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Cultural Dimensions Theory. Theory of National Culture Common Cultural Issues Inkeles & Levinson, 1954 Relationship to Authority Conception of Self Relationship.

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Presentation on theme: "Cultural Dimensions Theory. Theory of National Culture Common Cultural Issues Inkeles & Levinson, 1954 Relationship to Authority Conception of Self Relationship."— Presentation transcript:

1 Cultural Dimensions Theory

2 Theory of National Culture Common Cultural Issues Inkeles & Levinson, 1954 Relationship to Authority Conception of Self Relationship of Individual to Society Conception of Masculinity and Femininity Modes of Conflict Resolution Used to form theoretical foundation of factors for internal IBM study of values of employees in many countries. Additional work develops additional dimensions.

3 Culture People’s behavior determined by: Human Nature - Universal Personality - Individual Culture - Local View of the world Habits of action Emotional response Hofstede “Cultural Dimensions” Theory Assess by measuring values through surveys

4 Cultural Dimensions Theory Business researchers more likely to use Hofstede “Cultural Dimensions” which looks at 6 dimensions of national culture. 1. Power Distance (PDI)- Society’s comfort with inequality or preference for hierarchy. 2. Individualism versus Collectivism (IDV) Preference for Self-sufficiency vs. Group loyalties. Link

5 Cont. 3. Masculinity versus Femininity (MAS) Assertiveness & Competition vs. Nurturing & Cooperation. 4. Uncertainty Avoidance (UAI) s ‘threatened by uncertainty and ambiguity and try to avoid these situations’ Link

6 Long-Term Orientation (LTO) Present vs. Future Normative vs. Pragmatic: Tradition vs. Planning for Change Indulgence vs. Restraint: Gratifying needs vs. Exercising restraint.

7 Care with National Culture Avoid stereotypes – Whatever the truth of national cultural tendencies, individual character and human nature important too. Avoid lazy thinking – Culture imperfectly understood, tempting to attribute everything not understood to cultural differences.

8 Country Comparison Link

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10 Culture and Business Implications for Human Resources Management. Implications for Marketing Implications for Accounting Potential for Competitive Advantages

11 Setting Job Targets Set unilaterally, Subject to Renegotiation Set by Consensus, Subject to Renegotiation Set unilaterally, No Renegotiation Set by Consensus, No Renegotiation, Accept Consequences Masculinity vs. Femininity High Power Distance vs. Low Power Distance US,UK Nordic France, Italy Link

12 Assessment & Management Direct Feedback perceived as rude, Talent management loyalty/paternalism based Frank, direct, immediate feedback Individual assessment, performance based Individualism Vs. Collective High Power Distance vs. Low Power Distance US,UK Latin America Link

13 Culture and Branding Successful Brands associations: In high PDI cultures, “Prestige,”; in high UA cultures, “Trustworthy,”; Individualistic cultures: brands associate with abstract concepts, individual products emphasized. Collectivist cultures: brands associate with concrete people, corporate identities emphasize. Link


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