Submitted by: Submitted by jsjun85
Views: 318
Words: 3276
Pages: 14
Category: Business and Industry
Date Submitted: 03/10/2014 05:02 PM
For over three decades, Hofstede’s theory on cultural dimensions in business has been regarded as a paradigm in the field of cross-cultural and international management. Specifically, his country classification on six cultural values in businesses has been used in research and developing business strategies for global companies. Classical cultural dimensions proposed by Hofstede are identified as power distance (PDI), individualism versus collectivism (IDV), uncertainty avoidance (UAI), masculinity versus femininity (MAS), pragmatic versus normative (PRA) and indulgence versus restraint (IND).
The first dimension, power distance (PDI), refers to the power inequality between superiors and subordinates. In high power distance organizations, organizational hierarchy can easily be seen as there is a very solid line between managers and subordinates. In contrast, low power distance organizations tend to have a flat organizational structure. The second dimension, uncertainty avoidance (UAI), refers to individuals’ tolerance of ambiguity and vagueness. In companies with high uncertainty avoidance, they tend to have many written rules and regulations in order to reduce uncertainty and avoid ambiguity. However, in low uncertainty avoidance companies, there tends to be less number of written rules and rituals. The third dimension, which is individualism versus collectivism (IDV), refers to how people value themselves and their organizations. Those with high individualistic values prioritize self-development and career progress in the company, whereas people with low individualistic values do things to benefit the organization as a whole rather than just themselves as individuals.
The fourth dimension is masculinity versus femininity (MAS). This dimension defines the gender roles within the organization. For example, in companies with high level of masculinity, there is a glass ceiling for women employees and it is extremely difficult for them to move up the corporate...