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Andreea Dicu – Carmen Neghina - Alina Oprea - Teodora Vasileva
International Management
Hofstede’s Study on Work Related-Values Concept, Methods, Results, and
Critique
2International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Agenda
Culture defined
Hofstede’s cultural dimensions
Implications for management
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Andreea Dicu – Carmen Neghina - Alina Oprea - Teodora VasilevaInternational Management
Culture Defined
4International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Culture and international business
Why culture is important? Impacts the way strategic moves are presented. Influences management, decision making, negotiations Culture makes international business difficult or easy
5International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Culture
“There are truths on this side of the Pyrenees that are falsehoods on the other”
Blaise Pascal
6International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Globalization
7International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
What is culture?
Main features of culture: Culture is shared Culture is intangible Culture is confirmed by others Culture
Beliefs
ValuesNorms
8International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Levels of culture
National Culture
Business Culture
Organizational and Occupational Culture
9International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Key Cultural Issues
• Cultural Etiquette – the manners and behavior that are expected in a given situation
• Cultural Stereotypes – our beliefs about others, their attitudes and behavior
– Ethnocentrism – looking at the world from a perspective shaped by our own culture
– Relativism – all cultures are good• Cultural sensitivity• Self-reference criteria
10International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Contingency management
1) Determining the problem or goal in terms of home country culture, habits and norms.
2) Determining the same problem or goal in terms of host country culture, habits and norms.
3) Isolating the SRC influence on the problem and how it complicates the issue.
4) Redefining the problem without the SRC influence and solving it according to the specific foreign market situation.
11International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Universal cultural variables
Kinship
Economy
Recreation
Religion
Politics
Education
12International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Universal cultural variables
Kinship
Economy
Recreation
Religion
Politics
Education
13International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Universal cultural variables
Kinship
Economy
Recreation
Religion
Politics
Education
14International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Universal cultural variables
Kinship
Economy
Recreation
Religion
Politics
Education
15International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Universal cultural variables
Kinship
Economy
Recreation
Religion
Politics
Education
16International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Universal cultural variables
Kinship
Economy
Recreation
Religion
Politics
Education
Andreea Dicu – Carmen Neghina - Alina Oprea - Teodora VasilevaInternational Management
Hofstede’s Cultural Dimensions
18International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Hofstede’s Cultural Dimensions
“Culture is more often a source of conflict than of synergy.Cultural differences are a nuisance at best and often adisaster.”
Prof. Geert Hofstede
19International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Hofstede’s Cultural Dimensions
Conducted perhaps the most comprehensive study of how values in the workplace are influenced by culture
Analyzed a large data base of employee values scores collected by IBM (HERMES) 1967 – 1973 more than 50 countries
Developed a model that identifies four primary Dimensions to assist in differentiating cultures:
1) Power distance2) Uncertainty avoidance3) Individualism4) Masculinity
+ Long-term orientation (added later)
Prof. Geert Hofstede
20International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Hofstede’s Cultural Dimensions
Hofstede’s work
21International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
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
22International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Power Distance
High power distance
Inequalities among people should be minimized
Interdependence between less and more powerful people
Hierarchy in organizations means an inequality of roles
Decentralization is popular
Narrow salary range
Subordinated expect to be consulted
The ideal boss is a resourceful democrat
Privileges and status are disapproved
Inequalities among people are both expected and desired
Less powerful people should be depended on the more powerful
Hierarchy in organizations reflects the existential inequality
Centralization is popular
Wide salary range
Subordinated expect to be told what to do
The ideal boss is a benevolent autocrat or good father
Privileges and status are both expected and popular
Low power distance
23International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Power Distance
High
Low
Orie
ntati
on to
war
ds a
utho
rity
MalaysiaArab CountriesMexicoIndiaFranceItalyJapanSpainArgentinaUSGermanyUKDenmarkIsraelAustria
24International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Power Distance
Example
A company from Austria (low power distance) is considering entering the Mexican (high power distance) market.
Austria Mexico0
20
40
60
80
100
11
81
Power Distance Index
25International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Power Distance
Example (cont.)
Communication tips for the Austrian manager:
1) Give clear and explicit directions to those working with him
2) Deadlines should be highlighted and stressed
3) Do not expect subordinates to take initiative
4) Be more authoritarian in his management style
5) Show respect and deference to those higher up the ladder
26International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Uncertainty Avoidance
Uncertainty avoidance – The extent to which members of a
society feel threaten by uncertain or unknown
situations.
27International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Uncertainty Avoidance
Strong uncertainty avoidance
Uncertainty: normal feature of life and each day is accepted as it comes
Low stress – subjective feeling of well-being
Aggression and emotions must not be shown
Comfortable in ambiguous situations and with unfamiliar risk
There should not be more rules than necessary
Precision and punctuality have to be learned
Tolerance to innovation
Motivation by achievement
Uncertainty : continuous threat that must be fought
High stress – subjective feeling of anxiety
Aggression and emotions may be shown at proper times
Fear of ambiguous situations and of unfamiliar risk
Emotional need for rules, even if they never work
Precision and punctuality come naturally
Resistance to innovation
Motivation by security
Weak uncertainty avoidance
28International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Uncertainty Avoidance
High
Low
Desir
e fo
r sta
bilit
y
GreeceJapanFranceKoreaArab CountriesGermanyAustraliaCanadaUSUKIndiaDenmarkSingapore
29International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Uncertainty Avoidance
Example
A company from France (high uncertainty avoidance) is considering investing in Denmark (low uncertainty avoidance)
France Denmark0
20
40
60
80
10086
23
Uncertainty Avoidance Index
30International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Uncertainty Avoidance
Example (cont.)
Communication tips for the French manager:
1) Try to be more flexible or open in his approach to new ideas than he may be
used to
2) Be prepared to push through agreed plans quickly as they would be expected
to be realized as soon as possible
3) Allow employees the autonomy and space to execute their tasks on their own;
only guidelines and resources will be expected of him
31International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Individualism
Individualism – The tendency of people to look after
themselves and their immediate family and neglect the
needs of society
32International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Individualism
High individualism
Individuals learn to think in terms of “we”
High-context communication
Diplomas provide entry to higher status groups
Relationship employer- employee is perceived in moral terms, like a family
Hiring and promotion decisions take employees’ ingroup into account
Management is management of groups
Relationship prevails over task
Individuals learn to think in terms of “I”
Low-context communication
Diplomas increase economic worth and/or self- respect
Relationship employer-employee is a contract based on mutual advantage
Hiring and promotion are supposed to be based on skills and rules only
Management is management of individuals
Task prevails over relationship
Low individualism
33International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Individualism
High
Low
AustraliaUSUKCanadaFranceGermanySpainJapanMexicoItalyKoreaSingapore
34International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Individualism
Example
A company from UK (high individualism) is considering investing in Mexico (low individualism)
UK Mexico0
20
40
60
80
100 96
23
Individualism Index
35International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Individualism
Example (cont.)
Communication tips for the UK manager:
1) Note that individuals have a strong sense of responsibility for their family
2) Remember that praise should be directed to a team rather than individuals
3) Understand that promotions depend upon seniority and experience
4) Be aware that the decision making process will be rather slow, as many
members across the hierarchy need to be consulted
36International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Masculinity
Masculinity – The tendency within a society to emphasize traditional gender roles
37International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Masculinity
High masculinity
Dominant values: caring for others and preservation
People and warm relationships are important
Sympathy for the weak
In family, both fathers and mothers deal with facts and feelings
Stress on equality, solidarity , and quality of work life
Managers use intuition and strive for consensus
Resolution of conflicts by compromise and negotiation
Dominant values: material success and progress
Money and things are important
Sympathy for the strong
In family, fathers deal with facts and mothers with feelings
Stress on equity, competition among colleagues and performance
Managers are expected to be decisive and assertive
Resolution of conflicts by fighting them out
Low masculinity
38International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Masculinity
High
Low
JapanMexicoGermanyUKUSArabiaFranceKoreaPortugalDenmarkSweden
39International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Masculinity
Example
A company from Denmark ( low masculinity) is considering investing in Mexico (high masculinity)
Denmark Mexico0
20
40
60
80
100
8
91M
asculinity Index
40International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Masculinity
Example (cont.)
Communication tips for the Danish manager :
1) Be aware that people will discuss business anytime, even at social gatherings
2) Avoid asking personal questions in business situations
3) Take into account that people are not interested in developing closer friendships
4) Communicate directly, unemotionally and concisely
5) In order to assess others use professional identity, not family or contacts
41International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Long- term orientation
Long- term orientation – A basic orientation towards time that values patience
42International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Long- term orientation
Long-term orientation
Respect for traditions
Little money available for investment
Quick results expected
Respect for social and status obligations regardless of cost
Concern with possessing the Truth
Adaptation of traditions to a modern context
Funds available for investment
Perseverance towards slow results
Respect for social and status obligations within limits
Concern with respecting the demands of Virtue
Short- term orientation
Andreea Dicu – Carmen Neghina - Alina Oprea - Teodora VasilevaInternational Management
Implications
44International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Work Centrality
How important is work?
Japan
Israel
United States
Belgium
Netherlands
Germany
0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8
Work Centrality
45International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
What do people value in work?
Cultural Context
High power distance
High individualism
High uncertainty avoidance
High masculinity
Dominant Work Motivators
Conform to norms and rules
Meet moral obligations to leaders
Autonomy
Challenging work
Advancement
Security
Clear organizational hierarchy
Pay
Training opportunities
Achievement
Example Mexico United States Belgium Japan
46International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Employees and Leaders
Leadership Issue Low Power Distance Medium Power Distance
High Power Distance
Subordinate’s Dependence Needs
Weak dependence on superiors
Moderate dependence on superiors
Heavy dependence on superiors
Consultation Strongly expected as part of superior’s role
Expect consultation, but will accept autocratic leadership
Expect autocratic leadership
Ideal Superior A democrat A moderate democrat An autocratic or a paternalistic father figure
Laws and Rules Apply to superiors and subordinates
Apply to all, but superiors have some privileges
Superiors are above the law and take advantages of privileges
Status Symbols Viewed as not appropriate
Accepted as symbolic of authority
Very important contributions to the authority of superiors
47International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Employees and Leaders
Leadership Issue Low Power Distance Medium Power Distance
High Power Distance
Subordinate’s Dependence Needs
Weak dependence on superiors
Moderate dependence on superiors
Heavy dependence on superiors
Consultation Strongly expected as part of superior’s role
Expect consultation, but will accept autocratic leadership
Expect autocratic leadership
Ideal Superior A democrat A moderate democrat An autocratic or a paternalistic father figure
Laws and Rules Apply to superiors and subordinates
Apply to all, but superiors have some privileges
Superiors are above the law and take advantages of privileges
Status Symbols Viewed as not appropriate
Accepted as symbolic of authority
Very important contributions to the authority of superiors
48International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Leadership Styles
Cultural Context Low PD & low UA
High PD & low UA
Low PD & high UA
High PD & high UA
Leader Type “The Democrat” “The Master” “The Professional”
“The Boss”
Recommended Leadership Styles
Supportive
Participative
Achievement
Directive
Supportive
Directive
Supportive
Participative
Directive
Example Great Britain China Germany France
Pow
er D
istan
ce
Uncertainty Avoidance
49International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Leadership Styles
Cultural Context Low PD & low UA
High PD & low UA
Low PD & high UA
High PD & high UA
Leader Type “The Democrat” “The Master” “The Professional”
“The Boss”
Recommended Leadership Styles
Supportive
Participative
Achievement
Directive
Supportive
Directive
Supportive
Participative
Directive
Example Great Britain China Germany France
Pow
er D
istan
ce
Uncertainty Avoidance
50International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Leadership Styles
Cultural Context Low PD & low UA
High PD & low UA
Low PD & high UA
High PD & high UA
Leader Type “The Democrat” “The Master” “The Professional”
“The Boss”
Recommended Leadership Styles
Supportive
Participative
Achievement
Directive
Supportive
Directive
Supportive
Participative
Directive
Example Great Britain China Germany France
Pow
er D
istan
ce
Uncertainty Avoidance
51International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Leadership Styles
Cultural Context Low PD & low UA
High PD & low UA
Low PD & high UA
High PD & high UA
Leader Type “The Democrat” “The Master” “The Professional”
“The Boss”
Recommended Leadership Styles
Supportive
Participative
Achievement
Directive
Supportive
Directive
Supportive
Participative
Directive
Example Great Britain China Germany France
Pow
er D
istan
ce
Uncertainty Avoidance
52International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Organizational Structures
1. Adhocracy Flat organizational pyramid People can tolerate ambiguity in organizational roles Less need for formalized rules and regulations Distance between management and workers tends to be
small
2. Professional Bureaucracy
3. Full Bureaucracy
4. Family BureaucracyPo
wer
Dist
ance
Uncertainty Avoidance
53International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Organizational Structures
1. Adhocracy
2. Professional Bureaucracy
Standardization of skills Centralized decision making Order and compartmentalization
3. Full Bureaucracy
4. Family Bureaucracy
Pow
er D
istan
ce
Uncertainty Avoidance
54International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Organizational Structures
1. Adhocracy
2. Professional Bureaucracy
3. Full Bureaucracy
The most formalized Organization dominated by rules, procedures and
hierarchical relationships Standardization of the work process Predictability & control
4. Family Bureaucracy Pow
er D
istan
ce
Uncertainty Avoidance
55International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Organizational Structures
1. Adhocracy
2. Professional Bureaucracy
3. Full Bureaucracy
4. Family Bureaucracy
Parallels an extended family: dominant father figure Small Less specialization of roles Control: personal supervision Direct contact Highly centralized decision making Po
wer
Dist
ance
Uncertainty Avoidance
Andreea Dicu – Carmen Neghina - Alina Oprea - Teodora VasilevaInternational Management
Criticism
57International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Criticism
Single company
Time dependent
Business culture, not values culture
Western bias
Non-exhaustive Partial geographic
coverage
Attitudinal rather than behavioral measures
Ecological fallacy
Andreea Dicu – Carmen Neghina - Alina Oprea - Teodora VasilevaInternational Management
58
Discussion Questions
59International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Discussion Questions
1. Do you notice any cultural differences among your classmates? How do those differences affect the class environment and your group projects?
2. Give some examples of cultural differences in the interpretation of body language. What is the role of such nonverbal communication in business relationships?
60International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
Culture defined
Hofstede’s dimensions
Implications
Criticism
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Discussion Questions
1. Do you notice any cultural differences among your classmates? How do those differences affect the class environment and your group projects?
2. Give some examples of cultural differences in the interpretation of body language. What is the role of such nonverbal communication in business relationships?
Andreea Dicu – Carmen Neghina - Alina Oprea - Teodora VasilevaInternational Management
References
62International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva
References
Cullen, J. (2002). Multinational Management, 2nd ed. Ohio: Sounth-Western Thomson Learning.
Deresky, H. (2003). International Management , 4th ed. New Jersey: Prentice Hall.
Harris, P. & Moran, R. (2000). Managing cultural differences. Houston: Gulf Publishing Company.
Hofstede, G. (1982). Culture’s Consequences. International Differences in Work-Related Values. Newbury Park: SAGE Publications.
Hofstede, G. (1997). Cultures and organizations: software of the mind. New York: McGraw Hill.
Intercultural Business Communication. Retrieved March 1, 2008 from Kwintessential Cross Cultural Solutions Website: http://www.kwintessential.co.uk/intercultural-business-communication/tool.php?culture1=17&culture2=17
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Thank you for your attention!