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Base on the framework of culture analysis some models have been proposed for examine groupings of cultural values which are helpful. At the same time the models are provided the ways that help people to examine cultural similarities and differences. This is because of culture have the combination and relationship in people life especially for application in business activities. The Hofsted model (1980), it is the named of culture analysis model which proposed four dimensions, or indices, of culture. Reseacher said, they were developed on the basis of a worldwide survey of employees in a large U.S. multinational company. The measure of indices have some characteristic which are individualism, uncertainty avoidance, power distance, and masculinity. Most of these characteristic index are giving impact on the management policies in international business.
The first characteristic of Hofsted model is Individualism (IDV), it is refer to the degree of acceptance and encouragment by the society when those person / individual doing action and making decision. The society that having a high IDV index showed about they had emphasizes the role play by individual, then a low IDV index is about the society emphasizes the role play by grouping. There is have some socities that assume individualism in positive side and see it as the advantages for their company achievement but others also view that with dissapproval and disruptive. In the business perspective, those countries that in high IDV of effective management it is involved the policies, practices, and procedures that allow the individualls to find initiative make decisions, and work on their own.
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On other hand, Italy and Singapore as a society that stated individualistm versus collectivist. Italy known as the society is individualistic, avoid uncertainty and believes in equality. They are also appreciate the individual in their society that being advance to make decision and think for the future. Singapore as the collectivist society refers to the social behavior they are mainly determined by the views, needs and goals of the group. Also shared beliefs and they work together. As the researcher (JoAnn Meriwether Craig, 1993) said family’s moral influences and schools’ education led Singaporeans to be collectivis.
The second model is Uncertainty Avoidance (UAI) refers to the degree of acceptance and dealing with uncertainty by the society. Those society which in high UAI index level wishes to avoid uncertainty and will seeking certainty and the security. The society in low UAI index stated the acceptance and open to unknown with a high degree of uncertainty. There is have the socities which look up the certainty as their requirement, then those people not worry about the impact of uncertainty, besides for some viewer uncertainty giving the oppurtunities and excitement like make a changes in innovation. It is same to goes to the internatinal business countries that in low UAI index; the reverse case is correct, job security is not under stressed, decision making are quickly , low risk taking are encouraged. Also, the countries which stated at high UAI indexes shows their effective management and provides a well defined work role, jobs security, and some great opportunities that purpose to decrease uncertainty through the developing of consensus.
Next, the example on business country that involved in Uncertainty Avoidance (UAI) is Brazil. Brazil demonstrate Uncertainty Avoidance (UAI) level of 76. This proves the low level of public tolerance of uncertainty effects. Brazil took an approach to minimize or reduce the level of uncertainty with enforcing the law, to renew the policy and its implementing regulations, and continuing. Subsequently, the main goal of Brazil population is to keep everything under control even more so mere wants to eliminate or avoid the unexpected. Therefore, the existence of the characteristics of Uncertainty Avoidance is high, group business of society is not easy to accept change and the risks are very bad.
Thirdly, Power Distance (PDI) means the degree of accepted and sanctioned in society towards power differences. When the PDI located at high index there is have the belief of the society which hope everyone has a righful place. About the PDI which in low index generally, in the society there is have the belief that enable people suppose to have equal right and they have chances to change their position. Other society also viewed that the well distribution of power give advantages to them. It will contribute the socitey well in management because of each people or staff are protected, and they knows what their position exactly is. Some of other view believe that those people who more powerful make the power corrupted cause of they treat badly the people with less power.The countries with high PDI indexes is in effective management because of a well defined hierarchy, centralized in decision making process, level of authoritarian leadership. Same goes to the countries in low PDI indexes which is prooven will reverse, have fewer levels management that causes flatter organization, also fewer supervisor.
When countries that have low power distance it is common in business with countries that have higher power distance than itself. In this case, it is important to live with the direction of business leaders, to no reliance on subordinates in taking the initiative unless given thorough instruction. besides that, leaders need to anticipate the social differences between managers and subordinates as to ensure that they respect the leader. leaders should also take a different approach with his business work styles because these countries have very different cultural aspects of them. The power distance can measure with scale index known as the Power Distance Index , which is the scale ranges from 1 to 120. The example on business country that involved in Power Distance Index is England. Enland showed its power range 35, this is mean that England is a country that belongs to alow power distance. For the U.S. it has power range of 40. By comparison England showed slightly lower distance than Americans.
Fourthly,Masculinity (MAS) refers to the degree to which traditional male values are important to a society. The values such as assertiveness, perfomance, ambition, achievement, and material, possesions. Clearly the societies with high MAS indexes have differentiated sex roles, and men are dominant. Then the societies with low MAS indexes have predominantely feminine values. This values focus on quality of life and the environment as well as nurture and concern for the less fortunate sex roles that not consistent. In addition, some people look to traditional values as necessary to sustain life. It is refering to the man that must be aggressive and women must be protected. Besides other views believe that dominated by traditional values will damage by the men, both sexes are the contributors in the community. For high MAS it is work and play different roles in a more effective management, meanwhile emphasized achievement, and rewards high performance with the money. So that the low MAS index shows an emphasis on quality of worklife, received sex equity, and return with no difference based on factors other than performance.
According to the researcher (e.g., Adler, 1998; Jelinek and Adler, 1998; Moran, 1986) they were suggest that women are good expatriate managers and that foreign women are accepted as managers, even in countries in which local women do not hold such positions – they are seen, in a sense, as a third sex. Also they said, women are sometimes more sensitive to cultural differences than their male counterparts, that they may be treated with deference in some location, and that they can sometimes gain access to locals when men cannot. Althought this does not suggest that companies should send only women on foreign assignments, it does suggets that women should be considered for any foreign assignmnet where they have the necessary expertise.