Cultural Dimensions Theory Theory of National Culture Common Cultural Issues Inkeles & Levinson, 1954 • Relationship to Authority • Used to form theoretical • Conception of Self • Relationship of Individual to Society • Conception of Masculinity and Femininity foundation of factors for internal IBM study of values of employees in many countries. • Additional work develops additional dimensions. • Modes of Conflict Resolution Culture Hofstede “Cultural Dimensions” Theory People’s behavior determined by: • Human Nature - Universal • Personality - Individual • Culture - Local • View of the world Assess by measuring values • Habits of action through surveys • Emotional response Cultural Dimensions Theory • Business researchers more likely to use Hofstede “Cultural Dimensions” which looks at 6 dimensions of national culture. Power Distance (PDI)- Society’s comfort with inequality or preference for hierarchy. 2. Individualism versus Collectivism (IDV) Preference for Self-sufficiency vs. Group loyalties. Link 1. Cont. 3. Masculinity versus Femininity (MAS) Assertiveness & Competition vs. Nurturing & Cooperation. 4. Uncertainty Avoidance (UAI) s ‘threatened by uncertainty and ambiguity and try to avoid these situations’ Link Long-Term Orientation (LTO) Present vs. Future • Normative vs. Pragmatic: Tradition vs. Planning for Change • Indulgence vs. Restraint: Gratifying needs vs. Exercising restraint. Care with National Culture • Avoid stereotypes – Whatever the truth of national cultural tendencies, individual character and human nature important too. • Avoid lazy thinking – Culture imperfectly understood, tempting to attribute everything not understood to cultural differences. Link Country Comparison Link Culture and Business Potential for Competitive Advantages Power Distance Small Workers Take Responsibility Power Distance Large Discipline Collectivism Employee Commitment Individualism Management Mobility Femininity Personal Services Masculinity Heavy Industry Uncertainty Avoidance Weak Basic Innovations Uncertainty Avoidance Heavy Precision • Implications for Human Resources Management. • Implications for Marketing • Implications for Accounting Setting Job Targets Masculinity vs. Femininity Link Set unilaterally, Subject to Renegotiation Set by Consensus, Subject to Renegotiation Nordic Set unilaterally, No Renegotiation France, Italy Set by Consensus, No Renegotiation, Accept Consequences US,UK High Power Distance vs. Low Power Distance Assessment & Management Individualism Vs. Collective Link Direct Feedback perceived as rude, Talent management loyalty/paternalism based Latin America Frank, direct, immediate feedback Individual assessment, performance based US,UK High Power Distance vs. Low Power Distance Culture and Branding Link Successful Brands associations: • In high PDI cultures, “Prestige,”; • in high UA cultures, “Trustworthy,”; • Individualistic cultures: brands associate with abstract concepts, individual products emphasized. • Collectivist cultures: brands associate with concrete people, corporate identities emphasize.