Question

Company TMN has subsidiaries in spain, South Korea , Finland and USA
1)compare the culture of these countries in terms of Hofstede study. Name 4 dimensions and make a comparison based on these 4 dimensions.
2)check the GLOBE study and compare the leadership and CEO styles in thses countries.
3)do you think TMN is culturally diverse company? Why? Why not?

Answer 1

1)Compare the culture of these countries in terms of Hofstede's study. Name 4 dimensions and make a comparison based on these 4 dimensions?

Hofstede model study depicts the cultural differences in the different countries and their influence on business operations in different countries. The main four dimensions of Hofstede's model are power distance, masculinity or femininity, uncertainty avoidance, and individual and collective attitude. The culture of the countries differs in these dimensions. The difference of these dimensions across the four countries are as follows-

The four dimensions are -

Power Distance-

Spain- The society is differentiated into different strata. Each one has a specified role to play in society.  There is a total sense of inequality prevailing in the society.

South Korea- This country also has a high power distance and a distribution of society according to power.

Finland- Here there is very little power distance in the society and there is equality status enjoyed by everyone.

The USA- There are a low power distance and more of equality in the society

Masculinity or Feminity-

Spain- Society is a more masculine society ie. achieving success is an important criterion. This is a problem and lack of feelings for the weaker sections of the society.

South Korea- It has a feminist type of society. People enjoy a stress-free quality of life.

Finland-There is a feminist society and people are quite concerned about other's feelings.

The USA- It is a masculine society with a high rush for achieving success.

Uncertainty Avoidance-

Spain- People like to follow rules but they also dislike too many strict rules which may increase the complexity in the lives of the people. People don't want to face uncertainty and like to get rid of such situations quickly.

South Korea- People like to avoid uncertainty and be fully prepared in advance to face any uncertainty.

Finland- The people also try to remove uncertainty as much as possible by their efforts.

The USA- The people don't think of avoiding uncertainty room much. They like to be more innovative in their approach.

Individual or collective-

Spain- The people like to work collectively but in comparison with the other countries, they are not so group-oriented.

South Korea- The people are too group-oriented and like to work collectively together.

Finland- They have an individual mentality society which means that people are more concerned about themselves and their families only.

The USA- Here also there is an individualistic mentality among the people of society.

2) According to the GLOBE study, the comparison of the leadership and CEO styles in 4 countries are -

Spain- The leaders have the charisma to persuade people but they are also autocratic to some extent.

South Korea- The leaders take the leading position to guide the followers to achieve the objectives.

Finland- They are more of authoritarian style and divide the responsibility among the employees.

The USA-the leaders have somewhat charisma, encourage participation in management and delegation of powers.

3) TMN is a culturally diverse company since it is operating in 4 different countries with different cultural approaches. Their society is quite different from each other as we have found out and so their approaches towards life and doing business operations. The psychology of people affects the operation of a business to a great extent. Hence, It is a culturally diverse company since it has an employee base of so many cultures of so many countries, who are a part of its business operation.