Answer to Question #195015 in Management for mahima

Question

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

Geert Hofstede, a leading scholar in cultural values classification, developed a model of five dimensions of natural culture that help to explain fundamental value differences in culture. The model dis1tinguishes cultures according to the following five different dimensions:

•          Power distance

•          Individualism/collectivism

•          Masculinity/femininity

•          Uncertainty avoidance

•          Long-term orientation

The power distance-This dimension deals with the fact that all individuals in societies are not equal – it expresses the culture's attitude towards these inequalities. In Europe, power distance tends to decrease in Northern countries but higher in Southern and Eastern parts.

Individualism/collectivism-Europe is more collectivist because they are overwhelmingly Leftist in ideology or worldview.

Masculinity/femininity-Masculine societies in Europe value assertiveness, Competitiveness, and materialism instead of the "feminine" values of relationships and the quality of life. In terms of the workplace, organizations in feminine societies will aim for harmonious relations with a strong emphasis on social partnership. In masculine cultures, organizations will be more task-oriented and motivation more materialistic appreciated. Within nearly all societies, men score higher in terms the masculinity.

Uncertainty avoidance- High uncertainty avoidance often requires rigid codes of behavior and beliefs. Anglo countries, Eastern Europe, and Nordic Europe have a preference for low uncertainty avoidance. Latin Europe and Latin America emphasize planning and predictability or high uncertainty avoidance.

Long-term orientation- Long-term orientation is when you are focused on the future. You are ready to delay short-term material or social success or even short-term emotional gratification to prepare for the future. Europe has a lower long-term orientation compared to China and Asia.