Management & culture

Management & culture
In today’s global marketplace, it’s important to understand the differences between
cultures, as well as how those differences affect the way you manage people. One of
the ways to understand culture is to look at it in the four dimensions established by
Hofstede:
1. Individualism vs. Collectivism
2. Small or Large Scale Power Distance
3. Uncertainty Avoidance
4. Masculinity vs. Femininity

The first dimension is Individualism vs. Collectivism. The issue in this
dimension is the relation between an individual’s interests and the interests of the
group. In individualist societies, the individual exercises loose ties between others,
is concerned with his own self-interests, and possibly the interests of his immediate
family. Individualist societies normally have a large degree of freedom and liberty,
which encourages people to pursue personal goals and ambitions. In collectivistic
societies, individuals are not so much concerned with their own interests as they are
the interests of their group, which can include immediate and extended families.
Every country theoretically fits somewhere along the Individualist-Collectivist
continuum.

The second dimension measures Small or Large Scale Power Distance. The
fundamental idea is how each society deals with inequality. All societies suffer from
inequality, but some are more unequal than others. Some of the variables which
contribute to inequality are physical size, intellectual giftedness, wealth, and
heredity. In organizations, scholars like Hofstede contend that the degree of Power
Distance is associated with centralization and autocratic leadership.

Uncertainty Avoidance is the third dimension. In short, this dimension deals
with how each society copes with the uncertainty of an unknown future. Some
societies accept more readily this uncertainty without much fear. These “Weak
Uncertainty Avoidance” societies take life as it comes, do not work as hard, are
willing to take risks, and are very tolerant of almost any behavior and opinion. On
the other hand, other societies experience anxiety because of an uncertain future.
Also known as “Strong Uncertainty Avoidance” societies, these cultures are marked
by emotional stress and aggressiveness.

Finally, the fourth dimension is Masculinity vs. Femininity. The issue is role
divisions between men and women in society. In every society, men and women
perform certain roles; men normally take more dominant roles, while women are
concerned with more caring and supportive roles. One can use these types of roles
to describe similarities between cultures. “Masculine” cultures value a high degree of
achievement, money, and work first. More “feminine” societies value quality of life,
relationships, and helping others before power and money.


For more information & Comparison between cultures visit www.geert-hofstede.com