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by Margaret Treanor
24.06.13 1
Culture Defined
“Culture is the collective programming of the human mind that
distinguishes the members of one human group from those of
another. Culture in this sense is a system of collectively held values.”
• Geert Hofstede

“Culture is the deeper level of basic assumptions and beliefs that are
shared by members of an organization, that operate unconsciously
and define in a basic ‘taken for granted’ fashion an organization's
view of its self and its environment.”
• Edgar Schein


24.06.13 2
Why is Culture Important?

Impacts the way strategic moves are presented

Influences management, decision making, negotiations

Culture makes international business difficult or easy
24.06.13 3
Main Features of Culture:

Culture is shared

Culture is intangible

Culture is confirmed by others
24.06.13 4
24.06.13 5

Cultural Etiquette – the manners and behaviours that
are expected in a given situation

Cultural Stereotypes – our beliefs about others, their
attitudes & behaviours

Ethnocentrism – looking at the world from a
perspective shaped by our own culture

Relativism - all cultures are good/ cultural sensitivity
Hofstede's Cultural Dimensions
Prof. Gert Hofstede
Born: October 2, 1928, Haarlem, Netherlands
Education: Delft University of Technology,
University of Groningen

Conducted a comprehensive study of how values in the workplace are
influenced by culture.

Analyzed a large data of employee values scores collected by IBM (1967 –
1973)

Developed a model that identifies 4 primary dimensions to assist in
differentiating cultures:

Power/Distance, Uncertainty Avoidance, Individualism, Masculinity

A fifth was added later:

Long-term Orientation
24.06.13 6
Hofstede‘s Cultural Dimensions
•Individualism / Collectivism
•Masculinity / Femininity
•Power / Distance
•Uncertainty / Avoidance
•Long-term Orientation
24.06.13 7
Individualism /
Collectivsim (IDV)
Individualism

'I' consciousness

Private opinions

Fulfil obligations to self

Penalty applies loss of
self-respect & guilt
Collectivism

'We consciousness

Relationships have priority
over tasks

Fulfil obligations to family,
in-group,society

Penalty implies loss of
'face' and shame
24.06.13 8
Masculinity /
Femininity (MAS)Low Masculinity

Quality of life, serving
others

Striving for consensus

Work in order to live

Small and slow are
beautiful

Sympathy for the
unfortunate

Intuition
High Masculinity

Performance, ambition, a
need to excel

Tendancy to polarise

Live in order to work

Big and fast are beautiful

Admiration for the
successful achiever

Decisiveness
24.06.13 9
Power / Distance (PDI)
Low Characteristics

Low dependence needs

Inequality minimised

Hierarchy for convenience

Superiors accessible

All should have equal
rights

Change by evolution
High Characteristics

High dependance

Inequality accepted

Hierarchy needed

Superiors often
inaccessible

Power holders have
privileges

Change by revolution
24.06.13 10
Uncertainty
Avoidance (UAI)Low Characteristics

Relaxed, less stress

Hard work is not a virtue
per se

Emotions not shown

Conflict and competition
seen as fair play

Acceptance of dissent

Flexibility

Less need for rules
High Characteristics

Anxiety, greater stress

Inner urge to work hard

Showing of emotions
accepted

Conflict is threatening

Need for agreement

Need to avoid failure

Need for laws and rules
24.06.13 11
Long-Term
OrientationLow Characteristics

Absolute truth

Conventional/traditional

Concern for stability

Quick results expected
High Characteristics

Many truths

Pragmatic

Acceptance of change

Perseverance
24.06.13 12
‫شكرا‬
Danke
Merci Gracias
Grazie
Dank Je
谢谢спасибо
Dziękuję
Obrigada
Kiitos
k メルシー
Tesekür Ederim
Tessé
Thank You
Mul umescţ
Děkuji
Tack24.06.13 13

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Intercultural Understanding using Hofstede

  • 2. Culture Defined “Culture is the collective programming of the human mind that distinguishes the members of one human group from those of another. Culture in this sense is a system of collectively held values.” • Geert Hofstede  “Culture is the deeper level of basic assumptions and beliefs that are shared by members of an organization, that operate unconsciously and define in a basic ‘taken for granted’ fashion an organization's view of its self and its environment.” • Edgar Schein   24.06.13 2
  • 3. Why is Culture Important?  Impacts the way strategic moves are presented  Influences management, decision making, negotiations  Culture makes international business difficult or easy 24.06.13 3
  • 4. Main Features of Culture:  Culture is shared  Culture is intangible  Culture is confirmed by others 24.06.13 4
  • 5. 24.06.13 5  Cultural Etiquette – the manners and behaviours that are expected in a given situation  Cultural Stereotypes – our beliefs about others, their attitudes & behaviours  Ethnocentrism – looking at the world from a perspective shaped by our own culture  Relativism - all cultures are good/ cultural sensitivity
  • 6. Hofstede's Cultural Dimensions Prof. Gert Hofstede Born: October 2, 1928, Haarlem, Netherlands Education: Delft University of Technology, University of Groningen  Conducted a comprehensive study of how values in the workplace are influenced by culture.  Analyzed a large data of employee values scores collected by IBM (1967 – 1973)  Developed a model that identifies 4 primary dimensions to assist in differentiating cultures:  Power/Distance, Uncertainty Avoidance, Individualism, Masculinity  A fifth was added later:  Long-term Orientation 24.06.13 6
  • 7. Hofstede‘s Cultural Dimensions •Individualism / Collectivism •Masculinity / Femininity •Power / Distance •Uncertainty / Avoidance •Long-term Orientation 24.06.13 7
  • 8. Individualism / Collectivsim (IDV) Individualism  'I' consciousness  Private opinions  Fulfil obligations to self  Penalty applies loss of self-respect & guilt Collectivism  'We consciousness  Relationships have priority over tasks  Fulfil obligations to family, in-group,society  Penalty implies loss of 'face' and shame 24.06.13 8
  • 9. Masculinity / Femininity (MAS)Low Masculinity  Quality of life, serving others  Striving for consensus  Work in order to live  Small and slow are beautiful  Sympathy for the unfortunate  Intuition High Masculinity  Performance, ambition, a need to excel  Tendancy to polarise  Live in order to work  Big and fast are beautiful  Admiration for the successful achiever  Decisiveness 24.06.13 9
  • 10. Power / Distance (PDI) Low Characteristics  Low dependence needs  Inequality minimised  Hierarchy for convenience  Superiors accessible  All should have equal rights  Change by evolution High Characteristics  High dependance  Inequality accepted  Hierarchy needed  Superiors often inaccessible  Power holders have privileges  Change by revolution 24.06.13 10
  • 11. Uncertainty Avoidance (UAI)Low Characteristics  Relaxed, less stress  Hard work is not a virtue per se  Emotions not shown  Conflict and competition seen as fair play  Acceptance of dissent  Flexibility  Less need for rules High Characteristics  Anxiety, greater stress  Inner urge to work hard  Showing of emotions accepted  Conflict is threatening  Need for agreement  Need to avoid failure  Need for laws and rules 24.06.13 11
  • 12. Long-Term OrientationLow Characteristics  Absolute truth  Conventional/traditional  Concern for stability  Quick results expected High Characteristics  Many truths  Pragmatic  Acceptance of change  Perseverance 24.06.13 12
  • 13. ‫شكرا‬ Danke Merci Gracias Grazie Dank Je 谢谢спасибо Dziękuję Obrigada Kiitos k メルシー Tesekür Ederim Tessé Thank You Mul umescţ Děkuji Tack24.06.13 13