Hofstede's Dimensions in Multnational Corporations
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The most well-known framework on cultural values was derived from a landmark study in the late 1960s and early 1970s by Geert Hofstede, who analyzed data from 88,000 IBM employees from 72 countries in 20 languages. His research showed that employees working in different countries tended to prioritize different values, and those values clustered into several distinct dimensions. Those dimensions include: individualism-collectivism, power distance, uncertainty avoidance, masculinity-femininity, and short-term vs. long-term orientation.
Required Reading
Begin the SLP by reading:
Hofstede, G. (1993). Cultural constraints in management theories. Academy of Management Executive, 7(1), 81-94. Retrieved from EBSCO.
Session Long Project
Drawing on the material in the background readings and doing additional research, please prepare a paper that addresses how you would adapt your leadership approach to lead a cross-cultural group based upon Geert Hofstede's five dimensions if you were the CEO of a multinational organization. For example, would you promote an individualistic or collectivist environment? Would you implement a high or low power distance policy? Make sure to address all five of Hofstede's dimensions. Please be creative and provide examples to justify why you would make such decisions.
Your paper should be short (2-3 pages, not including the cover sheet and references) and to the point. You are expected to deal with these issues in an integrated fashion, rather than treating them as a series of individual questions to be answered one by one and left at that.
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Solution Summary
The answer to this problem explains the use of Hofstede's dimensions by a leader of a multinational company. The references related to the answer are also included. 825 words.
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If I were the CEO of a multinational organization, I will promote a low power distance policy. The degree to which a person is able to influence others ideas and behavior is what power distance is about. I do not want the employees to accept that power is distributed unequally. My objective as a CEO is to promote free and open communication among the organization members. For example, if there is low power distance, a team member will be free to talk with the Vice-President about his view. Also, I have organized the company in teams so that hierarchy is eliminated. A low power distance policy supports my goals and objectives.
If I were a CEO of a multinational company, I would want high individualism in my employees. Every team, every employee should feel equal in the company. Only then will they be able to make responsible decisions and be responsive to the needs of market. Since, the company is a multinational company; the local employees are empowered to make decisions in a responsible manner. For example, the manager of operations in Kenya can lower prices to capture a larger market share. It also means that superiors of my company will be accessible, employees are consulted and information is shared frequently, ...
Education
- BSc , University of Calcutta
- MBA, Eastern Institute for Integrated Learning in Management
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