Page 88 - Fundamentals of Management Myths Debunked (2017)_Flat

CHAPTER 3 • Integrative Managerial Issues 87
◂ ◂ ◂ From the Past to the Present ▸ ▸ ▸

• Uncertainty avoidance. This dimension assesses the
Hofstede’s 5 Dimensions degree to which people in a country prefer structured
of National Culture over unstructured situations and whether people are will-
ing to take risks.
An illuminating study of the differences in cultural environments • Long-term versus short-term orientation. People in
11
was conducted by Geert Hofstede in the 1970s and 1980s. cultures with long-term orientations look to the future
He surveyed more than 116,000 IBM employees in 40 countries and value thrift and persistence. A short-term orientation
about their work-related values and found that managers and values the past and present and emphasizes respect for
employees vary on five dimensions of national culture: tradition and fulfilling social obligations.
• Power distance. The degree to which people in a coun- The table below shows a few highlights of four of
try accept that power in institutions and organizations Hofstede’s cultural dimensions and how different countries
is distributed unequally. It ranges from relatively equal rank on those dimensions.
(low power distance) to extremely unequal (high power If your professor has assigned this, go to the Assignments
distance).
section of mymanagementlab.com to complete these dis-
• Individualism versus collectivism. cussion questions.
Individualism is the degree to which
people in a country prefer to act as Here’s one way Talk About It 1: Using Hof-
individuals rather than as members of stede’s data for Mexico and the
groups. Collectivism is the equivalent to UNDERSTAND United States, how do you think
of low individualism. employees in each country (a)
might react to a team-based re-
• Achievement versus nurturing. CULTURAL wards program; (b) would be like-
Quantity of life is the degree to which DIFFERENCES! ly to view their relationship with
values such as assertiveness, the their boss; and (c) might react to
acquisition of money and material a change in work processes?
goods, and competition are important. Quality of life is
the degree to which people value relationships and show Talk About It 2: What does this example tell you about
sensitivity and concern for the welfare of others. the importance of understanding cultural differences?

Individualism/ Power Uncertainty Achievement/
Country Collectivism Distance Avoidance Nurturing a
Australia Individual Small Moderate Strong
Canada Individual Moderate Low Moderate
England Individual Small Moderate Strong
France Individual Large High Weak
Greece Collective Large High Moderate
Italy Individual Moderate High Strong
Japan Collective Moderate High Strong
Mexico Collective Large High Strong
Singapore Collective Large Low Moderate
Sweden Individual Small Low Weak
United States Individual Small Low Strong
Venezuela Collective Large High Strong
a A weak achievement score is equivalent to high nurturing.
Source: Based on G. Hofstede, “Motivation, Leadership, and Organization: Do American Theories
Apply Abroad?” Organizational Dynamics (Summer 1980): 42–63.