Essay problem 01

What use do you consider the different cultural frameworks defined in the
GLOBE Project, by Hofstede and by Trompenaars, to be for managers of
international corporations?
Today vast majority of companies continue to expand their business across borders to attain
global market place to make massive profit. Cross culture literacy has become a key for operate a
successful global business. As well as it is a latest competitive advantage to firms for competence
with global. The firm operates in whatever sector, cultural differences will have a direct impact
on to profitability purpose. (Hummel, 2010). Rich awareness of culture is truly important in
international negotiation, international marketing, international communication and international
management. ( Tomei, Lawrence ,2014)

What is the culture

Generally, it is tended to believe that all people are the same. In fact, if people usually not aware
of other countries culture that would obviously be caused to misunderstanding and
misinterpretation between people from different countries. This awareness could be reduced
conflicts and frustrations at international level business.

By the way, Culture has been defined in many way. ; author Geerts Hofsfestedes definition is:
"Culture is the collective programming of the mind that distinguishes the members of one group
or category of people from others" (Horfsfestede, 2011,P.3) Generally culture is the way of life,
It is totally different people to people, society to society, land to land, religion to religion.
Especially it has consisted by collection of general customs, values, and beliefs to the specific
group of people in specific society. Manners, dress, foods, language, ritual, lows are essentials
tools to the culture. Understanding of cross culture highly effects for continue a strong or
comfortable relation with another party. (Salacuse, 2012)

This reality is very important in every sort of aspects, not only in business. Managers of the
global firms need to work with various nations from different culture when they do their business
globally. Further, Managers should have to understand these differences clearly to build their
connections with them to be effective in business. Otherwise, it can be affect as a barrier for

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managers ability to build up conformable connection with them. Many of business in global has
fail down due to this barrier. One of main cause behind firms expand in global is make profit
through cheap labour. This matter might be tough for managers due to a lesser amount of
awareness on cross culture. Cross cultural issues can be arising in different situation as within
firms, between firms or between a firm and customers. . (Bassett, 2004,p.5 )

The general truth In business that communication is one of the key concern. Therefore
professionals in business (Mangers) who work internationally they should interact daily with
other people from different countries contained by their company or else with other companies.
The Hofstede's model provides insight into other cultures.

1.1 Hofsfestedes six dimensions

Hofsfestedes six dimensions of culture is one of international recognized standard for managers
to understanding cultural differences. It can be affect to work effectively with people from a
variety of cultural and geographic background. (swify, 2010). Psychologist Dr. Geert Hofstede
had published this model in 1970. He had been on a research nearly 10 years for find out this
information through people who worked in IBM from more than 50 countries around the world.
Initially he was able to identified 04 dimensions that could distinguish one culture from another.
Those 04 dimensions are power distance index, Individualism vs collectivism, Masculinity vs
femininity, Uncertainly avoidance (Geert Hofstede,2011,p 8)

Power distance index (PDI)

Initially power distance index is power distance /gap which define the nature of relationship
between subordinate and superiors in the organization. How often subordinates are hesitate or
else afraid to express their disagreement. There are two types of power distances such as high
power distance and lower power distance. Nature of the culture is it should collectivist or
individualist. Western countries are almost low power distance. Though, Asian and latin cultures
are high power distance. People who are from low PDI countries are developed with their skills,
decision making ability, implementing them, and taking responsibility for their outcomes.
(Ashleigh, 2000) . Those who are holding inferior positions in low power distance countries are

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allowed to challenge, suggest a new ideas to superior positions when it comes necessary. They do
believe open communication is compulsory for the innovation. Moreover, countries with low
power distance except and accept power relations are more consultative or democratic. As an
example, in lower power distance culture, if one person needs a promotion at their job, it is
possible to go and ask their boss for a promotion (Holder, 2012). This type of societies are
characterized by decentralized authority and decision making responsibility, consultative or
participative management styles, flat organization structure, small percentage of supervisory
staff, lack of acceptance and supervisory questioning of authority, right consciousness, tendency
toward egalitarianism. (Geert Hofstede,2011,p 8)

When this becomes as high power distance less powerful accept, power relations that are more
autocratic and paternalistic power of the subordinates depend on where they have situated in
certain hierarchical positions. Countries that who has high power distance are believed that
inequity is good. Because everyone has a specific place, People need to depend on their leaders.
(Holder, 2012). PDI rank has displayed below. High power distance societies characterized by
centralized authority, autocratic leadership, paternalistic management style, many hierarchical
levels, large number of supervisory staff, acceptance that power has its privilege, an expectation
of inequality and power differences.

Source: Power distance and innovation, December 2011

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on top of chart shows, culture inequity varies country to country. US score is low until 40. It is
not an amazing. American organization has established the hierarchy in their organization for
convenience only. Superiors are accessible easily. Managers rely on employees experience and
their terms. Managers and employees are discussed with decision making. Information is shared
with deferent level of leaders. This type of societies characterized by centralized authority,
autocratic leadership, paternalistic management style, many hierarchical levels, large number of
supervisory staff, acceptance that power has its privilege, an expectation of inequality and power
differences.(McGrawHill, 2010)

If it considers the reasons behind to high power distance, it reveals religious influence, several
sociological, psychological reasons are also promoted the high power distance such as in India,
Russia, Malaysia. Same time Malaysia may be the great example. Power distance index of other
countries in the region reveals Malaysia is high levels that similar to score 100. It is alone in
region. (sweetman, 2012) Major score is 104 as per the Hofstede comparative power distance
index. This extreme division of power element back to a joint legacy of the Malay feudal system.
In addition, influence of the British. As a result, Malay culture is very respectful of a complex.
Accordance to the index results for the Philippines (very near the top of the chart at
94), Indonesia (a high 78), followed closely by Singapore (at 74). By way of contrast, New
Zealand has a very low index of 22, and cluster of countries in near Scandinavia are also very
low: Denmark (18), Sweden, and Norway (31 each). (Hosfstede), (Yamada, 1997)

Issues in power distance (PD)

High Power distance had created remarkable issues in aviation sector in several countries. As
well as, it has effected to fail down significant projects in global. (Ashleigh, 2000) cultures with
lower power distances and high levels of individuality better for aviation safety outcomes. As a
popular instance that has recorded due to high PDI was the crash of Korean Air flight 801 in
1907. (NTSB,2000,p 9). It was landed by Captain as per the decision that he made his own
despite junior officers disagreement. Because under high PDI culture subordinates are less
question or suggest to their superiors. (Hayward,1997,p 6) Another well-known incident was
Avianca Flight 52 crash in 1990 by communication critical about low fuel data between pilots
and controllers. This crashed have been also blamed on answerable of national cross cultures of

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the crews. Both crews have spoken Spanish as their key language. Captain was proficient at
English. Colombia was high power distance with collectivity. Crews were disliked to ask for help
from New York when they were in a trouble of low -fuel. Then plane was crashed with 73 killed.
(Mellisa M.Gomaz, 2010), (Daily news New York. 2016) Further more cargo air craft crashed in
1977 and killed all 3 crew. Captains origin was USA, other 2 crew were Japanese. The captain
was drunk. Other 2 of wanted to mention his intoxication and stopped him from flying. Because
of culture blame, they were reluctant to do so. Two of Japanese crew was believed that would be
humiliated to their captain to taking off from flying. (Helmreich,June 2004)

Individualism vs collectivism (IDV)

These two of dimensions are opposite to each other.
Individualism implies that everyone is supposed to take care of themselves and their immediate
family only. All decision is made individually as well as rights on privacy. Its often with I
mentality. Moreover, everyone has a right for a private life and self orientation.
(P.E.Petrakis,2014, p250)
Collectivism defines that People from their birth onwards are integrated into various groups such
as extended family, caste, organization. Its every decisions are made my groups base on what is
the best for group. People are expected to loyal for family or organization with commitment to
protect facts like harmony respect and honor. People from this society depend on organization,
family. They believe their organization will take care of them. (Alion.G,2008)

Western countries are more individualistic with low power distance. Though, Asian and latin
cultures are high power distance with collectivist. (Ashleigh, 2000)

Masculinity vs femininity
In masculinity type of cultures, genders are supposed to be assertive, tough as well as ego
oriented such as money and things are really important than others. it is concerned live for work.
Genders are not at generosity at all and their place at work is mastery (Hofstede,1984).Their
roles are Cleary distinct (Sliburyte, 2005).In this culture women are considered health, wealth &
understanding, affection, intelligence, sense of humor as attractive characteristics of a husband or
boy friend. At the work there is a large wage gap between female and male. it lack of females in
management.

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Femininity culture characterized by gender role is no more dominant. Their role goes beyond.
Both women are men supposed to be modest and considered with the quality of life. Instead of
masculinity view under this in order to work for live. It is positively relationship oriented.
Quality of life and people are truly important. There is small wage gap and more women engaged
in management sector.
Japan is one of the more masculine countries in the world, its shocking score like 95. while the
Netherlands rank comparatively low. The U.S. is close to the middle, considerably toward the
masculine side. By contrast, Japan is extremely competitive (usually on a group level). This is
fostered from a very young age and serves as the main motivational factor in business, while in
Denmark motivational factors include free time and comfortable living. Striving for excellence is
at the core of Japanese values. (Hofstede, 1984).
Issues in Masculinity
In business, a societys level of masculinity affects the attitude of managers and their leadership
styles. As well as, it influences the types of conflicts and motivational factors. The work place
atmosphere is also dependent on the degree of masculinity. Managers hold different attributes in
masculine versus feminine societies. In masculine societies the managers ideals are leadership,
independence, and self-realization (Gatley et al., 1996). This gives managers a strong presence in
the company and they have to proof their power in case of a conflict (Gatley et al, 1996). This
role can be identified as macho manager behavior (Hofstede, 1984). In feminine societies the
focus is on social welfare and solidarity between people is more important than individual self-
realization (Hofstede, 1984). Managers act out of perception and are less visible within the
company. They resolve conflict through negotiations and establishment of consensus (Gatley et
al, 1996)

China is a masculine society. That many Chinese will sacrifice family and leisure priorities to
work. For example, the migrated farmer workers will relocate to China's Eastern seaboard in
order to obtain better work and pay in the cities. Another example is that Chinese students focus
on exam rankings as this is the main criteria to achieve success or not.(Sebastian Powell, 2015)

Uncertainty avoidance

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In brief, Uncertainty Avoidance is how a society deals with change and the unknown Should we
try to control future or let it be happened ? Moreover, it defines uncertainty avoidance as a
degree to which the members of a society feel uncomfortable with uncertainty and ambiguity. It
can be two like high uncertainty avoidance and low uncertainly avoidance. High societies are
very uncomfortable with uncertainty. They maintain strict behavior and codes of belief
(Hofstede, 1984). Under this society, that unexpected ideas are not tolerated well (Hofstede,
1984). In low uncertainty avoidance societies are often more relaxed (Hofstede, 1984. Flexibility
is more important than principles and control (Hofstede, 1984). Unusual ideas and people are
often effortlessly tolerated. On Hofstedes scale a low score is indicative of low uncertainty
avoidance and a high score of high uncertainty avoidance. Countries in Latin America, Japan and
Germany are examples of where there is high uncertainty avoidance. Countries such as the US,
the UK and Denmark are examples of where there is a low level of uncertainty avoidance. Japan
has a rate of 92, which makes it one of the highest Uncertainty Avoidance countries in the world.
Japan is constantly threatened by natural disasters from earthquakes, tsunamis. Under these
circumstances Japanese has learned to prepare them for any uncertain situation. This goes not
only for the emergency plan and precautions for sudden natural disasters, but also for every other
aspects of society. In fact, anything in Japan is prescribed for maximum predictability. For
example, there is opening and closing ceremonies of every school year which are conducted
almost exactly the same way everywhere in Japan. At weddings, funerals and other important
social events, what people wear and how people should behave are prescribed in great detail in
etiquette books. School teachers and public servants are reluctant to do things without
precedence. In corporate Japan, a lot of time and effort is put into feasibility studies and all the
risk factors must be worked out before any project can start. Managers ask for all the detailed
facts and figures before taking any decision. This highly need for Uncertainty Avoidance is one
of the reasons why changes are so difficult to realize in Japan.

1.2 Trompenaars seven cultural dimensions

Trompenaars' model of national culture differences is a framework for better cross-cultural
communication that applied to general business and management. Fons Trompenaar was the
author of this frame work. As per his view culture is simply the way in which a group of people
solves problems and reconciles dilemmas (Trompenaars & Hampden-Turner, 1997, p. 6).

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There are six dimensions that he founded.

Universalism vs Particularism
universalism is that belief, ideas and practices can be applied everywhere without modify. AS
well as particularism is the belief that situation speaks how ideas and practices should be applied.
(Trompenaas,1997). Business meetings are characterized by rational, professional arguments.
Research reveals that high universalism in countries like the United States, Canada, UK,
Australia, Germany, and Sweden. Cultures with high particularism see reality as more subjective
and place a greater emphasis on relationships. Countries that high particularism include
Venezuela, Indonesia, China, South Korea. (Hofstede, G ,1996)

Individualism vs. Collectivism

This dimension is almost similar to Hofstedes dimension by same name. Here, People from
individualistic cultures are oriented on themselves. (Trompenaars.F,2001Decisions are making
by individual and negotiation representatives decide on the spot. People attempt for results
usually on their own and they themselves are also responsible for them. They are primarily
motivated by individual incentives.(Roland Muskens,2001)

In collectivistic cultures is the initially interest for a group. Controlling activities are base on
groups. People achieve results in groups vise. In case, it is necessary to negotiate, collective
negotiation is chosen. (Trompenaars.F,2001)

Neutral culture vs. emotional culture

People from this culture are (neutral culture) dont reveal their thinking, feelings openly. Briefly,
Emotions are hidden and suppressed. But they are from time to time unexpectedly expressed
them. They admire cold and rational behaviors. Their behavior is typically monotonous. In
emotional cultures people expose their thoughts and feeling both verbally and nonverbally. They
admire expressing feelings and their expression is usually dramatic. Karaian, Jason, March
2008,p 33)

Specific vs. Diffuse

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Members of specific cultures are usually straight, fact and purpose. Their behavior is noted for
accuracy, curtness, certainty and transparency. Hampden-Turner, C. (1997)Managers separate
work relation from other types of relations. Managing of the subordinates is characteristic with
accurate and detailed instructions. Australia and Netherlands are the countries with most specific.
(Trompenaars, F. & Hampden-Turner, C. 1998)

Members of diffusive cultures are on the other hand indirect and apparently aimless. Morale
aspects of behavior depend on people and context. Hampden-Turner, C. (1997) Personal and
business matters are interconnected. Instructions are given in process focused on continuous
improvement. China, Japan, India and Singapore have highly diffuse relationship.(Trompenaars,
F. & Dugan, S. 1995)

Achievement vs. Ascription

Orientation to attribution and orientation to achievement are related to the fact how culture
members gain their status. In achievement oriented cultures are the status and respect derived
from the knowledge of the person and what results that achieved. Egypt, Argentina, and Turkey
tend to be ascribed. Norway, Sweden, USA, UK, Canada and Australia are based on
achievements.(Van Vliet, 2015)

Attitudes toward time

Time can measure and understand by different ways. It can be measured such as past, present and
future using years, months, weeks, days and hours.(Roeland Muskens, 2001). This concrete
measurement of time falls within sequential time. Time is money is a typical expression that
forms part of this culture. Synchronous time is more abstract and focuses on being able to work
on various projects at once (Hampden-Turner, 1997).

It doesnt t concern itself with time zones, but is aware that the human body has its own rhythm.
In a synchronous time it is absolutely about the rhythm of the group and that of nature.( Roeland
Muskens ,2001) There is, however, a risk to doing several things at the same time. (Van Vliet,
2015)

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