What is culture? A system of values and norms that are shared among a group of people. The collective programming of the mind which distinguishes the members of one category of people from another (Hofestede, 2001). Culture is acquired naturally early in life through interaction with others.

What is culture? Values: Abstract ideas about what a society believes to be good, right, and desirable.. Norms are social rules and guidelines that prescribe the appropriate behavior in particular situations. Folkways: the routines conventions of everyday life, but generally have little moral significance. E.g., dress, eating habits Mores are more serious standards of behavior. It would be considered illegal or very inappropriate if mores are not followed.

Dimensions of national culture Edward T. Hall: The “silent languages” of culture Geert Hofstede: Indices of work-related values based on the study of more than 100,000 IBM employees in more than forty countries

The silent language of culture The language of time The language of space e.g., social distance The language of material goods (to signal status and power) The language of friendship The language of agreement High context and low context cultures

• High-context culture: Low-context culture: Culture which relies on written or spoken words for communication • High-context culture: Culture which relies on non-verbal behavior for communication (such as ‘silent language’ of time, space, …etc.)

High-context culture Low-context cultures Japanese Arab Greek Spanish Italian English French American Scandinavian German German-Swiss Low-context cultures

COUNTRIES AND REGIONS USED IN HOFSTEDE'S RESEARCH ARA Arab countries JAM Jamaica (Egypt, Lebanon, Libya, Kuwait, JPN Japan Iraq, Saudi Arabia, U.A.E.) KOR South Korea ARG Argentina MAL Malaysia AUL Australia MEX Mexico AUT Austria NET Netherlands BEL Belgium NOR Norway BRA Brazil NZL New Zealand CAN Canada PAK Pakistan CHL Chile PAN Panama COL Colombia PER Peru COS Costa Rica PHI Philippines DEN Denmark POR Portugal EAF East Africa SAF South Africa (Kenya, Ethiopia, Zambia) SAL Salvador EQA Equador SIN Singapore FIN Finland SPA Spain FRA France SWE Sweden GBR Great Britain SWI Switzerland GER Germany TAI Taiwan GRE Greece THA Thailand GUA Guatemala TUR Turkey HOK Hong Kong URU Uruguay IDO Indonesia USA United States IND India VEN Venezuela IRA Iran WAF West Africa IRE Ireland (Nigeria, Ghana, Sierra Leone) ISR Israel YUG Yugoslavia ITA Italy Source: Geert Hofstede, "The Cultural Relativity of Organizational Practices and Theories." Journal of International Business Studies, Fall 1983, P. 79 Used with permission.

Hofstede dimensions of cultures Individualism/collectivism The extent to which the self or the group constitutes the center point of identification for the individual. Organizations defend employees’ interests Organizations as ‘family’ Practices that are based on teamwork.

Power distance The extent to which hierarchical differences are accepted in society. (do subordinates ask questions?, do subordinates wait for orders?)

Uncertainty avoidance The extent to which uncertainty and ambiguity are tolerated. High UA: more structuring of activities, more written rules, more specialists, standardization, less willing to take risk, younger people are suspect, a stronger need for consensus, greater concern with security in life

Masculinity/feminity Masculinity (MAS) focuses on the degree the society reinforces, or does not reinforce, the traditional masculine work role model of male achievement, control, and power. In a masculine society, the dominant values are assertiveness, the acquisition of money and material things, independence, ambition (you live to work). In a feminine society, more focus is on the quality of life, interaction between people (you work to live).

Long term orientation (confucian Dynamism) longer planning horizon, delay gratification Indulgence versus Restraint (IVR) Indulgence: relatively free gratification of basic and natural human drives related to enjoying life and having fun.  Restraint: a society that suppresses gratification of needs and regulates it by means of strict social norms.

* CHI JAP * Source: Hofstede, G. organizational dynamics 1980 Summer. THE POSITION OF THE 50 COUNTRIES ON THE POWER DISTANCE INDIVIDUALISM SCALES + ．　．　．　．　．　+ ．　．　．　．　．　+ ．　．　．　．　．　+ ．　．　．　．　．　+ ．　．　．　．　．　+ ．　．　．+　．　． 11 28 44 61 77 94 104 28 44 61 77 94 104 + ．　．　．　．　．　+ ．　．　．　．　．　+ ．　．　．　．　．　+ ．　．　．　．　．　+ ．　．　．　．　．　+ ．　．　．+　．　．　 Individualism Index Power Distance Index (4) Small Power Distance/ Collectivist 12． 14． 16． 18． 20． 22． 24． 26． 28． 30． 32． 34． 36． 38． 40． 42． 44． 46． 48． 50． 53． 55． 57． 59． 61． 63． 65． 67． 69． 71． 73． 75． 77． 79． 81． 83． 85． 87． 89． 91． *AUT FIN NOR *SWI SWE* DEN * AUL* USA *NZL CAN NET* SPA* FRA* BEL * ITA *SAF (2) Large Power Distance/ Individualist GRE* *IRA *BRA ARG TUR PHI * MEX * *YUG POR * * HOK * THA * SIN *PAK TAI* COL * VEN IND CHL * *GER INA * IRE* GBR* *ISR LUX* MAL * PER * POL * MOR * SKA URU * VIE RUS * (1) Large Power Distance/ Collectivist (3) Small Power Distance/

THE POSITION OF THE 50 COUNTRIES ON UNCERTAINTY AVOIDANCE AND MASCULINITY SCALES * CHI *RUS *FRA Source: Hofstede, G. organizational dynamics 1980 Summer. + ．　．　．　．　．　+ ．　．　．　．　．　+ ．　．　．　．　．　+ ．　．　．　．　．　+ ．　．　．　．　．　+ 5 23 41 59 77 95 5 23 41 59 77 95 + ．　．　．　．　．　+ ．　．　．　．　．　+ ．　．　．　．　．　+ ．　．　．　．　．　+ ．　．　．　．　．　+ Uncertainty Avoidance Index Masculinity Index (4) Weak Uncertainty Avoidance/Feminine *AUT FIN * NOR * GER *SWE *DEN GBR * USA* *NZL *CAN * NET (3) Strong Uncertainty SPA* *BEL ITA *SAF *GRE *IRA BRA* * ARG JAP TUR * PHI * MEX *YUG POR * HOK * THA SIN *PAK TAI * COL VEN IND 8． 11． 13． 19． 21． 24． 27． 29． 32． 35． 37． 40． 43． 45． 48． 51． 53． 56． 59． 61． 64． 67． 69． 72． 75． 77． 80． 83． 85． 88． 91． 93． 96． 99． 101． 104． 107． 109． 112． (2) Strong Uncertainty Avoidance/Masculine (1) Weak Uncertainty AUL* SWI ISR * *IRE CHL PER *URU SKA * * VIE INA * LUX MAL * MOR POL *

Country scores on Confucian dynamism (long-term orientation) Score rank Country or region LTO score 1 China 118 2 Hong Kong 96 3 Taiwan 87 4 Japan 80 5 South Korea 75 6 Brazil 65 7 India 61 8 Thailand 56 9 Singapore 48 10 Netherlands 44 11 Bangladesh 40 12 Sweden 33 13 Poland 32 14 Germany 31 15 Australia 16 New Zealand 30 17 United States 29 18 Great Britain 25 19 Zimbabwe 20 Canada 23 21 Philippines 22 Nigeria Pakistan Source: Chinese Cultural Connection. "Chinese values and the search for Culture-free dimensions of culture, Journal of Cross-Cultural Psychology, 18. 143-164.

Competitive Countries Have an Eye on the Future ■Singapore ■Switzerland ■Netherlands ■Austria ■Malaysia ■South Africa ■Philippines ■India ■Indonesia ■Brazil ■Venezuela ■Russia Argentina ■ ■Poland ■Colombia Turkey■ ■Hungary ■Italy ■Greece ■China ■Mexico ■Slovenia ■Taiwan Hong Kong ■ UK ■ Australia ■ ■Japan ■Denmark ■United States ■Finland Sweden Canada ■Ireland ■Germany ■Israel Portugal ■Spain ■Thailand France ■ New Zealand■ ■Korea Competitiveness Future Orientation （cultural support for delayed gratification, planning, and investment） Source for competitive rankings: the World Economic Forum. 1998-2005

Criticisms of Hofstede

Other Layers of of culture Ethnicity Industry Demographics Ideology

Culture in management settings

Culture in management settings

People of different cultures often perceive and solve problems differently: A survey with MBA students from Germany and France.