Seven Dimensions of Culture by Hofstede - Essay Example

Seven Dimensions of Culture (Hofstede) By Seven Dimensions of Culture Introduction Greet Hofstede defined five scopes of culture in relation to business. The scope of these cultures is applicable at an international outlook. They are derived from the comparison of work cultures and its variation throughout the nations of the world. These dimensions have been applied in several states; India, Japan, Brazil and USA are the four examples that this article will focus on. Culture is one intangible factor that has set distinct traits between groups of people globally. It can be defined as the joint encoding of the mind which discriminates the associates of one individual group to another.1 Cultures tend to change over time and become more tolerant of other cultures.3 they also tend to become more similar if they repeatedly inter-mingle (Cultural Convergence Theory) two this argument is based on the effects of external influences on culture and how they tend to mould cultures over time. It is through globalization that cultures have interacted and attained a middle ground of coexistence.3 The Seven Scopes of Culture These seven scopes are Power Distance (PDI) that is the level to which people conform to the reality that the power is not equally shared in a society, Individualism (IDV) the degree to which one is self-disciplined holds more value than being in a group of persons who look after their own in exchange for allegiance, Masculinity (MAS) the level of competition between masculinity and femininity, Uncertainty Avoidance (UAI) the extent that individuals go to in order to elude uncertainty, Long Term Orientation (LTO) the level of inclination towards achieving long term goals, Indulgence- Restraint and Flexhumity. These seven scopes have diverse impacts on different ethos. As a manager in the workplace, one needs to take into account the global cultural diversity and, therefore, be keen in determining the method of approach in managing the personnel. Globalization tends to bring the whole world under one culture; this should not be a reason to ignore the significance of culture in the corporate field. These dimensions play a role in the recruiting of new personnel to the setting of business goals and the training and appraisal of the team. In the setting of corporate targets, the team should be involved in the process so as to increase insight. This would, however, be frowned upon in countries like the UK and USA which have an inclined view to masculinity. Negotiating business targets so as to house the general opinion is an occurrence that is unacceptable in a country like Belgium where a dictatorial management style is common. The power distance aspect applies to the training of personnel. In the ethos with a low power margin, the learning is more interactive than in those with a high power margin. In the high power distance cultures, the interactive segment is viewed as questioning the instructor and, therefore, the student-centred approach is not applied. This also relates to the work area. In the event of providing feedback to the corporate management, being direct and frank may be seen as the right way of approach but in high power distance setting this notion is perceived as insensitive. In awarding of bonuses, and raises as a form of motivation, is culture dependent. In a masculine oriented culture, it may prove to be successful but in a feminine one it may be perceived to be pretty. In other cultures, group incentives are more effective than personal appraisals. Power Margin Index The power margin index is a measure of the level of reception in the indigenous and global community that inequality exists in the humanity. In countries that this phenomenon has been accepted, a system of hierarchy has been put in place. However, the society still indiscreetly tries to achieve equality despite the general acceptance.4 In the realisation of the average world Power Distance Index, Japan has made significant strides to this cause. This is in the light of her political trend in the last two decades where there have been 14 prime ministers who have served the country.5 the new trend in the country promotes the questioning of those in authority. This tendency has become more universal in recent times. The party that rose to power in the 2009 elections made major changes in eradicating bureaucracy. Japan has drawn this inspiration from the US and has made strides that threaten to surpass her mentor in the realization of this objective.5 In India and Brazil the approach is more hierarchical in comparison to European countries. This system is reflected in the countries enactment of safety regulation policies. These strict regulations, though, have not made their roads any safer than those in the European countries. It is an approach that the local population has not come into terms with due to its dictatorial nature.6 Individualism vs. Collectivism In certain cultures, an individual is responsible for their destiny and it is their self-discipline and motivation that shape their future. However, for a collective culture, there is a group mentality where each person contributes to the group; it is a moral obligation that one cannot set themselves apart from.7 individualistic cultures rely less on the social network. Taking the employment scene, for example, the personnel tend to focus on the goals set to them by the employer in the individualistic methodology but in the collective stance, the focus by the team is on business goals. The company targets are, therefore, approached at a team level. Japan had a collective stance in this dimension in the late 20th century because she had a huge employment gap to fill at the time and this made jobs easy to come by.5With recent developments, however, this state of employment has had a turnover. Blue collar workers have become temporary workers as the white collar personnel lose their jobs because of the overstaffed administration system.8 The inverse of this is taking place on the American soil. The USA had an individualistic approach in building of the economy but in recent times a communal approach has been adopted. This is reflected in her social security structure and welfare groups. Employees are forming and joining unions to help them push for their agenda. The same is trending in learning establishments.9 From this observation, it is evident that both approaches lead to the other as each country tries to find a middle ground in this dimension. From Hofstedes research, the productivity of disabled individuals was deemed higher in regions with an individualistic approach (Hofstede, 2010: 116) This is solely because they grow up to be self-dependent unlike in the collective approach where communal support is expected. Femininity vs. Masculinity In cultures that focus on masculinity, boldness and value achievement are a measure of success while, in the feminine structures, the focus is on empathy for the less fortunate.7 from Hofstedes research, Japan is at the top in the use of the Masculinity dimension. In 1986, women got the breakthrough they deserved (elimination of legal barriers) and this increased the aggregate number of women in the workplace. This change also took place in the US but at an earlier time. Men and women are competing on an equal basis for the same positions. This development towards femininity is increasing with time and is an international trend.10 Uncertainty Avoidance (UAI). This dimension revolves around the minimization of ambiguity. The set guidelines or laws are strictly followed in some countries with the sole purpose of avoiding uncertainty. The countries that adhere to this have a low uncertainty avoidance index.10 Japan is one such case but with the recent occurrence of manufacturers leaving the country, job security has become an issue. The reduction in job opportunities has led to job seekers taking entrepreneurial ventures that are more uncertain. This has consequently resulted to increased uncertainty avoidance index. Japan in this instance is becoming more like the US. The same applies to Brazil that has the highest uncertainty index as it has set up many laws to regulate business risks. This is so because Brazil records the highest number of Law schools. India has relatively the same stance, but their laws are not formalized. The decline in the stock market in the US and the 2007-2009 recession, have led to low uncertainty avoidance index. Entrepreneurs are thus seeking safer investments. The growth of other competitive markets is another reason that warrants the US to take a cautious stand.11 Long-term Orientation (LTO). It refers to the level of inclination towards realizing long term goals, as divergent to short term goals. In the modernized world, the long-term orientation is a more realistic approach in the setting of business targets. Japan is an illustration of an LTO society. This can be attributed to the high life expectancy of its working class. This tendency, however, has been on the turn down for the past fifteen years. In other parts of the world, the population of the elderly does not seem to warrant the application of the LTO dimension. There are more populaces in Japan involved with the upkeep of the aged than anywhere else in the world.12 this is an unappealing eventuality that has led to the working class in Japan shifting from the LTO to the Short-term Orientation. The US has shifted from the Short-term Orientation to the Long-term Orientation with the current shift of economic prowess to the East.12 eventually the US will have a higher LPO than Japan. Indulgence- Restraint Indulgence in material wealth is perceived in a different way in different regions. In a country like Japan, the government encourages the retirees to channel their savings into household essentials like social security.7 on the contrary; it is a norm of life to extravagantly spend on luxuries in the US. This is one dimension that has no cultural roots in the US. In Japan, the restraint culture is being promoted. Monumentalism – Flexhumity The flex-humility culture is rooted in Japans culture. They characterize accomplishment with peripheral factors and failure to internal influences. This is the one dimension that Japan has culturally remained true too. It is evident in the present time with their hiring of outside corporate leaders to turn around sinking companies; for example Nissan. As much as these managers have to adapt to Japans corporate culture first, they are patient and confident that the external leaders are the key to solving their corporate commercial issues.10 The US has a divergent outlook on the same. Success is credited to personal dexterity while failure is a result of low effort input. Monumentalism also has no roots in the US corporate culture patterns.10 The Global Solution The main problem that managers in new regions are faced with is that of culture. They come in with their indigenous culture and they try to apply it in their current situations. Taking the example of USA and Japan; an effective manager may be transferred from the company base in the US to transform a similar establishment in Japan and they fail to do so. In such circumstances, it is not a matter of competence but that of ethos. The manager should, therefore, study Japans corporate culture and adapt to it since each culture adopts a different ideal. Each culture comes with its own partiality and corporate leaders should understand this. They also need to accept their own predisposition which is forged by their indigenous culture. Market globalization can be achieved only if the key players understand the role that culture plays in the corporate world. References List 1. House, R et al 2002. Understanding cultures and implicit leadership theories across the globe: An introduction to project GLOBE. Journal of World Business, 37, 3–10. 2. Barkema, H et al 1997. What Differences in the Cultural Backgrounds of Partners are Detrimental for International Joint Ventures? Journal of International Business Studies, 28, 845–864. 3. Axelrod, R 1997. The Dissemination of Culture: A Model with Local Convergence and Global Polarization. Journal of Conflict Resolution, 41, 203–226. 4. Luthans, F et al 1993. What do Russian Managers Really Do? Journal of International Business Studies, 24 (4), 741-762. 5. 20th Nov.2010s. Into the Unknown: A special report on Japan. Economist. P.1–16. 6. Comparison of Europe-India-Brazil on Hofstede’s 4 cultural Dimensions, Safer Brain 7. Luthans F. et al 2012. International Management: Culture, Strategy, and Behaviour, International edition. New York: McGraw-Hill. 8. Schlender, B 1994. Japans white collar blues. Fortune, 129, 97 9. Townsend A. et al (1998). Virtual teams: Technology and the workplace of the future. Academy of Management Perspectives, 12(3), 17–29. 10. Erich B. et al. American Journal of Management vol.12 (1) 11. Telegram & Gazette. (29th Dec. 2010). Whats next: Boomers face changed landscape. A7. 12. World Economic and Social Survey. (2007). New York Read More