede, anotable figure in cross-cultural research, has acknowledged the significance of the WVSand recognized its correlation with his own framework of cultural dimensions Thisacknowledgment speaks to the credibility and influence of the WVS in the field.Expanding on the foundation laid by the WVS, Misho Minkov conducted furtheranalysis of the survey data, delving deeper into its intricacies Minkov's work yieldedadditional dimensions that enriched our understanding of cultural implications, therebycontributing to the broader knowledge on cultural values This collaborative effort between
Trang 11researchers has fostered the integration of research results, allowing for a morecomprehensive and nuanced perspective on the diversity of cultural values across the globe.One notable outcome of Minkov's analysis was the identification, in 2010, of a sixthand final cultural dimension: indulgence versus restraint This dimension pertains to theextent to which societies embrace gratification of desires versus exercising self-control andrestraint The inclusion of this dimension expanded the existing framework and provided amore comprehensive lens through which to examine cultural differences.
Overall, the collaborative efforts of researchers, beginning with the EuropeanValues Survey and evolving into the World Values Survey, have significantly contributed
to our understanding of cultural values The ongoing analysis and exploration of the surveydata, as exemplified by Minkov's work, continue to advance our knowledge and shed light
on the complexities of cultural diversity worldwide [1]
1.3 The difference between Hofstede and Robbins’s perpectives
Perspectives on organizational culture:
- Hofstede: Culture from the perspective of Geert Hofstede - is the individual'sindividual manifestation in the synthesis of society with social relations Eachindividual is influenced by the society in which they survive and develop Therefore,culture needs to be seen as one aspect, a common field of the community Culturemakes differences between members of different groups or communities of people.Culture is inherently a complex element of many elements such as: social structure,language, religion, beliefs, values and attitudes These factors all need to beconsidered when looking at culture It can be said that culture is a multidimensionalfactor [4]
This model proposes a way to measure and compare cultural factors such as powerrelations, uncertainty avoidance, short-term-long-term, individual-collective, serenity andrestraint, masculine - feminine These factors are considered to greatly influence the way anorganization operates in a particular country
- Robbins: culture is "the collective system of meanings shared by members of a group".This system includes values, beliefs, norms, behaviors, and material products that arepassed from generation to generation Organizational culture refers to a system ofshared meaning held by members that distinguishes the organization from otherorganizations
Robbins and Judge (2011) believe that the nature of corporate culture is expressedthrough 7 basic characteristics:
Seven basic characteristics seem to capture the essence of organizational culture: (1) Innovation and risk taking: Is the degree to which employees in the organizationare encouraged to have continuous innovation in the work process and to be adventurous andtake risks
(2) Attention to detail: Employees are expected to demonstrate meticulousness,accuracy, the ability to analyze things and pay attention to every detail
(3) Results Orientation: Instead of focusing on the techniques and processes used toachieve results, managers focus more on results
(4) People orientation: Degree of concern for the impact of decisions on employeesand work results Everyone in the organization is affected by managers' decisions, influencingthe final results
Trang 12(5) Group orientation: The degree to which work activities in an organization are basedmore on groups than on individuals.
(6) Aggression: The degree to which people are aggressive and competitive with eachother rather than accommodating
(7) Stability: Organizational practices emphasize maintaining the status quo as opposed
to growth
We see that Hofstede and Robbins' views on culture are different
Regarding scope: Hofstede focused on developing a model to measure and comparecultural values across countries [5] While Robbins focuses on the specific culturalcharacteristics of organizations, he argues that culture plays an important role in shapinghuman behavior Culture affects how we see the world, how we interact with others, and how
we make decisions He focuses on defining culture and explaining its role in shaping humanbehavior The framework that Robbin provides helps understand culture in a variety ofcontexts while Hofstede's model is widely used in business
Orientation towards people and teamwork: Hofstede focuses more on the degree towhich a society values individual independence versus concern for group development Forexample, in an organization with an individual-focused culture, individual decisions andachievements may be valued more highly than teamwork and shared responsibilities Robbinsbelieves that corporate culture is expressed through concern for people and teamwork Forexample, a business with a culture of respect and support for people will invest in trainingprograms, create comfortable working conditions, and encourage collaboration andinformation sharing among work groups
Robbins' perspective provides an overview of culture, but it may not be detailedenough to explain cultural differences between countries Hofstede's perspective provides amodel for measuring and comparing cultural values, but it may not be representative ofeveryone in a country To fully understand culture, it is necessary to combine bothperspectives
2 Culture value of VietNam
Vietnamese culture is a complex set of values, beliefs, and traditions that have beenshaped and developed over thousands of years of history This culture has been influenced by
a variety of factors, including geography, history, religion, and philosophy
Figure 1 Score of 6 cultural dimensions of Vietnam
Trang 132.1 Power distance [6]
With a score of 70, Viet Nam is a country that has a high score of power distance Thisindicates a society that accepts a hierarchical structure with unequal distribution of power.This goes beyond simple politeness It's ingrained in Vietnamese social fabric Language usewith honorific titles, greetings that acknowledge seniority ("cháu chào chú," meaning
"grandchild greets uncle"), and deference to elders in family decisions all reinforce theestablished hierarchy [7] This respect extends to organizational structures, where leaders areseen as figures with superior knowledge and experience, deserving unquestioning obedience.Elders and superiors hold significant sway in companies, and employees tend to avoid directlycontradicting them Additionally, Vietnam is a one-party socialist state with a centralizedgovernment structure [8] And younger people traditionally show respect to elders throughforms of address and behavior VietNamese tend to maintain social harmony Open conflict isseen as disruptive, and disagreements are often addressed indirectly This can lead to a culture
of saving face and avoiding confrontation [9]
The characteristics of high power distance in Vietnam can be explained by a number
of factors according to the PESTEL HG model, especially in history Confucianism is a keyideological foundation that has shaped Vietnamese culture for centuries Confucianismemphasizes the importance of social order, respect for authority, and personal cultivation [10]
It also emphasizes the importance of social hierarchy and the need for individuals to respecttheir superiors This includes the emperor, parents, and teachers In Vietnamese culture, this isreflected in the way people address each other changes depending on their age and socialstatus Moreover, in education Confucianism values education and sees it as a path toadvancement Teachers are respected as highly as parents and education is valued as a means
of improving one's life and social status Confucianism also influences the system of hierarchyand respect in government, with the emperor at the head and officials following his orders[11] Apart from the effect of Confucianism, the historical government and emperor has alsoshaped the VietNamese culture value Power is concentrated in a central authority, like anemperor or a single-party government Decisions are made at the top and flow down to thepeople Decision-making authority rests with the central leadership Local governments,businesses, and individuals have limited power to make independent decisions And anotherreason for this high score can be seen in economic aspects Vietnam's economictransformation, from a centrally planned system to a market-oriented one, plays a significantrole in maintaining its high Power Distance score The shift to a market economy creates adynamic landscape with both established structures and new opportunities This unfamiliarterritory can breed uncertainty, especially for those accustomed to the predictability of acentrally planned system In such an environment, people often seek guidance from trustedfigures, such as elders, superiors, or those with experience navigating the new economiclandscape This reinforces the existing power structures and the perception that leaders holdsuperior knowledge and decision-making abilities [12] Vietnam's economic development isuneven The gap between urban and rural areas, coupled with the rise of a powerful privatesector, creates a perception of unequal distribution of power and resources.exclamation Inrural areas, traditional hierarchical structures, where village elders or landowning familieshold significant sway, might persist.This reinforces the existing social hierarchy anddiscourages questioning of the status quo [13]
Trang 142.2 Individualism versus Collectivism
Vietnam scores low on the Individualism dimension of Hofstede's cultural framework,with a score around 30 This means Vietnam is considered a collectivistic society Incollectivistic societies, like Vietnam, the emphasis is on the group, such as family, extendedfamily, or close social circles People prioritize the needs of the group over their ownindividual needs and goals [14]
In Viet Nam, family obligations and maintaining family honor are paramount.Individual desires might be put aside for the sake of the family unit's success [15] Therelationship among family members and relatives is close and supportive Respect for elders isdeeply ingrained in the minds of Vietnamese people [16] Decisions are often reached through
a consultative process, involving input from various group members This can be consuming but fosters a sense of shared ownership Emphasis is placed on finding solutionsthat maintain harmony within the group Compromise and saving face are key Avoidingputting others on the spot or making them lose face is important during group discussions.Collaboration and teamwork are emphasized in workplaces, with individual performance oftenseen as contributing to the team's success
time-Social factors, such as the strong emphasis on collectivism and Confucianism, have asignificant impact on the cultural values in Vietnam In our country, multi-generationalfamilies are the norm, living with grandparents often playing a vital role in raising theirgrandchildren This fosters strong bonds, shared responsibilities, and a network of mutualsupport within the family unit However, this close-knit structure can also limit individualfreedom Living under one roof can mean adhering to established family rules andexpectations, which may not always align with individual desires [17]
Vietnam's traditional village communities are characterized by a strong sense ofsolidarity and mutual support Residents work together to tackle shared problems, fostering aspirit of cooperation However, this emphasis on the common good can sometimes restrictindividual freedom Prioritizing community needs may mean putting personal desires aside tocontribute to the collective well-being [18]
2.3 Motivation towards achievement and success
A score of 40 on Hofstede's Motivation towards achievement and success dimensionfor Vietnam indicates a moderately feminine orientation In such societies, people prioritizewell-being and a balanced life over workaholic tendencies Job satisfaction and flexibility arealso valued They tend to emphasize cooperation and relationships, with building strongconnections and achieving success as a team being more important than individualachievement Individuals prioritize social harmony and a comfortable life over displays ofwealth or aggressive pursuit of material success This is further reflected in their preference forcollaborative decision-making, valuing input from the group over individual dominance [19]
In terms of the social factor, Vietnamese society strives for harmony and balance inall aspects People make an effort to reconcile different interests and viewpoints, avoidingconflict and contradiction Individual competition is not overly encouraged In “feminine”VietNam [20] people are “working in order to live” Equality, teamwork, and a fulfilling workenvironment are highly valued This strong sense of community leads many Vietnamese toview their colleagues as a close-knit unit, like a second family People tend to help each other,solve problems together, and share the fruits of their labor This demonstrates the spirit ofcooperation and mutual assistance, a characteristic often associated with femininity InVietnamese villages, people often help each other in times of difficulty, demonstrating a spirit
Trang 15of solidarity and mutual assistance Additionally, women play an important role in the familyand society They are respected and recognized for their contributions, which contribute to theoverall development of the community Vietnamese women often take the lead in caring forthe family and educating children They are seen as the keepers of the hearth and play animportant role in maintaining traditional values [21]
To explain the above score, we can consider some economic aspects Vietnam isconsidered a developing country and has high potential for economic growth due to its young,dynamic population and low labor costs Vietnam must compete with other countries in theregion to attract foreign investment Therefore, sometimes facing problems such as trade-offsand risk tolerance New technologies, industries, and markets emerge quickly in developingeconomies Businesses need to adapt their strategies and operations to keep up Additionally,regulations, policies, and economic conditions can change rapidly so they need to becomfortable with uncertainty and adjust their course as needed A willingness to takecalculated risks fosters a culture of innovation This allows businesses to experiment with newproducts, services, and business models to gain a competitive edge
2.5 Long and short term orientation
Vietnam falls in the middle on a scale measuring long-term focus (47) This shows ablend of honoring their heritage and embracing modern changes Vietnamese people valuetheir traditions while recognizing the importance of progress and new ideas [22].Vietnam ismoving towards a more future-oriented approach while still retaining its strong sense oftradition and social values This balance can be seen in areas like economic development,where the country is investing in infrastructure and industries for long-term growth, but alsoprioritizes social stability and community well-being
Vietnam's geographical location makes it prone to frequent floods and typhoons.These natural disasters necessitate preparedness and long-term planning for disaster riskreduction and recovery To address this, Vietnam needs strong dike systems, accurate weatherforecasting, timely evacuations, and stockpiling of food and emergency supplies Vietnam'slimited resources have encouraged a culture of thrift and making the most of what's available,reflecting a long-term view of sustainability Vietnamese people have a tradition of valuingtheir possessions, repairing items instead of discarding them, and maximizing the use ofnatural resources In addition, the Vietnamese government's focus on economic developmentand long-term infrastructure projects can influence LTO Policies promoting education, saving,and investment can encourage a future-oriented mindset
2.6 Indulgence & Restrained
A low score of 35 on this dimension indicates that the culture of Vietnam ischaracterized as Restrained In cultures with low Indulgence scores, people tend to be moreskeptical and downbeat Unlike those in Indulgent cultures, they don't place much importance
Trang 16on free time and are stricter about fulfilling their desires They feel restricted by socialexpectations and see self-indulgence as somewhat improper Vietnamese culture generallyemphasizes control over impulses and desires People prioritize saving and planning for thefuture over immediate gratification There might be a focus on duty and fulfilling obligations.[22]
This score can be considered in the social aspect due to Vietnamese culture beingheavily influenced by Confucianism, which emphasizes social order, respect for authority, andhard work This can lead to a focus on fulfilling obligations and saving for the future, ratherthan immediate gratification Vietnam's history is marked by wars and social unrest Thismight have fostered a cultural emphasis on resilience, planning for the future, and prioritizingbasic needs over indulgence
II Organizational culture of Vinamilk
1 Introduction of Vinamilk
Vinamilk's official name is Vietnam Dairy Products Joint Stock Company - a companythat produces and sells milk and dairy products as well as related machinery and equipment inVietnam [23] Established in 1976, Vinamilk is currently the leading nutrition company inVietnam and among the Top 40 largest dairy companies in the world in terms of revenue.Vinamilk's diverse and high-quality nutritional products are always trusted by domestic andforeign consumers [24] Especially, Vinamilk ranks 5th in the top 10 most sustainable dairybrands globally
Figure 2 Top 10 most sustainable dairy brands globally
To become a dairy enterprise with a leading domestic and export market share andtrusted by consumers, Vinamilk always adheres to the motto: Do business honestly, products