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BRIEF LITERATURE REVIEW FROM THE THEORY OF HOFSTEDE &

ITS IMPLICATION IN A MNC FOR STAFFING GLOBALLY

7/18/2014

Brief literature review from the theory of Hofstede & its implication in A&E for Staffing Globally

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Manpower Planning HRM (504)

Instructor: ATM Sayfuddin

Doosto Foring

Group Member:

Name ID Signature

Synthia Alam Orin 13104089

Tasnim Alam Smita 13104071

Rownak Jahan Moon 13204027

Hasiba Chowdhury 13204028

Shahidur Rahman Talukder 13204056


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TABLE OF CONTENTS

1. Answer to Quiz # 1: Demonstrate a brief literature review from the theory of Hofstede & its

implication in your chosen context

2. Answer to Quiz # 2: Illustrate the significance of cultural awareness training program in the

context of business

3. Answer to Quiz # 3: Choose countries you want to send the team

4. Answer to Quiz # 4: Design the training program based on the differences of cultures among

your chosen countries as to enable the team to adapt their behavior accordingly


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Abstract

As a Manager of HR department of an MNC which has operations in various continents

including Asia-Pacific, Europe, Australia, America and Africa had to decide to send a team of 6

employees to Bangladesh, USA and UK of three different continents to observe operations.

Considering the brief literature review from the theory of Hofstede & its implication.

Considering the significance of cultural awareness training program. Considering the cultural

aspect survey for the target countries to be staffed. Considering the designing the training

program based on the differences of cultures among these three countries as to enable the team to

adapt their behavior accordingly.


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Answer to Quiz # 1: Demonstrate a brief literature review from the theory of Hofstede &

its implication in your chosen context

As a Manager of HR department of A&E, which has operations in 44 counties of various

continents including Asia-Pacific, Europe, Australia, America and Africa had decided to send a

team of 6 employees to Bangladesh, USA and United Kingdom of three different continents to

observe operations. Beforehand I have to consider the brief literature review from the theory of

Hofstede & its implication as follows:

National Cultural Dimensions

Culture is defined as the shared traditions, beliefs, customs, history, folklore, and institutions of a

group of people. Culture is shared by people of the same ethnicity, language, nationality, or

religion. It's a system of rules that are the base of what we are and affect how we express

ourselves as part of a group and as individuals.

“Professor Geert Hofstede conducted one of the most

comprehensive studies of how values in the workplace

are influenced by culture. He analyzed a large data base

of employee values scores collected by IBM between

1967 and 1973 covering more than 70 countries, from

which he first used the 40 largest only and afterwards

extended the analysis to 50 countries and 3 regions.

The values that distinguished countries from each other

could be grouped statistically into four clusters. These

four groups became the Hofstede dimensions of national culture:

Power Distance (PDI)

Individualism versus Collectivism (IDV)

Masculinity versus Femininity (MAS),

Uncertainty Avoidance (UAI)

A fifth Dimension was added in 1991 based on research by Michael Bond, which is termed as

Long-Term Orientation (LTO) and was applied to 23 countries.

Power Distance (PDI)

Power distance is correlated with income inequality in a country. This dimension expresses the

degree to which the less powerful members of a society accept and expect that power is

distributed unequally. The fundamental issue here is how a society handles inequalities among

people. People in societies exhibiting a large degree of power distance accept a hierarchical order

in which everybody has a place and which needs no further justification

Individualism versus collectivism (IDV)

Individualism is correlated with national wealth. The high side of this dimension, called

Individualism, can be defined as a preference for a loosely-knit social framework in which

individuals are expected to take care of themselves and their immediate families only. Its

opposite, Collectivism, represents a preference for a tightly-knit framework in society in which


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individuals can expect their relatives or members of a particular in-group to look after them in

exchange for unquestioning loyalty. A society's position on this dimension is reflected in

whether people’s self-image is defined in terms of “I” or “we.”

Masculinity versus femininity (MAS)

Masculinity is correlated negatively with the percent of women in democratically elected

governments. The masculinity side of this dimension represents a preference in society for

achievement, heroism, assertiveness and material reward for success. Society at large is more

competitive. Its opposite, femininity, stands for a preference for cooperation, modesty, caring for

the weak and quality of life. Society at large is more consensus-oriented.

Uncertainty avoidance (UAI)

Uncertainty avoidance is associated with the legal obligation in developed countries for citizens

to carry identity cards. The uncertainty avoidance dimension expresses the degree to which the

members of a society feel uncomfortable with uncertainty and ambiguity. Countries exhibiting

strong UAI maintain rigid codes of belief and behavior and are intolerant of unorthodox behavior

and ideas. Weak UAI societies maintain a more relaxed attitude in which practice counts more

than principles.

Long-term versus short-term orientation (LTO)

Long-term orientation is correlated with school results in international comparisons. The long-

term orientation dimension can be interpreted as dealing with society’s search for virtue.

Societies with a short-term orientation generally have a strong concern with establishing the

absolute Truth, which is normative in thinking and exhibit great respect for traditions, a

relatively small propensity to save for the future, and a focus on achieving quick results.

Societies with a long-term orientation, people believe that truth depends very much on situation,

context and time and show an ability to adapt traditions to changed conditions, a strong

propensity to save and invest thriftiness, and perseverance in achieving results.


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Answer to Quiz # 2: Illustrate the significance of cultural awareness training program in

the context of business

Cultural awareness becomes central when we have to interact with people from other cultures.

People see, interpret and evaluate things in a different ways. What is considered an appropriate

behavior in one culture is frequently inappropriate in another one. Misunderstandings arise when I

use my meanings to make sense of others reality.

Increasing cultural awareness means to see both the positive and negative aspects of cultural

differences. Cultural diversity could be a source of problems, in particular when the organization

needs people to think or act in a similar way. Diversity increases the level of complexity and

confusion and makes agreement difficult to reach. On the other hand, cultural diversity becomes

an advantage when the organization expands its solutions and its sense of identity, and begins to

take different approaches to problem solving. Diversity in this case creates valuable new skills

and behaviors.

In becoming culturally aware, people realize that:

We are not all the same

Similarities and differences are both important

There are multiple ways to reach the same goal and to live life

The best way depends on the cultural contingency. Each situation is different and may

require a different solution.

Diversity is reality. We are all connected through the increasing globalization of

communications, trade, and labor practices. Changes in one part of the world affect people

everywhere. Considering our increasing diversity and interconnected problems, working together

seems to be the best strategy for accomplishing our goals. Because social and economic change

is coming faster and faster, organizations understand the need for cultural competence. We're

realizing that if we don't improve our skills we're asking for organizational and cultural gridlock.


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Studies show that new entrants to the workforce and communities increasingly will be people of

color, immigrants, and white women because of differential birth rates and immigration patterns.

There are many benefits to diversity, such as the rich resource of alternative ideas for how to do

things, the opportunity for contact with people from all cultures and nationalities that are living

in your community, the aid in strategizing quick response to environmental change, and a source

for hope and success in managing our work and survival.

Benefits of building an organization's cultural competence are:

Increases respect and mutual understanding among those involved.

Increases creativity in problem-solving through new perspectives, ideas, and strategies.

Decreases unwanted surprises that might slow progress.

Increases participation and involvement of other cultural groups.

Increases trust and cooperation.

Helps overcome fear of mistakes, competition, or conflict. For instance, by understanding

and accepting many cultures, everyone is more likely to feel more comfortable in general

and less likely to feel the urge to look over their shoulders to be sure they are being

"appropriate" in majority terms.

Promotes inclusion and equality.

.


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Answer to Quiz # 3: Choose countries you want to send the team

If we explore the Bangladesh, USA and UK culture through the lens of the 5-D Model, we can

get a good overview of the deep drivers of its culture relative to other world cultures.

http://geert-hofstede.com/cultural-survey.html

Power distance This dimension deals with the fact that all individuals in societies are

not equal – it expresses the attitude of the culture towards these

inequalities amongst us. Power distance is defined as the extent to

which the less powerful members of institutions and

organizations within a country expect and accept that power is

distributed unequally. It has to do with the fact that a society’s

inequality is endorsed by the followers as much as by the leaders.

Bangladesh USA UK

Bangladesh scores high on

PDI (score of 80) which

means that people accept a

hierarchical order in which

everybody has a place and

which needs no further

justification. Hierarchy in an

organization is seen as

reflecting inherent

inequalities, centralization is

popular, subordinates expect

to be told what to do and the

ideal boss is a benevolent

autocrat

The United States score low

on PDI (40) which

underscores the American

premise of “liberty and

justice for all.” Within

American organizations,

hierarchy is established for

convenience, superiors are

always accessible and

managers rely on individual

employees and teams for

their expertise. Both

managers and employees

expect to be consulted and

information is shared

frequently. At the same time,

communication is informal,

direct and participative.

At 35 Britain sits in the lower

rankings of PDI – i.e. a

society that believes that

inequalities amongst people

should be minimized.

Interestingly is that research

shows PD index lower

amongst the higher class in

Britain than amongst the

working classes.

The PDI score at first seems

incongruent with the well-

established and historical

British class system and its

exposes one of the inherent

tensions in the British

culture. A sense of fair play

drives a belief that people

should be treated in some

way as equals.

Individualism The fundamental issue addressed by this dimension is the degree of

interdependence a society maintains among its members. It has to

do with whether people´s self-image is defined in terms of “I” or

“We”.

In Individualist societies people are supposed to look after

themselves and their direct family only. In Collectivist societies

http://geert-hofstede.com/cultural-survey.html


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people belong to ‘in groups’ that take care of them in exchange for

loyalty.

Bangladesh USA UK

Bangladesh, with a score of

20 is considered a

collectivistic society. This is

manifest in a close long-term

commitment to the member

'group', be that a family,

extended family, or extended

relationships. Loyalty in a

collectivist culture is

paramount, and over-rides

most other societal rules and

regulations. The society

fosters strong relationships

where everyone takes

responsibility for fellow

members of their group. In

collectivist societies offence

leads to shame and loss of

face, employer/employee

relationships are perceived in

moral terms (like a family

link), hiring and promotion

decisions take account of the

employee’s in-group,

management is the

management of groups

The United States, with a

score of 91 on this

dimension, is a highly

individualistic culture. This

translates into a loosely-knit

society in which the

expectation is that people

look after themselves and

their immediate families.

There is also a high degree of

geographical mobility in the

United States and most

Americans are accustomed to

doing business with, or

interacting, with strangers.

Consequently, Americans are

not shy about approaching

their prospective counterparts

in order to obtain or seek

information. In the business

world, employees are

expected to be self-reliant

and display initiative. Also,

within the exchange-based

world of work, hiring and

promotion decisions are

based on merit or evidence of

what one has done or can do.

At a score of 89 the UK is

amongst the highest of the

individualistic scores, beaten

only by some of the

commonwealth countries it

spawned i.e. Australia and

the USA.

The British are a highly

individualistic and private

people. Children are taught

from an early age to think for

themselves and to find out

what their unique purpose in

life is and how they uniquely

can contribute to society. The

route to happiness is through

personal fulfillment. As the

affluence of Britain has

increased throughout the last

decade, with wealth also

‘spreading North’, a much

discussed phenomenon is the

rise of what has been seen as

rampant consumerism and a

strengthening of the ‘ME’

culture.

Masculinity /

Femininity

A high score (masculine) on this dimension indicates that the society

will be driven by competition, achievement and success, with success

being defined by the winner / best in field – a value system that starts

in school and continues throughout organizational behavior.

A low score (feminine) on the dimension means that the dominant

values in society are caring for others and quality of life. A feminine

society is one where quality of life is the sign of success and standing


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out from the crowd is not admirable. The fundamental issue here is

what motivates people, wanting to be the best (masculine) or

liking what you do (feminine).

Bangladesh USA UK

Bangladesh scores 55 on this

dimension and can be

considered a masculine

society. In masculine

countries people “live in

order to work”, managers are

expected to be decisive and

assertive, the emphasis is on

equity, competition and

performance and conflicts are

resolved by fighting them

out.

The United States score 62

on this dimension and is

considered a “masculine”

society. Behavior in school,

work, and play are based on

the shared values that people

should “strive to be the best

they can be” and that “the

winner takes all”. As a result,

Americans will tend to

display and talk freely about

their “successes” and

achievements in life, here

again, another basis for

hiring and promotion

decisions in the workplace.

Typically, Americans “live to

work” so that they can earn

monetary rewards and attain

higher status based on how

good one can be. Conflicts

are resolved at the individual

level and the goal is to win.

At 66 Britain is a masculine

society – highly success

oriented and driven. A key

point of confusion for the

foreigner lies in the apparent

contradiction between the

British culture of modesty

and understatement which is

at odds with the underlying

success driven value system

in the culture. Critical to

understanding the British is

being able to “read between

the lines’’ What is said is not

always what is meant. In

comparison to feminine

cultures such as the

Scandinavian countries,

people in the UK live in

order to work and have a

clear performance ambition.

Uncertainty

avoidance

The dimension Uncertainty Avoidance has to do with the way that a

society deals with the fact that the future can never be known: should

we try to control the future or just let it happen? This ambiguity

brings with it anxiety and different cultures have learnt to deal with

this anxiety in different ways. The extent to which the members of

a culture feel threatened by ambiguous or unknown situations

and have created beliefs and institutions that try to avoid these is

reflected in the UAI score.

Bangladesh USA UK

Bangladesh scores 60 on this

dimension and thus has a

high preference for avoiding

uncertainty. Countries

exhibiting high uncertainty

avoidance maintain rigid

The US scores 46 on this

dimension and therefore,

American society is what one

would describe as

“uncertainty accepting.”

Consequently, there is a

At 35 the UK has a low score

on uncertainty avoidance

which means that as a nation

they are quite happy to wake

up not knowing what the day

brings and they are happy to


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codes of belief and behavior

and are intolerant of

unorthodox behavior and

ideas. In these cultures there

is an emotional need for rules

(even if the rules never seem

to work) time is money,

people have an inner urge to

be busy and work hard,

precision and punctuality are

the norm, innovation may be

resisted, security is an

important element in

individual motivation.

larger degree of acceptance

for new ideas, innovative

products and a willingness to

try something new or

different, whether it pertains

to technology, business

practices, or foodstuffs.

Americans tend to be more

tolerant of ideas or opinions

from anyone and allow the

freedom of expression. At the

same time, Americans do not

require a lot of rules and are

less emotionally expressive

than higher-scoring cultures.

‘make it up as they go along’

changing plans as new

information comes to light.

As a low UAI country the

British is comfortable in

ambiguous situations - the

term ‘muddling through’ is a

very British way of

expressing this. There are

generally not too many rules

in British society, but those

that are there are adhered to

(the most famous of which of

course the British love of

queuing which has also to do

with the values of fair play).

Most importantly the

combination of a highly

individualistic and curious

nation is a high level of

creativity and strong need for

innovation. What is different

is attractive! This emerges

throughout the society in

both its humor, heavy

consumerism for new and

innovative products and the

fast highly creative industries

it thrives in – advertising,

marketing, financial

engineering.

Long term

orientation

The long term orientation dimension is closely related to the

teachings of Confucius and can be interpreted as dealing with

society’s search for virtue, the extent to which a society shows a

pragmatic future-oriented perspective rather than a conventional

historical short-term point of view.

Bangladesh USA UK

Bangladesh scores 40,

making it a short term

orientation culture. Societies

with a short-term orientation

The United States scores 29

on this dimension and is a

short-term oriented culture.

As a result, it is a culture

At 25 the UK scores as a

short term oriented society

which drives a great respect

for history and tradition as


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generally exhibit great

respect for traditions, a

relatively small propensity to

save, strong social pressure

to “keep up with the

Joneses”, impatience for

achieving quick results, and a

strong concern with

establishing the Truth i.e.

normative.

focused on traditions and

fulfilling social obligations.

Given this perspective,

American businesses

measure their performance

on a short-term basis, with

profit and loss statements

being issued on a quarterly

basis. This also drives

individuals to strive for quick

results within the work place.

There is also a need to have

the “absolute truth” in all

matters.

well as a focus on quick

results in the future. As

mentioned above, planning

horizons tend to be short and

business particularly is very

focused on short term

quarterly goals and quick

results. The notion of giving

up something today for the

promise of something bigger

in the future is not a widely

held notion, more usual is the

belief that ‘a bird in the hand

is worth two in the bush’.


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Answer to Quiz # 4: Design the training program based on the differences of cultures

among your chosen countries as to enable the team to adapt their behavior accordingly

I have to consider designing the training program based on the differences of cultures among

these three countries as to enable the team to adapt their behavior accordingly as follows:

Culturally Competent Program Evaluation

Defining Program Characteristics An evaluation for either a program or a system of care begins

with defining consumer/population process and outcome characteristics. This gives the

evaluation the data it needs to answer the key questions of which interventions work, for whom

and how.

Program characteristics are also key in designing an evaluation. The philosophy of the program

or system determines the service model and the associated process characteristics to be

examined. Process characteristics can include type and frequency of interventions, length of stay

and attainment of individual treatment goals in care plans, staff involved in interventions and

behaviors that change as a result of applying interventions. Culturally relevant process questions

include:

Culturally related outcome questions include:

How do outcomes differ across cultural, racial or ethnic groups’?

What outcomes are expected from the program and how do they compare to the

functional expectations of individuals of the cultures/ethnicities/socioeconomic status

being served?

How does the program relate to the community organizations/leadership that represent

minority groups served‘?

Evaluation Design and Sampling

The nature of the actual design chosen has significant implications for culturally diverse groups.

Pre-post or multiple baseline designs are commonly used. However, culturally diverse

populations sewed frequently change overtime for reasons other than interventions

provided.

Single case methodology, which tracks ratings of selected target behaviors before and

after intervention to determine effects, is useful in evaluations involving groups which

have only small numbers of people available.

Longitudinal designs following a cohort of clients over time to measure outcome can be

useful.

Training Strategies for Cultural training programs for Bangladesh, USA & UK

Selection of instruments and measurement strategies introduces many cultural considerations.

Few instruments are appropriate for use across different cultural groups, and some have subtle

but distinct cross-cultural biases (Purnariega Holzer & Swanson, I991) for and designed the

training for the staffs, who are to be posted in Bangladesh, USA.

The staffs were chosen for Bangladesh, USA & UK were given training for National Cultural

dimensions for their easiest and quickest adaption with the culture of the posted countries

according to the following criterion for Bangladesh, USA and UK staffs as per their staffing

area.


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Semantic equivalence: both translation across language as well as idioms and expressions of the

groups being studied are accounted for and designed the training on this issues for Bangladesh,

USA and UK staffs as per their staffing area.

Content equivalence: the content of each item in the instrument is relevant to the phenomenon

being studied in that culture and designed the training on these issues for Bangladesh, USA and

UK staffs as per their staffing area.

Criterion equivalence: the variable measured is interpreted based on the norms for that culture

and designed the training on this issues for Bangladesh, USA and UK staffs as per their staffing

area.

Methodological equivalence: methods of assessment and data collection yield comparable

responses across culture and designed the training on this issues for Bangladesh, USA and UK

staffs as per their staffing area.

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