hofstede

• hofstede's national cultures

  *identifies 4 areas/'dimensions' of national cultures

  *6 in total because 2 were added later
• how is hofstede's used

  countries are scored on the 6 dimensions, allowing businesses to assess cultural differences when dealing with business from different countries and plan for any culture clashes
• power distance (PD)

  *extent that people in a society accepts that power is distributed unequally

  *low PD - equality is expected - more decentralised organisations

  *high PD - hierarchy is accepted - more centralised organisations
• uncertainty avoidance (UAI)

  *extent to which employees feel threatened by ambiguity and try to minimise uncertainty

  *low UAI - open to change

  *high UAI - presence of well-defined rules and regulations
• individualism vs collectivism (IDV)

  *extent to which individuals should look after themselves rather than support each other (ie be team players)

  *collectivist - large groups, expected to support each other in return for loyalty

  *individualist - focus on personal achievement and rights, people expected to look after themselves and close family
• masculinity vs femininity

  *refers to dominant values in organisation

  *masculine - highly competitive and powerful, with contrasting gender roles, focus on assertiveness and money

  *feminine - focus on concern for others and the quality of relationships - caring and quality of life
• long-term orientation (LTO)

  *refers to how long-term employees are in their thinking, which affects their planning and attitude to investment

  *low LTO - society follows tradition more

  *high LTO - society looks to future and accepts new ideas
• indulgence & restraint

  *indulgent -people can satisfy their desires and impulses

  *restrained - attempt to regulate the desires of their people
• use of hofstede's

  *used to plan for communication problems when trading with international suppliers, expanding into other countries or during mergers, takeovers and joint ventures with businesses in other countries

  *forsee potential issues when entering international markets

  *useful for multinationals - helps assess how proposed changes will affect employees in different countries (then adjust changes to match cultures in different countries)