Answer to Question #183695 in Management for Akansha

Question

Q2. Premier Automobiles plans to set up a base in various countries across Europe. Can you please explain that how can they analyze the culture using Hofstede’s five dimensions of culture before setting up a base in those countries?

Answer 1

Expanding to Europe means that Premiere Automobiles will have to manage a large global team. In the new country, the business will collaborate with people in several different countries. Managers are motivated by the opportunities that the connectedness will present, but also nervous about making a cross-cultural faux pas. Cultural differences can act as a barrier to communication, and that they could affect a business’s ability to build connections and motivate people. Hofstede’s cultural dimension approach will facilitate understanding of these differences and work effectively with individuals from different cultures.

A theory like this can only explain a core trend in culture by its very existence. Different organizations, teams, personalities, and cultures have a broad variety of characteristics, so make sure you're familiar with cultural leadership, intellect, and etiquette, and do thorough research into the country you'll be working in. The power distance index refers to the degree of inequality that exists – and is accepted – between people with and without power. According to the model, team members in a high PDI country like Europe would not undertake any action and prefer to be driven and directed through a mission. If a manager does not take charge, the job can be dismissed as unimportant.

Individualism versus collectivism refers to the strength of the ties that people have to others within their community. A high IDV score suggests that those who are not part of a core "family" have poor interpersonal relations. People here take less responsibility for the decisions and consequences of others. People in a collectivist society, on the other hand, are required to be loyal to the group to which they belong, and the group will protect their interests in return. The community is typically bigger, and everyone is responsible for each other's well-being.

Masculinity versus femininity refers to the distribution of roles between men and women. In masculine societies, the roles of men and women overlap less, and men are expected to behave assertively. Demonstrating your success, and being strong and fast, are seen as positive characteristics. However, there is a lot of crossover between male and female roles in feminine cultures, and modesty is seen as a virtue. Working with people who cooperate well or maintain successful relationships with direct bosses is given more weight.

People in communities where uncertainty avoidance high tends to make life as predictable and regulated as possible. They will be tempted to give up if they discover that they are unable to manage their own lives. These individuals may refer to "maana" or place their fate "in God's hands." People in low UAI-scoring countries are more relaxed, open, or inclusive. Avoiding risk does not always imply avoiding uncertainty. According to Hofstede, citizens in high-scoring countries may be able to participate in a risky activities because it eliminates uncertainty or helps them to prevent failure.

"Pragmatic Versus Normative (PRA)" was the initial term for long-vs. short-term orientation. It applies to the individuals in a society's time horizon. Countries with a long-term outlook are more pragmatic, modest, and frugal. People in short-term-focused countries tend to value values, consistency, and truth more, and are more religious and nationalistic.

Countries with a high IVR score enable or encourage people to gratify their own desires and feelings, such as enjoying life and having fun, relatively freely. There is more focus on suppressing pleasure and more control of people's conduct and behavior and tighter social norms in a society with a low IVR ranking.

Interpersonal relationships at work are heavily influenced by cultural expectations. When you grow up in a certain culture, you believe that your society's behavioral standards are self-evident, and you don't have to think about your responses, desires, or emotions as long as you don't wander too far from the mainstream. When Premiere Automobiles enters a foreign culture, though, things seem to be different, it can assess the strategy, decisions, and behavior based on a general sense of how people in a particular society would think and respond if you use Hofstede's Cultural Dimensions as a starting point. Of course, everybody is different, and no culture is the same, but you can use this model to make the unfamiliar less daunting, avoid making mistakes, and improve your morale while working in a foreign country.