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Understanding Global Business Cultures

The document discusses several cultural dimensions frameworks that can be used to compare cultures, including Hofstede's Cultural Dimensions. Hofstede's model identifies six dimensions used to compare countries: Power Distance, Individualism, Masculinity, Uncertainty Avoidance, Time Orientation, and Indulgence. Each dimension is then defined, outlining the differences between cultures that score high or low on each dimension. For example, cultures with high Power Distance accept unequal distributions of power more, while low Power Distance cultures demand more equality and justification.

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Umer Rafiq
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0% found this document useful (0 votes)
60 views2 pages

Understanding Global Business Cultures

The document discusses several cultural dimensions frameworks that can be used to compare cultures, including Hofstede's Cultural Dimensions. Hofstede's model identifies six dimensions used to compare countries: Power Distance, Individualism, Masculinity, Uncertainty Avoidance, Time Orientation, and Indulgence. Each dimension is then defined, outlining the differences between cultures that score high or low on each dimension. For example, cultures with high Power Distance accept unequal distributions of power more, while low Power Distance cultures demand more equality and justification.

Uploaded by

Umer Rafiq
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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There are so many cultures in the world.

The business world involves the interaction of these cultures on


daily basis. This requires people to be able to interact and entertain people from different backgrounds.
Since most people are dissolved into their own beliefs and culture, they don’t even realize how it is
affecting their thinking, behavior and other people around them. Research studies have provided some
tools and mechanisms on the basis of which countries can be compared on the basis of cultural
similarities and differences to overcome the non realization of different cultures. The GLOBE study,
Trompenaars’ cultural dimensions and Hall’s cultural dimensions are the examples of such studies
which are made to combine these cultural differences among different countries. Geert Hofstede’s
Cultural Dimensions is the most famous framework to assess different business cultures. On the
basis of this study there are six cultural dimensions on the basis of which countries can be ranked.

Power Distance
This term is used to explain the unequal distribution of power in the society and how it is seen from the
perspective of people which are less powerful or have a low rank in the society. It demonstrates the way
they react to the unequal distribution of power. The societies which exhibit a large degree of power
distance have people which perform a specific role. People in such societies are designated specific
titles. They don’t strive for equality and need no further justification to perform the tasks assigned to
them. Contrary to this, people in societies with low power distance demand equality and justification for
inequalities of power. They strive for everyone to be treated with same respect and dignity.

Individualism
A society which doesn’t have a close system of community and doesn’t reflect a group through the ideas
of a single person is based on individualism. They often don’t have the backup of family or friends in
complicated situations and are expected to deal with them on their own. You can’t judge an individual
from his family or vice versa. Opposite to it are societies which live as a closely related group. People
have each other’s back and an unquestionable pact. The loyalty cannot be questioned and is often
proved during difficult circumstances.

Masculinity
This aspect of society focuses largely on individuals who strive to stand out from the rest. Heroism and
accomplishment is at the core of such environment. There is a competitive environment and success is
seen the form of rewards or materialistic achievements. Femininity is the opposite of this and it focuses
on the cooperation of people to create a modest, caring and humble environment. Such environment
focuses to improve the quality of life.

Uncertainty Avoidance
This dimension expresses how people feel about the uncertainty of future. Whether they try to control it
or just let things happen at their own pace. This also impacts how rules are made in the work
environment. Countries with high uncertainty avoidance have strict rules and don’t easily welcome new
ways and strategies to be implied. Rigid codes are placed which are meant to be abide by. Countries
with low uncertainty avoidance index have tolerance for new ways and techniques and have leniency in
the work environment.

Time Orientation
Countries which score low on this parameter consider social obligations and value traditions. They don’t
welcome change easily and think of new ways with suspicion. They relate their past experiences with
their dealings in the present. On the other hand countries that score high on this parameter welcome
new approach easily. They change their traditions with the advancements of time. They prepare
themselves for the future and encourage new ideas.

Indulgence
This dimension explains the amount to which people try to control their natural desires and impulses.
Submitting easily to desires is called indulgence and strong control over them is referred to as restraint.
An indulgent society is the one which allows for people to enjoy their natural behaviors. The natural
human drives related to enjoying life are entertained instead of being suppressed. A restraint society
doesn’t entertain these behaviors very well and tries to instill a disciplined approach to life and work
environment.

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