Presentation on theme: "National Culture Management Scientists are Humans"— Presentation transcript:
1 National Culture Management Scientists are Humans Greet Hofstede, Management Science, Vol. 40, No. 1, January 1994, pp
2 Outline Why Culture and Management? Hofstede’s Method The Four DimensionsLater RefinementsTrompenaars (1996)’s seven dimensions
3 Why Culture and Management? Managers are humans and exist in culturesThey make decisions, have rituals, heroes, and use and understand symbols.Hence they must be influenced by something other than mere instinct or biology
4 “Culture” Patterns of thinking, feeling and acting Mental software, “Software of the Mind.”Source is social environments, almost certainly from childhoodCulture is learned, not inherited
6 Hofstede’s View of Culture SymbolsHeroesRitualsValuesPractices
7 Hofstede’s QuestionWhat are the components of culture, a small set of dimensions or characteristics, that enable us to classify culture-in-the-large (at a national level)? And do nations differ and can they be clustered into culturally-similar nations?
8 Hofstede’s MethodLate 60s, questionnaires were distributed to thousands of IBM employees worldwide.They answered the questions about work modes, methods, and meanings on desirable and desired situations and characteristicsThe results were subjected to factor analysis.Questions were based on prior work on culture by Inkeles and Levinson (a sociologist and psychologist)
9 Factor AnalysisGoal is to reduce, statistically, the number of dimensions it takes to describe a phenomenon completely while losing as little information as possible.The following example shows how factor analysis would reduce what looks like a two dimensional distribution to only one dimension:
10 How Much Money are you worth? Age+Wealth=?Age and Worth are closely related, so much so that if you know one, you can estimate the other…How Much Money are you worth?How OLD are you?
11 Age+Wealth=ONE Dimension In other words, there is only ONE dimension called “agewealth” that captures most of the information about both.The red lines indicate the errors that using one dimension brings about. The longer the sum of these lines, the less well one dimension captures these two dimensions
12 The Four Dimensions And a fifth was added later… Power-Distance Uncertainty AvoidanceMasculinityIndividualismAnd a fifth was added later…Time Orientation (Was Confucius Value)
13 Interpreting the Dimensions Range is generally 0 to 100, although some countries were surveyed later and hence ended up with scores > 100*Mean value is 50; consider the standard deviation to be about 15, so the bulk of countries are between 35 and 65.Hofstede was more interested in ranks rather than ratings; he later grouped countries in several dimensions…
14 Power-DistanceHow a culture handles notions of equality and power (US=40; Japan=54)High LowMalaysia Austria 11Guatemala 95 Israel 13Panama 95 Denmark 18Philippines 94 New Zealand 22Mexico 81 Ireland 28Arab Countries 80 UK 35
15 Uncertainty Avoidance How a culture handles risk and uncertainty(US=46; Japan=92)High LowGreece 112 Singapore 8Portugal 104 Jamaica 13Guatemala 101 Denmark 23Uruguay 100 Sweden 29Belgium 94 Hong Kong 29France 86 UK 35
16 MasculinityHow a culture handles assertiveness vs. modesty (US=62; Japan=95)High LowJapan 95 Sweden 5Austria 79 Norway 8Venezuela 73 Netherlands 14Italy Denmark 16Switzerland 70 Costa Rica 21Mexico 69 Yugoslavia 21
17 IndividualismHow a culture handles the individual vs. the group (US=91; Japan=46)High LowUSA 91 Guatemala 6Australia 90 Equador 8UK Panama 11Canada 80 Venezuela 12Netherlands 80 Colombia 13New Zealand 79 Indonesia 14
18 Latin America, SE Asia UK, US Power-DistanceUncertainty AvoidanceMasculinityIndividualismIsrael SE Asia, Latin AmericaSingapore, Jamaica Latin Europe, Latin AmericaNordic Countries JapanLatin America, SE Asia UK, USHighLow
19 Implicit Organizational Model Low Power DistanceHigh Power DistanceLow Uncertainty AvoidanceMarket (UK)Family (Hong Kong )High Uncertainty AvoidanceMachine (Germany)Pyramid (France)
21 Extensions Later Hofstede added long-term orientation basically, how a culture treats future (how long in the future).Currently Hofstede’s four (or five) dimensions are the basis for almost all organizational and national business cultural studies.
22 Trompenaars (1996)From a view-point of conflict and dilemmas in relationships with people, time, and natural environment.
23 Seven dimensions Universalism vs Particularism Individualism vs CollectivismNeutral vs AffectiveSpecific vs DiffuseAchievement vs AscriptionTime-orientation (Future vs Past/Present)Internal vs External Control