Case Study Hofstede- Cultural Dimensions

Running Head: CASE STUDY REPORT 0
Case Study Report
Hofstede- Cultural Dimensions
Student Details: )
5/5/2018

CASE STUDY REPORT 1
EXECUTIVE SUMMARY
Hofstede’s cultural dimensions theory establishes a framework revolving around
cross-cultural communication, which was developed by Geert Hofstede. The dimensions
describe the impact of the culture fixed in society on the values of the members of that
society. This report explains the Hofstede Cultural Dimensions of how values in the
workplace are influenced by culture. The study is related to a case of an Australian
technology organization that faces issues related to HR policies in its subsidiary companies.
Also the study tells about how the company can resolve the issues and recommendations on
how to address the issue if faced again.

CASE STUDY REPORT 2
Table of Contents
EXECUTIVE SUMMARY............................................................................................ 1
INTRODUCTION....................................................................................................... 3
HR POLICIES AND PRACTICES.................................................................................. 3
CULTURAL DIMENSION THEORY – HOFSTEDE..........................................................3
SIX DIMENSIONS OF THE THEORY.........................................................................4
POWER DISTANCE INDEX.................................................................................. 4
UNCERTAINITY AVOIDANCE............................................................................. 5
INDIVIDUALISM vs. COLLECTIVISM....................................................................5
MASCULINITY vs. FEMININITY...........................................................................6
LONG-TERM vs. SHORT-TERM ORIENTATION......................................................6
INDULGENCE vs. SELF-RESTRAINT.....................................................................6
STEPS TO BE TAKEN TO ADDRESS THE ISSUES.......................................................7
CONCLUSION.......................................................................................................... 7
REFERENCES........................................................................................................... 8

CASE STUDY REPORT 3
INTRODUCTION
The Board of Directors of the Australian Technical Organization were successful in
expanding the business line internationally in New Zealand and Indonesia. The HR policies
which were used in the Australian company were also used for both the subsidiaries but the
Indonesian subsidiary faced a negative effect.
The report briefs about the HR policies and practices and further goes in a way telling
about the problem faced by the company in reference with the Cultural Dimension Theory by
Hofstede. A brief about the cultural dimension theory is given further in the report and how
the theory can be useful in solving the issue of the organization. The report also explains the
recommendations given to address the issues in relation with the theory.
This report is initiated to specifically solve the case of Australian Technical
Organization, facing the issue of HR policies and practices which were used same for the
parent company as well as the subsidiaries in New Zealand and Indonesia. The HR
policies and practices in the Indonesian subsidiary were providing negative effect and to
solve this issue, the analysis was initiated.
Thesis: To explain the issue faced by the organization in relation to the cultural
dimension theory by Hofstede.
HR POLICIES AND PRACTICES
“No theory, no plan, no system of government can assure the success of an enterprise.
Only people can do that” (Morita, 2015). Human Resources are used to describe both the
people who work for a company or organization and the department which is responsible for
managing resources related to employees. Human Resource policies are the formal rules and
guidelines that businesses put to hire, train, measure and reward the members of their
workforce. The human resource practices are those which improve the workforce so that it
ensures a greater level of efficiency, suitability and quality.