Presentation on theme: "Cross Cultural Management Cultural Dimension in Business Management"— Presentation transcript:
1 Cross Cultural Management Cultural Dimension in Business Management Dr.B.D.Tripathi
2 Five Dimensions of Culture In his work as founder of Personal Research at IBM, Europe , Hofstede compared cultures of 23 countries on 5 dimensions and published in “Cultures and Organizations -2005”Power Distance (PD) – The extent to which members of a society accept that power in society and organizations is and should be distributed equally, i.e. workers have more chances to influence Govt. decisions –India, when compared to Philippines or UAE
3 Power Distance Low Power Distance High Power Distance There should be Minimum inequalities since it can exploitation othersSuperiors and subordinates are same in Orgn.Hierarchy in Org. only for convenienceSubordinates should be consultedIndividuality should be respectedInequality is unavoidable & every one has a place they deserveSuperiors and subordinates are different kind of peopleHierarchy in Org. reflects natural differenceSubordinates should be toldAuthority should be respected
4 Five Dimensions of Culture Uncertainty Avoidance (U.A.) – The creation of set of rules & structures to eliminate ambiguity in organizations and support those beliefs which promise certainty and conformity. i.e. Germans, Indians & French when compared to Swedes & British. The attitude of uncertainty avoidance is much frowned in high PD countries i.e. Germany and Philippines
5 Uncertainty Avoidance (U.A.) Low U.A.High U.A.Uncertainty in life is threatening, must be reducedPredictability & clarity are preferredConcern about securityFormal rules are necessaryConsensus is better than conflictThere is inner urge for hard workUncertainty is fact of life it should be taken when comesAmbiguity is toleratedReadiness to take riskThe fewer rules ,betterCompetition & conflict can be constructiveHard work as such is not a virtue
6 Five Dimensions of Culture Masculinity (MASC) – The extent to which the society values assertiveness ( Masculinity) and caring (Femininity). Masculinity pertains to the society in which social gender roles are clearly distinct. Men to be assertive, focused on work goals & material success i.e. Japan, Australia high. Women to be more tender, modest and caring for quality of life i.e. Denmark and Sweden.
7 Masculinity/Femininity Distinct gender rolesMen are assertive, women are nurturingAcquisition of wealthAmbition motivatesLive to workSympathy for successfulManager are expected to be decisive & assertiveStress on competition and performanceFluid gender rolesMen & Women, both in nurturing roleQuality of lifeService motivatesWork to liveSympathy for unfortunateManager use intuition & strive for consensusStress on Co-operation and environmental awareness
8 Five Dimensions of Culture Individualism – The degree of preferences of individuals expected to look after themselves and immediate families. Loyality towards oneself and towards a group. Just reverse of collectivism i.e. USA and Britain stands high , where as Pakistan, UAE stands low.
9 Individualism Collectivist Individualist ‘We’ mentality Identity based on social groupDecisions are primarily based , what is good for groupRelationship prevails over taskFocus is on belongingness to an organizationValues differ according to group‘I’ mentalityIdentity based on individualDecisions primarily based on individual needsTasks prevail over relationshipFocus is on individual initiative & achievementValues standards apply to all
10 Five Dimensions of Culture Short term VS Long term Orientation – Short term orientation includes fostering virtues related to past and present spl. Respect for tradition, fulfilling social obligations etc Long term orientation includes fostering virtues oriented towards the future, spl. Perseverance and thrift, relationships as status and sense of shame
11 Short term VS Long term Orientation Short term OrientationLong term orientationNeed for accountability, self disciplineDevelop and maintain life long net workLarge social & economical difference should not be toleratedStress is on future market positionOwner, Manager & worker share the same aspirationNeed for achievement & self determinationLoyalty towards vary as per business needsPeople should be rewarded according to their abilityStress is on short term profitsManagers & employees are in different camps