The seven dimensions of culture suggested by Geert Hofstede and his colleagues have many implications for the management of multinational enterprises. Throughout this essay the seven dimensions of culture will be compared and contrasted and the main implications defined. These implications will be justified by appropriate examples. The investigation will examine the four main dimensions followed by the additional created by Hoftede’s colleagues. Why the dimensions were created by focusing on the study of IBM and how they adapted to work in different cultures of the world and the differences Hofstede found. Further discussing how these dimensions were measured against values, which are normally developed by the age of 10. These values stem out to national culture and usually remain set and unchanged. However work set values can be flexible and adapted, IBM strived to change work values and not the set values of their workers. However we will examine how work related values differ in each culture and how multinational enterprises should approach the management of their companies in cultural clusters.
As part of a study conducted between 1963 and 1973, Geert Hofstede sampled nearly 120000 employees and compared over 40 countries and cultures within IBM. He then created a database of employee values scores and analysed these, resulting in the creation of the model to compare cultures. It started off as four dimensions, adding a fifth in 1991 by Minkov and was further extended
Every organization has values and beliefs that define what they do and how they do things in the organization. These values have significant influence on how the employees behaves and the general performance of the organization – it is these set of values and beliefs, rooted deep in the company’s organizational structure that depict the “dos”, “don’t” and the “hows”, of the organization and these unequivocally represents the culture of the organization. This concept became popular in the 1980s when Peters and Waterman in their book: “In search of Excellence” presented the profound argument that, the success of any organization is inextricable linked to the quality of its culture. (Carpenter, M., Taylor, B., Erdogan, B. 2009 p183). The purpose of this paper is an attempt to analyse the impact diverse cultures played in the success of the Lincoln Electric Company.
Every country differs in culture which has been there for centuries. The international market is growing rapidly, with more and more multinational organisations entering new markets each day. In this assignment I will evaluate how the difference in cultures affects the performance of international businesses.
The IBM study of employees from the 70 countries was the basis for the dimensions and has been critized since there was only one company in the data set however, Hofstede’s belief was that using just one company would better reveal the national differences. According to the authors Phatak, Bhagat, and Kashalk (2009), he believed this because the IBM employees were the same in other respects like type of work, job descriptions, and education. This study has been stated to be the most comprehensive study of how values are influenced in the workplace (Itim International, 2012). Itim International, (2012) noted that Hofstede’s work established a paradigm in international economics, communication, and cooperation, from which Hofstede developed the first emphirical model of “dimensions” for national organizational culutre.
Prince George’s Annual Traditional POW Wow is an event put on by the Prince George Friendship Centre, it takes place at the Carrie Jane Gray Park. It is rich in energy and historical popular culture. Hosting the powwow is a way of ensuring the rich heritage of the aboriginal people is preserved. The word Pow Wow, or pau wau, means a gathering of people coming together to trade. Explorers misinterpreted the ceremony of medicine men dancing, thinking all natives gathered to sing and dance in this manner.
I like to think I see the world as a place with many different people who all have something to offer. When reading the article List of the Five Dimensions of Culture & How Each Affect Employee Behavior by Marilyn Lindblad, I agreed with all five dimensions in the article. I have experienced the power distance dimension before in the workplace. I have felt that I am only there to do the work no one else wants to do and my opinion does not matter. I also have experienced the individualism approach in the work place and believe that I am a collectivist employee that is dedicated to the organization that I work for. The company that I currently work for has a feminine culture and truly does care about their employees. I believe everyone
The second approach is constituted by Hofstede, who makes various researches to compare work-related values across employees working for a multinational corporation IBM in a total of 65 countries. Using the information obtained with these researches Hofstede produced a comparison between national cultures on five dimensions:
In multinational workplaces understanding how important the significance of cultural differences is larger than we might think. Organizations that are diverse have to work together because their functionality impacts the productivity of the workplace. It is vital to have an understanding the different cultures to develop a strong organization. Certain principles will help you acknowledge that different cultures exist within the organization. As a manager, you have to analyze the reasons for the development of the differences and
The most famous researcher of prevailing cultures in different countries goes by the name of Geert Hofstede. “He conducted one of the most comprehensive studies of how values in the workplace are influenced by culture” (). With the help of his research team, Professor Geert Hofstede created a model of national culture consisting of six dimensions. “The cultural dimensions represent independent preferences for on state of affairs
Dr. Hofstede performed a comprehensive study of how values in the workplace are influenced by culture. In the 1970’s, as a Dutch researcher Dr. Geert Hofstede, collected and analyzed data from 116,000 surveys taken from IBM employees in forty different countries around the world. From those results, Hofstede developed a model that identifies four primary dimensions of differentiate cultures. These include: Uncertainty Avoidance (UA), Masculinity-Femininity (MAS), Individualism-Collectivism (IND), Power and Distance (PD). After a further study of the Asian culture by researcher Michael Bond in 1991, Hofstede added a fifth dimension in his theory, Long- and Short-term time orientation (LTO), also referred to as the Confucian Dynamism. His research has framed how cultural differences can be used in professional business transactions. Geert Hofstede 's dimensions analysis can assist the business person in better understanding the intercultural differences within regions and between countries.
With the unstoppable trend of globalisation, it becomes extremely significant for international businesses to have a thorough understanding of different cultures. Hofstede (1980, pp. 21-23) defines culture as ‘the collective programming of the mind distinguishing the members of one group or category of people from another’. This essay examines Hofstede’s cultural framework and suggests that Hofstede’s cultural framework is an outstanding and authoritative tool to analyze culture differences. In this essay, cultural frameworks will be discussed firstly, following by a discussion of my cultural scores and background. Finally, recommendations on cross-cultural management between China and Australia will be provided.
Culture and the environment affect a business in many ways. Culture is not simply a different language, a different shade of skin, or different styles of food. Culture, and the environment in which you are a part of, affect the running of day to day business operations of all companies’ day in and day out. This paper will assess how Linda Myers, from the article, “The would-be pioneer,” (Green, S., 2011) was affected by the huge culture shock of working for a global conglomerate from Seoul, South Korea. We will discuss what went wrong with Ms. Myers approach to business, Hofstede’s five dimensions of culture as it
For example, if a company based in the United States were going to expand into France, the company could use Hofstede’s 6 cultural dimensions to get a general look at the differences between the two. Then out of those differences, the company could see what approaches may or may not work, or what they may need to change,
The United States and China boast the two largest economies in the world but, despite this fact, these two countries have very little in common. At first glance, this may seem very obvious to most people but, what exactly is it that makes these two countries so different? How is it that such different perspectives and approaches can both lead to great success? Hofstede’s six dimensions of culture are an attempt to answer these questions and more. Dr. Geert Hofstede, studied employees of the computer firm IBM in over fifty different countries. When he examined his findings he found “clear patterns of similarity and difference along the four dimensions” (Manktelow, Jackson Edwards, Eyre, Cook and Khan, n.d.). The fact that he focused his research on solely IBM employees allowed him to eliminate company culture as a differentiating factor and “attribute those patterns to national and social differences” (n.d.). He used his findings to originally identify four dimensions, later expanded to six, that could “distinguish one culture from another” (n.d.). The six dimensions all on a scale from 0 to 100 are:
In times of rapid globalisation and economic development growth, the environment of business has become more and more complicated as a huge number of firms want to globally expand their businesses. Subsequently, the managerial implications of cross-cultural management is the challenge of this development. As Abbe (2007) states, cross-cultural leadership has developed as a way to understand leaders who work in the global markets. Culture is the “software of mind” that can influence people’s patterns of thinking and behaving.
Understanding the influence of culture in business practices and managerial decision-making requires explaining the differences between cultures. This is why, Hofstede (appendix 1) presents a well-known model based on four dimensions of culture: