2Theory of National Culture Common Cultural IssuesInkeles & Levinson, 1954Relationship to AuthorityConception of SelfRelationship of Individual to SocietyConception of Masculinity and FemininityModes of Conflict ResolutionUsed to form theoretical foundation of factors for internal IBM study of values of employees in many countries.Additional work develops additional dimensions.
3Culture People’s behavior determined by: Human Nature - Universal Hofstede “Cultural Dimensions” TheoryPeople’s behavior determined by:Human Nature - UniversalPersonality - IndividualCulture - LocalView of the worldHabits of actionEmotional responseAssess by measuring values through surveys
4Cultural Dimensions Theory Business researchers more likely to use Hofstede “Cultural Dimensions” which looks at 6 dimensions of national culture.Power Distance (PDI)- Society’s comfort with inequality or preference for hierarchy.Individualism versus Collectivism (IDV) Preference for Self-sufficiency vs. Group loyalties.Link
5Cont.Masculinity versus Femininity (MAS) Assertiveness & Competition vs. Nurturing & Cooperation.Uncertainty Avoidance (UAI) s ‘threatened by uncertainty and ambiguity and try to avoid these situations’Link
6Long-Term Orientation (LTO) Present vs. Future Normative vs. Pragmatic: Tradition vs. Planning for ChangeIndulgence vs. Restraint: Gratifying needs vs. Exercising restraint.
7Care 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.
10Culture and Business Implications for Human Resources Management. Potential for Competitive AdvantagesImplications for Human Resources Management.Implications for MarketingImplications for Accounting
11Setting Job Targets Masculinity vs. Femininity LinkSet unilaterally,Subject to RenegotiationSet by Consensus,No RenegotiationNo Renegotiation, Accept ConsequencesNordicMasculinity vs. FemininityFrance, ItalyUS,UKHigh Power Distance vs. Low Power Distance
12Assessment & Management LinkDirect Feedback perceived as rude, Talent management loyalty/paternalism basedFrank, direct, immediate feedbackIndividual assessment, performance basedLatin AmericaIndividualism Vs. CollectiveUS,UKHigh Power Distance vs. Low Power Distance
13Culture and Branding Successful Brands associations: LinkSuccessful 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.