Five Dimensions of Culture. Visit

Transcription

1 Five Dimensions of Culture

2 Course Objectives Introduction to Culture Five Dimensions of Culture Differences between Culture Cultural Climate and Employee Behavior Improving Employee Culture Cultural Behavior in Workplace Application of the Model Hofstede s Approach Advantages and Limitations of Hofstede s Model

3 Contents Introduction to Culture Five Dimensions of Culture Differences between Culture Cultural Climate and Employee Behavior Improving Employee Culture Cultural Behavior in Workplace Application of the Model Hofstede s Approach Advantages and Limitations of Hofstede s Model

4 Description Geert Hofstede, formed the 5-dimensions of culture. He defined organizational culture is an idea system that is largely shared between organizational members. Hofstede was able to statistically distinguish cultural differences between countries. Hofstede created a systematic framework for assessing and differentiating national culture in relation to organizational culture. Hofstede classified a county's cultural attitudes as five dimensions Power distance Long-term Orientation Individualism Uncertainty Avoidance Masculinity ManagementStudyGuide.com. All rights reserved.

5 Cultures and organization According to Geert Hofstede, Culture generally means civilization or refinement of mind It is the collective programming of the mind which distinguishes the members of one group or category of people from another It is a collective phenomenon, because it is at least partly shared with people who live or lived within the same social environment, which is where it was learned Culture is learned, not inherited. It derives from one's social environment, not from one's genes Culture should be distinguished from human nature on one side, and from an individual's personality on the other Visit ManagementStudyGuide.com. All rights reserved.

6 Layers of culture Each and every individual belong to different category of groups and their mentality also differs corresponding to the different levels of culture. For example: National level: According to one s country Regional/Ethnic/Religious/Linguistic, as countries comprises of different regions, religions etc. Gender level: Whether a person is a boy or a girl. Generation level: which separates grandparents from their children. Social class level: related to education, occupation or profession. Organizational level: according to the way employees have been socialized by their work organization. Visit ManagementStudyGuide.com. All rights reserved.

7 Contents Introduction to Culture Five Dimensions of Culture Differences between Culture Cultural Climate and Employee Behavior Improving Employee Culture Cultural Behavior in Workplace Application of the Model Hofstede s Approach Advantages and Limitations of Hofstede s Model

8 Dimensions of Culture There were some issues found in the functioning of the society in different parts of the world. These problems were found within the groups in the society and also among individuals within the group. Some of the problems were in relation to authority, conception of self, ways of dealing with conflicts. Survey was done about the values of people in over 50 countries around the world. These people worked in the local subsidiaries of one large multinational corporation IBM. A statistical analysis of the answers on questions about the values of similar IBM employees in different countries revealed common problems, but the solutions were different, in the following areas: Social inequality, including the relationship with authority Relationship between individual and the group Concepts of masculinity and femininity Ways of dealing with uncertainty Visit ManagementStudyGuide.com. All rights reserved.

9 Dimensions of Culture These four problems represent the dimensions of culture. The basic problem areas correspond to dimensions which Hofstede named as Power distance Collectivism versus Individualism Femininity versus Masculinity Uncertainty Avoidance More recently, a fifth dimension of differences among national cultures was identified, known as Long-Term Orientation Visit ManagementStudyGuide.com. All rights reserved.

10 Power Distance (PD) Long-term orientation Uncertainty avoidance Power distance Masculinity Individualism Power Distance This refers to the degree of inequality that prevails in the society and that is accepted by the people with and without power. A high PD score indicates that society accepts an unequal distribution of power and people understand "their place" in the system. Low PD means that power is shared and well dispersed ManagementStudyGuide.com. All rights reserved.

11 Power Distance (PD) High PD Low PD Characteristics Tips Organizations are centralized Strong hierarchy Vast gap in authority, compensation and respect Leader s power should be acknowledge Ensure that you have to go to top for answers Organizations are flatter Supervisors and employees are treated equal Use teamwork More people are involved in decision-making ManagementStudyGuide.com. All rights reserved.

12 Individualism (IDV) Long-term orientation Uncertainty avoidance Power distance Masculinity Individualism Individualism This refers to the strength of the relationship which people have towards others in the community. When there is high IDV, there is loose connection, lack of interpersonal connection and little responsibility sharing. A society with a low IDV score would have strong group cohesion, and there would be a large amount of loyalty and respect for members of the group Visit ManagementStudyGuide.com. All rights reserved.

13 Individualism (IDV) High IDV Low IDV Characteristics Tips People s time and their need are highly valued Challenges are welcome and rewards for hard work are expected Acknowledge accomplishments. Don't ask for too much personal information. Encourage debate and expression of own ideas. Building skills and becoming masters on something Work for intrinsic rewards. Importance is given for harmony than honesty Respect should be given for age and wisdom Respect traditions and introduce change slowly Don t show feelings and emotions ManagementStudyGuide.com. All rights reserved.

14 Masculinity (MAS) Long-term orientation Uncertainty avoidance Power distance Masculinity Individualism Masculinity This refers to how much a society goes hand-in-hand with the roles of men and women. High MAS scores are found in countries where men are expected to be tough, assertive and strong. Low MAS scores do not reverse the gender roles. In a low MAS society, the roles are simply blurred. Men are allowed to be sensitive and women can work hard for professional success Visit ManagementStudyGuide.com. All rights reserved.

15 Masculinity (MAS) High MAS Low MAS Characteristics Tips Men are masculine and women are feminine People expect role of male and female to be different There is a clear distinction between men s work and women s work Men should not discuss emotions or make emotionally-based decisions A woman can do whatever a man does Give equal treatment for men and women Powerful and successful women are respected Ensure job design and practices are not discriminatory to either gender. ManagementStudyGuide.com. All rights reserved.

16 Uncertainty Avoidance (UA) Long-term orientation Power distance Individualism Uncertainty Avoidance This relates to the degree of anxiety society members feel when in uncertain or unknown situations. High UAI-scoring nations try to avoid ambiguous situations whenever possible. Low UAI scores indicate the society enjoys novel events and values differences Uncertainty avoidance Masculinity ManagementStudyGuide.com. All rights reserved.

17 Uncertainty Avoidance (UA) High UA Low UA Characteristics Tips Formal business with lots of rules and policies Sense of nervousness spurns high levels of emotion and expression Differences are avoided Be clear with your expectations and parameters Express emotions through hands gestures and raised voices Provide detailed plans and focus on the tactical aspects of a job or project Informal business attitude with importance given to long term strategy than what is happening on daily basis Changes and risks are accepted Rules should not be imposed unnecessarily. Emotions should be minimized When there is any differences express curiosity Visit ManagementStudyGuide.com. All rights reserved.

18 Long Term Orientation (LTO) Long-term orientation Power distance Individualism Long Term Orientation This refers to how long a society will value its traditions and values. In countries with a high LTO score, delivering on social obligations and avoiding "loss of face" are considered very important. This was introduced in 1990 when there was difference between Asian countries and Western Countries on Confucian philosophy Uncertainty avoidance Masculinity Visit ManagementStudyGuide.com. All rights reserved.

19 Long Term Orientation (LTO) High LTO Low LTO Characteristics Tips Parents and men have more power than young people and women Family is the basis for society Importance is given for education and training Traditions should be respected Reward perseverance, loyalty, and commitment Avoid doing anything that would cause another to "lose face" Promotion of equality High creativity, individualism Treat others as you would like to be treated Respect others Introduce necessary changes whenever possible Live by the same standards and rules you create Visit ManagementStudyGuide.com. All rights reserved.

20 Contents Introduction to Culture Five Dimensions of Culture Differences between Culture Cultural Climate and Employee Behavior Improving Employee Culture Cultural Behavior in Workplace Application of the Model Hofstede s Approach Advantages and Limitations of Hofstede s Model

21 Cultures on value dimensions Hofstede s model allows comparison of culture among various nations. The score ranges between 1 to 120 (1 for the lowest and 120 for the highest). There is a very high scores for Arabian countries, Latin and Asian countries and also African areas with regards to Power Distance index. On the contrary, there is a low score for Anglo and German countries. Only 11 for Austria and 18 for Denmark. The United States has a 40 on the cultural scale of Hofstede s analysis. Compared to Guatemala where the power distance is very high (95) and Israel where it is very low (13), the United States is in the middle. In Europe the Power Distance is lower in Northern countries when compared to Southern and Eastern countries. Regarding the individualism index is concerned, there is a vast difference between the developed, western countries and less developed eastern countries in the world. In contrast, Asia, Africa and Latin America have strong collectivistic values: Colombia scores only 13 points on the IDV scale, and Indonesia 14. ManagementStudyGuide.com. All rights reserved.

22 Cultures on value dimensions Uncertainty Avoidance has highest scores in Latin American countries, Japan, Southern and Eastern Europe but has lowest scores in Anglo, Nordic and Chinese culture countries. Germany has a high UAI (65) and Belgium even more (94) compared to Sweden (29) or Denmark (23) despite their geographical proximity Masculinity is relatively low in Norway and Sweden which scores 8 and 5 respectively. Japan has high scores in masculinity with 95. Latin countries present contrasting scores: for example Venezuela has a 73 point score whereas Chile s is only 28 Long Term Orientation scores are higher in East China with China having a score of 118, Hong Kong with 96 and Japan 88. They are moderate in Eastern and Western Europe, and low in the Anglo countries, the Muslim world, Africa and in Latin America ManagementStudyGuide.com. All rights reserved.

23 Correlation of values with other country differences Countries have been grouped by researchers by comparing the scores of one country with that of other country The comparison is made where there is geographical proximity, shared language, similar religious beliefs and practices etc. For example, low power distance is associated with consultative political practices and income equity, whereas high power distance is correlated with the use of bribery and corruption in domestic politics and the unequal distribution of income Individualism is positively correlated with mobility between social classes and with national wealth In fact, when a country gets richer it has been observed that people get more individualistic Visit ManagementStudyGuide.com. All rights reserved.

24 Contents Introduction to Culture Five Dimensions of Culture Differences between Culture Cultural Climate and Employee Behavior Improving Employee Culture Cultural Behavior in Workplace Application of the Model Hofstede s Approach Advantages and Limitations of Hofstede s Model

25 Culture climate and employee behavior Every organization has its own culture that teaches the employee how things are to be done. Culture of an organization affects the employees either positively or negatively depending on the tone set by the management. If an organization rewards illegal behavior then ethical lapses are likely to happen. Economic downturns and unresolved internal problems can offer unexpected openings to rally employees around the company and its mission Visit ManagementStudyGuide.com. All rights reserved.

26 Core elements Sometimes the Chief Executive Officers fail to realize that positive company culture has real world benefits. Treating employees well may make the company more successful than what is expected by the management. The company will also experience lower turnover, leading to engaged employees who deliver exceptional service, and making it more likely that customers return. In the process, the company can increase its profitability and achieve the objective more easily. The best example is The Beryl Co., which manages patient interactions for hospitals Visit ManagementStudyGuide.com. All rights reserved.

27 Deviant culture The collapse of Enron in the year 2001 is an example of the results of deviant culture. Before going bankrupt, it had employed 20,000 people. CEO Jeffrey Skilling touted the company's 20-member performance review committee as a milestone in corporate accountability. In reality, management used the process to stifle disagreement. Instead of a team-building culture, the system rewarded fierce competitors who refrained from sharing authority or information ManagementStudyGuide.com. All rights reserved.

28 Promoting transparency Achieving transparency is easily said than done for the companies. When management takes up the issue, then the employees take notice of it. The CEO of TerraCycle asked his team leaders to give a report of everything so far, whether positive or negative. Every employee was allowed to view the report and the employees were made to understand how the management takes decisions. This made the employees feel like partners Visit ManagementStudyGuide.com. All rights reserved.

29 Shared sacrifice The struggle to overcome certain burdens gives a chance to the organization to change their culture, which would have never happened otherwise. In an organization named The Container Store, when there was a downturn in the business, instead of imposing layoffs, the company asked employees for ideas. Asking staff to share the sacrifice builds cohesion and loyalty, while instilling the passion that companies need to survive tough economic times ManagementStudyGuide.com. All rights reserved.

30 Contents Introduction to Culture Five Dimensions of Culture Differences between Culture Cultural Climate and Employee Behavior Improving Employee Culture Cultural Behavior in Workplace Application of the Model Hofstede s Approach Advantages and Limitations of Hofstede s Model

31 Improving employee culture Employees arrive at work each day to get the job done, but improving employee culture can make it mean much more. Employees spend much of the day at their work place and implementing a good culture and unified vision will make them feel that they are part of the organization than simply earning a paycheck. Choose to make improving employee culture an important part of your management philosophy. Employees should be involved in decision-making process. Involving employees on a global level makes them feel valued and an integral part of the systems in which they work each day. Gaining and retaining employee s trust is very important. The entire process of the organization will break down if there is lack of trust and faith. Offer professional training and enrichment courses to ensure that all employees know that you have faith in their growth within the company ManagementStudyGuide.com. All rights reserved.

32 Improving employee culture It is a good idea to ask the employees to contribute news, articles, feedbacks, announcements etc in the company s newsletter Communicate and interact with your employees regularly to understand how they operate, and share with them how you operate. Acknowledge and celebrate individual and team successes. When you and your employees have created a culture that has directly garnered success for your company, take the time, effort and energy to recognize and celebrate. Visit ManagementStudyGuide.com. All rights reserved.

33 Contents Introduction to Culture Five Dimensions of Culture Differences between Culture Cultural Climate and Employee Behavior Improving Employee Culture Cultural Behavior in Workplace Application of the Model Hofstede s Approach Advantages and Limitations of Hofstede s Model

34 Work Culture A definition The work culture of an organization is a product of its history, traditions, values and vision A pattern of basic group assumptions that has worked well enough to be considered valid, and, therefore, is taught to new members as the correct way to perceive, think and feel ManagementStudyGuide.com. All rights reserved.

35 Key values of Work Culture Accountability Adaptability Collaboration Collegiality Commitment Continuous improvement on quality Courtesy and Respect Diversity Effective communication Empowerment equity Excellence Flexibility Good Morale Innovation Professionalism Quality Recognition and Rewards Risk Taking Scholarship Service Oriented Stewardship over self interest Trust ManagementStudyGuide.com. All rights reserved.

36 Developing positive work culture To develop familiarity with factors influencing work culture in organizations To appreciate the use of measurement of work culture Objective To develop skills and values for developing work culture To analyze relationship between work culture andperformance of department/ organization ManagementStudyGuide.com. All rights reserved.

37 Culture at Work The 5F s The organization remains strongly focused on its business objectives and strategies on its business objectives and strategies Fast The organization believes in speedy actions in whatever we do whatever we do Focused Culture at Work Friendly The organization believes in and practices strong people orientation strong people orientation Believe in having fun at the work place while focusing on complex business problems focusing on complex business problems Fun Flexible Believes in the spirit of innovation to respond to changing business situation respond to changing business situation Visit ManagementStudyGuide.com. All rights reserved.

38 Elements of positive Work Culture Equal Opportunity Employment Recognition and Rewards Be positive in all respects Set up work culture Task Force Be empowered Work with creativity Unit-wise reward system Excellence rewards Set up parent s group Family friendly working practices Improve the quality of work life Include the policy of achievement and enjoyment ManagementStudyGuide.com. All rights reserved.

39 Local Culture Local culture plays a vital role in business Discrimination or reaction to other cultures present in the workplace itself, due to preconceived biases Businesses naturally try to discourage such discrimination, which can be unhealthy for business and create serious problems However, local culture can also lead to cross-country misunderstandings and difficulties in negotiations, marketing and communication even if discrimination is not present Visit ManagementStudyGuide.com. All rights reserved.

40 Common Goals: Adaptability, Individuality When it comes to local culture, the business tries to make its workforce as adaptable as possible This teaches employees to learn new cultures whenever possible and moves to accept changes Different meanings and misunderstandings will be in stride while focusing on business goals If the company can create a habit of acceptance of people as individuals, they can often avoid many of the problems associated with discrimination Visit ManagementStudyGuide.com. All rights reserved.

41 Workplace Culture Workplaces act as own nation and often develop their own minicultures This workplace culture governs management, how employees think of themselves and the tasks they are given It also controls what is permissible in the workplace (regardless of company rules) and how the business looks at its customers and outsiders By controlling this culture, a business can control morale, attitudes and other important facets of employee behavior Visit ManagementStudyGuide.com. All rights reserved.

42 Common goals: Company strategy There is no single goal for changing cultural behavior in the workplace, since decisions are based on company strategy Some businesses interested in flat organizations want to create an independent culture where employees are free to make up their own minds and act creatively Other companies want to create a culture of obedience, or a culture that focuses more on emotional needs Changes depend on goals and potential solutions Visit ManagementStudyGuide.com. All rights reserved.

43 Contents Introduction to Culture Five Dimensions of Culture Differences between Culture Cultural Climate and Employee Behavior Improving Employee Culture Cultural Behavior in Workplace Application of the Model Hofstede s Approach Advantages and Limitations of Hofstede s Model

44 Why is it important to be aware of cultural differences? We are generally not aware of other countries cultures, we tend to minimize cultural differences. This leads to misunderstandings and misinterpretations between people from different countries Instead of the convergence phenomena we expected with information technologies availability, cultural differences are still significant today and diversity tends to increase Culture is more often a source of conflict than of synergy Despite the evidence that groups are different from each other, we tend to believe that deep inside all people are the same In order to be able to have respectful crosscultural relations, we have to be aware of these cultural differences With this model, Geert Hofstede shed light on these differences The tool can be used to give a general overview and an approximate understanding of other cultures, what to expect from them and how to behave towards groups from other countries Visit ManagementStudyGuide.com. All rights reserved.

45 Practical applications of the theory Power distance The five dimensions model is widely used in many domains of human social life, and particularly in the field of business. Practical applications were developed almost immediately. In fact, when it comes to business, promoting cultural sensitivity will help people work more effectively when interacting with people from other countries, and will participate to make transactions are successful Long-term orientation Uncertainty avoidance Masculinity Individualism ManagementStudyGuide.com. All rights reserved.

46 International Communication Hofstede s model gives insights into other cultures In business, it is commonly agreed that communication is one of the primary concerns. So, for professionals who work internationally; people who interact daily with other people from different countries within their company or with other companies abroad Cross-cultural communication requires being aware of cultural differences because what may be considered perfectly acceptable and natural in one country, can be confusing or even offensive in another All the levels in communication are affected by cultural dimensions: verbals (words and language itself), nonverbals (body language, gestures) and etiquette do s and don ts (clothing, gift-giving, dining, customs and protocol) Visit ManagementStudyGuide.com. All rights reserved.

47 International Negotiation In international negotiations, communication style, expectation, issue ranking and goals will change according to the negotiators countries of origin If applied properly, the understanding of cultural dimensions should increase success in negotiations and reduce frustration and conflicts Example: Negotiation between Chinese and Canadian: Canadian negotiators may want to reach an agreement and sign a contract, whereas Chinese negotiators may want to spend more time for non business activities, small talks and hospitality with preferences for protocol and form in order to first establish the relationship. Visit ManagementStudyGuide.com. All rights reserved.

48 International Management Decisions taken have to be based on the country s customs and values When working in international companies, managers may provide training to their employees in order to make them sensitive to cultural differences, develop best business practices, with protocols across countries Hofstede's dimensions offer guidelines for defining culturally acceptable approaches to corporate organizations Visit ManagementStudyGuide.com. All rights reserved.

49 International Marketing ManagementStudyGuide.com. All rights reserved. As in communication, negotiation and management, the five dimensions model is very useful in international marketing too because it defines national values not only in business context but in general. Application of Hofstede s findings in the field of global branding, advertising strategy and consumer behavior companies try to adapt their products and services to local habits and preferences and they have to understand the specificity of their market Example: If you want to market cars in a country where the uncertainty avoidance is high, you should emphasize on their safety, whereas in other countries you may base your advertisement on the social image they give you

50 Contents Introduction to Culture Five Dimensions of Culture Differences between Culture Cultural Climate and Employee Behavior Improving Employee Culture Cultural Behavior in Workplace Application of the Model Hofstede s Approach Advantages and Limitations of Hofstede s Model

51 Hofstede s model Hofstede provided a definition of culture and how culture can be measured. His research showed that cultural differences matter Managers in international organisations operate according to their country's values, rather than to the organisation's culture Employees from related national cultures work in similar fashions, thereby reducing the chance of conflicts Hofstede's model provides managers of cross-cultural relations a tool to help them understand differences in value sets and behaviour The model negates that one set of principles is universally applicable by confirming that there are multiple ways of structuring organisations and institutions Visit ManagementStudyGuide.com. All rights reserved.

52 Limitations Culture is a far too complex and multifaceted to be used as a straightforward organizational change control. "You do not control culture, at best you shape it ManagementStudyGuide.com. All rights reserved.

53 Summary The power distance dimension is a literal measurement of the layers of management between an individual employee and the highest level of management. The higher the power distance dimension, the less likely the employee is to feel that his contribution matters to the company. Employees tend to model their behavior after their companies' leaders. If the leadership team is competitive, employees may be encouraged to compete with one another or to beat out the company's competitors. If leaders are caring, employees are more likely to behave with tolerance and compassion. A company with a masculine culture operates assertively and competitively, and a company with a feminine culture comes across as more modest and caring. Hofstede's uncertainty avoidance dimension measures employees' comfort with unstructured environments unknown situations where surprising events may occur. Employees may not feel comfortable with either extreme, and an employee who likes to plan every minute of her day will quickly get frustrated in an organization with a low uncertainty avoidance dimension. Employees with a high measure of long-term orientation respond well to a hierarchy-based organizational structure where leaders are highly respected. Visit ManagementStudyGuide.com. All rights reserved.