Describe cultural dimensions of Hofstede Give examples of countries to explain HOFSTEDE'S FIVE DIMENSIONS OF CULTURAL DIFFERENCES POWER DISTANCE Definition: The extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally State of play: The power distance in Asia is higher than that in Europe Comparision between low and high power distance: Low power distance: Minimize the inequalities among people Interdependence between less and more powerful people Flat hierarchy pyramid Slope hierarchy pyramid Power decentralization Narrow salary range Subordinated expect to be consulted The ideal boss is a resourceful democrat Privileges and status are disapproved Flat hierarchy pyramid High Power Distance: Inequalities among people are expected & desired Less powerful people should be depended on the more powerful Slope hierarchy pyramid Power centralization Wide salary range○ Subordinated expect to be told what to The ideal boss is a benevolent autocrat/good father Privileges and status are both expected and popular Example A company from Denmark (low power distance) is considering entering Mexico (high power distance) market Communication tips for Denmark managers: Give clear and explicit directions to those working with him Deadlines should be highlighted and stressed Do not expect subordinates to take initiative Be more authoritarian in his management style Show respect and deference to those higher up the ladder UNCERTAINTY AVOIDANCE Definition: The extent to which members of a society feel threaten by uncertain or unknown situations Weak uncertainty avoidance Uncertainty = Normal feature of life and each day is accepted as it comes Low stress–subjective feeling of wellbeing○ Aggression and emotions must not be shown○ Comfortable in ambiguous situations and with unfamiliar risk There should not be more rules than necessary Precision and punctuality have to be learne Tolerance to innovation Motivation by achievemen Strong uncertainty avoidance Uncertainty= A continuous threat that must be fought High stress–subjective feeling of anxiety○ Aggression and emotions may be shown at proper times Fear of ambiguous situations and of unfamiliar risk Emotional need for rules, even if they never work Precision and punctuality come naturall Resistance to innovation Motivation by security Example: A company from France (high uncertainty avoidance) is considering investing in Denmark (low uncertainty avoidance) Communication tips for the French manager: Try to be more flexible or open in his approach to new ideas than he may be used to Be prepared to push through agreed plans quickly as they would be expected to be realized as soon as possible Allow employees the autonomy and space to execute their tasks on their own; only guidelines and resources will be expected of him INDIVIDUALISM AND COLLECTIVISM: Definition of dividualism: The tendency of people to look after themselves and their immediate family and neglect the needs of society Comparision between low and high individualism: Low Individualism Individuals learn to think in terms of“we” Diplomas provide entry to higher status groups Relationship employer-employee is perceived in moral terms, like a family Hiring and promotion decisions take employees’ingroup into account Management is management of groups Relationship prevails over task High Individualism Individuals learn to think in terms of“I” Diplomas increase economic worth and/or selfrespect Relationship employer-employee is a contract based on mutual advantage Hiring and promotion are supposed to be based on skills and rules only Management is management of individuals Task prevails over relationship Example: A company from UK (high individualism) is considering investing in Mexico (low individualism) Communication tips for the UK manager: Note that individuals have a strong sense of responsibility for their family Remember that praise should be directed to a team rather than individuals Understand that rewards depend upon seniority and experience Be aware that the decision making process will be rather slow, as many members across the hierarchy need to be consulted MASCULINITY OR FEMINITY: Definition: The tendency within a society to emphasize traditional gender roles Comparision between low masculinity and high masculinity: Low masculinity Dominant values: caring for others and preservation People and warm relationships are important Sympathy for the weak In family, both fathers and mothersdeal with facts and feelings Stress on equality, solidarity, and quality of work life Managers use intuition and strive for consensus Resolution of conflicts by compromise and negotiation High masculinity Dominant values: material success and progress○ Money and things are important Sympathy for the strong In family, fathers deal with facts and mothers with feelings Stress on equity, competition among colleagues and performance Managers are expected to be decisive and assertive Resolution of conflicts by fighting them out Example: A company from Denmark (low masculinity) is considering investing in Mexico (high masculinity) Communication tips for the Danish manager: Be aware that people will discuss business anytime, even at social gatherings Avoid asking personal questions in business situations Take into account that people are not interested in developing closer friendships Communicate directly, unemotionally and concisely In order to assess others use professional identity, not family or contacts LONG-TERM ORIENTATION Definition: A basic orientation towards time that values patience Comparision: Short-term orientation Respect for traditions Little money available for investment Quick results expected Respect for social and status obligations regardless of cost Concern with possessing the Truth Long-term orientation Adaptation of traditions to a modern context Funds available for investment Perseverance towards slow results Respect for social and status obligations within limits Concern with respecting the demands of Virtue