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Culture’s recent consequences

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Title: Culture’s recent consequences


1
Cultures recent consequences
  • Auckland University of Technology
  • 11 April 2005
  • Geert Hofstede
  • The individual components of this presentation
    and the entire presentation may be used in
    not-for-profit educational settings with proper
    attribution.
  • Citation Hofstede, Geert (2005) Cultures recent
    consequences PowerPoint file, http//crosscultura
    lcentre.homestead.com/Publications.html, 18
    March 2013

2
Culture (in the anthropological sense)
  • collective programming of the mind
    distinguishing the members of one group or
    category of people from another
  • group/category can be nation, region,
    organization, profession, generation, gender

3
Mental programmmes
4
Values
  • Values are strong emotions with a minus and a
    plus pole
  • Like evil-good, abnormal-normal, dangerous-safe,
    dirty-clean, immoral-moral, indecent-decent,
    unnatural-natural, paradoxical-logical,
    ugly-beautiful, irrational-rational
  • What is rational is a matter of values

5
The learning of culture
6
National versus organizational cultures
  • National culture differences are rooted in
    values learned before age 10
  • They pass from generation to generation
  • For organizations, they are given facts
  • Organizational cultures are rooted in practices
    learned on the job
  • Given enough management effort, they can be
    changed
  • International organizations are held together by
    shared practices, not by shared values

7
Research into national cultures Inhabitants of
the world, William Darton, 1790
8
Research into national cultures Cultures
Consequences, Geert Hofstede, 1980 5 dimensions
  • Inequality more or less? Power Distance large
    vs. small
  • The unfamiliar fight or tolerate? Uncertainty
    Avoidance strong vs. weak
  • Relation with in-group loose or tight?
    Individualism vs. Collectivism
  • Emotional gender roles different or same?
    Masculinity vs. Femininity
  • Need gratification later or now? Long vs.
    Short term orientation

9
National culture dimensions now scores showing
relative positions of gt 70 countries
  • Initially based on employees of IBM subsidiaries
    in 40 countries around 1970
  • Until 2002, 6 major replications (elites,
    employees of other corporations, airline pilots,
    consumers, civil servants)
  • Results very stable even if cultures shift,
    countries shift together so relative scores
    remain valid

10
Dimension 1 Power Distance
  • Extent to which the less powerful members of
    institutions and organizations expect and accept
    that power is distributed unequally
  • Transferred to children by parents and other
    elders

11
Dimension 2 Uncertainty Avoidance
  • Extent to which members of a culture feel
    threatened by ambiguous and unknown situations
  • Not to be confused with risk avoidance risk is
    to uncertainty as fear is to anxiety. Uncertainty
    and anxiety are diffuse feelings anything may
    happen

12
SMALL PD, WEAK UA
LARGE PD, WEAK UA
CHINA, HK, SINGAPORE INDIA, BANGLADESH
INDONESIA, MALAYSIA
NORDIC CTRS ANGLO CTRS, USA NETHERLANDS
GERMAN SPK CTRS HUNGARY ISRAEL
TAIWAN, THAILD, PAKIST LATIN CTRS, E-EUROPE
JAPAN, KOREA
SMALL PD, STRONG UA
LARGE PD, STRONG UA
13
Dimension 3 Individualism vs. Collectivism
  • Individualism A society in which the ties
    between individuals are loose everyone is
    expected to look after self and immediate family
  • Collectivism A society in which individuals from
    birth onwards are part of strong in-groups which
    last a lifetime

14
Dimension 4 Masculinity vs. Femininity
  • Masculinity A society in which emotional gender
    roles are distinct men are supposed to be
    assertive, tough and focused on material success,
    women on the quality of life
  • Femininity A society in which emotional gender
    roles overlap both men and women are supposed to
    be modest, tender, and focused on the quality of
    life

15
COLLECTIVIST,FEMININE
COLLECTIVIST,MASCULINE
THAILAND, KOREA, VIETN INDON, MALAYS, SINGAP
COSTA RICA, CHILE PORTUGAL, RUSSIA
HK, CHINA, JAPAN, PHILS INDIA,
BANGLADESH MEXICO, VENEZUELA GREECE,
ARAB WORLD
SPAIN FRANCE NETHERLANDS NORDIC COUNTRIES
CZECHIA, HUNGARY
POLAND, ITALY GERMAN SPK CTRIES ANGLO
COUNTRIES, USA
INDIVIDUALIST, FEMININE
INDIVIDUALIST,MASCULINE
16
Validations of country scores against over 400
measures from other sources
  • Examples
  • Power distance Respect for elders corruption
    polarization and violence in national politics
  • Uncertainty avoidance Religiosity xenophobia
    identity card obligation faster driving
  • Individualism GNP per capita faster walking
    weak family ties frequency of using the word I
  • Masculinity Assertiveness performance versus
    solidarity fewer women elected homophobia

17
Dimension 5 Long Term vs. Short Term Orientation
  • Long Term Orientation is directed at the future
    and seeks future rewards through perseverance and
    thrift
  • Short Term Orientation is directed at the past
    and present through respect for tradition,
    fulfilling social obligations and seeking
    immediate rewards

18
  • LONG TERM ORIENTATION
  • CHINA, HK, TAIWAN
  • JAPAN, VIETNAM
  • KOREA
  • BRAZIL, INDIA
  • THAILAND, SINGAPORE
  • NETHERLANDS, NORDIC COUNTRIES
  • BANGLADESH
  • BELGIUM, FRANCE, GERMANY
  • AUSTRALIA, NEW ZEALAND
  • USA, BRITAIN, CANADA
  • SPAIN, PHILIPPINES
  • AFRICAN COUNTRIES
  • PAKISTAN
  • SHORT TERM ORIENTATION

19
Correlates of LTO
  • Short term
  • Good and evil are absolute
  • Concern with Truth
  • Analytical thinking
  • Weaker at mathematics
  • Old age seen as a bad time but starting late
  • Higher rates of imprisonment
  • Spending rates
  • Focus on bottom line
  • Past and present economic stagnation
  • Long term
  • Good and evil are relative
  • Concern with Virtue
  • Synthetic thinking
  • Better at mathematics
  • Old age seen as a good time and starting early
  • Lower rates of imprisonment
  • Savings rates
  • Aim at market position
  • Past and present economic growth

20
Are there national management and leadership
cultures ?
  • In national cultures, all spheres of life and
    society are interrelated family, school, job,
    religious practice, economic behavior, health,
    crime, punishment, art, science, literature,
    management, leadership
  • There is no separate national management or
    leadership culture management and leadership
    can only be understood as part of the larger
    culture

21
Other examples of research results (last 10 years)
  • Consumer behavior
  • Entrepreneurship
  • Business goals
  • Human rights
  • Perceived corruption

22
1. Consumer behavior
  • 15 EU countries, 1970 2000
  • When national incomes become more similar,
    consumer behavior converges as long as a product
    is scarce
  • After scarcity is over, consumer behavior
    diverges, following cultural values, especially
    Uncertainty Avoidance and Masculinity/Femininity
    which are unrelated to income
  • Research de Mooij, 2004

23
Examples of consumer behavior divergence cars in
15 European countries
  • Cars per 1000 inhabitants
  • correlation with GNP/capita
  • 1969 r .93
  • 1994 r .42 ns
  • Percent households with 2 cars
  • correlation with GNP/cap with MAS
    index
  • 1970 r .58 r .43 ns
  • 1997 r -.28 r .62
  • Prefers new over second hand
  • correlation with GNP/cap with UncAv
    index
  • 1970 r .47 r .79
  • 1997 r -.32 r .80
  • Source De Mooij, 2000

24
Example of consumer behavior new communication
technology in Europe
  • Adoption of PCs, internet and mobile phones no
    influence of national wealth, but slower where
    Uncertainty Avoidance was stronger
  • Research de Mooij, 2004

25
Example of consumer behavior use of internet in
Europe
  • Lasting differences in what internet is used
    for
  • Feminine cultures use internet more for education
    and leisure (chatting)
  • Small Power Distance cultures use internet more
    for business
  • Weak Uncertainty Avoidance cultures use internet
    more for mail
  • Research de Mooij, 2004

26
2. Entrepreneurship
  • European database on self-employed in 23
    countries (excl. agriculture), 1974-1994
  • Varied from Greece18.6 to Finland 5.7
  • Correlated positively with Uncertainty Avoidance
  • Especially with UA component dissatisfaction
    with life and with democracy
  • For 12 EU countries, economic factors explained
    32 of variance. Adding cultural factors 64
  • Self-employment arises out of dissatisfaction
  • Wennekers, Noorderhaven, Thurik Hofstede, 2002

27
3. Business goals
  • Goals of successful business persons in your
    country
  • As perceived by evening MBA students with
    full-time day jobs
  • 21 groups, 16 universities, 15 countries, period
    1995-99
  • List of 15 possible goals
  • Clustering of universities and countries based on
    their answers
  • Country scores correlated with PDI, UAI, IDV,
    LTO, GNP/capita
  • Research Hofstede et al, 2002

28
Business goals examples of country differences 1
  • relatively most important ascribed goals
  • in USA in UK and NZ
  • Growth of the business This years profits
  • This yearprofits Staying within the law
  • Personal wealth Responsib. tds employees
  • Power Continuity of the business
  • Staying within the law Patriotism, national
    pride
  • Respecting ethical norms Respecting ethical norms

29
Business goals examples of country differences 2
  • relatively most important ascribed goals
  • Hong Kong, Hawaii (As) in China
  • Profits 10 years from now Respecting ethical
    norms
  • Creating something new Patriotism, national pride
  • Game and gambling spirit Honor, face, reputation
  • Growth of the business Power
  • Honour, face, reputation Responsib. tds society
  • Personal wealth Profits 10 years from now

30
4. Culture and Human Rights
  • HR Index 1992 based on 1948 Universal Declaration
  • Regression on wealth (GNP/cap) plus culture
    indices
  • Across 52 countries only wealth explains
    differences (50) If we want more respect for
    Human Rights we should combat poverty

31
Human Rights Index
  • 27 poor countries still only poverty explains
    differences (38)
  • 25 wealthy countries individualism explains
    differences (53)
  • Universal declaration of human rights is
    based on individualist values

32
5. Perceived corruption
  • An annual Corruption Perception Index (CPI),
    including almost all countries in the world, is
    composed by Transparency International of Berlin
    and published on Internet. It is based on data
    from business, media and diplomats
  • Globally, the CPI is primarily a matter of
    national poverty, not of culture (poor countries
    are perceived as more corrupt)

33
 
Perceived corruption
  • When the analysis is limited to wealthy
    countries, corruption perception differences no
    longer depend on wealth, but on culture.
  • In 1984, Michael Hoppe collected scores for the
    first 4 culture dimensions from Western political
    and intellectual elites, including prominent
    politicians, based on their own values.
  • 76 of the CPI differences among 18 Western
    countries in 2002 could be predicted from their
    elites self-scored Power Distance in 1984.
  • Sources Hoppe,Salzburg Seminar own research

34
Power tends to corrupt, and absolute power
corrupts absolutely (Lord Acton , 1890)
35
General conclusion from culture studies
  • There is no such thing as a universal economic
    or psychological rationality
  • NATIONALITY
  • constrains
  • RATIONALITY

36
Student-level book, 2005 Academic book, 2001
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