3) Does ownership culture necessarily require stock ownership by employees? There are so many different cultures and the ways people work is very different too. When talking about ownership culture and its incentives, stock ownership might mean a lot to employees in one country but nothing in another. Without a doubt, employee stock ownership increases motivation, performance, ability to solve problems, increases hard work, and etc. But does this apply to any employee? No, in some countries stock ownership doesn’t have the same popularity and effect in the workplace. It is all due to the differences in culture and ways people see themselves in the company. For example, if one is working in a negative working environment there might be no motivation
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Knowing that American employees are individualist, Ben should explain that Chinese employees like to work in teams and value each others opinion not because they have to but because they respect each other and every team member. Perhaps, it would be easier for Ben to explain it by Hofstede’s Cultural Dimensions. According to Worldwide Accounting Diversity, “Using responses to an attitude survey of IBM employees worldwide, Hofstede identified four cultural dimensions that can be used to describe general similarities and differences in cultures around the world: (1) individualism, (2) power distance, (3) uncertainty avoidance, and (4) masculinity.” (Doupnik and Perera 37). Based on information provided on Geert Hofstede’s website, in case of China it is a collectivist country about 20% out of 100%, as mentioned previously which means Chinese people work in teams as opposed to the U.S. being individualist country about 91%. Moreover, power distance in China is about 80% which means very high inequality in the workplace but in the U.S. it is much lower, about 40%. Uncertainty avoidance is another major factor in understanding the cultural differences; China is about 30% which means they don’t like to take a lot of risk and would probably …show more content…
But hypothetically, if he followed on researching and applying all the factors mentioned above, his company would be running on great terms and he would probably be making a good amount of money if Chinese economy didn’t drop significantly, if it did drop then he would defiantly wait on proceeding with expenditure and maybe opened up a new department in the so called new Silicon Valley placed in Seattle, WA. But even in that case, he would still have to do his research because every state has different laws and regulations as well as different culture. If Ben applied employee ownership model to China and managed running and altering it smoothly, then in five years his company would defiantly be very successful. His employees would be very motivated and driven to work hard in order to make the company grow. Based on his decisions now, his employees in America and China would be collaborating and working together as a team without any misunderstandings and misleading. Moreover, both cultures are masculine and are driven by success. This is very good news for Ben because by succeeding more his employees would only want to go higher in owning stocks, make more money, and live a great life by enjoying working. This is defiantly one of the major factors, employee satisfaction plays
Knowing that American employees are individualist, Ben should explain that Chinese employees like to work in teams and value each others opinion not because they have to but because they respect each other and every team member. Perhaps, it would be easier for Ben to explain it by Hofstede’s Cultural Dimensions. According to Worldwide Accounting Diversity, “Using responses to an attitude survey of IBM employees worldwide, Hofstede identified four cultural dimensions that can be used to describe general similarities and differences in cultures around the world: (1) individualism, (2) power distance, (3) uncertainty avoidance, and (4) masculinity.” (Doupnik and Perera 37). Based on information provided on Geert Hofstede’s website, in case of China it is a collectivist country about 20% out of 100%, as mentioned previously which means Chinese people work in teams as opposed to the U.S. being individualist country about 91%. Moreover, power distance in China is about 80% which means very high inequality in the workplace but in the U.S. it is much lower, about 40%. Uncertainty avoidance is another major factor in understanding the cultural differences; China is about 30% which means they don’t like to take a lot of risk and would probably …show more content…
But hypothetically, if he followed on researching and applying all the factors mentioned above, his company would be running on great terms and he would probably be making a good amount of money if Chinese economy didn’t drop significantly, if it did drop then he would defiantly wait on proceeding with expenditure and maybe opened up a new department in the so called new Silicon Valley placed in Seattle, WA. But even in that case, he would still have to do his research because every state has different laws and regulations as well as different culture. If Ben applied employee ownership model to China and managed running and altering it smoothly, then in five years his company would defiantly be very successful. His employees would be very motivated and driven to work hard in order to make the company grow. Based on his decisions now, his employees in America and China would be collaborating and working together as a team without any misunderstandings and misleading. Moreover, both cultures are masculine and are driven by success. This is very good news for Ben because by succeeding more his employees would only want to go higher in owning stocks, make more money, and live a great life by enjoying working. This is defiantly one of the major factors, employee satisfaction plays