MBA 6601 International Business Unit I Assignment 05-02-17 - Psychologist Dr Geert Hofstede conducted what is considered by many to be the most

MBA 6601 International Business Unit I Assignment 05-02-17...

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Psychologist Dr. Geert Hofstede, conducted what is considered by many to be the most extensive study of how values in the workplace are influenced by culture (“Geert Hofstede Analysis,” n.d.). He began his research in 1967, while working at IBM as a psychologist. Over the course of his research he compiled and interpreted data from employees of IBM in more than fifty countries (“Hofstede’s Cultural Dimensions,” n.d.). “From those results, and later additions, Hofstede developed a model that identifies four primary dimensions to differentiate cultures, he later added a fifth dimension, Long-Term Outlook” (“Geert Hofstede Analysis,” n.d.). His cultural dimensions model was published at the end of the 1970s, and has become the international benchmark for understanding cultural differences (“Hofstede’s Cultural Dimensions,” n.d.). Dr. Hofstede’s dimension analysis is an invaluable tool for an individual who is traveling for business or pleasure, because it provides a greater understanding of the intercultural difference within regions and between countries (“Hofstede’s Cultural Dimensions,” n.d.). The five primary dimensions are as follows: 1. Power Distance Index: Addresses the reality that all individuals in societies are not equal – it verbalizes the attitude of the culture toward the inequalities that exist 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 ” (“Geert Hofstede,” n.d.). A country with a high power distance rating is indicative of the disparities of power and wealth that have thrived within the society (“Geert Hofstede Analysis,” n.d.). These societies most likely adhere to a caste system that does not permit
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significant upward mobility of their citizens (“Geert Hofstede Analysis,” n.d.). In contrast a country with a low power distance rating is indicative of a society that downplays the disparities of power and wealth and stresses the importance of equality and opportunity for all of their citizens (“Geert Hofstede Analysis,” n.d.). 2. Uncertainty Avoidance Index: Addresses the level of tolerance for equivocation and ambiguity within the society - i.e. unstructured situations. A High Uncertainty Avoidance rating is indicative of a society that has little tolerance for equivocation and ambiguity. “This creates a rule-oriented society that institutes laws, rules, regulations, and controls in order to reduce the amount of uncertainty” (“Geert Hofstede Analysis,” n.d.). In contrast a low uncertainty rating is indicative of a
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  • Business, Dr. Geert Hofstede, Geert Hofstede Analysis , Mba 687 Princess1967

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