Question

Describe the concept of "national culture" and, using one typology model (e.g., Hofstede, Trompenaars, or the GLOBE Project), explain how the culture of one group of people can be distinguished from that of another, and the implications of these differences for international management.

Answer 1

National culture (Hofstede model): Hofstede analyses the variables of national culture. He states that national culture is highly pertinent for the organization (be it capital structure or performance of employees). It facilitates cross-cultural communication. Cultural awareness makes international business ventures successful. However, lack of it would only lead to failure of the business. Hofstede has proposed various cultural ‘dimensions’ and the cultural differences of each group was studied.

Hofstede extensive research of the national culture led to six dimensions, namely:

-Power distance index (PDI)- This dimensions highlights how the society handles power and its distribution. In societies where the PDI has a low score, the people try to distribute the power equally and fight for justice if there is inequality of power. On the other hand, high score of PDI indicates that people are less powerful in a society and the power is distributed unequally. This difference should be known by the organization to effectively manage their employees.

- Uncertainty avoidance index(UAI)- This dimensions reveal the extension to which the people react to uncertainty and ambiguity. Low UAI states that the society is relaxed and maintains a calm attitude event at times of uncertainty. Strong UAI values indicate that the society has rigid behaviors and beliefs. This group of people is intolerant to any unorthodox ideas. An organization must know the difference between these two groups because they help the management handle strategic decisions effectively.

- Individualism/collectivism- Individualism is a dimension wherein the social framework is loosely-knit and the individuals tend to take care of themselves and their immediate relationship. On the other hand, collectivism exhibits preference for a tightly-knit framework. This difference should be analyzed by the organization to effectively manage the employees and develop them based on individualism or collectivism.

- Masculinity/Femininity – Masculinity refers to the society’s preference for achievement, heroism and material rewards for the success. Femininity refers to the emotional aspects such as modesty, caring for the weak and poor. This differences shows people’s approach to problems. Organizations should know these differences in order to handle critical problems and resolve them quickly without any hassles.

- Long-term vs short-term orientation- Societies has a strong link to its past at the same time deal with the problems of the present and the future. Societies with low score in this dimension prefer to maintain their tradition while speculating the societal change. Societies with high score indicates that societies encourage change and modern education to make them prepared for the future. It is absolute necessary for the organization to know this difference for change management.

- Indulgence vs Restraint – Indulgence in society refers to free gratification that allows people to enjoy and have fun. Restraint suppresses gratification and regulates the norms through strict rules and principles. Organizations should try to understand these differences to effectively handle the people (employees) for better performance.

To conclude, these dimensions are absolutely necessary for international management because culture in each country differs and management needs to understand this difference to be successful in their venture.