Cultural Dimensions and Their Impact on Business Practices Essay

2284 Words Nov 13th, 2012 10 Pages
Content Page
INTRODUCTION 3
HOFSTEDE’S DIMENSIONS 4
Power distance
Uncertainty avoidance Individualism/ Collectivism
Feminine/ Masculine
Low context cultures/ high context culture

TROMPENAARS DIMENSIONS 4 Universalism/ particularism
Individualism/ collectivism
Achievement/ ascription
Neutral/ affective
Specific/ diffuse
Internal/ external
Time

CULTURE DIMENSIONS’ IMPACT ON MANAGEMENT PRACTICES 5
Safety vs. risk
Individual rewards vs. group rewards
Centralized decision-making vs. decentralized decision-making:
Informal procedures vs. formal procedures.
…show more content…
In the USA, for example, people prefer to work alone getting personal rewards instead of being rewarded as a group. In Pakistan, Taiwan and Peru instead there is low individualism.

-Feminine/ masculine dimension refers more to differences in perspectives more than in skills. The gender is not related to this kind of approach. A feminine approach is referred to those organizations more concerned about the welfare, quality of life and relationships. An example of this can be Sweden. In countries with a masculine approach instead, the main concerns are success, authority. This is the case of Italy and USA.

- Low context/ high context cultures. This dimensions refers to communication. In LCC communication is expected to be explicit. In HCC instead, communication is dependent on the person or the situation.

Although Hofstede’s cultural dimensions are the most reliable in the context of culture, there are many critics on the fact that a research on only one company is not sufficient to establish an entire cultural system and that four dimensions are too few to establish cultural differences. Moreover, the study carried out by Hofstede was done early in the 1950’s; for this reason the work he carried out classified as out-dated.

TROMPENAARS DIMENSIONS

Trompenaars instead, analyzed the results of his research in a different way. He identified 7 dimensions:
- Universalism/

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