Culture - Hofstede

Definition

Culture is a central concept in anthropology and can be defined as the social behaviour and norms found in human societies

Globalisation - important to understand different cultures to improve international business and client relations

Multifaceted concept - different types: geographic culture (driven by history, politics etc) organisational culture (driven by geo culture, objectives, values, norms etc)

Hofstede

Purpose understanding of business situations across cultures

Studied IBM employees from 40 different offices located in different geographical regions over c.10 years - important as organisational culture is the same

Hofstede's cultural dimension theory describes the effects of a society's culture on the values of its members, and how these values relate to behaviour

Identified four dimensions - power distance, uncertainty avoidance, masculinity vs femininity and individualism vs collectivism

Looks at unique aspects of cultures and rates them on a scale for comparison

Power Distance

Expresses the degree to which the less powerful members of a society accept and expect that power is distributed unequally

Equal small power distance

Individualism vs. Collectivism

Whether people prefer a close knit network of people or prefer to be left alone to fend for themselves

Individualism

Masculinity vs. Femininity

Collectivism

The interests of the individual take precedence

Japan

Masculinity

Femininity

Assertiveness, success, competition

Quality of life, maintenance of warm personal relationships, service, care for the weak, solidarity

Uncertainty Avoidance

Preference for cooperation, modesty, quality of life

Represents a preference in society for achievement, heroism, assertiveness and material reward for success

The degree to which the members of a society feel uncomfortable with uncertainty and ambiguity

Low Uncertainty

High Uncertainty

Long Term vs. Short-term Orientation

Long-Term

Tnterpreted as dealing with society's search of virtue

Value dedication, hard work and thrift (the quality of using money and other resources carefully)

Short-Term

The extent to which of a culture adopt a long term or short term outlook on work and life

Strong concern with establishing the absolute truth

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Confucian Dynamism: the extent to which individuals within the culture focus on the short-term and immediate consequences versus take a long-term focus*

Extremely large large power distance

US - think I and We protectionism & Trump

The interests of the group take precedence

people with more nervous energy

rigid society

US

Japan - don't want uncertainty, they want facts

US and Japan are nearly equal when it comes to power distance

USA lower in masculinity vs. femininity scale J

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Understanding will help you to work with and understand people of varying backgrounds and cultures

Hofstede - we are all not the same - different cultures have different views of life and business. They are not right or wrong, just different.

US strive for succeed and thrive on competition

degree to which people in a country prefer to act as individuals rather than groups

degree of need to avoid uncertainty about the future

degree of preference for structured versus unstructured situations

India caste system

Germany - equal - good relations between employers/ees and government

Study involved 100,000