Country Cultural Dimensions

Hofstede’s Dimensions of Cultural Values Focuses specifically on work- related values Developed in 1980 with data over 116,000 employees in 72 countries Average scores for each country used to develop national profiles to explain differences in work behaviors

Individualism/Collectivism Individualistic People have concern for themselves and their immediate families; Focus on self, personal freedom, and competitiveness Collectivistic People value the overall good of the group; emphasizes group membership, social responsibility, harmonious relationships, and cooperation

Power Distance The extent to which less powerful members of organizations accept that power is unequally distributed Small –Less comfortable with power differences (egalitarian: think of each other as moral equals sharing basic human interests) Large –Differences among people with different ranks are acceptable (hierarchical: uses a social system with clearly defined roles to make sure people behave responsibly)

Uncertainty Avoidance Indicates preferred amount of structure Strong –People prefer more structure Weak –People prefer unstructured situations

Masculinity/Femininity Extent to which people prefer traditional male or female values Masculine – “Tough” values dominant - success, money, status, competition Feminine – “Tender” values dominant - personal relationships, care for others, quality of life, service

Other cultural dimensions relevant to the case of Latam…

Schwartz's Mastery Versus Harmony Mastery Encourages people to master, change, and exploit the natural and social environment for personal or group goals Harmony Emphasizes understanding and fitting in with the environment, rather than trying to change it

Trompenaars’ Universalism Versus Particularism Universal –Judgment of what is good or true applies to every situation Particularist –Circumstances and relationships influence judgments of what is good or true

Trompenaars’ Achieved Status Versus Ascribed Status Achievement Emphasize attainment of position and influence through a demonstration of expertise Ascription Believe people are born into influence, and who you are, your potential, and your connections are all important

Trompenaars’ Inner Direction Versus Outer Direction Inner-directed See virtue as being inside the individual and believe that conscience and convictions are internal Outer-directed Believe virtue is outside the person and located in nature and relationships

Trompenaars’ Sequential Time Versus Synchronous Time Sequential Do one thing at a time, make appointments and arrive on time, and generally stick to schedules. Synchronic Do several activities simultaneously, the time for appointments is approximate, and interpersonal relationships are more important than schedules

Hall’s High-Context and Low- Context Cultural Framework High-ContextLow-Context ChinaAustria EgyptCanada FranceDenmark ItalyEngland JapanFinland LebanonGermany Saudi ArabiaNorway SpainSwitzerland SyriaUnited States

Do cultural dimensions explain country differences? Yes, but… Represent average behavior within a culture Countries classified similarly may still be very different Range of differences on any dimension exists within the population of a single country