Overview
This lecture introduces Geert Hofstede’s framework of cultural dimensions, explaining how they shape national and organizational cultures and the challenges they pose for international organizations.
Hofstede's Research and Cultural Dimensions
- Geert Hofstede popularized the concept of organizational culture.
- He studied IBM employees from 50 countries to isolate national from organizational culture.
- Hofstede initially identified four, later six, cultural dimensions.
The Six Cultural Dimensions
- Power Distance Index: Measures acceptance of hierarchical power versus questioning authority.
- Individualism vs. Collectivism: Assesses whether personal or collective needs are prioritized.
- Masculinity vs. Femininity: Compares societies that value competition and material success with those valuing welfare and social goals (can also be called assertive vs. passive orientation).
- Uncertainty Avoidance Index: Gauges tolerance for ambiguity versus desire for certainty and control.
- Long-Term vs. Short-Term Time Orientation: Evaluates preference for future planning and change versus tradition and immediate focus.
- Indulgence vs. Restraint: Looks at desire for personal freedom versus adherence to social norms.
Application and Complexity of National Cultures
- Cultural styles are complex; national, regional, and personal layers exist.
- Individuals in multinational contexts may possess multiple cultural norms.
- National cultural differences within organizations can create both challenges and opportunities.
Managing Organizational Culture in Multinationals
- Conflicting cultures can cause misunderstandings and dysfunction in organizations.
- Multinationals often use expatriate leaders to bring headquarters’ culture to subsidiaries.
- Success depends on cultural awareness; lack of it can cause local issues.
- Employing local leaders aligns with employee culture but may shift clashes to the executive level.
Solutions and Leadership Challenges
- No single solution exists for cultural clashes in organizations.
- Leaders and managers must cultivate cultural awareness to manage diversity and prevent dysfunction.
Key Terms & Definitions
- Organizational Culture — Shared values and norms within an organization.
- Power Distance Index — Acceptance of hierarchical authority in a society.
- Individualism/Collectivism — Priority of individual versus group needs.
- Masculinity/Femininity — Focus on competition and material success versus welfare and cooperation.
- Uncertainty Avoidance — Tolerance for ambiguity and uncertainty.
- Long-Term/Short-Term Orientation — Planning for the future versus focusing on tradition or present needs.
- Indulgence/Restraint — Degree of freedom to fulfill personal desires versus societal control.
Action Items / Next Steps
- Increase personal cultural awareness for managing and collaborating in diverse teams.
- (If applicable) Watch supplementary videos on cross-cultural teams.
- Reflect on your own organization’s cultural challenges and consider cultural awareness training if needed.