Cross Cultural Management Cultural Dimension in Business Management Dr.B.D.Tripathi

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

Power Distance Low Power Distance High Power Distance There should be Minimum inequalities since it can exploitation others Superiors and subordinates are same in Orgn. Hierarchy in Org. only for convenience Subordinates should be consulted Individuality should be respected Inequality is unavoidable & every one has a place they deserve Superiors and subordinates are different kind of people Hierarchy in Org. reflects natural difference Subordinates should be told Authority should be respected

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

Uncertainty Avoidance (U.A.) Low U.A. High U.A. Uncertainty in life is threatening, must be reduced Predictability & clarity are preferred Concern about security Formal rules are necessary Consensus is better than conflict There is inner urge for hard work Uncertainty is fact of life it should be taken when comes Ambiguity is tolerated Readiness to take risk The fewer rules ,better Competition & conflict can be constructive Hard work as such is not a virtue

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.

Masculinity/Femininity Distinct gender roles Men are assertive, women are nurturing Acquisition of wealth Ambition motivates Live to work Sympathy for successful Manager are expected to be decisive & assertive Stress on competition and performance Fluid gender roles Men & Women, both in nurturing role Quality of life Service motivates Work to live Sympathy for unfortunate Manager use intuition & strive for consensus Stress on Co-operation and environmental awareness

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.

Individualism Collectivist Individualist ‘We’ mentality Identity based on social group Decisions are primarily based , what is good for group Relationship prevails over task Focus is on belongingness to an organization Values differ according to group ‘I’ mentality Identity based on individual Decisions primarily based on individual needs Tasks prevail over relationship Focus is on individual initiative & achievement Values standards apply to all

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

Short term VS Long term Orientation Short term Orientation Long term orientation Need for accountability, self discipline Develop and maintain life long net work Large social & economical difference should not be tolerated Stress is on future market position Owner, Manager & worker share the same aspiration Need for achievement & self determination Loyalty towards vary as per business needs People should be rewarded according to their ability Stress is on short term profits Managers & employees are in different camps

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