Hofstedes Dimensions and How They Can Be Used to Prepare Expatriate Managers - Essay Example

Assignment on Cross Cultural Business Ventures Introduction Ever since man evolved, there have been differences between es, creeds, races and religions. Nonetheless man has had the need to communicate with people with distinct cultures and backgrounds in order to survive. This need of communication has increased over time and now since the world has become a global village, it is impossible and in fact detrimental, to stay disconnected from the rest of the world. The world that we see today holds many distinct cultures in its soil. These cultures are very distinguished from one another yet linked to one another. The culture differentiates one society to another and so cultures bear a very important part of our personalities. Many philosophers have endeavored to give the world their measures of the different components of culture. These components help us in comparing one culture with another (Gevurtz, 2006). One may think why that is important; well this comparison of cultures helps in finding out how distinct or how similar two cultures are. Since the world has become too connected, it is important to have the compatible cultures with linked countries so that businesses and other errands work smoothly. Despite the professionalism and the strict working environment that we see today, business related countries should have cultural compatibility. This helps in understanding each other better and results in better communication. Communication is essential for businesses since it is the sole binding force of all the specialized tasks that take place at different times in different locations for a business. Hofstede’s dimensions for cultural compatibility have been used over time for assessing how similar or how different cultures are. When international business ventures are planned, companies often take the works of researchers like Hofstede and Hall to get an idea if the concerned countries are culturally compatible. If so, it is believed that they are more susceptible to growth and success. Hofstede’s Dimensions and how they can be used to prepare expatriate managers Geert Hofstede’s cultural dimensions have been used to describe national or, better put, popular cultures. Hofstede’s ideas are based on a large scale research project to bridge cultural differences globally and to come up with a global popular culture! It uses data obtained from sixty-four countries. These studies identify five dimensions. These dimensions can be used to analyze how similar or different countries are (Spanogle, 2009). The first dimension is of power distance, second one being individualism, third masculinity, fourth uncertainty avoidance and last one being long term orientation. Power distance index is used to measure the degree to which authority is distributed lopsidedly within an association or a corporate business venture. In accordance with the same, the level of inequality within a society is to be certified by the followers in the same capacity as by the leaders. The analysis of power distance shows significant differences amongst countries. This basically tells businesses how unequally power is distributed. It gives an idea of the chasm that exists between the skilled and the unskilled workers. The second dimension of assessing the popular culture according to Hofstede is individualism. In this, it is compared whether the citizens prefer to look after themselves only, i.e. if they prefer individualism or if they prefer collectivism and like to help others. On the individualistic side, we find businesses in which the ties between employees are loose. Everyone is more concerned about his personal growth and well being and there is no concept of integration in. The third dimension is Masculinity. It deals with the distribution of roles between the genders. In some societies, women are bound to homes and are not allowed to work and live freely, such a society is called “masculine” according to Hofstede’s model. “Feminine” is the side where women are allowed to freely practice their beliefs (Nakata, 2009). In business related terms this would mean how work is distributed amongst genders. It seeks to filter out any disparities that lie between professionalism and genders. The fourth dimension is uncertainty avoidance. This index serves to measure the extent to which the employees are made prone to adjust to unusual and challenging situations. It serves to measure if the business will be able to take hold of challenging circumstances or will it wilt under the load of novelty and uncertainty. The last dimension is of long term orientation. It measures the persistence and thrift in all those who are concerned with the business venture. It measures the extent to which they are driven to succeed despite all odds. This will in turn measure the chances of success of the business venture in the future. In order to expatriate managers for international business deals and ventures, it is important to view the Hofstede indices for both the countries. Only if the two countries are culturally alike, can the international business be a success. For example, the masculinity index is very high in Muslim countries where women are generally not allowed to work. However, this index is negligible in most of the western world where no one distinguishes between a working man and a working woman. Therefore, if a business deal is set up between Saudi Arabia and US, both countries will have problems expatriating their managers. Female managers from the US may not be welcome in Saudi Arabia. However, in some cases it is to the advantage of the business to have distinct dimensions. For example, the long term orientation index is much higher for developed nations than developing countries. This is because the under developed nations are not made well prepared to deal with unexpected calamities so the people of under developed nations may give up on hard times (Mead, 2004). It is those who have been through the worst of times who know what it is like to bear difficulties. So if some underdeveloped countries plan on a business venture, the idea may not be very successful in the long run, however if one of the countries has a high long term orientation index, it would be really helpful for the survival of the business in the long run. Hall’s cultural theory and how it can be used to prepare expatriate managers Stuart Hall had a very distinguished approach to cultural studies. He defined culture to be the sum of all the options that a society has and the choices that it makes which reflect its experiences. Hall believed that it is culture that defines the relationship between all the distinct elements that life is composed of. Contrary to the Hofstede’s dimensions which are rather broad, Hall believed that there should be perfect cultural compatibility for two nations to survive in harmony with each other. Since Hall developed his cultural theory for Britain in 1950 and it has not undergone considerable revisions since then, it is considered to be a more rigid theory than the Hofstede’s dimensions. Hall’s cultural theory presents a whole new dimension to culture and way of life. It says that culture is not singular which means that there is not just one existent culture; in fact the world is full of different cultures which need not be compared to each other since they are meant to be distinguished. Hall also talked about Hegemonic culture. He said that this is the kind of culture that is generally more acceptable to the masses. This is because it adopts a lot of elements of the culture that pertains in the society of the common man and thus it appears to have catered to everyone’s needs specifically. The organizations and businesses controlled by the elite are also satisfied as are the masses and they know that they would have to work together to help their organizations progress. Hall stressed on communication between cultures since he looked at discourses as being means for representing knowledge and practices (Cheng, 1996). For expatriating managers, Hall’s dimensions serve as an important tool since they highlight the importance of distinguished cultures. Hall’s ideas are about accepting other cultures and values and living in harmony with them. These are concepts that need to be grounded in the minds of all expatriating managers. Since they leave the country for work, they should not bring culture and traditions in the face of profession and should maintain an indifferent, professional attitude to succeed. Also, it explains the importance of communication between cultures. This is one of the milestones in the history of cultural studies that Hall pointed out. When managers move to another country for international business ventures, they must have in mind that since their culture may be very distinct from the culture and life style that they are moving in, they need to be more adaptive to circumstances and places and also should have sound communication power so that they can get across their messages which is essential for the smooth running of the business (Norales, 2006). Communication does not only mean talking about business for managers but it also encompasses what attitude they have towards work and how influential they are to the company. This is in fact one of the most important consideration for expatriating managers who need to adapt with a new environment, a new culture and still stay loyal to their environment and culture. Business ventures between Saudi Arabia and US and possible considerations United States and Saudi Arabia are very different from each other in a lot of cultural aspects, it is going to be hard to adapt to each other and acknowledge the differences and be okay with it. In order to make a business venture between the two countries successful, the two countries will have to embrace the differences and work upon building their relationship together. It is important to realize that international businesses are fruitful only if both the companies gain from them. If one stays at the losing end, the company is bound to fail. So in order for the two countries to gain from the business venture, the managers from US needs to make sure that they first needs to bring the managers in Saudi Arabia at the same footing so that they can then take the company to higher heights (Gudykunst, 2003). If there would be unequal standards prevailing between managers of both the countries, the company will never be able to gain. They need to forget their religious and traditional differences since those will stay forever and those are very personal and subjective to each individual. Keeping those at the far end, the two countries need to understand each other’s laws, differences and way of working and then all other problems will seem secondary. Since the two countries are very diverse culturally, it will be impossible to reach a common ground in culture and even if it is possible, it would ruin the true beauty of the two countries. Therefore it is more important that the countries realize how distinct they are culturally and help each other grow despite the differences. There are certain considerations like the compulsion of veil for a woman in Saudi Arabia as per Muslim standards. Expatriating US managers who are women may have to abide by this law, not for the sake of religion but as a way to show their respect towards Saudi laws. Similarly, if a manager from Saudi Arabia expatriates to US for work, he might have to accept that alcohol is drunk in all gatherings. The Muslim manager may refrain from consuming it but he cannot stop everyone from having it. Therefore, international business ventures are a lot about understanding other cultures and values and respecting and cherishing the differences that exist. There are some differences that may be bridged. For example the long term orientation for US employees is much higher and so they need to inculcate the risk bearing and challenge taking power in the Saudi employees too so that they can benefit in the long run. However, some cultural concerns are too sensitive to be touched. This is because culture is in large part inherited or pertains to one’s religion which is a very debatable subject. Therefore, such sensitive and subjective issues should not be brought about in business meetings where the goal is to make employees and especially managers from two very different countries closer to each other so that they can fight for a common goal which is the success of the firm (Folsom, 2006). Overcoming problems of Cross Cultural Communication by expatriating managers It is very difficult for expatriating managers to adjust in a novel atmosphere and work with employees who have a very different lifestyle. Often managers have to compromise on their standards but that leads to a dampening in the success of the organization. In order to make international business ventures a success, the expatriating managers have to overcome the problems of cross cultural communication. This can be done if the managers first attempt on learning the native language of the place that they move to. This will help the employees understand the manager better as the manager would be able to communicate in the language of the common man there. Also, this will help employees understand how important the project is for the managers. If the managers are eager on changing themselves for the good of the organization, other employees will too since managers are often the role models for the rest of the staff. Also, managers need to understand the culture, tradition and values of the country that they are working with (Mattock, 2003). This is very important since people can generally not give up on some values since they are the features that distinguish them from the rest of the world. For such characteristic traits, the expatriating managers should never ask for change rather they should accept the change. Most importantly, expatriating managers should realize that the employees are accepting them as much as they are accepting the employees so it is tough for the lower staff too. They should be given a chance to voice their opinions and suggestions through frequently held meetings about the progress of the organization. This will communicate a feeling of mutual gain in both the countries since it will help the employees in not being offended by the expatriated managers rather think of them as officials sent for everyone’s good. Some of the international business ventures are Microsoft, Google, Nike, Sony and Toyota. Indeed these are all big names in the industry today which tells us that once all communicating barriers are negotiated between the concerned countries, the international business ventures can turn out to be highly successful (Levine, 1992). Preparing employees for expatriate assignments Since most employees might find it difficult to adjust in a new cultural environment and have problems accepting other cultures, it is important to train all employees for expatriate assignments. This will help them understand the difficulties that may arise in the case of international business ventures and how they can overcome these difficulties and make the most out of the international business ventures. Indeed international business deals, mergers and acquisitions are much more important and long lasting that such ventures on a local scale. This is because being international gives them a whole new platform to experience and experiment, to trade and to make a much larger name globally. First of all, while preparing employees for expatriate assignments, they need to be made concrete strong of their own culture, values, traditions, customs and religions. This will help the employees to maintain their strong hold in another country and not be influenced by every other culture and way of life. In order to maintain the individuality of the employees, this is very important. It is also important to prepare the employees to communicate effectively. Often when people from different cultures sit down to talk about something, they end up rambling about cultures or other subjective matters which are far from business concerns. Thus employees should be prepared to deal with such situations and they should be made aware of how they can ensure that most benefit is reaped out of all business meetings and ventures. Often expatriating members of the organization will have to compromise on holidays and festivities etc and this should be made clear to the employees before they leave their homeland so that it doesn’t create problems later. Also, the expatriating members should be told how to deal with any racist comments that they may get in the most inoffensive and welcoming manner. Of course, it is the responsibility of both the countries to ensure that everyone in the organization is given due respect and dignity but the expatriating members may have to be more careful than the rest in some cases. Expatriating employees should also know how to respect other religions since there is absolutely no compromise when it comes to faith and they should be steadfast in their faith so that no one can move them (Peterson, 2004). Conclusion The world that we see today is composed of many different cultures. These cultures are a part of the personalities and way of life thus they need to be polished and not merged to get an amalgam. The different ethnicities, races, creeds, values and cultures give color to the world and when an effort is made to combine all colors, we get white color which is the most boring color of all. Similarly, if all cultures are forcefully combined, the amalgamation would be a very dull and boring one. Therefore, cultures should be distinctly identified and appreciated. Also, if any business ventures are made internationally the concerned parties should know what difficulties may arise and should also understand how they can compromise and apprehend each other’s values to mutually gain from the venture. Expatriating members may have issues adjusting with the different cultures and so they should be prepared before hand and only the most competent of employees should be sent overseas since it is not easy to work with people who are of a “different kind” and win their hearts too (Elmer, 2002). References Gevurtz, F. (2006). Global issues in corporate law. Gale Sengage. Spanogle, J. & Folsom, R. (2009). International business transactions in a nutshell. West. Folsom, R. (2006). International business transactions: a problem oriented course. Gale Sengage. Levine, D. & Adelman, M. (1992). Beyond language: Cross cultural communication. Prentice Hall. Elmer, D. (2002).Cross-Cultural Connections: Stepping Out and Fitting in Around the World. IVP Academic. Peterson, B. (2004).Cultural Intelligence: A Guide to Working with People from Other Cultures. Intercultural Press. Mattock, J. (2003).Cross-Cultural Communication: The Essential Guide to International Business. Kogan Page. Gudykunst, W. (2003).Cross-Cultural and Intercultural Communication. Sage Publications. Norales, F. (2006).Cross-Cultural Communication: Concepts, Cases and Challenges. Cambria Press. Nakata, C. (2009).Beyond Hofstede: Culture Frameworks for Global Marketing and Management. Palgrave Macmillan. Mead, R. (2004). International Management: Cross Cultural Dimensions. Wiley-Blackwell. Cheng, K. & Morley, D. (1996).Stuart Hall: Critical Dialogues in Cultural Studies. Roultedge Read More