Hofstede's 6 Dimensions Of Culture In International Management

CCI ASSIGNMENT

Submitted by- Ranita Mandal

WHAT IS CULTURE?

The word "culture" has been derived from a Latin term "colere," which means tending to the earth and grow, or cultivation and nurture. According to E.B.Taylor culture is that complex whole that includes knowledge, art, language, belief, morals, laws, custom, cuisine, music, religion and other capabilities acquired by man as a member of the society. Culture is what defines a society, guides a society, and gives an identity to it. In a way, culture individualizes society. Culture is the shared patterns of behavior and interactions that is developed by individuals through socialization generation after generation.

It is a powerful tool for a human being so that he can survive, adapt

Understanding culture for international management is very important because it leads to the development of cultural sensitivity in an international context. It also tells us how culture has a direct influence on international management decisions. Hofstede’s 6 dimension model consists of certain criteria namely, individualism, pragmatism, power distance, masculinity, uncertainty Avoidance, indulgence. All these characteristic are very much influenced by the culture itself. Hence to go beyond ethnocentricity, managers try to understand and internalize cultural differences. For example when George bush gifted Chinese premier Li Peng a cowboy boot embroidered with both American and china flags, it was wrong on the basis of administrative protocols because in china shoes are considered to be the lowliest of the objects. Even knowing about the symbols of different countries in very important when you venture out to do business with them. The ability of employees to work effectively together across borders has become increasingly critical to international business success. Cross-cultural understanding by individuals and the organization as a whole helping in eliminating misunderstandings that could otherwise harm the business and in fact will help in maximizing the best attributes each nationality has to offer. Each different culture or nationality has its own characteristics, which eventually combine to contribute to the strength of the organisation. For example, in countries like Britain and the US where they have a culture of small power distance between top management and general staff, organizations benefit from an environment of empowerment and acceptance of responsibility. In countries where management maintains a large power distance, staff follows a much tighter regime of discipline. The