Cultures and Organizations: Software of the Mind

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Cultures and OrganizationsSoftware of the Mind

• By Geert Hofstede
• Presented by
• Natalie Balaziuk, Beth Roszkowski, Michelle Yeager

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Hofstedes Background

• Born in Netherlands in 1928
• Founded and managed the Personnel Research
  Department of IBM Europe
• Co-founder of IRIC (Institute for Research on
  Intercultural Cooperation
• Most cited non-American in the field of
  Management in the US Social Sciences Citation
  Index

3
Software of the Mind 101

• Hofstedes intent
• Mental Programs Software of the Mind
• Three levels of Mental Programs
• What does this mean?
• Memory and Forgetting (Knowledge Structures)

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Studies

• IBM Study
• Conducted in 1974
• IBM employees-50 countries and 3 multicountry
  regions
• National Cultures
• Dimensions

• IRIC Study
• Conducted 1985-1987
• 20 organizational units in 2 countries
• Organizational Culture
• Dimensions

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Dimensions of National Culture

• Power Distance
• Individualism vs. Collectivism
• Masculinity vs. Femininity
• Uncertainty Avoidance
• Confucian Dynamism (Long-term orientation vs.
  Short-term orientation)

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Power Distance

• Large Power Distance
• Employees afraid of bosses
• Depend on their bosses
• Large emotional distance

• Small Power Distance
• Approach and challenge bosses
• Bosses consult with staff
• Small emotional distance

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Individualism vs. Collectivism

• Individualism
• Interests of the individual outweigh the
  interests of the group
• Individual is independent
• One must look after himself/herself

• Collectivism
• Interests of the group outweigh the interests of
  the individual
• Group is ones identity
• Groupprotection

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Individualism vs. Collectivism (Ranking)

• Individualism
• Personal time
• Freedom
• Challenge

• Collectivism
• Training
• Physical conditions
• Use of skills

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Masculinity vs. Femininity

• Masculinity
• Social gender roles are defined
• Men are assertive tough
• Women are modest concerned with quality of life
• High difference between the genders

• Femininity
• Social gender roles overlap
• Men and women are both modest concerned with
  quality of life
• Little difference between genders

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Masculinity vs. Femininity (Ranking)

• Masculinity
• Earnings
• Recognition
• Advancement
• Challenge

• Femininity
• Manager
• Cooperation
• Living area
• Employment security

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Uncertainty Avoidance

• Strong uncertainty avoidance vs. Weak uncertainty
  avoidance
• Uncertainty avoidance ? Risk avoidance
• Unique coping mechanisms
• Stress among men and women

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Confucian Dynamism

• AKA- long-term vs. short-term orientation
• 5th dimension revealed through another study-
  Chinese value survey (CVS)
• Administered to 100 students in 23 countries
• Findings of study
• Related to economic growth

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Confucian Dynamism (Ratings)

• Long-term orientation
• Persistence
• Ordering relationships by status and observing
  this order
• Thrift
• Having a sense of shame
• High economic growth

• Short-term orientation
• Personal steadiness and stability
• Protecting ones face
• Respect for tradition
• Reciprocation of greetings, favors, and gifts
• Less economic growth

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IRIC Study

• IBM vs. IRIC
• National Values vs. Organizational Practices
• Organizational Practices as Communities of
  Practice

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Dimensions of Organizational Practice

• Process-Oriented vs. Results-Oriented
• Employee-Oriented vs. Job-Oriented
• Parochial vs. Professional
• Open System vs. Closed System
• Loose Control vs. Tight Control
• Pragmatic vs. Normative

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Practical Implications of IRIC Findings

• Structural Changes
• Process Changes
• Personnel Changes
• Cultural Training

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Critiques

• Positive
• Well reviewed
• Hofstede succeeds in his main goal
• Timely publication of Cultures Consequences

• Negative
• Limits of study
• Sweeping generalizations
• Western bias
• IRIC study-criticisms

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Discussion

• Where do you think the United States ranks among
  the five dimensions of national culture?
• Do you think national values can change over
  time?
• What are the practical implications of these
  findings?
• Do you think that increasing globalization and
  advancements in technology will lead to a
  narrower spectrum of national values?
• Is it possible for someone to identify with more
  than one national culture?

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Sources Consulted

• Bing, John W. (2004). Hofstedes consequences
  The impact of his work on consulting and business
  practices. Academy of Management Executive, 18
  (1), 80-87.
•  
• Hofstede, Geert. (1991). Cultures
  organizations Software of the mind
  Intercultural cooperation and its importance for
  survival. New York McGraw-Hill.
•  
• Hofstede, Geert. Geert Hofstede about himself.
  (n.d.) Retrieved November 2004 from
  http//spitswww.uvt.nl/web/iric/hofstede/index.htm
  
• Hoppe, Michael H. (2004). An interview with Geert
  Hofstede. Academy of Management Executive, 18
  (1), 75-79.
•  
• International Business Center. Geert Hofstede.
  (n.d.) Retrieve November 2004 from
  http//geert-hofstede.international-business-cent
  er.com/

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Sources Consulted (cont.)

• Kieser, Alfred. (1994). Book reviews.
  Organization Studies, 15 (3), 457-461.
•  
• Mintu, Alma T. (1993). Cultures and
  organizations. Journal of International Business
• Studies, 23 (2), 362-366.
•  
• Mumford, Alice. (1992). Cultures and
  organizations. Industrial Commercial Training,
  24 (2), vi-vii.
•  
• Søndergaard, Mikael. (1994). Research note
  Hofstedes consequences a study of
• reviews, citations, and replications.
  Organization Studies, 15 (3), 447-456.
•  
• Torrington, Derek. (1992). Book reviews. Employee
  Relations, 14 (3), 71-72.
•  
• Triandis, Harry C. (1993). Reviews on cultural
  phenomena. Administrative Science
• Quarterly, 38 (1), 132-135.