Cultural Dimensions and Their Impact on Business Practices
Content Page
INTRODUCTION 3
HOFSTEDE’S DIMENSIONS 4
Power distance
Uncertainty avoidance Individualism/ Collectivism
Feminine/ Masculine
Low context cultures/ high context culture
TROMPENAARS DIMENSIONS 4 Universalism/ particularism
Individualism/ collectivism
Achievement/ ascription
Neutral/ affective
Specific/ diffuse
Internal/ external
Time
CULTURE DIMENSIONS’ IMPACT ON MANAGEMENT PRACTICES 5
Safety vs. risk
Individual rewards vs. group rewards
Centralized decision-making vs. decentralized decision-making:
Informal procedures vs. formal procedures.
High organization loyalty vs. low organization loyalty:
Cooperation vs. competition
Short terms horizons vs. long-term horizon
Stability vs. innovation: BUSINESS STRATEGIES 6
Ethnocentric
Parochial
Synergetic
CONCLUSION 6
BIBLIOGRAPHY 7
INTRODUCTION
Nowadays, the interaction among people from different countries is more diffused compared to three decays ago. Different cultures interact together especially in the field of work where the same company can host employees from every part of the globe. This has been possible thank to the improvements in technology. Today emails take the place of letters; social networks work as a way of communication that replaces phones. In this way a big company for example can have employees working in different areas that carry out the same job.
This interface makes possible for cultures to meet and to share believes, attitudes, behaviors, creating advantages such as new ideas for innovation, different perspectives on the same matter and it helps having a faster response to changes. However, there are also some disadvantages; cultural diversity provokes problems in an organization. These kinds of problems are related to communication; it is hard to establish
INTRODUCTION 3
HOFSTEDE’S DIMENSIONS 4
Power distance
Uncertainty avoidance Individualism/ Collectivism
Feminine/ Masculine
Low context cultures/ high context culture
TROMPENAARS DIMENSIONS 4 Universalism/ particularism
Individualism/ collectivism
Achievement/ ascription
Neutral/ affective
Specific/ diffuse
Internal/ external
Time
CULTURE DIMENSIONS’ IMPACT ON MANAGEMENT PRACTICES 5
Safety vs. risk
Individual rewards vs. group rewards
Centralized decision-making vs. decentralized decision-making:
Informal procedures vs. formal procedures.
High organization loyalty vs. low organization loyalty:
Cooperation vs. competition
Short terms horizons vs. long-term horizon
Stability vs. innovation: BUSINESS STRATEGIES 6
Ethnocentric
Parochial
Synergetic
CONCLUSION 6
BIBLIOGRAPHY 7
INTRODUCTION
Nowadays, the interaction among people from different countries is more diffused compared to three decays ago. Different cultures interact together especially in the field of work where the same company can host employees from every part of the globe. This has been possible thank to the improvements in technology. Today emails take the place of letters; social networks work as a way of communication that replaces phones. In this way a big company for example can have employees working in different areas that carry out the same job.
This interface makes possible for cultures to meet and to share believes, attitudes, behaviors, creating advantages such as new ideas for innovation, different perspectives on the same matter and it helps having a faster response to changes. However, there are also some disadvantages; cultural diversity provokes problems in an organization. These kinds of problems are related to communication; it is hard to establish
Bibliography: Book Schneider, Barsoux, susan C., Jean-Loius, 2002