Question

based off the National Cultures and Work-Related Values: The Hofstede Study, how are the elements he discusses used to develop strategies?

Answer 1

Hofstede identified 6 dimensions that defines the culture and work relatd values. Each of them is described below with the development of strategies -

1. Power Distance Index - It defines the extent to which the power and inequality is tolerated by the people. The power and its toleration in seen from the viewpoint of the followers- the lower level.

a. If the culture accepts the rule of the power, inequality, bureaucracy and shows high respect to rank and authority, centralized structure is to be used for the best outcome. For example - China

b. If the opposite of (a) is observed, a flat structure is observed with decentralized decision making and participative style of management and leadership is the most effcetive.

2. Individualism vs collectivism - It defines the extent to which the societies are integrated into groups and their percieved obligation. Also dependence on groups is identified.

In case Individualism persists, personal goals are more focussed by the people. There is a respect for privacy and challenges are enjoyed and individual rewards are expected. The strategy is to acknowledge individual accomplishments and focus on differentiating social life and work life. Debates can be encouraged so that individual ideas are welcomed.

In high collectivism, people are loyal to the groups to which they belong. The group defends the interests of its members and people take responsibility for another's well-being. People try to work for intrinsic rewards. The strategy is to maintain the harmony, avoiding publicly giving negative feedbacks, Personal interests muct be discouraged.

3. Masculinity vs Femininity - High masculinity leads to strong egos and focus on the status. People consider money and achievement as important. Strategy is to recognize opportunities and risks of working for long hours and motivating people by using precise targets. Example - Japan has the highest MAS score of 95 and it is observed that the operations are heirarchical, differential and patriarchal society. Work hours are longer in Japan and it is harder for female team members to gain advancement due to family committments.

Low MAS is usually concerned with the modesty, fluid gender roles, nurturing, and quality of life. It is considered as relationship oriented. Strategy is to offer negotiations, adopting collaborations and promoting inputs from all levels. Focusing on wrokplace flexibility and work-life balance is also useful.

4. Uncertainty avoidance index - It defines the degree to which the uncertainty and ambiguity is tolerated by the culture. It shows the maintenance of unknown situations and unexpected events.

High UAI refers to low tolerance for uncertainty, ambiguity and risk taking. Such group of peolpe put their fate in the hands of god.This group represents the closed mindsets for changes. They are conservative, rigid and structured unless failure is expecting a more flexible attitude. The strategy is to form clear and consice goals and expectations and encourage creative thinking. Recognize the emotions, anger and vigorous gestures and act accordingly.

Low UAI is considered to be more relaxed, open and inclusive group of people. People are open for learning and adapting themselves to changes. The strategy is to keep people focussed and structures are not required heavily. Titles should be considered as less important.

5. Long term vs short term orientation -

The extent to which the group views the time horion is evaluated.

Long term - Focus is on long term success instead of short term achievements. Thrift and education are considered as positive values. Persistence, perseverance and long term growth are considered important.

Strategy is to promote modesty, and patience. Avoiding centralised structure.and compromising is promoted

Short term - Focuses on near future, and involves short term success. A strong emphasis is on present than future. It promotes quick results.

Strategy is to Centralize the structure and people will avoid compromising.

6. Indulgence vs restraint - It describes the extent to which a society of poeple fulfills its desires.

Indulgence indicates that a society encourages free gratification of poeple to enjoy theur own life and having fun. Optimism is prevalent. Personal happiness is focussed.

Strategy is to encourage debates, ideas, coaching, mentoring etc. Flexible working and work life balance must be emphasized.

Restraint shows the suppression of gratification of needs and regulating it through social norms. Pessimistic environment is present. Behavior is rigid and controlled.

Strategy is to promote professionalism. Example - Eastern European countries and Russia are having low IVR scores or Restraint extent. They have tendency towards pessimism and less emphasis o leisure time is observed.