...Hofstede’s Six Dimensions and Leadership Erin Bonich ORG300 – Applying Leadership Principals Colorado State University – Global Campus Dr. Laurie Barnes November 1, 2015 Hofstede’s Six Dimensions and Leadership The purpose of this paper is to discuss the characteristics of the Six Dimensions of Culture as they have been defined by Professor Geert Hofstede and the combination of dimensions that shape a great leader. The following discussion relates Hofstede’s Six Dimensions to common leadership styles by evaluating the impact of cultural values on organizational standards and practices. Hofstede’s Six Cultural Dimensions In Relation To Leadership Hofstede’s six cultural dimensions consider the differences in values that govern the actions of a culture. Hofstede defines culture as “the collective programming of the mind distinguishing the members of one group or category of people from others”. As businesses and organizations continue to globalize, the need for cultural tolerance and cooperation is increasingly relevant. The six dimensions provide a scale for determining the weight a particular value holds in a society which allows for leaders to compare cultures and better align their organizations practices to coincide with that of another organization. Power Distance Index (PDI) Power distance encompasses the measure of society’s acceptance for collective hierarchy and power arrangements. PDI evaluates the amount of difference...
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...literature review will make use of four pieces of academic work to discuss how the concept of culture can intrinsically affect leadership. The literature finds that the link between culture and leadership is an important, yet complicated relationship. I will begin by discussing and defining the central concepts of culture and leadership. I will then explain and analyse the significance of culture upon leadership. Finally I will review Hofstede’s cultural framework to assess its significance and relevance to the topic at hand. Culture: To begin, culture is a phenomenon that carries multiple definitions. A simplistic view sees it as “how things are done around here”(Ouchi and Johnson, 1978 p.293). Culture can also encompass the behaviours, attitudes, norms, morals and unconscious values instilled within a group of individuals (Schien, 1985). Hofstede himself defines culture as the “collective mental programming” (Hofstede, 1980 pp.43) of individuals bound by some form of common orientation or geographical boundary. Culture shapes everything within society, and as an extension, leadership. Leadership is another interlinked concept, commonly defined as a relationship by which followers are influenced, and inherent changes are made towards a collective purpose (Daft and Lane, 2005). Moreover leadership refers to the “core set of traits, behaviours, skills, or characteristics that cuts across situations, cultures, philosophies, and moral systems” (Shanthi, 2009 pp.2). Leadership...
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...Scientific criticism to Geert Hofstede’s research Cross-cultural issues in European Human Resource Management Contents Abstract 2 Introduction 2 Hofstede’s findings 2 Hofstede’s Framework of Cultures 3 Power Distance (PD) 3 Individualism - Collectivism (IC) 3 Masculinity - Femininity (MF) 4 Uncertainty Avoidance (UA) 4 Long/short term orientation (LTO) 5 Some aspects of Hofstede’s model having provoked scientific criticism 5 Methodological issues 6 Cultural Homogeneity 7 National Divisions 7 Number and bipolarity of dimensions 7 Out-dated concept 8 Political Influences 9 Conclusion 9 References 10 Abstract The high level of multiculturalism in the field of business indicates to raise awareness about cultural understanding. Researches in that line major refer to Greert Hofstede, who analyzes dynamics of cross-cultural groups and organizations. Undoubtedly, his model is as widely cited as criticized, because it is well-known pioneering research of national culture differences and their consequences. In this short paper, I am going to examine Hofstede’s findings and the reason why his work faces criticism. Introduction Culture in business has been of utmost interest for the last two decades, and with increasing national diversity in nowadays business environment, culture itself is regarded as an important dimension. The beginning of a pilot study in that sphere refers to the Dutch social psychologist Greert Hofstede and his...
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... 2.0 Theoretical Framework.........................................................................................................4 3.0 Discussion of Central Topic..................................................................................................6 4.0 Conclusions..........................................................................................................................13 References..................................................................................................................................15 An Analysis of the Culture of an Organization 1.0 Background to the Organization Every organization has a personality that is unique, that individual character in the society is its culture (Barker, 2010). My company of choice for analysis is The Hongkong and Shanghai Banking Corporation (HSBC). I have used this bank to discuss the central topic in my report.As I have found it to have a strong corporate culture that has continued to improve its efficiency, value, performance and ratings over the years. HSBBC is a privately based organization; it was incorporated in 1865 with a primary objective of increasing trade and commerce between Europe and China. The headquarters of HSBC are located in London, it is among the largest banks in the world, and it has been rated as the second most important of all financial institutions in the world. This bank has a worldwide network comprising of approximately 10,000 branches...
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...Hofstede’s Cultural Dimensions US vs. India by Edward A. Molnar January 19, 2013 Abstract This article acknowledges the six dimensions of Hofstede’s theory of cultural dimensions, and defines five of them for a comparison between the United States and India. This article shows for the most part, the definitions of Hofstede’s cultural dimensions are correct, but the article did identify some ambiguities while making the comparisons. Finally, future areas of possible research were identified that would assist in the removal of the ambiguities. Hofstede’s Cultural Dimensions US vs. India Geert Hofstede’s theory of cultural dimensions was a result of an analysis of a world-wide survey of employee values by IBM in the 1960’s and 1970’s. This theory describes the effects of a society’s culture on the values of that culture’s members and how those values relate to behavior. This is accomplished by using a structure resulting from factor analysis (Hofstede, 2011). This theory has been used as an example for several fields, particularly in cross-cultural psychology (Hofstede, 2011). Geert Hofstede’s original cultural dimensions theory had four dimensions from which cultural values could be analyzed. These four dimensions were: (a) individualism versus collectivism (IDV); (b) uncertainty avoidance (UAI); (c) power distance (PDI); (d) masculinity versus femininity (MAS). While Hofstede was performing research in Hong Kong he added the fifth dimension, long-term...
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...In other words, uncertainty avoidance indicates the preferred amount of structure in a society. It is a preference for strict laws and regulations rather than ambiguity and risk. A country with strong uncertainty avoidance has more rigid rules of behavior. Corresponding laws are stricter and penalties are heavier. On the contrary, countries with weak uncertainty avoidance tend to be uncomfortable with unstructured situations. In such countries, organizations are more flexible and people are more creative. People have more relaxed expectations and never anxious of uncertain...
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...apply Hofstede's model? Culture is the learned way in which a society understands, decides and communicates.”(Hollensen, 2007). Hofstede, a Dutch academic wished to find an explanation for cultural differences across the world, in relation to society and business. He began by researching why various concepts of motivation did not work in the same manner in all countries. Hofstede based his studies on an extensive IBM database, receiving 116,000 questionnaires from IBM employees from over 70 countries, and in 20 languages. The gathering and evaluation of this study took 6 years, at the end of which, Hofstede concluded that the way people in different countries perceive and interpret their world varies along 4 dimensions. Hofstede’s model is known as the 4+1 model due to the addition of another dimension some years later. Theoretically this model appears to be effective in business context, however, after in-depth analysis, it can be seen that difficulties may arise for the international manager when trying to apply it. The first dimension, Power Distance, refers to the degree of inequality between people in both physical and educational conditions in a culture. In ‘High Power distance’ societies, the power is concentrated amongst the few highest people, of who make all the decisions. Therefore, the others in society have no choice but to obey, and carry out the decisions made. Differences in wealth and power are accepted more readily in these types of societies, a prime...
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...relationship between such factors on the structure of organizations. Two Content theories will be discussed, which are Maslow’s (1943) Hierarchy of Needs and Herzberg’s (1959) Two Factor Theory and the cultural aspect of motivation as mentioned by Handy (1989) and Hofstede (1980) will show the relationship between organizational culture and individuals. The information sort for this discussion will be from various secondary sources such as, academic journals, reference books and the website. The main purpose of this paper is to understand the dilemma faced by executives in organizations that are plagued by the performance and motivational issues of individuals that contribute inefficiency. Discussion Motivation of an individual can be “Intrinsic or Extrinsic” by nature and can be viewed as “the driving force within individuals by which they attempt to achieve some goal in order to fulfill some need or expectation” Mullins (2013). Organizations have learnt that the “correct design of structure is significant in determining the performance of the organization” Drucker (1989) and aids in the encouragement of motivation. This design is guided by what Burns and Stalker (1966) has termed Organic and Mechanistic structural types. The structure of an organization can contribute to the performance of an individual either positively or negatively and most organizations adapt the approach of operating one or the other. In an Organic type structure, “management is fluid and flexible”...
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...Journal of Business Research 60 (2007) 277 – 284 Hofstede's dimensions of culture in international marketing studies Ana Maria Soares a,⁎, Minoo Farhangmehr a,1 , Aviv Shoham b,2 a School of Economics and Management, University of Minho, 4710-057, Braga, Portugal b Graduate School of Management, University of Haifa, Haifa, 31905, Israel Received 1 March 2006; received in revised form 1 August 2006; accepted 1 October 2006 Abstract Growth of research addressing the relationship between culture and consumption is exponential [Ogden D., Ogden J. and Schau HJ. Exploring the impact of culture and acculturation on consumer purchase decisions: toward a microcultural perspective. Academy Marketing Science Review 2004;3.]. However culture is an elusive concept posing considerable difficulties for cross-cultural research [Clark T. International Marketing and national character: A review and proposal for an integrative theory. Journal of Marketing 1990; Oct.: 66–79.; Dawar N., Parker P. and Price L. A cross-cultural study of interpersonal information exchange. Journal of International Business Studies 1996; 27(3): 497–516.; Manrai L. and Manrai A. Current issues in the cross-cultural and cross-national consumer research. Journal of International Consumer Marketing 1996; 8 (3/4): 9–22.; McCort D. and Malhotra NK. Culture and consumer behavior: Toward an understanding of cross-cultural consumer behavior in International Marketing. Journal of International Consumer Marketing...
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...Variations In Human Resource Management Based On Cultural Dimensions Tyrone Kelly Saint Leo University We recognize that we exist in a global economy. Advances in telecommunications and Internet technology have literally placed connectivity with the world at our fingertips. This evolution is a catalyst for people of various nations who would not ordinarily interact, to collaborate, work much closer, more intimately and more frequently than ever before. This is a very stimulating time, yet it is also challenging for Human Resource Management teams in administrations all over the world. Questions such as, what are the cultural business norms or taboos that one should be sensitive to, or how to interact in a business setting with someone of another culture will inevitably arise. Thus, learning the people, culture and work ethic of a host nation is just as important, if not more so than learning about its business, finance and engineering infrastructures. The requirements of developing strategies, organizing projects, and motivating individuals to achieve and maintain competitive advantage for joint ventures is essential. Just as important is the development of sincere relations with people from around the world. Understanding key element of cultural diversity will be critical in this endeavor. No matter where you are in the world, people expect to be treated with respect and honor when you are guests in their country. Attempts to change others to fit your paradigm, e.g....
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...conception, or as noted previous beliefs, of existing means or resources, and necessities. Cultures have various standards and some factors such as behaviors, traditions or communication of one culture can be observed as irrelevant or sometimes even threatening by other cultures. These uncertainties can bring into being cultural gaps between people within a workforce. Not only do the variety of cultural structure interacting together increase the potential for conflict or disagreement, but also methods of control disputation among the cultures. The project manager must be able to handleconfrontation using different styles, depending on the circumstances, in order to effectively manage a diverse team. This paper discusses the most well-known and accepted theories of cultural differences and illustrates them with cases from international project management. Two leading studies of cross-cultural management have been conducted by Geert Hofstede and FonsTrompenaars. Both frameworksoffer a set of cultural dimensions along which core values can be obtained. These structures influence on human thinking, feeling, performance, and the behavior of organizations and institutions in predictable practice. The two sets of measurements indicate basic difficulties that any culture has to deal with but for which solutions are in dispute. They are similar in some respects and different in others. The frameworks can be grouped into several categories: Relations...
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...Geert Hofstede's Dimensions of Culture and Edward T. Hall's Time Orientations Hofstede's "dimensions of culture" were derived mainly from his extensive organizational anthropology research in the late 1970s and early 1980s – the scores are general comparisons of values in the countries and regions he studied and can vary greatly within each country. Although Hofstede's work is somewhat dated and has rightly been criticized on a number of grounds the dimensions are useful in understanding that members of various societies are likely to behave in different ways in a given situation. Power Distance Index (PDI) is defined as “the extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed unequally”. (Hofstede, 1994, p. 28) A High Power Distance ranking indicates that inequalities of power and wealth exist within the society and that the less powerful members of the society accept this situation. A Low Power Distance ranking indicates the society de-emphasizes the differences between citizen's power and wealth. In these societies equality and opportunity for everyone is stressed. Individualism (IDV) Hofstede defines this dimension as follows: “individualism pertains to societies in which the ties between individuals are loose: everyone is expected to look after himself or herself and his or her immediate family." A High Individualism ranking indicates that individuality and individual rights are paramount...
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...Geert Hofstede's Dimensions of Culture and Edward T. Hall's Time Orientations Hofstede's "dimensions of culture" were derived mainly from his extensive organizational anthropology research in the late 1970s and early 1980s – the scores are general comparisons of values in the countries and regions he studied and can vary greatly within each country. Although Hofstede's work is somewhat dated and has rightly been criticized on a number of grounds the dimensions are useful in understanding that members of various societies are likely to behave in different ways in a given situation. Power Distance Index (PDI) is defined as “the extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed unequally”. (Hofstede, 1994, p. 28) A High Power Distance ranking indicates that inequalities of power and wealth exist within the society and that the less powerful members of the society accept this situation. A Low Power Distance ranking indicates the society de-emphasizes the differences between citizen's power and wealth. In these societies equality and opportunity for everyone is stressed. Individualism (IDV) Hofstede defines this dimension as follows: “individualism pertains to societies in which the ties between individuals are loose: everyone is expected to look after himself or herself and his or her immediate family." A High Individualism ranking indicates that individuality and individual...
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...Variations In Human Resource Management Based On Cultural Dimensions Tyrone Kelly Saint Leo University We recognize that we exist in a global economy. Advances in telecommunications and Internet technology have literally placed connectivity with the world at our fingertips. This evolution is a catalyst for people of various nations who would not ordinarily interact, to collaborate, work much closer, more intimately and more frequently than ever before. This is a very stimulating time, yet it is also challenging for Human Resource Management teams in administrations all over the world. Questions such as, what are the cultural business norms or taboos that one should be sensitive to, or how to interact in a business setting with someone of another culture will inevitably arise. Thus, learning the people, culture and work ethic of a host nation is just as important, if not more so than learning about its business, finance and engineering infrastructures. The requirements of developing strategies, organizing projects, and motivating individuals to achieve and maintain competitive advantage for joint ventures is essential. Just as important is the development of sincere relations with people from around the world. Understanding key element of cultural diversity will be critical in this endeavor. No matter where you are in the world, people expect to be treated with respect and honor when you are guests in their country. Attempts to change others to fit your paradigm, e.g....
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...In theory he discusses the factual evidence that culture is programmed by groups and diversities make collective differences large enough to categorize. Hofstede’s dimensions are useful to distinguish what is considered valuable to which groups/ societies. Hofstede was able to pinpoint areas that have toleration for each country. The five dimensions include: Power Distance (PDI): PDI measures the amount of acceptance dictated by the powerful for each culture. “In cultures with low power distance, people are likely to expect that power is distributed rather equally, and are furthermore also likely to accept that power is distributed to less powerful individuals” (businessmate.org). For instance, when the PDI is high for a country, people are most likely more accepting of the unbalanced nature. They have accepted the inequality as part of the rights of those with the power. PDI measures the extent to which a community will accept this division and inequality. Low Power distance would include equality factors like decentralized government with constant questioning of authority, conscious democratic structure where society is actively part of its management. High Power Distance societies are centralized hierarchical structures that reflect a paternalistic attitude to management of society. High PDI is unequal and society tends to accept the hierarchy as part of their nobility instead of a vast repression of social rights. Canada’s PDI: 39 “With a score of...
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