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GEERT HOFSTEDE

G. Hofstede :

G. Hofstede Professor of Organizational Anthropology and International Management of Maastricht University Senior Fellow of IRIC , the Institute for Research on Intercultural Cooperation, and Extra-Mural Fellow of the CentER for Economic Research , both at Tilburg University Occupational activities have varied from sailor, factory worker, industrial engineer, plant manager and personnel director to teacher and researcher at various academic institutions in Europe

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McGraw-Hill, New York 1997 New edition in press 2004 (Hofstede & Hofstede) Translated into Bulgarian, Chinese, Czech, Danish, Dutch, Finnish, French, German, Japanese, Korean, Norwegian, Polish, Portuguese, Romanian, Spanish, Swedish Older book in Italian New edition forthcoming in Russian Website www.geerthofstede.nl

Hofstede Cultural Framework:

Hofstede Cultural Framework

What is Culture?:

What is Culture? A system of learned values and norms shared among a group of people and, when taken together, constitute a design for living.

Values:

Values Abstract ideas about the good , the right , the desirable Like evil-good, abnormal-normal, dangerous-safe, dirty-clean, immoral-moral, indecent-decent, unnatural-natural, paradoxical-logical, ugly-beautiful, irrational-rational

Norms:

Norms Social rules and guidelines; determine appropriate behavior in specific situations Folkways: norms of little moral significance dress code; table manners; timeliness Mores: norms central to functioning of social life bring serious retribution: thievery, adultery, alcohol

Definitions of Culture:

Definitions of Culture is… the unwritten rules of the social game Culture is the collective programming of the mind, which distinguishes the members of one human group from another (Hofstede, 1980).

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Why is knowledge of culture important in today’s organisation? "The world was my oyster, but I used the wrong fork.” Oscar Wilde

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Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster."     Prof. Geert Hofstede, Emeritus Professor, Maastricht University .

Culture Shock Cycle:

Culture Shock Cycle 15-6

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V-for victory in US is obscene in some European countries

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English-speaking: OK France: zero, nothing, worthless Japan: money Brazil & Germany: vulgar, obscene gesture

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Fingers crossed: Europe: good luck, protection Paraguay: offensive gesture

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Thumbs up: Australia: rude gesture Most of the world: okay

Different connotations in different cultures:

Different connotations in different cultures Sacred colors Green and blue in Arabic countries Yellow in Buddhist countries Colors of mourning: black / white / purple / saffron... Warning indicators: yellow / red

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The way to deal with diversity is not to deny it or ignore it, but to learn about differences so they don’t impair communication

Hofstede’s IBM study :

Hofstede’s IBM study Geerte Hofstede was a staff psychologist at IBM International Business Machines Corporation . He conducted a global survey of IBM WORK force & set forward a questionnaire to 160000 IBM managers across more than 70 countries. Resultant database was & is a gold mine for people who study cultures. He found four fundamental differences in national style

Hofstede’s Four Dimensions:

Hofstede’s Four Dimensions Power Distance Individualism Masculinity Uncertainty Avoidance

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individualism versus collectivism large versus small power distance masculinity versus femininity strong versus weak uncertainty avoidance

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POWER DISTANCE Small Large

Power Distance:

Power Distance “...the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.”

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Power distance focuses on the degree of equality or inequality between people in the country or society or the extent to which power inequality is accepted.

Power Distance:

Power Distance High Power Distance cultures believe that the more powerful people must be deferred to and not argued with, especially in public Based on gender, age, seniority, position Inequalities of power and wealth have been allowed to grow within the society. Latin American and Arab nations are ranked the highest in this category.

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Low Power Distance cultures believe people are equal. The society de-emphasizes the differences between citizen's power and wealth. In these societies equality and opportunity for everyone is stressed. Scandinavian and Germanic speaking countries the least.

Power Distance at Work:

Power Distance at Work Hierarchy Centralization Salary range Participation Privilege & status symbols

Power Distance Index (PDI) :

Power Distance Index (PDI) Focuses on the degree of equality, or inequality, between people in the country's society. Measures a culture’s acceptance of the inequality or distance between leadership and less power full.

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Wide salary range Taller organization structure Strict obedience is in practice Employees accept that superiors have more power tan they have & seldom by-pass chain of command. Employees are seen as frequently afraid of disagreeing with their bosses Privileges and status symbols for managers are both expected and popular Centralization is popular

Power Distance : Low:

Power Distance : Low Superiors & subordinates are regarded as one Flatter organization structure Employees are not seen as very afraid and bosses are not often autocratic or paternalistic . Hierarchy in organizations means an inequality of roles, established for convenience

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Consultative relationship between boss and employees . There is less dependence on a superior and more interdependence . Subordinates will readily approach and contradict their boss. Decentralisation is popular, narrow salary ranges , consultation, democratic bosses, and limited privilege and status symbols are emphasized.

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Femininity Masculinity

Gender:

Gender Gender focuses on the degree of traditional gender role of achievement, control, and power. ‘ a situation in which the dominant values in society are success, money & things.’

Masculinity:

Masculinity Masculine roles assertiveness competition Toughness Masculine societies: social gender roles are distinct (men focus on material success; women on quality of life)

Femininity:

Femininity Feminine societies: social gender roles overlap (both quality of life) Feminine roles home and children people family

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A High Masculinity ranking indicates the country experiences a high degree of gender differentiation. Men are supposed to be assertive, ambitious, and tough; women tender and take care of relationships. Males fight back when attacked - females shouldn't. . Japan is considered by Hofstede to be the most "masculine" culture, A Low Masculinity ranking indicates the country has a low level of differentiation and discrimination between genders. Sweden the most "feminine."

Masculinity / Femininity:

Masculinity / Femininity Centrality of work Ways of managing & decision making Fem: equality, solidarity, quality of work life Mas: equity, compete, performance Conflict resolution

Masculinity : High:

Masculinity : High Male dominate a significant portion of the power structure. Great importance on earning, recognition, advancement & challenge Independent decision making is encouraged Achievement is defined in terms of wealth Career is defined as most important

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Emphasis on striving to be the best and failure is regarded as a disaster. Managers are decisive and assertive, stress is on competition and performance . Conflict is resolved by fighting them out.

Masculinity : low:

Masculinity : low Great importance on co-operation, friendly atmosphere & employment security. Group decisions are encouraged Managers use intuition and strive for consensus, stress quality of work life, and resolve conflict by compromise and negotiation. Dominant values are caring for others and preservation, people and relationships are important, everyone should be modes Low level of discrimination & differentiation between genders.

Masculinity vs. Femininity:

Masculinity vs. Femininity

Masculinity vs. Femininity:

Masculinity vs. Femininity

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INDIVIDUALISM Individualist Collectivist

Identity:

Identity Identity focuses on the degree the society reinforces individual or collective achievement and interpersonal relationships.

Collectivism:

Collectivism Collectivist societies: people integrated into strong, cohesive groups; protection is exchanged for loyalty These cultures reinforce extended families and collectives where everyone takes responsibility for fellow members of their group. Harmony and consensus are ultimate goals

Individualism :

Individualism Individualist societies: ties are loose and everyone looks out for himself or herself Individualist cultures are expected to act according to their own interest, and work should be organised in such a way that this self-interest and the employer’s interest coincide. individual freedom prevails over. U.S.A. is one of the most individualistic cultures.

Individualism / Collectivism:

Individualism / Collectivism Employee-employer relationship Hiring and promotion decisions Managerial focus Task vs. relationship priority

Individualism: at work:

Individualism: at work Individual decisions are valued more than group decision. Individual have the right to differ from majority opinion. Promotion is on merit & performance. Tasks take precedence over relationship. Emphasize individual rights & goals “I” instead of “We”.

Collectivism : at work:

Collectivism : at work In a collectivist culture, an employer never hires just an individual, but a person who belongs to an in-group. The employee will act according to the interest of this in-group, which may not always coincide with his or her individual interest

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Promotion & advancement are based on seniority & loyalty. Relations prevail over tasks

Individualism vs. Collectivism:

Individualism vs. Collectivism

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HIGH Uncertainty Avoidance Low

Uncertainty:

Uncertainty Uncertainty focuses on the level of avoidance or tolerance for uncertainty and ambiguity within the society.

Uncertainty Avoidance:

Uncertainty Avoidance “…the extent to which the members of a culture feel threatened by uncertain or unknown situations.” Presence of rules

Uncertainty avoidance : High:

Uncertainty avoidance : High Hofstede described uncertainty avoiding societies are a society where there are many formal laws and informal rules. There is a high need of security. This creates a rule-oriented society that institutes laws, rules, regulations, and controls in order to reduce the amount of uncertainty Japan rank the highest in this category

Uncertainty avoidance: Low:

Uncertainty avoidance: Low Societies have more tolerance for a variety of opinions, less rule-oriented, more readily accepts change. Societies are characterized by feelings that life is a continuous fight against threat, high anxiety and stress, acceptance of familiar risk but not of ambiguous situations.

Uncertainty Avoidance:

Uncertainty Avoidance Necessity of rules Time orientation Precision & punctuality Interpretation of “What is different…” Appropriateness of emotional displays

High Uncertainty Avoidance: at Work:

High Uncertainty Avoidance: at Work High premium on job security Career Planning Insurance & retirement benefits Clear rules & regulations are welcomed. Managers prefer reduction of conflict , man precise instructions, detailed job descriptions to deal with job complexity, and avoidance of multiple bosses.

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Structure oriented organizations. Prefer strong codes of behavior & management practices. Tolerate less deviation from them

Low Uncertainty Avoidance: at Work:

Low Uncertainty Avoidance: at Work Entrepreneurial, innovation Exhibit less resistance to change More risk taking managers Managers empower team members and delegate authority, rather than direct and control team decisions.

High Uncertainty Avoidance:

High Uncertainty Avoidance

Low Uncertainty Avoidance:

Low Uncertainty Avoidance

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SMALL PD, WEAK UA LARGE PD , WEAK UA SMALL PD , STRONG UA LARGE PD, STRONG UA NORDIC COUNTRIES ANGLO CTRS, USA NETHERLANDS GERMAN SPK CTRS HUNGARY ISRAEL CHINA INDIA LATIN COUNTRIES MALTA, MUSLIM CTRS JAPAN, KOREA EASTERN EUROPE

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COLLECTIVIST,FEMININE COLLECTIVIST , MASCULINE INDIVIDUALIST , FEMININE INDIVIDUALIST,MASCULINE THAILAND, KOREA COSTA RICA, CHILE RUSSIA, BULGARIA PORTUGAL, SPAIN CHINA, JAPAN MEXICO, VENEZUELA ARAB WORLD GREECE MALTA FRANCE NETHERLANDS NORDIC COUNTRIES CZECHIA, HUNGARY POLAND, ITALY GERMAN SPK CTRIES ANGLO COUNTRIES, USA

Matrix: Power Distance/Individualism:

Matrix: Power Distance/Individualism Individualism Power Distance Great Britain USA Canada Germany Austria Sweden Spain France Italy China Japan Mexico

Matrix: Power Distance/Uncertainty Avoidance :

Matrix: Power Distance/Uncertainty Avoidance Uncertainty-Avoidance Power Distance Germany Austria Sweden Great Britain USA Canada France Belgium Italy Spain Greece

Are these maps still valid?:

Are these maps still valid? Geert Hofstede, data collection ‘68-’72 Opinion survey with IBM, all level analysised 150 questions e.g. ‘How important is it to you to work with people who co-operate well with one another?’

Limitations of Hofstede’s IBM study:

Limitations of Hofstede’s IBM study Robinson (1983); Sorge (1983); Korman (1985) Limitation of gathering data from employee of a single organization Warner (1981); Lowe (1981); Baumgartel and Hill (1982) The dimensions developed from Hofstede’s analysis may be artifacts of the period in which the surveys were conducted. Smucker (1982); Schooler (1983) Validity of inferring values from attitude surveys alone

Limitations:

Single organization. It assumes that national territory & limits of culture correspond. It is not so in case of smaller country & in case of bigger country as there are sub cultures. Over lapping of some dimensions. Limitations

Confirmation of Hofstede’s IBM study:

Confirmation of Hofstede’s IBM study Despite all the limitation, Hofstede’s work is widely acknowledged. No other study compares so many national culture in so much detail.

Europe (collectivist to individualist) :

Europe ( collectivist to individualist )

Europe (small power distance to large power distance) :

Europe ( small power distance to large power distance )

Europe (feminine to masculine):

Europe ( feminine to masculine )

Europe UA (uncertainty tolerant to uncertainty avoiding):

Europe UA ( uncertainty tolerant to uncertainty avoiding )

Time:

Time Time focuses on the degree the society embraces long- or short-term devotion to traditional forward thinking values.

Long term orientation:

Long term orientation The ‘newest’ dimension three universal dimensions and two fourth dimensions Truth vs. Virtue: What one believes vs. What one does

Confucian Dynamism:

Confucian Dynamism Short-term orientation Social pressure to ‘keep up with the Joneses’ small savings expect quick results concern with possessing Truth Long-term orientation Thrift: being sparing with resources large savings perseverance toward slow results concern with respecting the demands of Virtue

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Low Long-Term Orientation ranking indicates the country does not reinforce the concept of long-term, traditional orientation. In this culture, change can occur more rapidly as long-term traditions and commitments do not become impediments to change. Short-term orientation cultures tend to respect social and status obligations regardless of cost (“keeping up with the Joneses”) and low levels of savings

High Long-Term Orientation:

High Long-Term Orientation the country prescribes to the values of long-term commitments and respect for tradition. This is thought to support a strong work ethic where long-term rewards are expected as a result of today's hard work. However, business may take longer to develop in this society, particularly for an "outsider". the country prescribes to the values of long-term commitments and respect for tradition. This is thought to support a strong work ethic where long-term rewards are expected as a result of today's hard work. However, business may take longer to develop in this society, particularly for an "outsider".

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LONG TERM ORIENTATION CHINA JAPAN KOREA BRAZIL INDIA NETHERLANDS NORDIC COUNTRIES FRANCE GERMANY USA BRITAIN AFRICAN COUNTRIES MUSLIM COUNTRIES SHORT TERM ORIENTATION

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Long-Term Orientation Core value : long-term benefits Core distinction : serve goals/not Key element : thrift and saving are good Short-Term Orientation   Core value : saving face Core distinction : proper or not Key element : quick results are expected

World LTO (short term to long term oriented):

World LTO ( short term to long term oriented )

Implications of dimensions -:

Implications of dimensions - Power Distance large: more perceived corruption Uncertainty Avoidance strong: stress on law and order Individualist, not collectivist: higher Human Rights rating Feminine, not masculine: higher welfare budgets Long term, not short term orientation: higher savings rates

Values:

Values Values are strong emotions with a minus and a plus pole Like evil - good , abnormal - normal , dangerous - safe , dirty - clean , immoral - moral , indecent - decent , unnatural - natural , paradoxical - logical , ugly - beautiful , irrational - rational Values are learned before age 10 and often unconscious

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Masculinity Male achievement reinforces masculine assertiveness and competition; female care reinforces feminine nurturance, a concern for relationships and for the living environment. (Hofstede, 1997, p. 81). Femininity traits also show up in the commitment of management to train the workforce and not just focus on learning by experience. ( Burden and Proctor , 2000)

DIVERSITY AMONG GLOBAL CULTURES Hofstede’s Five Value Differences:

DIVERSITY AMONG GLOBAL CULTURES Hofstede’s Five Value Differences

DIVERSITY AMONG GLOBAL CULTURES Project Globe:

DIVERSITY AMONG GLOBAL CULTURES Project Globe

The Individualism vs. Collectivism Dimension:

The Individualism vs. Collectivism Dimension

The Power Distance Dimension:

The Power Distance Dimension

The Uncertainty Avoidance Dimension:

The Uncertainty Avoidance Dimension

Examples of Hofstede’s Cultural Dimensions:

Examples of Hofstede’s Cultural Dimensions a A weak quantity-of-life score is equivalent to a high quality-of-life score.

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