International Human Resource Management

Running head: INTERNATIONAL HUMAN RESOURCE MANAGEMENT

International Human Resource management

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Hofstede developed the theory of cultural differences to describe the different effects that culture could have on an organisation. He classified cultures of different countries into five dimensions. The first was power distance which expounded on inequality and how different nations viewed it. He maintained that inequality is inevitable in societies, but some societies allow it to grow so that there can be difference in power, prestige and wealth. The inequality is formalised through hierarchies in the organisation. The second dimension is the uncertainty avoidance which explained how societies dealt with risks that may occur in the future and how the members of the society yearn to achieve certainty. Another dimension was masculinity versus femininity. He explained that in masculine societies, focus is on dominance and competition while feminine societies focus on humility, a society where people help each other out and with a high level of cooperation. The forth was Individualism versus collectivism. Individualism is where an individual only watches over himself or his close family members while collectivism refers to where there is concern for the whole group in the society (Hofstede, 1987).

The last dimension is Long-Term Orientation (LTO) which was developed in the 90’s due to the realization that the Asian cultures were different from the western cultures. The countries with low LTO such as the US do not value tradition as much as the countries with high LTO. Many organisations have realised that doing business across cultures requires knowledge of the cultures in which they operate to survive and thrive within the environments (Hofstede, 1997). The essay will discuss how dimensions of Hofstede’s theory...