BBA 2113 Intercultural Communication
and Negotiation
Department of Global Business Management
BBA2113 Intercultural Communication & Negotiation
Topic 2: Cultural Dimensions
D2: ACT OUT
Global Business Management Department
Cultural adaptation should not compromise universal ethical standards, like gender inclusion.
Introduction
Cross-cultural literacy is an understanding of how cultural differences across
and within nations can affect the way business is practiced.
There can be relationships between culture and the costs of doing business in a
country or region.
Culture is not static—it evolves.
• Multinational enterprises can be engines of cultural change.
Developing Cultural Intelligence (2 of 2)
Culture
•Includes the shared values, norms, rules,
and behaviors of an identifiable group of
people who share a common history and
communication system.
•There are many types of culture, such as
national, organizational, and team.
A measure of your ability to work with and adapt to
members of other cultures.
CQ can be developed and improved over time with
training, experience, and conscious effort.
[Link] [Link]
hofstedes-five-dimensions-of-national-culture/
culture-cultural-dimensions-by-geert-hofstede/
high power distance= tall org structure
decision made from the top
Risk-taking
future present
Hofstede’s Dimensions of Cultural Differences
• During 1978-1983, The Dutch cultural anthropologist Geert Hofsted conducted
detailed interviews with hundreds of IBM employees in 53 countries. Most parts of
the organization had been surveyed twice over a four-year interval. And the
database contained more than 100,00 questionnaires.
• It was considered the IBM data might have implications beyond this particular
corporation. Therefore, the questionnaires were partially also administered to 400
employees from 30 countries in an international program unrelated to IBM. Their
mean scores by country related significantly with the country scores obtained from
the IBM database. So, the employees were used to idetenly differences in national
values systems.
Culture and Business
Importance of Culture
Society’s culture affects values found in workplace.
Geert Hofstede isolated five dimensions that summarized different cultures: (Dutch-work
at IBM a multinational company based in the US.) About 60 subsidiaries-collect from huge
survey sample.
1. Power distance
2. Individualism versus collectivism
3. Uncertainty avoidance
4. Masculinity versus femininity
5. Long-term versus short-term orientation
• add the sixth dimension: indulgence versus restraint.
Visit: [Link]
Geert Hofstede Culture Dimensions
1. Power Distance (PD)
(gap between the boss-subordinates)
• Focused on how society deals with the fact that people are unequal in physical
and intellectual capabilities, scale 0-100 lower than 50…
• Low power distance – boss and subordinates having small gap, close
relationship. (equality is expected)
• High power distance-boss tell the subordinates cannot say a word just do it.
(inequalities are expected)
Geert Hofstede Culture Dimensions
2. Individualism versus Collectivism (IC)
Collectivism in cultures implies that people are integrated from
birth into strong, cohesive groups that protect from them in
exchange.
Individualism implies loose ties; everyone is expected to look
after one’s self or immidiate family.
• Focused on the relationship between the individual and his or her
fellows.
• Assign the task individually.
Strongly Individualist Strongly Collectivist
Slightly Individualist Slightly Collectivist
Four corners Debate:
Scenario 2: "You get a fantastic job offer in another city. It's your dream
job. However, your aging parents live in your current town and rely on you
for help and support. Do you take the job?"
Scenario 3: "In your group project, one member isn't doing their work. If
you tell the teacher, your grade will be protected, but your friend will get
in trouble and the group harmony will be broken. If you say nothing and
do their work for them, the group gets a good grade, but it's unfair to you.
What do you do?"
Individualism vs. Collectivism
[Link]
Geert Hofstede Culture Dimensions
3. Uncertainty avoidance (UA)
• Measured the extent to which different cultures socialized their
members into accepting ambiguous situations and tolerating
uncertainty.
• Whatever rules and regulation the company have it must be written.
Agree or Disagree:
"High Uncertainty Avoidance means they don't take risks."
They do take risks, but they are calculated, planned, and analyzed risks. A German engineering
company (high UA) might spend billions on a massive, long-term project after years of
research. A Silicon Valley startup (low UA) might risk everything on an unproven idea with a
small team. The process of dealing with the unknown is what differs.
Geert Hofstede Culture Dimensions
4. Masculinity versus femininity.
• Looked at the relationship between gender and work roles.
• Masculine is having a male values.
• Majority will be male
• Aggressive/assertive/ work hard/long hrs.
• Femininity is having a female values.
• Talk nice
• Care
• Quality in life
Half are assigned to design a "Masculine/Achievement-Oriented School" and the
other half a "Feminine/Nurturing-Oriented School.“
• The School Motto: What's the first thing you see when you walk in?
• Grading System: How is success measured? (e.g., class rank vs. personal
growth portfolio).
• Teacher's Role: What is the ideal teacher like? (e.g., a brilliant expert who
pushes you to be the best vs. a supportive facilitator who cares for your well-
being).
• Definition of a "Star Student": Who gets the awards at the end of the year?
(e.g., the valedictorian with the highest GPA vs. the student who showed the
most kindness and improved the school community).
Geert Hofstede Culture Dimensions
5. Long-term versus short-term orientation (LTO)
• The extent to which a culture programs its citizens to accept delayed
gratification of their material, social, and emotional needs.
• Put long-term goals first.
• Put short-term goals first.
[Link]
[Link]
Geert Hofstede Culture Dimensions
6. Indulgence versus Restraint
• Indulgence stands for a society that allows relatively free gratification of
basic and natural human drives related to enjoying life and having fun.
• Indulgent societies believe themselves to be in control of their own life and emotions.
(happiness is always good)
• Restraints stands for a society that suppresses gratification of needs and
regulates it by means of strict social norms.
• Restrained societies believe other factors dictate their life and emotions.(happiness can be
bad)
• One limitation lies in the original research methodology. The survey was
limited to IBM’s employees and only included sales and marketing
personnel. Hence, people believe that Hofstede’s Cultural Dimension
model is based on inconclusive research.
• The world has seen many modifications in cultural and political
movements. Technology has progressed, and this change has
revolutionized people’s thinking and behavior patterns worldwide. The
theory must be reviewed and updated according to current conditions.
Culture and Business
• Critiques of Hofstede
• Assumes a one-to-one relationship between culture and nation-state.
• Research may be culturally bound.
• Informants only worked within a single industry and within one
company.
• Example: computers within IBM.
• Certain social classes excluded from research.
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