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Compare and contrast Hofstede's cultural dimensions of Australia and China.

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Mismanaging cultural differences can render otherwise successful managers and organisations ineffective when working across cultures. As stated byOsland (1990, p. 4) ``The single greatest barrier to business success is the one erected by culture''. Hofstede (1983) defines culture as "the mental programming of the mind which distinguishes the members of one human group from another" (Hofstede 1983 p. 25). Through the comparison of Chinese culture and Australian culture using Hofstedes five cross-cultural dimensions: power distance, uncertainty avoidance, masculinity, individualism, and long-term orientation an insightful view into the differences and similarities of the cultures can be obtained (Chong & Park 2003). Human Resource Management …show more content…

Performance appraisals generally involve two-way communications which is not embraced by Chinese culture as the large power distance found in China indicated that to challenge authority of superiors is not considered appropriate for subordinates (Huo 1995). Therefore when conducting a performance appraisal in China it is expected that the evaluated will be more subjective. A straight forward form of appraisal would be better received and employee participation should not be forced.

Of significant interest is Australia's high individualism ranking of 90 (ITIM International 2003) . High Individualism implies a society believes that people should largely remain independent from groups, and that people should have a self-concept of being an independent individual rather than a dependent member of a group(Harrison 1995). In comparison China ranked extremely low with a score of 20 in the individualism ranking (ITIM International 2003). This is as a result of the society fosters strong relationships where everyone takes responsibility for fellow members of their group with an emphasis on a Collectivist society as a result of the Communist rule (Hofstede 1980). As a result of the different stance of each culture on individualism human resource activities such as compensations and benefits will need to be approached in a different way. In Australian rewards are geared towards pay for performance which motivates the individual to stand out

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