Understanding Global Culture: Hofstede's Indeces Overview

• 1. MKTG 2000 Global Marketing OCT Spring 2014 Dr. Nick De Bonis Understanding Culture

2. Ethnocentrism 04 April 2014 2 3. Geert Hofstede A Dutch social psychologist who did a pioneering study of cultures across modern nations. Developed a theoretical framework which analyzed the relationships between cultural beliefs and organizational actions. 04 April 2014 3 4. Hofstede on Culture Culture = The collective programming of the mind distinguishing the members of one group or category of people from another. This programming influences patterns of thinking which are reflected in the meaning people attach to various aspects of life and which become (crystallized) in the institutions of a society. This does not imply that everyone in a given society is programmed in the same way: there are considerable differences between individuals. 404 April 2014 5. Global Citizenship Terminology Enculturation Learning ones own culture Acculturation Learning a culture other than ones own, especially when living in that other culture Immigration Entering and residing in a country not your home country An immigrant Emigration Leaving your home country to reside in another An emigrant 504 April 2014 6. Hofstede on Culture The collective programming of the mind distinguishing the members of one group or category of people from another. The category can refer to nations, regions within or across nations, ethnicities, religions, occupations, org anizations, or the genders. 604 April 2014 7. Dimensions of National Culture Analyzed employee values scores IBM 1967-73, >70 countries, extended to 50 countries and 3 regions. Subsequent studies 23 countries: commercial airline pilots and students 14 countries: civil service managers 15 countries: 'up-market' consumers 19 countries: 'elites' 704 April 2014 8. Hofstedes Cultural Dimensions PDI (Power Distance) IDV (Individualism vs. Collectivism) MAS (Masculinity vs. Femininity) UAI (Uncertainty Avoidance) PRA (Pragmatic versus Normative) IND (Indulgence versus Restraint) 804 April 2014 HOFSTEDES ORIGINAL FOUR CULTURAL DIMENSIONS HOFSTEDES LATEST CULTURAL DIMENSIONS 9. Power Distance Indicator (PDI) Measure: the degree of equality/inequality between people in a particular society. High score Society accepts, perpetuates inequalities Societys less powerful members accept and expect that power is distributed unequally. Low score Society doesnt emphasize differences in peoples status, power or wealth. Equality is seen as the collective aim of society. Upward mobility is common. 904 April 2014 10. PDI World Map Click on the map; point at countries on the website to see the data. After it opens, click on the slide again to resume the PPT slide show. 1004 April 2014 11. PDI: U.S. and Mexico 04 April 2014 11 100 12. Individualism v. Collectivism (IDV) Measure: the degree of interdependence maintained in a society among its members. High score (individualism) Societal preference for a loosely-knit social framework in which individuals are expected to take care of themselves and their immediate families only. Individuality and individual rights are dominant. Self-image defined by I and independence. Low score (collectivism) Societal preference for family and strong ties among individuals. Individuals expect relatives or members of a particular in-group to look after them in exchange for unquestioning loyalty toward the in-group. Self-image is defined by we. 1204 April 2014 13. Marlboro Advertising 1304 April 2014 14. IDV World Map Click on the map; point at countries on the website to see the data. After it opens, click on the slide again to resume the PPT slide show. 1404 April 2014 15. IDV: U.S. and China 1504 April 2014 16. Masculinity v. Femininity (MAS) Measure: the degree society reinforces the traditional masculine work-role model of male achievement, control, and power. High score (masculine) A higher degree of gender differentiation; males tend to dominate a significant portion of the society and power structure. Society is driven by competition, achievement and success to be a winner or best-in-the-field. Low score (feminine) A lower level of differentiation and inequity between genders; females are treated equally to males in all aspects of the society. Societys dominant quality of life values is caring for others. Success -- standing out from the crowd isnt admirable. 1604 April 2014 17. MAS World Map Click on the map; point at countries on the website to see the data. After it opens, click on the slide again to resume the PPT slide show. 1704 April 2014 18. MAS: U.S. and China 1804 April 2014 19. Uncertainty Avoidance (UAI) Measure: the level of acceptance for uncertainty and ambiguity within a society. High Score Low tolerance for uncertainty and ambiguity. Usually a very rule-orientated society which follows well- defined laws, regulations and controls. Society is intolerant of unorthodox behavior and ideas. Low Score Less rule-orientated, more tolerance for variety and experimentation. Society readily accepts change and is willing to take risks, to try something new or different, whether it pertains to technology, business practices, or foodstuffs. 1904 April 2014 20. UAI World Map Click on the map; point at countries on the website to see the data. After it opens, click on the slide again to resume the PPT slide show. 2004 April 2014 21. UAI: U.S. and China 2104 April 2014 22. Long- v. Short-term Orientation (LTO) Measure: to try to distinguish the difference in thinking between the East and West, its the extent to which a society has a Confucian future-oriented vs. a short-term perspective. High score: Long-term orientation Social behavior oriented toward future rewards. Thrift and persistence are rewarded by culture. Social relationships are ordered by status There are many truths based on time and context Low Score: Short-term orientation Culture emphasizes quick results and the bottom line. Society values personal steadiness and stability (individualism). Culture has a strong concern with establishing absolute Truth. U.S. LTO = 29, CHINA 118 22 23. Pragmatic versus Normative (PRA) Measure: how most people in the past culture, as well as today, relate to the fact that so much that happens around us cannot be explained. High score: Pragmatic orientation People believe that its impossible to understand fully the complexity of life. People believe that truth depends very much on situation, context and time. They show an ability to accept contradictions, adapt according to the circumstances, a strong propensity to save and invest, thriftiness and perseverance in achieving results. Low Score: Normative orientation People have a strong desire to explain as much as possible. People in such societies have a strong concern with establishing the absolute Truth and a need for personal stability. They exhibit great respect for social conventions and traditions, a relatively small propensity to save for the future and a focus on achieving quick results. 2304 April 2014 24. PRA: U.S. and China 2404 April 2014 25. Indulgence v. Restraint (IND) Measure: the extent to which people try to control their desires and impulses, based on the way they were raised. High score: Indulgence People tend to have a relatively weak control over their impulses. Society allows relatively free gratification of basic and natural human drives related to enjoying life and having fun. Low Score: Restraint People tend to have a strong control over their impulses. It suppresses gratification of needs and regulates need gratification by means of strict social norms, e.g., Higher number of police officers/100,000 people 2504 April 2014 26. IVR World Map Click on the map to go to the website. 2604 April 2014 27. IND: U.S. and China 2704 April 2014 IND Scores Mexico 97 Columbia 83 Sweden 78 Australia 71 Canada 68 India 26 China 24 28. U.S. Cultural Dimension Scores 0 25 50 75 100 PDI IDV MAS UAI LTO IND 40 91 62 46 26 68 2804 April 2014 29. U.S.A. & Top Countries for U.S. Imports 0 25 50 75 100 125 PDI IDV MAS UAI LTO IVR 40 91 62 46 26 68 80 20 66 30 118 USA Canada Mexico China Japan 2904 April 2014 30. In Step or Out? The one thing that's common between all of them regardless of whether . . . Theyre from a metro or a village They're north, south, east or west Indian They're vegetarians or non- vegetarians they worship four gods or 40 They're going on a three-mile walk or going around the corner to Starbucks. . . the men always walk four to five paces ahead of the women. 04 April 2014 30 31. The World Today Is Global 04 April 2014 31 32. Hofstede References 3204 April 2014 Click on Hofstedes photo to view Geert Hofstede on Culture