Abstract:
Culture is the way in which people look at situations and solve their problems as cited in Trompenaars & Hampden-Turner, 1998. It’s a mix of the ideas, customs, social behaviour, beliefs and practices of a particular people of society. It impacts the way we view, organize, and conduct business and life. Cross-cultural differences directly influence the degree of success for any international business thus impacting areas like human resources, business alliances, foreign direct investment, finance and accounting. (Kevin D. Lo, Amanda Budde-Sung, 2013)
We examine Australia and India as examples of the national model and explain cultural differences between the two countries based on Hofstede’s dimensions and the impact on motivation, …show more content…
According to Hofstede, these five criteria explain the disparities between the nations and the individuals. He applied his theories to all the countries in the world.
Hofstede extended his model of cultural differences and argued that the significant differences that exist between the values of some societies need to be carefully managed for international business activity (Hofstede, 1994). More cultural differences lower trust which lowers trade volumes between firms and therefore countries.
Hofstede's dimensions of culture:
Geert Hofstede's dimensions helps us to understand other cultures, so that we can be more effective when interacting with people. For example, in some countries, yes means “I hear you” more than “I agree”. Therefore stereotyping can lead to negative effects.
Hofstede led a study on the IBM employees, in more than 50 countries. The goal was to identify the major differences in mental programming. This worldwide analysis made him realize that there were five fundamental differences between the societies, which he called five dimensions:
Low vs. High Power Distance Index …show more content…
A High Individualism ranking indicates that people are develop, enhance and are proud of their personalities. In low Individualism societies individuals are more likely to act as a member of a group. They tend to develop relationships between individuals.
Masculinity vs. feminity (MAS)
This dimension measures the degree the society follows the traditional masculine work role. A High Masculinity ranking shows that the country gives a high importance to competition, ambition, accumulation of wealth and power. They emphasize high gender differentiation. In the opposite case, low MAS will indicate that society does not practice masculine work model. Here, females are treated equally to males in all aspects of the society. Relationships and quality of life are valued.
Low vs. high Uncertainty Avoidance Index (UAI)
A high UAI depicts a rule-oriented society and all citizens follow explicit laws, rules and controls. A Low Uncertainty Avoidance ranking shows that the country has less concern about ambiguity and has a greater tolerance for informal situations. Society is less rule-oriented and people value implicit or flexible
Culture is the way in which people look at situations and solve their problems as cited in Trompenaars & Hampden-Turner, 1998. It’s a mix of the ideas, customs, social behaviour, beliefs and practices of a particular people of society. It impacts the way we view, organize, and conduct business and life. Cross-cultural differences directly influence the degree of success for any international business thus impacting areas like human resources, business alliances, foreign direct investment, finance and accounting. (Kevin D. Lo, Amanda Budde-Sung, 2013)
We examine Australia and India as examples of the national model and explain cultural differences between the two countries based on Hofstede’s dimensions and the impact on motivation, …show more content…
According to Hofstede, these five criteria explain the disparities between the nations and the individuals. He applied his theories to all the countries in the world.
Hofstede extended his model of cultural differences and argued that the significant differences that exist between the values of some societies need to be carefully managed for international business activity (Hofstede, 1994). More cultural differences lower trust which lowers trade volumes between firms and therefore countries.
Hofstede's dimensions of culture:
Geert Hofstede's dimensions helps us to understand other cultures, so that we can be more effective when interacting with people. For example, in some countries, yes means “I hear you” more than “I agree”. Therefore stereotyping can lead to negative effects.
Hofstede led a study on the IBM employees, in more than 50 countries. The goal was to identify the major differences in mental programming. This worldwide analysis made him realize that there were five fundamental differences between the societies, which he called five dimensions:
Low vs. High Power Distance Index …show more content…
A High Individualism ranking indicates that people are develop, enhance and are proud of their personalities. In low Individualism societies individuals are more likely to act as a member of a group. They tend to develop relationships between individuals.
Masculinity vs. feminity (MAS)
This dimension measures the degree the society follows the traditional masculine work role. A High Masculinity ranking shows that the country gives a high importance to competition, ambition, accumulation of wealth and power. They emphasize high gender differentiation. In the opposite case, low MAS will indicate that society does not practice masculine work model. Here, females are treated equally to males in all aspects of the society. Relationships and quality of life are valued.
Low vs. high Uncertainty Avoidance Index (UAI)
A high UAI depicts a rule-oriented society and all citizens follow explicit laws, rules and controls. A Low Uncertainty Avoidance ranking shows that the country has less concern about ambiguity and has a greater tolerance for informal situations. Society is less rule-oriented and people value implicit or flexible