Hostede Model

8/7/2019 Hostede Model

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GHRM

BY : TO: ASST PROFESSOR GOWHAR RASOOL Ms. MEGHA MEHTAMBA(HONS.)10905683 LHSB

5 DIMENSIONS OF HOFSTEDE’S MODELPower Distance Index (PDI) that is the extent to which the less powerfulmembers of organizations and institutions (like the family) accept and expect that

ASSIGNMENT



power is distributed unequally. This represents inequality (more versus less), butdefined from below, not from above. It suggests that a society's level of inequalityis endorsed by the followers as much as by the leaders. Power and inequality, of course, are extremely fundamental facts of any society and anybody with someinternational experience will be aware that 'all societies are unequal, but some aremore unequal than others'. Individualism (IDV) on the one side versus its opposite, collectivism, that is thedegree to which individuals are integrated into groups. On the individualist side wefind societies in which the ties between individuals are loose.Everyone is expectedto look after him/herself and his/her immediate family. On the collectivist side, wefind societies in which people from birth onwards are integrated into strong,cohesive in-groups, often extended families (with uncles, aunts and grandparents)which continue protecting them in exchange for unquestioning loyalty. The word'collectivism' in this sense has no political meaning: it refers to the group, not to thestate. Again, the issue addressed by this dimension is an extremely fundamentalone, regarding all societies in the world. Masculinity (MAS) versus its opposite, femininity, refers to the distribution of roles between the genders which is another fundamental issue for any society towhich a range of solutions are found. The IBM studies revealed that (a) women'svalues differ less among societies than men's values; (b) men's values from onecountry to another contain a dimension from very assertive and competitive andmaximally different from women's values on the one side, to modest and caringand similar to women's values on the other. The assertive pole has been called'masculine' and the modest, caring pole 'feminine'. The women in femininecountries have the same modest, caring values as the men; in the masculinecountries they are somewhat assertive and competitive, but not as much as themen, so that these countries show a gap between men's values and women's values. Uncertainty Avoidance Index (UAI) deals with a society's tolerance for uncertainty and ambiguity; it ultimately refers to man's search for Truth. Itindicates to what extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. Unstructured situationsare novel, unknown, surprising, different from usual. Uncertainty avoiding culturestry to minimize the possibility of such situations by strict laws and rules, safety andsecurity measures, and on the philosophical and religious level by a belief inabsolute Truth; 'there can only be one Truth and we have it'. People in uncertaintyavoiding countries are also more emotional, and motivated by inner nervous



energy. The opposite type, uncertainty accepting cultures, are more tolerant of opinions different from what they are used to; they try to have as few rules aspossible, and on the philosophical and religious level they are relativist and allowmany currents to flow side by side. People within these cultures are morephlegmatic and contemplative, and not expected by their environment to expressemotions.Long-Term Orientation (LTO) versus short-term orientation: this fifth dimensionwas found in a study among students in 23 countries around the world, using aquestionnaire designed by Chinese scholars It can be said to deal with Virtueregardless of Truth. Values associated with Long Term Orientation are thrift andperseverance; values associated with Short Term Orientation are respect for tradition, fulfilling social obligations, and protecting one's 'face'. Both thepositively and the negatively rated values of this dimension are found in theteachings of Confucius, the most influential Chinese philosopher who lived around500 B.C. ,however, the dimension also applies to countries without a Confucianheritage.INDONESIAIndonesia has Power Distance (PDI) as its highest ranking Hofstede Dimension at78. The high Power Distance (PDI) is indicative of a high level of inequality of power and wealth within the society. This condition is not necessarily forced uponthe population, but rather accepted by the society as part of their cultural heritage.The average Power Distance for the greater Asian countries is 71.The secondhighest Hofstede ranking for Indonesia is Uncertainty Avoidance (UAI) at 48,compared to the greater Asian average of 58 and a world average of 64. Thisreflects a more moderated influence of this Dimension within the Indonesiansociety. Generally, a high Uncertainty Avoidance (UAI) indicates the society’s lowlevel of tolerance for uncertainty. In an effort to minimize or reduce this level of uncertainty, strict rules, laws, policies, and regulations are adopted andimplemented. The ultimate goal of this population is to control everything in order to eliminate or avoid the unexpected. As a result of this high UncertaintyAvoidance characteristic, the society does not readily accept change and is veryrisk adverse.

Indonesia has one of the lowest world rankings for Individualism with a 14,compared to the greater Asian rank of 23, and world rank of 43. The score on thisDimension indicates the Indonesian society is Collectivist as compared to



individualist. This is manifest in a close long-term commitment to the member 'group', is that a family, extended family, or extended relationships. Loyalty in a

collectivist culture is paramount, and over-rides most other societal rules andregulations. The society fosters strong relationships where everyone takesresponsibility for fellow members of their group. The combination of these twohigh scores (UAI) and (PDI) create societies that are highly rule-oriented withlaws, rules, regulations, and controls in order to reduce the amount of uncertainty,while inequalities of power and wealth have been allowed to grow within thesociety. These cultures are more likely to follow a caste system that does not allowsignificant upward mobility of its citizens. When these two Dimensions arecombined, it creates a situation where leaders have virtually ultimate power andauthority, and the rules, laws and regulations developed by those in power,reinforce their own leadership and control. It is not unusual for new leadership toarise from armed insurrection – the ultimate power, rather than from diplomatic or democratic change.CHINA:Geert Hofstede analysis for China has Long-term Orientation (LTO) the highest-ranking factor (118), which is true for all Asian cultures. This Dimension indicatesa society's time perspective and an attitude of persevering; that is, overcomingobstacles with time, if not with will and strength. The Chinese rank lower than anyother Asian country in the Individualism (IDV) ranking, at 20 compared to anaverage of 24. This may be attributed, in part, to the high level of emphasis on aCollectivist society by the Communist rule, as compared to one of Individualism.The low Individualism ranking is manifest in a close and committed member group, be that a family, extended family, or extended relationships. Loyalty in a



Collectivist culture is paramount. The society fosters strong relationships whereeveryone takes responsibility for fellow members of their group.Of note is China's significantly higher Power Distance ranking of 80 compared tothe other Far East Asian countries' average of 60, and the world average of 55. Thisis indicative of a high level of inequality of power and wealth within the society.This condition is not necessarily forced upon the population, but rather accepted bythe society as their cultural heritage.. Some religious practice is acceptable inChina; however, the government sets rigid limits. This analysis provides a greatdeal of importance when making business deals. In China slow and steady wins the

race for business deals. Building strong, reliable, lasting relationships is key for theChinese. A certain amount of trust must be gained before any decision is met. Itmay take three to four times the length of time to finish the business deal comparedto general cultural standards. So if we do not come to a fast agreement, we don’tneed be discouraged, make the client feel comfortable and show your patience. TheChinese never like to rush into things.

COMPARISION CHINA V/S INDONESIA V/S ASIA



If we now analyze the 5 dimensions of both the countries we come to know thatboth are similar in cultural dimensions however we have no record of long termorientation of Indonesia and which is very high that is china. Both the countriesbeing Asian countries do exhibit the same nature and are following the samenature. China highly exceeds the long term orientation and that is above theaverage of Asian countries and the rest of dimensions are on the same scale.

There's no doubt that Asia's rough and tumble environment is causing HR managers to examine their own core competencies. There is no doubt that China isand will continue to be a global hotspot for business. Yet many Western companiesthat rush haphazardly into China without fully understanding its business cultureand mentality ultimately meet with failure. This Hofstede first provides crucialinformation on investing in China and dealing with the recent unionization push

and changes to labor laws.

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