UNIT 3- IB
Dr. Purvi Pujari
Cross Cultural Management
Hofstede’s Cultural Dimension
CAGE Framework Pankaj Ghemawat
Culture and Leader Effectiveness: The
GLOBE Study
What is Culture?
Culture: a society’s (group’s) system of
shared, learned values and norms; these
are the society’s (group’s) design for living
– Values: abstract ideas about the good, the
right, the desirable
– Norms: social rules and guidelines; guide
appropriate behavior for specific situations
Folkways: norms of little moral significance
dress code; table manners; timeliness
Mores: norms central to functioning of social life
– bring serious retribution: thievery, adultery, alcohol
Culture and the workplace
Geert Hofstede – sampled 100,000 IBM
employees 1963-1973
Compared employee attitudes and values
across 40 countries
Isolated 4 dimensions summarizing
culture:
1. Power distance
2. Individualism vs. collectivism
3. Uncertainty avoidance
4. Masculinity vs. feminity
Power Distance -- (Hofstede)
Degree of social inequality considered
normal by people
Distance between individuals at
different levels of a hierarchy
Scale: from equal (small power
distance) to extremely unequal (large
power distance)
Power Distance
Acceptance of differences in
High-Power Distance
power
Low-Power Distance
Accept position
Avoid concentration of
Follow authority authority
Concentrated & centralized Decentralized
authority
Fewer layers of
Hierarchical management
Individualism Vs. Collectivism (Hofstede)
Degree to which people in a
country prefer to act as
individuals rather than in groups
Describes the relations between
the individual and his/her fellows
Individualism-Collectivism
Self-perception as individual or part of a
group
Most widely studied
Most complex
Dimensions different across cultures
– i.e., Asian vs Latin American collectivism
Individualism-Collectivism
(cont’d)
Individualism Collectivism
High value on High value on group
autonomy – Family, clan,
organization
Individual achievement
Loyalty
Privacy
Devotion
Conformity
Uncertainty Avoidance (Hofstede)
Degree of need to avoid uncertainty about
the future
Degree of preference for structured versus
unstructured situations
– Structured situations: have tight rules may
or may not be written down
High uncertainty avoidance: people with
more nervous energy (vs easy-going), rigid
society, "what is different is dangerous."
Uncertainty Avoidance
Reaction to ambiguous events
Low Uncertainty High Uncertainty
Avoidance Avoidance
Embrace unpredictable Threatened by
Less adherence to rules, ambiguity
procedures, or Need stable &
hierarchies predictable workplace
Risk taking desirable Reliance on rules
Masculinity Vs. Femininity (Hofstede)
Division of roles and values in a
society
Masculine values prevail:
– assertiveness, success, competition
Feminine values prevail:
– quality of life, maintenance of warm
personal relationships, service, care for
the weak, solidarity
Masculinity-Femininity
Describes Importance of
Achievement versus
Relationships
Success Equality of genders
Assertive acquisition of Caring for
money/power disadvantaged
achievement harmony
Individualism-Collectivism &
Power Distance
Large power distance and collectivism
– Asia and Latin America
Small power distance and individualism
– Northern Europe and Anglo countries
Project GLOBE
GLOBE (Global Leadership and
Organizational Behavior Effectiveness)
– attempt to develop an empirically based theory
to describe, understand, and predict the impact
of specific cultural variables on leadership and
organizational processes and the effectiveness
of these processes
.ACCORDING TO GLOBE RESEARCH THERE
IS THE NINE DIMENSIONS- .
Power distance
Uncertainty avoidance
Assertiveness
Human orientation
Future orientation
Institutional collectivism
Gender difference
In-group collectivism
Performance orientation
Countries Ranking Highest and
Lowest
on the GLOBE Cultural Dimensions
Key Cross-Cultural
Competencies
ASSERTIVENESS
The extent to which a society encourages
people to be tough and competitive vs
modest and kind.
High Assertiveness
Low Assertiveness Spain Sweden U.S.A
New Zealand
HIGH ASSERTIVENESS . SOCIETIES
HAVE CHARACTERISTICS SUCH AS...
Value competition, success, and progress.
Communicate directly and clearly. Try
to have control over the environment.
LOW ASSERTIVENESS SOCIETIES
HAVE CHARACTERISTICS SUCH AS...
Value cooperation and warm
relationships. Communicate indirectly;
try to "save face.“ Try to be in harmony
with the environment.
FUTURE ORIENTATION The extent to
which a society encourages and rewards
future oriented behaviors such as planning,
investing in the future etc. High F.O Low
F.O Denmark Germany Canada Argentina
HIGH FUTURE ORIENTATION SOCIETIES HAVE
CHARACTERISTICS SUCH AS
Propensity to save now for the future.
Emphasize working for long-term success.
Organizations tend to be flexible and adaptive.
LOW FUTURE ORIENTATION SOCIETIES HAVE
CHARACTERISTICS SUCH AS...
Propensity to spend now, rather than save.
Prefer gratification as soon as possible.
Organizations tend to be inflexible
HUMANE ORIENTATION 17 The degree
to which a society encourages and rewards
individuals for being fair, generous, caring
and kind to others. High H.O Low H.O
Egypt Germany Malaysia France
HIGH HUMANE ORIENTATION SOCIETIES HAVE
CHARACTERISTICS SUCH AS... The interests of
others are important. Members of society are
responsible for promoting the well-being of others.
Child labor is limited by public supports.
LOW HUMANE ORIENTATION SOCIETIES HAVE
CHARACTERISTICS SUCH AS... One's own self-
interest is important. The state provides social and
economic support for individuals' well- being. Child
labor is an issue of low importance.
PERFORMANCE
ORIENTATION
The degree to which a society encourages
and rewards group members for
performance improvement and excellence.
High P.F Low P.F U.S.A Russia Taiwan
Argentina
HIGH PERFORMANCE ORIENTATION SOCIETIES
HAVE CHARACTERISTICS SUCH AS... Value
training and development. Value competitiveness and
materialism. View formal feedback as necessary for
performance improvement.
LOW PERFORMANCE ORIENTATION SOCIETIES
HAVE CHARACTERISTICS SUCH AS... Value
societal and family relationships. Value harmony with
the environment. View formal feedback as judgmental
and discomfiting.
IN-GROUP COLLECTIVISM
The extent to which members of a society
take pride in membership in small groups
such as their family and circle of close
friends and the organizations in which they
are employed. High IG.C Low IG.C Egypt
Denmark china Sweden
HIGH IN-GROUP COLLECTIVISM
SOCIETIES HAVE CHARACTERISTICS
SUCH AS... Duties and obligations are
important determinants of social behavior.
A strong distinction is made between in-
groups and out-groups. People emphasize
relatedness with groups
GENDER DIFFERENTIATION
The extent to which a society maximizes
gender role differences. High G.D Low G.D
Egypt Denmark south Korea Sweden
HIGH GENDER DIFFERENCE SOCIETIES HAVE
CHARACTERISTICS SUCH AS... More women in
positions of authority. Less occupational sex
segregation. Similar levels of educational attainment for
males and females.
LOW GENDER DIFFERENCE SOCIETIES HAVE
CHARACTERISTICS SUCH AS... Fewer women in
positions of authority. More occupational sex
segregation. A lower level of female educational
attainment, compared to that of males.
INDIVIDUALISM
COLLECTIVISM
The degree to which individuals are
encouraged by societal institutions to be
integrated into groups within organizations
and society. High I.C Low I.C Germany
Denmark Hungary Japan
HIGH INDIVIDUALISM COLLECTIVISM SOCIETIES HAVE
CHARACTERISTICS SUCH AS... Members assume that they
are highly interdependent with the organization. Group loyalty
is encouraged, even if this undermines the pursuit of individual
goals. The society's economic system tends to maximize the
interests of collectives.
LOW INDIVIDUALISM COLLECTIVISM SOCIETIES HAVE
CHARACTERISTICS SUCH AS... Members assume that they
are largely independent of the organization. Pursuit of
individual goals is encouraged, even at the expense of group
loyalty. The society's economic system tends to maximize the
interests of individuals.
Masculinity Vs. Femininity (Hofstede)
Division of roles and values in a
society
Masculine values prevail:
– assertiveness, success, competition
Feminine values prevail:
– quality of life, maintenance of warm
personal relationships, service, care for
the weak, solidarity
Masculinity-Femininity
Describes Importance of
Achievement versus
Relationships
Success Equality of genders
Assertive acquisition of Caring for
money/power disadvantaged
achievement harmony