2nd year PGDM
Geert Hofstede is an influential Dutch researcher in the fields of organizational studies and more concretely organizational culture, also cultural economics and management. He is a well-known pioneer in his research of cross-cultural groups and organizations and played a major role in developing a systematic framework for assessing and differentiating national cultures and organizational cultures. His studies demonstrated that there are national and regional cultural groups that influence behavior of societies and organizations. Geert Hofstede conducted one of the most comprehensive studies of how values in the workplace are influenced by culture. “Culture is the collective programming of the mind distinguishing the members of one group or category of people from others He analyzed a large data base of employee values scores collected by IBM between 1967 and 1973 covering more than 70 countries, from which he first used the 40 largest only and afterwards extended the analysis to 50 countries and 3 regions. Hofstede dimensions of national culture:-Power Distance (PDI),Individualism versus Collectivism (IDV)Masculinity versus Femininity (MAS)Uncertainty Avoidance (UAI) Long-Term Orientation Culture only exists by comparison- societies are compared to other societies. Without make a comparison a country score is meaningless. The forces that cause cultures to shift tend to be global or continent-wide. This means that they affect many countries at the same time, so that if their cultures shift, they shift together, and their relative positions remain the same.
The country scores on The Hofstede Dimensions can also be found to correlate with other data about the countries in question. Some examples: Power distance is correlated with income inequality in a country. Individualism is correlated with national wealth. Masculinity is correlated negatively with the percent of women in democratically elected governments. Uncertainty avoidance is associated with the legal obligation in developed countries for citizens to carry identity cards. Long-term orientation is correlated with school results in international comparisons
| POWER DISTANCE|
| This dimension expresses the degree to which the less powerful members of a society accept and expect that power is distributed unequally. The fundamental issue here is how a society handles inequalities among people. People in societies exhibiting a large degree of power distance accept a hierarchical order in which everybody has a place and which needs no further justification. In societies with low power distance, people strive to equalise the distribution of power and demand justification for inequalities of power| USA| * The United States score low on this dimension (40) which focuses on the American premise of liberty and justice for all and equal rights in all aspects of American society and government. * Within American organizations, hierarchy is established for convenience, superiors are always accessible and managers rely on individual employees and teams for their expertise. * Both managers and employees expect to be consulted and information is shared frequently. * communication is informal, direct and participative.| CHINA| * At 80 China sits in the higher ranking on this dimension. * it is a society that believes that inequalities amongst people are acceptable. * The subordinate-superior relationship tends to be polarized and there is no defense against power abuse by superiors. * Individuals are influenced by formal authority and sanctions and are in general optimistic about people’s capacity for leadership and initiative. People should not have aspirations beyond their rank| GERMANY| * Germany is among the lower power distant countries (score 35). *...