Lecture 6 6
Prepared by Ing. Ahmed Ameen Mohamed, Mandhu College 2020 9/25/2020
Hofstede Study
HRM implications of operating across national cultures
Prepared by Ing. Ahmed Ameen Mohamed, Mandhu College 2020 9/25/2020 2
HOFSTEDE’S 5 CULTURE DIMENSIONS
Confucianism
or long-term
Individualism orientation
vs.
Femininity vs. collectivism
masculinity
Uncertainty
avoidance
Power
distance
1- POWER DISTANCE
Power distance stands for inequality that is defined not from above,
but from below. It is, in fact, the extent to which organizations and
societies accept power differentials.
Societies with high power distance Societies with lower power distance
• Autocracy in leadership; • Participative or consultative style of
• Authority that is centralized; management;
• Paternalistic ways of management; • Decision-making responsibility and
• A number of hierarchy levels; authority decentralized;
• The acceptance of the privileges that • Flat structure of organizations;
come with power; • Supervisory staff small in proportion;
• A lot of supervisory staff; • Questioning the authority and lack of
• An expectation of power differences and acceptance;
inequality.
2- UNCERTAINTY AVOIDANCE
Uncertainty avoidance is the extent to which the members
belonging to a society are capable of coping with future uncertainty
without going through stress.
Weak uncertainty Strong uncertainty
• Undertaking risk; • Tendency to avoid risk;
• Flexibility; • Organizations that have a number of
• Tolerance toward differing opinions and standardized procedures, written rules,
behaviors. and clearly delineated structures;
• Strong requirement for consensus;
• Respect for authority;
• Promotions depending upon age or
seniority.
3- INDIVIDUALISM VS. COLLECTIVISM
Individualism set against its opposite collectivism defines the extent
to which individuals are inclined toward remaining in groups.
Individualistic cultures Collectivistic cultures
• Concentration on self or at the most very • Considering the wider collective with
near and dear ones, and concern with regards to implications of their actions;
behavioral relationships as well as own • Sharing of resources and readiness to
goals, interests, and needs. give up personal interest keeping in mind
• Emphasis on personal enjoyment, fun, the collective interest;
and pleasure, over duties and social • Favoring some in-groups (such as friends
norms. They are a part of a number of in- and family);
groups which hardly have any influence • Being a part of a few in-groups that have
on their lives. an influence on their lives. Rather than
• Self-sufficiency and value independence, being individualistic, they have an
and placement of self-interest over increased inclination towards conformity;
collective interest. Confrontation is • Regulation of behavior with the help of
accepted as an attribute. group norms.
4- MASCULINITY VS. FEMININITY
Masculinity and femininity revolve around the emotional role
distribution between genders, which is again a prime issue in a
number
Masculineof societies.
cultures Feminine cultures
• Clearly distinct gender roles; • Overlapping of social gender roles;
• Benevolence has little or no significance; • Men, as well as women, are expected to
• Men are expected to be tough and be tender, modest, with focus on the
assertive with a concentration on material quality of life;
achievements; • Emphasis on the non-materialistic angles
of success;
• The preferred traits in boyfriends and
husbands are the same.
5- LONG-TERM VS. SHORT-TERM ORIENTATION
Long term Short term
• Emphasis on a relationship order • Orientation toward past and present;
depending on status, and observance of • Focus on respect for tradition;
this order;
• Stress on possessing a sense of shame;
• A comparatively static, more
• Stress on thrift; conventional mentality;
• Positive association with economic growth; • Emphasis on saving face;
• Emphasis on personal steadiness;
• Focus on stability;
• Emphasis on reciprocation of gifts,
favors, and greetings;
• Negative association with economic
growth.
6- INDULGENCE VS. RESTRAINT
The dimension of indulgence vs. restraint focuses on happiness. A
society that practices indulgence makes room for the comparatively
free satisfaction of natural and basic human drives pertaining to
indulging in fun and enjoying life. The quality of restraint describes
a society that holds back need satisfaction and tries to control it
through severe social norms.
Hofstede study: Power distance & individualism vs. collectivism
COMPARE COUNTRIES
[Link]
Impact of the cultural context on HRM practices
• In societies low on ‘in-group collectivism’ individual
achievements represents important selection criteria
• In societies high on ‘in-group collectivism’ the
Recruitment emphasis in the recruiting process is more on team-
and selection related skills than on individual competencies
• In societies High on gender egalitarianism women
have the same chances for vertical career
advancement as men
Training and • In societies low on gender egalitarianism female
development managers are rare
Impact of the cultural context on HRM practices
• In societies high on uncertainty avoidance employees
tend to be rather risk averse and prefer fixed
compensation packages or seniority-based pay.
• In societies low on uncertainty avoidance employees
Compensation tend to be rather risk-taking and accept high income
variability through performance-based pay.
• Societies high on collectivism tend to emphasize group
work.
• Societies high on individualism rather attribute
Task individual responsibilities in the work system.
distribution
CULTURES CHANGE
There is increasing
1. International connectedness
2. Global economy coordination
3. Harmonization of laws & regulations
4. Migration
Cultures are not confined to given territories.
This means new challenges for IB.
How resistant are cultures to change?
Generation Y are fast, self-organized & absorbed learners
with distinct work-life balance preferences
Entire society workforces are aging
THE END
