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
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3. Why is Culture Important?
Impacts the way strategic moves are presented
Influences management, decision making, negotiations
Culture makes international business difficult or easy
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4. Main Features of Culture:
Culture is shared
Culture is intangible
Culture is confirmed by others
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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
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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
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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
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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
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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
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