Cultural Dimensions, Employee Behavior & Profitability at Hilton Hotel

This dissertation investigates the impact of Hofstede's cultural dimensions on employee behavior and its subsequent effect on the profitability of multinational corporations, specifically focusing on a case study of Hilton Hotel. The research aims to understand how cultural dimensions such as power distance, individualism versus collectivism, masculinity versus femininity, uncertainty avoidance, and long-term orientation influence employee behavior within the international environment. The study employs a secondary data collection process, utilizing journals, articles, and internet resources for thematic analysis. It seeks to identify potential issues faced by employees due to cultural dimensions and propose strategies for overcoming these challenges to ensure profitability, considering existing customers, new customers, product offerings, and multinational customer base. The research also aims to provide suitable recommendations for Hilton Hotel to improve employee behavior and enhance profitability.

Running head: DISSERTATION
Impact of Hofstede Cultural Dimensions of Employee Behavior on the Profitability of the Multi-
National Corporation in the International Environment: A Case Study Hilton Hotel
Name of the Student:
Name of the University:
Author’s Note:

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Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ……………………. whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the…………… [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.

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Abstract
The workplace is the most diversified place that comprises of employees from different religious
and cultural background. In addition to, hospitality industry has employees from different
cultures that highly influences the way each employee communicates with the fellow employees
and provide service to the customers visiting their hotel. The aim of the research is to investigate
how cultural dimensions of the employee behavior impact on the profitability of the multi-
national corporation such as Hilton Hotel in the international environment. The cultural
dimensions of employee behavior include power distance, individualism versus collectivism, and
masculinity versus femininity, uncertainty avoidance index and long-term orientation versus
short-term orientation. As business is becoming highly global, cultures around the world are
getting more and more interconnected. In the case of Hotel Hilton, this suggests that the
managers will have to work with employees having different cultural background. Such strong
connection with their respective cultures, they often fail to see how culture affects their behavior
and thinking pattern. In order to understand and study the difference in thinking and behavior
pattern, Hofstede’s cultural dimension is considered as a significant tool and mechanism that
helps in comparing and contrasting the cultural differences and similarities in respect to the
employees. Hofstede’s cultural dimension is said to have an impact on the belief of power
inequality among the existing employees, individual image of the employees and gender
discrimination among the employees due to which the behavior of the employees take a troll and
the organizational profitability is questioned. For the gathering of data, secondary data collection
process will be used, and the themes will be analyzed by considering information of different
secondary resources such as journals, articles and internet facilities. This research will also help
in shedding light on the potential issues the employees face due to cultural dimension at

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workplace and possible methods or strategies for overcoming the challenges and ensuring
profitability in terms of existing customers, new customers, product and multi-national
customers.

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Table of Contents
Table of Contents
Chapter 1: Introduction....................................................................................................................6
1.0 Background............................................................................................................................6
1.1 Rationale................................................................................................................................7
1.2. Research aim.........................................................................................................................8
1.3. Research objectives..............................................................................................................8
1.4. Research questions................................................................................................................9
Chapter 2: Literature review..........................................................................................................10
2.0 Overview..............................................................................................................................10
2.1 Conceptual framework.........................................................................................................10
2.3 Meaning of Hofstede’s cultural dimension..........................................................................11
2.4 Impact of Hofstede’s cultural dimensions on the profitability of Hilton Hotel...................11
2.5 Concept of profitability........................................................................................................13
2.6 Hofstede’s cultural dimension and employee behavior.......................................................13
2.7 Hofstede’s cultural dimension and organizational profitability..........................................14
2.8 Relationship between cultural dimensions on the employee behavior and profitability of
Hilton Hotel...............................................................................................................................15
2.9 Summary..............................................................................................................................17
Chapter 3: Research methodology.................................................................................................19

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3.0 Overview..............................................................................................................................19
3.1 Research outline...................................................................................................................19
3.2 Research philosophy............................................................................................................20
3.2.1 Reasoning the use of positivism philosophy................................................................20
3.3 Research approach...............................................................................................................21
3.3.1 Reasoning the use of deductive approach.....................................................................21
3.4 Research design...................................................................................................................22
3.4.1 Reasoning the use of descriptive design.......................................................................22
3.5 Research strategy.................................................................................................................23
3.5.1 Reasoning the use of case study research strategy.......................................................24
3.6 Data collection process........................................................................................................24
3.6.1 Reasoning the use of secondary data collection process..............................................24
3.7 Data analysis technique.......................................................................................................25
3.7.1 Reasoning the use of qualitative data analysis technique.............................................25
3.8 Ethical considerations..........................................................................................................26
3.9 Accessibility issues..............................................................................................................26
3.10 Summary............................................................................................................................26
Chapter 4: Data analysis and findings...........................................................................................28
4.0 Overview..............................................................................................................................28
4.1 Thematic analysis................................................................................................................28

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4.2 Summary..............................................................................................................................32
Chapter 5: Conclusion and recommendations...............................................................................33
5.0 Conclusion...........................................................................................................................33
5.1 Recommendations................................................................................................................34
5.2 Future scope of the study.....................................................................................................34
References......................................................................................................................................35
Appendices....................................................................................................................................41
Appendix 1.................................................................................................................................41
Reflective log.........................................................................................................................41
Appendix 2.................................................................................................................................43
Personal Statement.................................................................................................................43

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Chapter 1: Introduction
1.0 Background
The workplace is the most diversified place that comprises of employees from different
religious and cultural background. In addition to, hospitality industry has employees from
different cultures that highly influences the way each employee communicates with the fellow
employees and provide service to the customers visiting their hotel. The concept and impact of
cultural dimension is studied by referring to the model developed by Hofstede. As mentioned by
Mazanec et al. (2015), the cultural dimension by Hofstede mentions that society’s culture highly
influences the value of the members and eventually the way they behave with their surrounding
people.
The word multi-national itself suggests business organizations operating in more than one
nation and has employees from different cultures. As mentioned by Rienties and Tempelaar
(2013), different cultures result in conflict among the employees that affect the profitability of
the organization. For this study, Hilton Hotel has been considered that is a global brand and
flagship of the American multinational hospitality company Hilton. According to 2017, there are
more than 570 Hilton Hotels and resorts operating in 85 countries and across six continents. This
suggests the company has high cultural dimension in terms of employees. As commented by
Minkov, Blagoev and Hofstede (2013), employees are the backbones of the business
organizations that represent the company in the eye of the customers are the pillars that
determine profitability of the firm.
As business is becoming highly global, cultures around the world are getting more and
more interconnected. In the case of Hotel Hilton, this suggests that the managers will have to

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work with employees having different cultural background. Such strong connection with their
respective cultures, they often fail to see how culture affects their behavior and thinking pattern.
In order to understand and study the difference in thinking and behavior pattern, Hofstede’s
cultural dimension is considered as a significant tool and mechanism that helps in comparing and
contrasting the cultural differences and similarities in respect to the employees. Hofstede’s
cultural dimension is said to have an impact on the belief of power inequality among the existing
employees, individual image of the employees and gender discrimination among the employees
due to which the behavior of the employees take a troll and the organizational profitability is
questioned.
1.1 Rationale
Cultural dimension is a large concept that is widely studied by various researchers by the
impact of cultural dimension on profitability of a multi-national company is not widely studied.
This study will help in understanding the wide concept of cultural dimension by referring to
Hofstede’s cultural dimension. In addition, to this research will also help in understanding how
cultural dimension, have an impact on the behavior of the employees while working as a team or
independently. Moreover, this research will also help in shedding light on the potential issues the
employees face due to cultural dimension at workplace and possible methods or strategies for
overcoming the challenges and ensuring profitability in terms of existing customers, new
customers, product and multi-national customers (Venaik and Brewer 2013).
As known, Hotel Hilton is a multinational corporation that operates in different countries.
Analyzing the impact of Hofstede’s cultural dimension will help in understanding the impact of
different cultures on the behavior of the employees working in the hotel. Undertaking the
research is justified because this will help in assessing the relationship between cultural

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dimensions with employee behavior of Hotel Hilton and the profitability. As a result, this will
help in determining how the cultural background of the employees influence the way they think
and behave while working in the hotel. The multi-national nature of Hotel Hilton will highlight
gender and power inequality along with individualism and collectivism and will study its impact
on the profitability for the hotel. Identifying the impact of the Hofstede’s cultural dimension,
both positive and negative, will help in developing suitable strategies for overcoming behavioral
issues within the employees due to cultural differences and increase profitability largely.
1.2. Research aim
The aim of the research is to investigate how cultural dimensions of the employee
behavior impact on the profitability of the multi-national corporation such as Hilton Hotel in the
international environment. The cultural dimensions of employee behavior include power
distance, individualism versus collectivism, and masculinity versus femininity, uncertainty
avoidance index and long-term orientation versus short-term orientation.
1.3. Research objectives
The objectives of the research are:
 To understand the concept of Hofstede’s cultural dimension
 To investigate the impact of cultural dimension on the profitability of Hilton Hotel
 To assess the relationship between cultural dimensions of employee behavior and
profitability of Hilton Hotel
 To provide suitable recommendations for improving cultural dimensions of employee
behavior for Hilton Hotel

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1.4. Research questions
The research questions are:
 What do you mean by Hofstede’s cultural dimension?
 How Hofstede’s cultural dimension affect the behavior of the employees?
 What is the relationship between employee behavior and profitability?
 What is the impact of Hofstede’s cultural dimension on the employee behavior and
profitability of Hilton Hotel?
 What are the suitable recommendations for improving employee behavior for Hilton
Hotel that will ensure profitability?

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Chapter 2: Literature review
2.0 Overview
This chapter aim towards identifying the independent and the dependent variables based
on which the entire structure of the chapter is formulated. For this study, cultural dimension of
employee behavior is the independent variable and the profitability is the dependent variable.
Concepts, factors and impacts of both the variables are discussed and analyzed critically in this
chapter.
2.1 Conceptual framework
The following figure depicts the cultural dimensions in the organization, or the cultural
dimensions which the organization values the most. Opposite to the cultural dimensions, is the
company’s business dimensions, outlining the various categories of customers and the main
product which the hotel sells that is guest service. The entirety of the table depicts the cultural
dimensions catering to the business aspects of the organization. This is a unique concept, and not
many research papers exist which emphasize on the relations between cultural dimensions of an
organization, with the profitability of the organization.
Misra (2015) did consider a similar idea, incorporating organizational culture as a
determinant of profitability in an organization. He states that work culture is a determinant in
employee motivation, which in turn is a necessity in the process of operating a highly efficient
workforce, which ultimately leads to higher productivity. However, the problem is that fact that
the research which was conducted, only took the banking sector, in the country of India. Hence,
since the business which hotels conduct is much different than that of banks, relevant literature in