Hofstede Cultural Dimensions Theory

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Geert Hofstede was one of the first researchers to analyse the influence of national culture on management practices. According to Geert Hofstede, “There is no such thing as a universal management method or management theory across the globe.” (Summary of Cultural Dimensions Theory 2014). He furthermore developed his initial statement by stating “Management is not a phenomenon that can be isolated from processes taking place in society. It interacts with what happens in the family, at school, in politics, and government.” (Hofstede's Cultural Dimensions: Summary, Forum and Expert Tips 2014). Based on extensive research from 1967 to 1973, Hofstede developed the cultural dimension theory is a framework for cross-cultural management. Culture is “total of the beliefs, rules, techniques, institutions, and artifacts that characterize human populations or “the collective programming of the mind.” (Understanding Cross-Cultural Management, Browaeys et al. 2011, pp131). Hofstede developed the original model after using factor analysis to examine the results of world-wide survey of employee values by IBM in between the 1960s and 1970s. The theory was one that could be used to observe differences between different cultures in a wide range of disciplines, including international management. The original theory proposed only just four dimensions; they include individualism/collectivism(IDV), power distance(PDI), uncertainty avoidance(UAI) and masculinity/ femininity(MAS).Hofstede(1991) stated that these dimensions concern “four anthropological problem areas that different national societies handle differently: ways of coping with inequality, ways of coping with uncertainty, the relationship of the individual with her or his primary group, and...

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...ractices, in the dimensions have influenced the understanding of culture on management practices worldwide within and between companies. Finally with regards to development of global competencies, the cultural dimensions “mediate how competencies are both interpreted and rewarded.” Business and practices has been approached differently because of the cultural dimensions. In terms of negotiations, the dimensions help negotiators to understand and use many different cultures. i.e. planning the specifics of the negotiation. With regards to Globalizing function, Human resources would need to “consider training/learning approaches/methodologies (brainstorming [individualism] vs. small group discussion and presentation [collectivism]; lecture [high power distance] vs. participative approaches [group discussions]; compensation and benefits: individual vs. group rewards).”

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