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Introduction
Table of contents
1. Power Distance
2. Individualism / Collectivism
3. Masculinity
4. Uncertainty avoidance
5. Long term orientation
6. Indulgence / Restraint
4
POWER DISTANCE
(PD) HOFSTEDE 1 ST
DIMENSION
Comparison
High PD Low PD
Example
Malaysia?
Finland?
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Comparison
Individualist Collectivist
• Individual is most • Views of group most
important important
• Independence over • High obligation to
dependence • the group
• Rewards individual Self is defined in relation to
achievement • others
• Values uniqueness of Cooperation, not
individual competition
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Example
South Korea?
USA?
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Masculinity (MAS)
Hofstede’s 3rd Dimension
The degree of masculinity indicates
whether a society leans more
towards masculine values, or
towards feminine ones.
Comparison
Masculinity values Femininity values
Japan?
Sweden?
Sweden (5)
• the manager should support the employees
• managers strive for consensus, conflicts are
solved by compromising
• people value equality & solidarity
• incentives : free time & flexible working
hours
• important to include everyone
• no sense of superiority
Japan (95)
• long working hours, extremely hard working
(hard for women to participate)
• life is a constant competition
• people are motivated if they are fighting with
a winning team
• drive for excellence and perfection
Challenges as an international manager
• The Japanese want to work longer hours than the
Swedish ones
a lack of motivation among Japanese
fe l t pressure and lack of motivation among
Swedish
• Solution:
– show Japanese the company is successful anyway
– draw up work schedule to reduce pressure of staying
longer
Uncertainty avoidance
index (UAI)
Hofstede 4th Dimension
20
• The degree of anxiety that society members feel when in uncertain or unknown
situations
• Focuses on the level of tolerance for uncertainty and ambiguity within the society.
21
Comparison
High uncertainty Low uncertainty
Japan?
USA?
23
USA (46)
• Acceptance for new ideas and innovation
• Do not require many rules
• High trust in the state
• Thoughts are shared with colleagues / boss
• Feedback and criticism are accepted
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Japan (92)
• Japanese taught to prepare for any uncertain
situation avoid any risk
• Ceremonies for all aspects of life
• Much emphasis on etiquette
• It is not accepted to have a disagreement with
your employer
• Questions only answered if the answer is
absolutely certain
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Challenges as an international
manager
• International team, US team members express an idea
for innovation
US team members want to go ahead immediately
Japanese team members wish to take their time to make
absolutely sure that all details are known
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Long term orientation
versus
short term normative
(LTO)
Egypt
?
South
Korea
?
South Korea (100)
• Society is more pragmatic and long term
orientated
• Almighty God is not familiar to South
Koreans
• People guided by virtues and practical good
examples
• Serve the durability of the companies.
• Serve the stakeholders and society at large
for many generations to come.
Egypt (7)
• Indicates that the society is very normative
• Strong concern with establishing the absolute
Truth
• Normative in their thinking
• Exhibit great respect for traditions
• Small propensity to save for the future
• Focus on achieving quick results
Challenges as an international manager
• Challenges
• Egypt company Profi t in three months
• South Korea company Increase in market share
after three years
• Cooperation fail No same objective
• Understand the culture and come up with an win-
win proposal to satisfy both objective is
important.
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Comparison
Restraint Indulgence
•Strict social norms
•Free gratification
•Lower % of happy people
•Individual happiness and leisure time
•Positive emotions not freely
expressed are important
•Higher % of people declaring
•A perception of helplessness:
what happens to me is not my themselves very happy
•Positive emotions freely expressed and
own doing
•Leisure time not given much remembered
•Loose gender roles
importance
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South Korea?
Sweden?
Sweden (78)
• Employees cannot easily be motivated with
material rewards
• Enjoying the moment rather than use time to
compare to others
• No need for status objects
• Employees encouraged to speak up
• Incentives like free time, flexible work hours and
places are effective
South Korea(29)
• Material reward is expected
• Employees easily feel treated unfairly
• Status objects are important
• Very hierarchical working environment, lower employees do
not voice their own opinions
• People live to work, employees are expected to work as late
as the boss
• Indulging and using too much money on yourself is thought
of as wrong
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• Solution:
– Hire more employees so that overtime is not
necessary flexible working hours and free time
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References
• http://geert-hofstede.com/dimensions.html
• http://www.mindtools.com/pages/article/newLDR_66.htm
• http://geert-hofstede.com/countries.html
• http://www.communicaid.com/cross-cultural-training/blog/indulgence-
vs-restraint-6th-dimension/#.VCQmNk0riUk
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Thank you!
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