INTERNATIONAL BUSINESS
ASSIGNMENT NO: 1
GROUP MEMBERS: HAMMAD KHAN (9182013)
MURAD HYDER (9182003)
AMINA NAZIR (9182020)
BUSHRA KAUSAR (9182025)
SUBMITTED TO: [Link]
DEPARTMENT OF MANAGEMENT
SCIENCES
DATED: 13-12-2-2021
Introduction:
Culture plays an important role in determining the approach to handle
business matters, way of dealing and meetings with subordinates and
colleagues and other business communications and decisions.
Pakistan is a blend of several ethnicities leading to variety of living
patterns and changing languages and their dialects almost every 30
kilometers. This study explores the culture orientation of business
managers in Pakistan from different ethnic groups working at different
levels in different companies and explains their behavior on different
dimensions of culture orientation
There was a study investigates how different ethnic groups of Pakistan
behave in different dimensions of societal and organizational cultures
can both enhance and culture at the work place in a business
environment.
There is rich diversity of subcultures and ethnic groups in Pakistan;
major ethnic groups are Punjabi, Saraiki Sindhi Baloch, pakhtoon and
Muhajirs.
Hofstede’s four dimensions of Pakistan Culture at
workplace:-
1. Power distance
2. Uncertainty avoidance
3. Individualism
4. Masculinity
1) POWER DISTANCE
The first dimension is power distance, or the way the culture deals with
inequalities. Hofstede defines power distance as “the extent to which
less powerful members of institutions and organizations within a country
expect and accept that power is distributed unequally”. Hofstede
believes that power distance is learned early in families.
In high power distance cultures, children are expected to be obedient
toward parents versus being treated more or less as equals.
In the high power distance workplace, seniors and subordinates consider
each other existentially unequal. Power is centralized; salary gap is huge
between the top and bottom of the organization. In the low power
distance workplace, subordinates expect to be consulted in decision
making and ideal managers are democratic. In more democratic
organizations, leaders are accessible to lower staff.
With an intermediate score of 55, it is not possible to determine a
preference for Pakistan in this dimension.
2) UNCERNTAINITY AVOIDANCE
Hofstede’s second dimension is uncertainty avoidance, it is the extent to
which people in a culture feel threatened by unknown and ambiguous
situations. This feeling is expressed through nervous stress and in a need
for certainty or a need for written and unwritten rules.
In these cultures, such situations are avoided by maintaining strict codes
of behavior and a belief in absolute truths. Cultures which are strong in
uncertainty avoidance are active, aggressive, emotional, compulsive,
security seeking and intolerant; cultures which are weak in uncertainty
avoidance are contemplative, less aggressive, unemotional, relaxed,
accepting of personal risks and relatively forbearing.
Pakistan scores 70 on this dimension and thus has a high preference for
avoiding uncertainty. Countries exhibiting high Uncertainty Avoidance
maintain rigid codes of belief and behavior and are intolerant of
unorthodox behavior and ideas.
In these cultures there is an emotional need for rules (even if the rules
never seem to work) time is money, people have an inner urge to be
busy and work hard, precision and punctuality are the norm, innovation
may be resisted, security is an important element in individual
motivation.
3) INDIVIDUALISM VERSUS COLLECTIVISM
How people define themselves and their relationships with others. In an
individualist culture, the individual interest prevails over the group
interest, Ties between individuals are loose. People look after
themselves and their immediate families. Masakazu defined modern
individualism as “a view of humanity that justifies inner beliefs and
unilateral self-assertion, as well as competition based on these”.
In a collectivist culture, group interest prevails over the individual
interest. People are integrated into strong in-groups that continue
throughout a lifetime to protect in exchange for unquestioning loyalty.
One difference is reflected in who is taken into account when you set
goals. In individualistic culture minimal consideration is given to other
groups in goal setting and decision making, while in collectivistic
culture other groups are also considered in goal setting and decision
making.
Pakistan, with a very low score of 14, is considered a collectivistic
society. This is manifest in a close long-term commitment to the
member ‘group’, be that a family, extended family, or extended
relationships. Loyalty in a collectivist culture is paramount, and over-
rides most other societal rules and regulations. The society fosters strong
relationships where everyone takes responsibility for fellow members of
their group. In collectivist societies offence leads to shame and loss of
face, employer/employee relationships are perceived in moral terms (like
a family link), hiring and promotion decisions take account of the
employee’s in-group, management is the management of groups.
4) MASCULINITY
Hofstede labeled those culture as masculine culture that place high
values on masculine traits like assertiveness, competition and material
success. Culture that place high value on feminine traits stress quality of
life, interpersonal relationships and concern for the weak are labeled as
feminine culture
A high score (Masculine) on this dimension indicates that the society
will be driven by competition, achievement and success, with success
being defined by the winner / best in field – a value system that starts in
school and continues throughout organizational life.
A low score (Feminine) on the dimension means that the dominant
values in society are caring for others and quality of life. A Feminine
society is one where quality of life is the sign of success and standing
out from the crowd is not admirable. The fundamental issue here is what
motivates people, wanting to be the best (Masculine) or liking what you
do (Feminine).
Pakistan scores 50 on this dimension, and as this is an exactly
intermediate score it cannot be said if Pakistan has a preference to
Masculinity of femininity.
Cultural dimensions Pakistan Finland
1) Power distance Quite –High Small
2) Masculinity High Feminine
3) Individualism- Collectivist Individualism
collectivism
4) Uncertainty Higher Lower
Avoidance
Conclusion: