Topic > Hofstede Indexes for National Culture - 729

When operating across borders or within the US workforce, understanding national cultural differences is vital. These cultural differences are interconnected to how cultures vary in their values, standards, philosophies, and assumptions. Geert Hofstede's famous schemes produced an important cross-cultural study in national subsidiaries of the IBM Corporation (Porter, Bigley & Steers, 2003). He carried out research based on questionnaires from IBM employees from sixty-six countries. Hofstede's research classified almost all countries based on the cultural trends they have. These cultural trends have different frameworks. Geert Hofstede, (1993) detailed the six dimensions used in National Culture. Power Distance (PDI) Power distance defines how power is distributed and the extent to which the less powerful admit that power is distributed unequally. Structured establishments refer to people being more equal at all levels in establishments. Basically, some cultures accept a higher degree of unequally distributed power than other cultures. Individualism (IDV) Individualism is the idea that one acts as an individual and not as part of a group. Individualistic cultures are concerned with personal fulfillment, personal autonomy, and freedom. The identity of collectivist cultures is focused on group loyalty. Masculinity (MAS). This indicates the effect of differentiations in masculine and feminine principles on the culture of the organization. Masculinity and Femininity indicate the degree to which a person sees himself or herself as a man or a woman in society. Companies where male staff prevail over female staff will follow different policies like those of companies......middle of paper......United States. These countries lack modern management, operate with small organizations and are family-run based on personal relationships and Confucius principles. Chinese people have weak uncertainty avoidance and collectivism. A dominant family member makes the decision about which product or market to enter. Chinese children are sometimes sent to business schools abroad and return to work within the family business. However, Chinese business practices have not changed with its new corporate formation. For this short essay comparing and understanding the impact of Hofstede's natural cultural dimensions is important as these values ​​can be highly motivating in team members' interactions. These natural cultures are a substantial tool for approaching cultures and important for understanding the behavioral dynamics evident in multicultural teams.