Page 132 - E2 Integrated Workbook STUDENT 2018

Chapter 9

National cultures

As many organisations operate at a global level and face international competition,
an understanding of national culture has become increasingly important. Cultural
practices vary between different countries and will impact on how organisations
operate.

Hofstede developed a model to explain national differences by identifying five ‘key
dimensions’ along which national culture seems to vary.

 Power Distance

– High Power Distance means people accept inequality in power.

– Low Power Distance means people do not accept inequality in power.

 Uncertainty Avoidance

– High Uncertainty Avoidance means people are uncomfortable with
uncertainty and ambiguity.

– Low Uncertainty Avoidance means people have high tolerance for the
unstructured and unpredictable.

 Individualism and Collectivism

– Individualism means that individuals are expected to take care of
themselves.

– Collectivism means that individuals look after one another and
organisations protect their members' interests.

 Masculinity/Femininity

– Masculine orientation values achievement, heroism, assertiveness and
material success.

– Feminine orientation values relationships, caring for the weak and quality
of life.

 Long Term Orientation

– Long Term Orientation means valuing tradition, loyalty, education and
training.

– Short Term Orientation means valuing fast promotions and quick profits.

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