Geert Hofstede's Impact On Organizational Performance

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1. Impact of cultural values on employee behaviour and organizational performance
1.1 Nationals cultures & people behaviours
Our behaviours are hugely related to our beliefs and values adopted in our life. The way we respond to a circumstance depends on the way we interpret that circumstance. Furthermore, the way we interpret a situation is related to our values and beliefs carries within ourselves. Geert Hofstede, a social psychologist and anthropologist, state that our values, patterns of thinking, feeling, and potential acting were learned throughout our lifetime, especially early childhood. Geert Hofstede (1991) defines culture as a collective program of mind which is shared by people within the same social environment. He performed a survey study on employee values across the world through IBM Corporation to identify the effects of social cultures on values of people and the differences of cultures. Hofstede’s work is a major finding on the cross-cultural communication and a very useful tool to understanding different employee behaviours in global business. According to Hofstede theory, there are six cultural dimensions: power distance, individualism, masculinity, uncertainty avoidance, long term orientation vs. short term orientation, and indulgence.
1.2 Country comparison based on the Hofstede country index
Hofstede used the results of the questionnaires on IBM employees to rank the countries cultural scores and indexes. Based on the Hofstede cultural dimension
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