Using the Cultural Dimensions Explored in Module 1, Discuss Some of the Ways in Which Australian and New Zealand Citizens Are Members of Cultures or Clusters That Are Different from the Clusters in Indonesia (About 800

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  • Topic: Indonesia, Geert Hofstede, Foreign direct investment
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Using the cultural dimensions explored in Module 1, discuss some of the ways in which Australian and New Zealand citizens are members of cultures or clusters that are different from the clusters In Indonesia (about 800 words). Insert the bar chart that you created in the research activity as an Appendix , but use the descriptions of differences between the countries in the text. Hofstede (2005) describes the five dimensions of basic cultural values as follows: •Expectations regarding equality among people, called “power distance” - PDI •Expectations regarding reactions to situations considered different and dangerous, called “uncertainty avoidance” - UAI •Relationships between the individual and the group, called “individualism” - IDV •Expectations regarding gender roles, called “masculinity” - MAS •Orientation towards time, called “ long term orientation” - LTO As we know culture is the pervasive and shared beliefs, norms, values and symbols that guide everyday life and prescribe and proscribe behaviors ( Cullen & Parboteeah 2011;Deresky 2011;Hofstede,2005). Discussion of Cultural differences: Australia, New Zealand and Indonesia Compared

Discussion per dimension as per “Hofstede’s Model of National Culture” See Appendix A Power DistancePower distance is concerned with how cultures deal with inequality. (Cullen 2011, p.45), we can clearly see that Indonesia compared to Australia and New Zealand have a very high power distance indication, this in fact means that Indonesia’s inequality is good and that everyone has a place, this is also linked to the fact that people depend highly on leaders and that the powerful are entitled to privileges and they show their power. The Leader make most of the decisions and respect and support is a given. The lowest Hofstede score for Australia is power distance at 36 compared to the highest Hofstede score for Indonesia’s Power Distance at 78. It is also interesting to note that according to International Business Center (2003), Indonesia’s power distance index is 78, greater than the average Asian countries’ power distance at 71. In a low power distance culture, Australian people expect to lessen the imbalanced authorities in decision making within organisations and utilise consultancy to reduce that authorities (Reisinger, 1997). Australians, as an example, tend not to prioritize the other people based on their gender, position or age. Australians do not usually call people or their managers by their formal titles such as Doctors or Professors, this in contrast, the high power distance culture in Indonesia indicates the very high degree in which less powerful individuals accept the distribution of imbalanced authority in organizations or societies (Hofstede, 2001 cited by Chan et.al., 2003). Individualism/CollectivismIndividualism in which Australia and New Zealand score very high at 90 and 79 respectively, in general people are deemed responsible for themselves and very strong focus on individual achievements. The link to emotional dependence on organizations and groups are also very strong. (Cullen, 2011, p.48). Indonesia for this case scored very low at 14 on individualism and a very low individualism score for Indonesia reflects that Indonesia as a country is a collectivism society. Collectivism means societies tend to sustain harmony and face-saving through strong personal relationship and support from third party (Chien, 2006, p234). In addition, people in collectivist culture are more likely to avoid conflict and these people are less insulting than people from individualistic culture (Cai & Fink, 2002). The demonstration of the collectivism is also shown in a strong long term commitment and responsibility for not only immediate family, but also extended family (International Business Center, 2003). Moreover, Reisinger (1997) explained that Indonesian people tend to avoid conflict by using indirect non-verbal communication and tend not to make people ashamed. What is also...
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