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1、Culture and ManagementA Precis of Geert Hofstedes Ideas about Culture and OrganizationsCultures Consequences:International Differences in Work-Related Values,Beverly Hills,CA:Sage Publications,1980.Cultures and Organizations:Software of the Mind.London:McGraw-Hill,1991.AgendaWhy Culture and Manageme
2、nt?Hofstedes MethodThe Four DimensionsLater RefinementsCritiqueWhy Culture and Management?Managers are humans and exist in culturesThey make decisions,have rituals,heroes,and use and understand symbols.Hence they must be influenced by something other than mere instinct or biology“Culture”Patterns of
3、 thinking,feeling and actingMental software,“Software of the Mind.”Source is social environments,almost certainly from childhoodCulture is learned,not inheritedValuesParentsConcept LadderMalleabilityBeliefsPeers,HeroesAttitudesRelationshipsOpinionsExperienceKnowledgeExperienceBehaviorRealityPersonal
4、 DefinitionSymbolsHeroesRitualsHofstedes View of CultureValuesPracticesHofstedes QuestionWhat are the components of culture,a small set of dimensions or characteristics,that enable us to classify culture-in-the-large(at a national level)?And do nations differ and can they be clustered into culturall
5、y-similar nations?What he didnt ask:Can we capture culture in a small set of dimensions?Is culture stable?Is it a characteristic of individuals?Do people enact culture or have it set on them?Hofstedes MethodLate 60s,questionnaires were distributed to thousands of IBM employees worldwide.They answere
6、d the questions about work modes,methods,and meanings on desirable and desired situations and characteristicsThe results were subjected to factor analysis.Questions were based on prior work on culture by Inkeles and Levinson(a sociologist and psychologist)Factor AnalysisGoal is to reduce,statistical
7、ly,the number of dimensions it takes to describe a phenomenon completely while losing as little information as possible.The following example shows how factor analysis would reduce what looks like a two dimensional distribution to only one dimension:Age+Wealth=?How OLD are you?How Much Money are you
8、 worth?Age and Worth are closely related,so much so that if you know one,you can estimate the otherAge+Wealth=ONE DimensionThe red lines indicate the errors that using one dimension brings about.The longer the sum of these lines,the less well one dimension captures these two dimensionsIn other words
9、,there is only ONE dimension called“agewealth”that captures most of the information about both.The Four DimensionsPower-DistanceUncertainty AvoidanceMasculinityIndividualismAnd a fifth was added later Temporal OrientationInterpreting the DimensionsRange is generally 0 to 100,although some countries
10、were surveyed later and hence ended up with scores 100*Mean value is 50;consider the standard deviation to be about 15,so the bulk of countries are between 35 and 65.Hofstede was more interested in ranks rather than ratings;he later grouped countries in several dimensionsPower-DistanceHow a culture
11、handles notions of equality and power(US=40;ZA=49;Thailand=64)HighLowMalaysia 104Austria 11Guatemala 95Israel 13Panama 95Denmark 18Philippines 94New Zealand 22Mexico 81Ireland 28Arab Countries 80UK 35Uncertainty AvoidanceHow a culture handles risk and uncertainty(US=46;ZA=49;Thailand=64)HighLowGreec
12、e 112Singapore 8Portugal 104Jamaica 13Guatemala 101Denmark 23Uruguay 100Sweden 29Belgium 94Hong Kong 29Japan 92UK 35MasculinityHow a culture handles assertiveness vs.modesty(US=62;ZA=63;Thailand=34)HighLowJapan 95Sweden 5Austria 79Norway 8Venezuela 73Netherlands 14Italy 70Denmark 16Switzerland 70Cos
13、ta Rica 21Mexico 69Yugoslavia 21IndividualismHow a culture handles the individual vs.the group(US=91;ZA=65;Thailand=20)HighLowUSA 91Guatemala 6Australia 90Equador 8UK 89Panama 11Canada 80Venezuela 12Netherlands 80Colombia 13New Zealand 79Indonesia 14 Israel SE Asia,Latin AmericaSingapore,Jamaica Jap
14、anNordic CountriesJapanLatin America,SE Asia UK USPower-DistanceUncertainty AvoidanceMasculinityIndividualismLowHighExtensionsLater Hofstede added temporal orientationbasically,how a culture treats time.Currently Hofstedes four(or five)dimensions are the basis for almost all organizational and natio
15、nal business culture studies.CritiqueIs the conceptualization valid?Is the measurement technique valid?Is the measurement technique reliable?Can individual measures tell us anything about a culture at large?Does the culture at large tell us much about individual beliefs and behavior?Is it politicall
16、y correct to characterize large groups with small numbers of descriptors?Isnt this the basis of bias and prejudice?Shouldnt we treat people as individuals?Some Interesting QuestionsArent managers perceptions shaped as much by what others perceive as what they perceive?Arent managers expressions of t
17、heir perceptions shaped by what they think others expect of them?What does this mean for multinationals and NGOs with expatriate management and for global outsourcers with global workforces?Beyond HofstedeLow Uncertainty AvoidanceHigh Uncertainty AvoidanceLow Power DistanceMarket(US)Machine(Germany)High Power DistanceFamily(India)Pyramid(Mexico)