Hofstede’s Cultural Dimension Theory and Its Importance for International Business
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This report explores Hofstede’s cultural dimension theory and its relevance in achieving business objectives. It discusses the different dimensions and their impact on individual and organizational performance. Additionally, it provides suggestions for improving the effectiveness of the theory.
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Table of Contents INTRODUCTION.....................................................................................................................................3 MAIN BODY............................................................................................................................................3 1.Hofstede’s cultural Dimension theory.................................................................................................3 2. Importance of Hofstede’s cultural dimensions on international business...........................................4 3. Suggestions on Hofstede’s cultural dimensions.................................................................................5 CONCLUSION..........................................................................................................................................5
INTRODUCTION Hofstede’sculturaldimensiontheoryreferstoresearchesincross-cultural communication. This theory is foundedby Geert Hofstede. It is developed and updated in between 1967 and 1973. It is included in top list for measuring cultural values. It calculates cultural value of society members in terms of their attitude and behavior. This value quantifies cultural dimensions of people which will recognize their effective and efficient participation in growth and success of international business. This report signifies about hofstede’s culture dimension and its importance for achieving business objectives. It outlines suggestions or recommendations for changes in theory to make it more effective and specific. MAIN BODY 1.Hofstede’s cultural Dimension theory Hofstede’s cultural dimension theory refers to culture of people and their behavior towards work in organization. It represents that people attitude in thought process of their working nature and how they react accordingly (Beugelsdijk, Kostova and Roth, 2017). This theory says about norms and value of people behavior which will affect both individual and organization performance. This theory has different dimensions for measuring norms and value which are described below: 1.Individualism Vs Collectivism: -This dimension indicates that people are represented in group or individual in societies. High score represents individualism which outlines that self individual is focused on achieving self goals. It indicates loose connections with members and responsibility of sharing information is little. Low score represents collectivism and it shows the tight integrated relationship between people in a group who have strong trust on each other. In this employee is ready for sacrificing their achievement for self but in benefit for others like for group or whole organization. 2.Power distance: -This dimension measures about the powerfulness of people in society and also expects that power to people should be distributed equally. Low power distance represents that power is not distributed equally in society due to which they fight for their rights. In this, owner of business always questions by its employee due to which they are unsuccessful in achieving business objectives. High power distance represents
that power is distributed equally. It indicates respect for high authorities of business which lead to great success in achieving business objectives. Uncertainty avoidance-This index indicates the level of anxiety that a member can cope with. It shows the tolerance on people behavior for ambiguity. Low uncertainty avoidance refers to a situation where people are ready for change or innovation. It helps them to make decisions comfortably or openly (Deephouse, Newburry and Soleimani, 2016). It leads to informal attitude of people which helps in welfare of organization. High uncertainty avoidance is also a situation where people avoid uncertain situations. Expressive people are present in this index that shows anger or emotions whenever necessary. People know what the truth is and they know this truth will dictates everything. 3.Masculinity Vs Femininity: -Under this index, roles of men and women are described. In masculine, role of men overlaps women whereas in femininity, role of women overlaps men. It recognizes the gap between male and females. High MAS score expects in society that men to be tough, understanding, healthy and wealthy. It is supposed by society that in mastery of job, more value is by men. Low MAS score refers that women are found to be caring, modest, a way to cooperation. In societies, men are considered to be more powerful and intelligent. Women are realized to be competitive and assertive. Long Vs Short term orientation:- This dimension refers to the past connection with the future achievements. Low score of orientation represents short term orientation. In this people are past oriented and they believe in live in present only. They maintain traditions and norms honor according to time. In this, people are more focused on finding absolute truth (Khlif, 2016). High score of orientation represents long term orientation. In this people are pragmatic about future decisions. They encourage new ideas and efforts based on modern world for future planning. In this, people are more aligned to find virtue. 2.Importance of Hofstede’s cultural dimensions on international business To expand business globally, it is necessary to analyses culture dimensions of different people of different countries. This helps company to set a factory or project in other countries in effective and efficient manner (Tekeş, Hoe and Özkan, 2018). It decreases the chances of mistakes and helps in making strategies against other business by knowing people culture, attitude and behavior. It helps to maintain relation between managers and customers by understanding their desires well effectively by measuring their society culture. It helps to spread the distribution and manufacturing network worldwide in efficient manner.
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3.Suggestions on Hofstede’s cultural dimensions. I disagree withuncertainty avoidancedimension becausein this, high score shows too much emotions and anger can lead to harmony in endanger. They sometimes avoid important things which helpful in growth of organization that becomes a loss afterwards. There should be some criteria or conditions should be made for avoiding information because it can be truth or lie. Everyone has not the capability to identify the truth and reciprocate accordingly. Some people just follow others. In this, individual capacity goes down. They have to be dependent on others for analyzing the true information (Mazanec, Gursoy and Lu, 2015). As per my suggestions, people must avoid to give negative points or feedback in public because it can disappoint others and lead to false decision. And for low uncertainty index people, I want to suggest that to do not mix personal life with professional life because it can lead to unsatisfied information which results in fighting. Otherwise it affects relations and leads to mind stress which affect growth of organization or business. Also, individual should encourage themselves to have debate and increase their expressive nature for finding true information.
REFERENCES Books and Journal: Beugelsdijk, S., Kostova, T. and Roth, K., 2017. An overview of Hofstede-inspired country- level culture research in international business since 2006.Journal of International Business Studies,48(1), pp.30-47. Deephouse,D.L.,Newburry,W.andSoleimani,A.,2016.Theeffectsofinstitutional developmentandnationalcultureoncross-nationaldifferencesincorporate reputation.Journal of World Business,51(3), pp.463-473. Khlif, H., 2016. Hofstede’s cultural dimensions in accounting research: a review.Meditari Accountancy Research,24(4), pp.545-573. Mazanec, J.A., Gursoy, D. and Lu, L., 2015. Homogeneity versus heterogeneity of cultural values: An item-response theoretical approach applying Hofstede's cultural dimensions in a single nation.Tourism Management,48, pp.299-304. Tekeş, B., Hoe, C. and Özkan, T., 2018. The Relationship Between Hofstede’s Cultural Dimensions,Schwartz’sCulturalValues,andObesity.Psychologicalreports, p.0033294118777965.