Hofstede's Cultural Dimensions and Change Management in Organizations

This essay provides an analysis of people and organizations, focusing on Dr. Geert Hofstede's model of cultural dimensions and theories of change management. It highlights the importance of understanding cultural differences in a globalized world and how these differences impact work-related values and behaviors within organizations. The essay elaborates on the five cultural dimensions identified by Hofstede: power distance, individualism, uncertainty avoidance, long-term orientation, and masculinity, explaining their characteristics and implications. It also discusses the practical applications of Hofstede's theory in international communication and negotiation, emphasizing the need for cultural sensitivity to promote effective and harmonious collaboration. Furthermore, the essay explores the drivers of organizational change, including financial standards, strategic shifts, product development cycles, new technologies, and mergers and acquisitions. It touches upon bureaucratic organizations and the continuous process of organizational development aimed at improving effectiveness and adaptability in a rapidly changing environment, using Argo's as an example of a company that has experienced changes to increase the variety of different goods.

Running head: PEOPLE AND ORGANIZATIONS
People and organizations
Name of the student
Name of the university
Author Note:

2
PEOPLE AND ORGANIZATIONS
Table of Contents

3
PEOPLE AND ORGANIZATIONS
Section 1
Hofstede’s Model
The world has become a global village where technology has brought people of different
nationalities much closer together. This implies that people of different cultural inclinations are
now working together more and more, associating and communicating on a daily basis. While
this may be exciting and interesting, and offering an organisation’s customers broader and better
perspectives on learning and life, it may be challenging, frustrating and uncertain. Challenges
emanate from uncertainty on how one should relate to a person of another culture; what one
should say when coming across someone along the corridor first time and thereafter; whether
there are cultural taboos that determine what one should say or do to a person of another culture,
and so on.
With access to people working for the same organisation () in over 40 countries of the world, Dr
Geert Hofstede identified certain distinct cultural dimensions that accounted for differences
between the cultures of different individuals from different countries which organizational
management and employees must handle well in order to peacefully co-exist within the
organisation (). From an analysis of employees at IBM, Hofstede concluded that organisations
are culturally-bounded and identified five workrelated cultural dimensions that have an impact
on work-related cultural values in different countries. These five cultural dimensions regard five
anthropological problem areas that different societies deal with in different ways and determine
the behaviour and relations of employees of different cultural backgrounds in an organisation.
According to (), these dimensions represent different ways different national societies.

4
PEOPLE AND ORGANIZATIONS
According to the Hofstede website www.geert-hofstede.com, power distance refers to the degree
of existing and acceptable inequality among those employees with and those without power, that
is, the leaders and the led. A high employee power distance is an indication that unequal
distribution of power is acceptable in that society and that those without power clearly
understand their actual place in the system (Hofstede, 2003). On the other hand, if employees’
power distance is low, it implies equitable sharing and dispersion of power, that is, members of
that society view themselves as equals. Nationalities with low power distance means supervisors
and supervisees regard each other as equal and only separated by chance, opportunity, and luck
and so on. They habour such thoughts as “tomorrow it will be me; life is a wheel; what goes
round comes round”. Societies associated with high power distance have these characteristics
(www.geert-hofstede.com): • Big gaps in remuneration, authority and respect; • Centralised
organisations; and • Strong power hierarchies. There is a clear dividing line between managers
and subordinates. Societies associated with low power distance possess the following
characteristics: • Flatter organisations • Equality between leaders and subordinates
Individualism
This refers to the strength of connections people have to members of their community. Hofstede
(2003) argues that a high individualism score indicates a loose connection with people or lack of
interpersonal connection and little sharing of responsibility among members of society.
Socialisation is only with family and a few close friends. There is high value for people’s
freedom, that is, people in this society prefer to be left alone. Members of a society high on
individualism have high enjoyment of challenges and high expectation of rewards for hard

5
PEOPLE AND ORGANIZATIONS
individual work. In societies low on individualism, nationalities emphasise more on harmony
than honesty and in order to create harmony, people prefer to work with others for the
organisational rather than individual good. Such people prefer closer supervision and interaction
between supervisor and supervisees. There is high preference for lighter individual tasks and
team assignments where team effort is recognised and rewarded.
Uncertainty avoidance
This is the extent society members feel insecure when confronted with the uncertain or the
unknown (www.geert.hofstede.com). High uncertainty avoidance society fears the unknown and
therefore avoid ambiguity where possible. They are governed by rules and order and they seek a
collective ‘truth’. On the other hand, low uncertainty avoidance society enjoys the unknown and
values differences. There are very few rules and people are encouraged to discover their own
truth.
Long Term Orientation
This refers to the extent society is concerned with future benefits versus benefits, that is, what is
in it for us now versus what is in it for us or our children years to come. Society with high long
term orientation regard family as the basis of society. Such society view parents and men as
having more authority than theng people and women. Such members have a strong work ethic
and place high value on education and training. On the other hand, societies with low long term
orientation promote equality, treat others as they would want to be treated and seek self-
actualisation.
Masculinity

6
PEOPLE AND ORGANIZATIONS
This is the extent society values and maintains traditional male and female roles. High
masculinity means men are tough and are the provider to the family. They are assertive and have
unquestionable authority over women. Low masculinity means roles are blurred, that is, they are
not obvious since men and women perform equal tasks.
The importance of Hofstede’s cultural dimensions Hofstede’s theory of cultural dimensions
exposes the impact of a society’s culture on the values, norms and behaviours of its members and
the theory has been extensively used in many fields as a model for research particularly in the
fields of cross-cultural psychology, international management, and cross-cultural business
communication (www.geerthofstede.nl). He developed his theory through a world-wide survey
of employee values at IBM by examining and observing cultural differences among the
organisation’s employees from all over the world. Hofstede (2003) argues that if not properly
understood, culture is more often a source of conflict than synergy and cultural differences are a
nuisance and often a disaster (www.geert-hofstede.com). He further posits that despite glaring
evidence that people from different cultural backgrounds behave differently, we tend to tend to
pretend that all people are the same. Due to this lack of cultural awareness there is a tendency to
minimize cultural differences, leading to misunderstandings and misinterpretations between
people from different countries. Despite the convergence phenomenon resulting from the global
village culture, cultural differences and diversity are still prevalent and awareness of these
differences is therefore important in order to have respectful crosscultural relations. Awareness
of these cultural differences prepares people for what to expect from associates from different
cultures and how to behave towards them. 2.3 Practical applications of the theory According to
Hofstede (2003), when it comes particularly to international business, promoting cultural

7
PEOPLE AND ORGANIZATIONS
sensitivity will assist employees to work more effectively and more harmoniously even if they
come from different countries. More specifically, Hofstede’s theory is applicable though the
following in the following: • International communication Wardrobe (2005) argues that
employees in a multicultural organisation are usually professionals from different countries who
interact on a daily basis and cross-cultural communication becomes vital whereby employees
become aware of cultural differences since what may be well acceptable and normal in one
culture may be totally unacceptable and even offensive in a different country. Hofstede’s cultural
dimensions affect all levels in communication, that is, verbal (words and language), non-verbal
(body language, gestures, symbols) and etiquette dos and donts (dress, dining, protocol,
customs), and also written communication (Wardrobe, 2005). • International negotiation
According to LeBaron (2003), understanding of cultural dimensions can increase success in the
negotiation process and reduce frustration and conflicts if properly applied since in international
negotiation communication style, expectation, issue ranking, and goals will change depending on
one’s culture. For example, American negotiators may want to reach an agreement quickly and
sign a contract because time is money, whereas Chinese and Japanese negotiators spend time on
preliminaries (non-business activities) such as small talks, hospitality and drinking coffee and so
on with preferences to protocol and form in order to establish a solid relationship first (LeBaron,
2003). When negotiating in western countries, the aim is to work out a mutual understanding and
agreement (sign a contract) and then shake hands to signal the conclusion of the agreement and
the starting of working together (www.geert-hofstede.com).

8
PEOPLE AND ORGANIZATIONS
Section 2
Theories of Change and Change Management
Drivers of Change in Organization
This is the key essential driver of the organizational change. Companies which do not
maintain their financial standards or required to reevaluate their objectives and process. When a
new opponent gives an enter in to the market with a new technology which is advanced or with
labor at low cost then the company which had officially enjoyed profits will experience fall in
the share value of their market . A company which as faced a failure to preserve its position in
the competitive presents can experience pressure on its resources and compel to face the second
thought on the cost of capital and deployment of the resources.
Strategic change in the objectives:-
This is the primary driver of the organizational change. When a company changes its center of
attention to a customer oriented service from a product oriented service then new process comes
in the existence to assist this reorientation, which results in the unemployment to the active staff
or processes which are manufacturing.
End of the product development:-
A product reaches of its development life cycle when companies are strained stop its production
to reduce the operating cost which helps them to survive in the existing market. At the end of the
life cycle of the product development many of the companies sell out are combined with its
competitors in the existing market. This makes the company to face the structural changes in its
trade processes to either sustain profitability or concentrate on evolving opportunities.

9
PEOPLE AND ORGANIZATIONS
New technology:-
New technology can be addresses ad major driver of the organizational change. For an instance
internet dominating on the old style print media companies. The browsing levels of internet is
increasing day by day worldwide, which as forcing companies to acclimatize their active
operations to the changing preferences of the consumers . Companies which ignore to follow the
upcoming trends will experience the fall in share value will compare to its opponents who adapt
the rising technologies to address the demands of their customers.
Fusions and acquisition:-
When companies unite their operations then cost cutting on a significant level and the
reengineering takes place unemployment remodeling to lineup with the objectives of the
management steer the organizational change. Fusion of a fusion of a few companies can create
the large considerable aims to modernize their operations and join existing operation into a
centralized model.
BURECRATIC ORGANIZATION:-
Burecratic organization is a kind of government which is created by the assembly of unelected
workers administrators and managers, who follow rules shaped by the nominated and designated
authorities of the department.
Typical Steps and Stages
Organization Development is an effort planned, organization-wide, and managed from the top, to
increase organization effectiveness and health through planned interventions in the
organization’s ‘processes,’ using behavioral-science knowledge.”

10
PEOPLE AND ORGANIZATIONS
-Beck hard, “Organization development: Strategies and Models”, Reading, MA: Addison-
Wesley, 1969, p. 9.
“Today’s organizations operate in a rapidly changing environment. Consequently, one of the
most important assets for an organization is the ability to manage change and for people to
remain healthy and authentic.”
It is defined as a continuous process which is implemented by all the organizations. Organization
development makes its people who are only operational into talented to gain better results which
helps in the expansion and increase in its production by various plans to gain returns.
Development in the product range expanse business.
Changes and development of Argo’s:-
Argo’s as experienced changes in the life increasing in the variety of different goods. Because of
the vary traditions in the United Kingdom. Each and every product in the Argo’s catalog or
grouped according tools type for example computer peripherals, jewellary, toys for kids etc.
Argo’s owned some of the brand and rebranded them as their own brand. Customers for made
convenient by introducing new technologies this also helped the company to face the increasing
competition in market. For an instance, customers are made convenient by introducing the self
check machines which helps them to check the availability of the desired products from the bulk
varieties and categories present in the store. Introduction of these type of new technologies not
only made the customer to feel convenient but also it helped to be in the top position in the
competitive market. Argo’s is also attracting the customers by reducing the prices of the product
introducing deals with discounts for the customers to make them feel that they gain something

11
PEOPLE AND ORGANIZATIONS
profitable from the offers. Introducing of these type of discounts and deals increases the sales of
the company and existence of the company for long terms in the market which is competitive.
Development required for the Argo’s:-
The infrastructure of the company should be improved drastically. Argo’s should update its new
technologies like embedding the two different technologies which made the company unique in
the market for example self checkout machines which are introducing by the Argo’s to provide
quality service tools customers should be embedded with paying machines. This reduces the
queue’s at the cash counters which makes the customers feel comfortable. Introduction of new
products according to the developing generations should be made available in the company for
example multimedia products, automotive products and products with nano technology should be
made available in the Argo’s store. Security inside the store should be increased drastically,
which makes the customer feel safe and secure. Introduction of multinational and multi cultural
products attracts the different kind of customers. Covering the entire region by dividing into
small parts and establishing the stores in according to the divided regions. This makes the Argo’s
company to reach all the customers in the United Kingdom. Availability of online shopping
should be increased.
Step by step process of the analyzing the stakeholder analysis:-
Categorizing stakeholders:-
It is the first step in the stakeholder analysis this stage things about who thes stakeholders are and
all the people who are pretentious by the work and who can influence are have cover on over it,
or show interest in its successful or unsuccessful conclusion.

12
PEOPLE AND ORGANIZATIONS
Prioritize stakeholder:-
After identifying the stakeholders of company there will be long list of people and organizations
who are influenced by our work. Some of people this people and organizations can have a power
to block it or advance it and some of them may be interested in what we are doing
Understanding the important stakeholder:-
In this stage we need to know more about our stakeholders. It is essential to know about their
view and reactions there project. It is also essential to know how to engage them in the project
and how to communicate with them.
Benefits of Stakeholder Analysis
With the help of the stakeholder analysis a project can identified
 Possible issues which disorders the project
 Methods to minimize the possible negative force and to manage the negative
stakeholders.
 Important people for distributing the information during the execution face
 Benefits of the all the stakeholders who may be affected or affect the project.
 Planning of the communication and strategy of managing the stakeholders during
planning face of the product
 Groups that should get encouragement to take part in various stages of the project.