Hofstede's Cultural Dimensions Theory: Vision And Values
Culture
Corporate culture is very crucial for any organization because it aggregates all the resources of the company. By knowing it we can understand the ways to create competitive advantage.
Culture is a system of publicly and collectively accepted meanings that operate for certain social group at a time (Pettigrew). Edgar Scein (Scien, 1985) believes that to study culture deeply one must separate the levels at which culture operates. These are three:
• Artefacts: what the eye can see. By this we can know how the offices are organized physically, environment in it, technology used and behaviour of people.
• Values: These regulate the behaviour of different people in organization. Vision and mission statements officially declare them.
• Basic assumptions: These are
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Successful procedures that solved problems in the past may become part of the culture. These flows are developed informally and are difficult to manage because they sometimes conflict with the top down flow. External influences can be absorbed and handled by the people who work at the interface between the organization and the external environment. These are important because of increasing trends in mergers, acquisition, alliances and many more.
Hofstede’s Cultural Dimensions Theory
The findings of this theory have been proven to be very important in M&As because of his findings regarding cultural differences between nations. He has analyzed the answers of people from roughly 70 countries to get relevant views. (Geert, 1983)
Mental Programs
Hofstede’s mental programs state that human mind works partly due to individual factors and partly due to external ones.
• The first level is universal, inherited and shared by all human beings. It includes feeling like happiness, sadness etc.
• The second level belongs to certain group or category e.g. religion, language.
• The third level is individual and is different for
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