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1

"Culture" definition Hofstede

“the collective programming of the mind which
distinguishes the member of one group or category
of people from another”

2

How does culture affect business?

Hiring, interaction, class/gender structure, how to reward people, negotiations

3

Hofstedes dimensions

- how does national culture influence management practices?
six aspects of national culture that affect organisations:
-Individualism/Collectivism
-Power distance
-Avoidance of uncertainty
-Masculinity/Femininity
-Long-Term Orientation
-Indulgence/Restraint

4

Hofstede Individualism:

-degree to which individuals are integrated into groups
-ties between individuals are loose
-people are expected to look after themselves and immediate family
-USA, canada, germany, france, sweden etc
-identity based on individual
-right to private life
-vlue standards shold apply to all (universalism)
-emphasis on individual achievement and initiative (leadership ideal)
-decisions based on individuals needs

5

Hofstede Collectivism:

-people are integrated into strong, cohesive ingroups, protectiing them in exchange for unquestioning loyalty
-China, Indonesia, thailand etc
-identity based on social system
-private life invaded by institutions and organisation one belongs to
-value standards differ for in and out groups: particularism
-emphasis on belonging: membership ideal
-decisions made according to whats best for the group

6

Hofstede collectivism work:

-employees act in interest of their in group
-relatives of employer and employee preferred in hiring
-personal relationships prevail over task and company
-entrepreneurs report contribution of others to results

7

Hofstede individualism work:

-employees supposed to act as economic men
-family relationships seen as disadvantage in hiring
-task and company prevail over personal relationships
-entrepreneurs claim own results without contribution of others

8

change and culture: individualism

-focus on how change is good for them
-allow indidivuals to ask and formulate questions
-

9

change and culture: collectivism:

-focus on how change is good for the group
-allow the group to ask and formulate questions
-allow the group to consult with each other and spedn time working on their responses, questions and concerns

10

Power distance:

-the extent to which less powerful members accept
and expect that power is distributed unequally
-represents inequality, but defined from below, not
from above
-suggests that followers as much as leaders endorse a
society’s level of inequality
-the extent to which children are socialised towards
obedience or towards initiative.

11

Measuring power distance:

-employees express disagreement with management?
-employee loses respect for manager who asks for their advice before making a decision

12

Hofstede power distance norms low:

-all should be interdependent
-powerful people should try to look less powerful than they are
-older people are neither respected nor feared
-all should have equal rights
-the system is to blame

13

Hofstede power distance norms high:

-a few should be independent
-powerful people should try to look powerful
-older people respected and feared
-power hlders are entitled to privilege

14

Hofstede power distance work high:

-centralised decision structures
-subordinates expect to be told
-innovations need good support from hierarchy
-information constraint by hierarchy

15

Hofstede power distance work low:

-decentralised decision structures
-subordinates expect to be consulted
-openness with information

16

change and power distance: hierarchical

-senior staff makes announcements
-use legitimate power to exercise authority
-tell subordinates what to do differently

17

change and power distance: egalitarian

-use influenceing skills
-include them in decision
-allow for questions
-provide a forum for discussion

18

uncertainty avoidance:

-deals with societies tolerance for uncertainty and ambiguity
-indicates to which extend a culture programs its members to either feel comfortable or uncomfortable in unstructured situations
-high UAI tries to minimise uncertainty by strict laws, rules and security measures
-people in high UAI are more emotional and motivated by inner nervous energy

19

measuring uncertainty avoidance

-company rules should not be broken
-competition among employees does more harm than good
-

20

Hofstede uncertainty avoidance norms: high

-expressions of emotions
-Xenophobia
-conservatism, law and order
-older people are respected and feared

21

Hofstede uncertainty avoidance norms: low

-suppression of emotions
-tolerance of diversity
-oppenness to change and innovation
-younger people are respected

22

Hofstede uncertainty avoidance work: low

-weak loyalty to empoyer
-top managers involved in strategy
-many new trademarks granted
-belief in generalist and common sense

23

Hofstede uncertainty avoidance work: high

-strong loyalty to employer
-top managers involved in operations
-belief in specialists and expertise

24

uncertainty avoidance and change: high

-provide specific rules and structures
-recognise their need for information
-lots of data and structure logically
-provide examples
-provide cost-benefit analysis
-focus on compliance wiht procedures and policies

25

uncertainty avoidance and change: low

-reward creative behavior that moves issues forward
-focus on process of learning
-share information and open communication forums
-start with bottom line then build around their questions
-challenge and questions the way things are done

26

Masculinity

-refers to the distribution of emotional roles between the sexes
-in high MAS cultures gender roles are clearly distinct
-men are supposed to be assertive, tough and focused on material success, women on quality of life and be modest and tender
-femininity stands for a society where gender roles overlap

27

Hofstede masculinity-femininity:

-refers to the distribution of roles between the genders
-women's values differ less among societies than men's values
-men's values from one country to another contain a
dimension from very assertive and competitive and maximally
different from women's values on the one side, to modest and caring and similar to women's values on the other
-the assertive pole has been called 'masculine' and the
modest, caring pole 'feminine'
-women in feminine countries have the same modest, caringvalues as the men – the genders’ values are similar
-in the masculine countries they are somewhat assertive
and competitive, but not as much as the men, so that thesecountries show a gap between men's values and women's values.

28

Hofstede Masculinity-Femininity: masculinity:

-Have an opportunity for advancement to higher-
level jobs
-Have an opportunity for high earnings
-Have training opportunities
-Keep up to date with the technical developments relating to work

29

Hofstede Masculinity-Femininity: femininity:

-work in a congenial and fiendly atmosphere
-have good physical working conditions
-have good working relationship with your manager
-work with people who cooperate well with each other

30

Hofstede Masculinity-Femininity - Norms: masculine:

-ego orientation
-money and things are important
-stress on what you do
-live in order to work
-sympathy for the strong