Managing Globally BA 105 Section 11

Cultural Value Dimensions: Power Distance Low power distance Inequality in society should be minimized. Superiors consider subordinates to be “people like me”. Subordinates consider superiors to be “people like me”. Superiors are accessible. Every one should have equal rights. Those in power should try to look less powerful than they are. People at various power levels feel less threatened and more prepared to trust people. Examples: Israel, Austria, Denmark, Ireland, Norway, Germany, United States. High power distance Inequality is acceptable and everybody has his or her rightful place in the hierarchy. Superiors consider subordinates to be a different kind of person. Subordinates consider superiors to be different from them. Superiors are inaccessible. Power holders are entitled to privileges. Those in power should try to look as powerful as possible. Other people are a potential threat to one's power and can rarely be trusted. Examples: Spain, France, Japan, Mexico, Singapore, Brazil, Indonesia Based on G. Hofstede, Culture’s Consequences (Thousand Oaks, Ca Sage, 1980)

Cultural Value Dimensions: Uncertainty Avoidance Strong Uncertainty Avoidance The uncertainty inherent in life is felt as a continuous threat that must be fought. Conflict and competition can unleash aggression and should to therefore, be avoided. A strong need for consensus is evident. Deviance is threatening so intolerance holds sway. There is a great concern with security. There is a need for written rules and regulations. Examples: Israel, Australia, Japan, Italy, Argentina, Peru, France, Belgium Weak Uncertainty Avoidance The uncertainty inherent in life is more easily accepted and each day is taken as it comes. Conflict and competition can be contained on the level of fair play and used constructively. More acceptance of dissent is present. Deviance is more likely to be tolerated. There is more willingness to take risks in life. There should be as few rules as possible. Examples: Denmark, Canada, Norway, Singapore, Hong Kong, Australia, United States.

Cultural Value Dimensions: Individualism Individualist In society, everybody is supposed to take care of himself for her self and his or her immediate family. “I” consciousness holds sway. Identity is based on the individual. The emphasis is on individual initiative and achievement; leadership is the ideal. Belief is placed in individual decisions. Examples: Australia, great Britain, Canada, the Netherlands, New Zealand, United States Collectivist In society, people are born into extended families or clans who protect them in exchange for loyalty. "We" consciousness holds sway. Identity is based on the social system. The emphasis is on belonging to orgs; membership is the ideal. Belief is placed in group decisions. Examples: Columbia, Pakistan, Taiwan, Peru, Singapore, Japan, Mexico, Greece, Hong Kong