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 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

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 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

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 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

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 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

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 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

12. Thanks for your attention