Hofstede has developed a framework for cross- cultural communication in the form of cultural dimensions theory. The theory provides how the values of the members of a society get impacted by the society’s culture. It also demarcates the relation between behavior and values through factor analysis. The theory established by Hofstede is utilized in various fields including cross- cultural psychology, cross- cultural communication and international management. The cultural dimensions theory by Hofstede has acted as an inspiration for a number of cross- cultural studies correlated with values and culture.
This assignment is focused on the cultural dimensions model of Hofstede and highlights its background, cultural dimensions and commonly held criticisms along with the examples of business expansions that can be described by the characteristics of national culture of the involved companies. The assignment also focuses on the adaption of individual behavior for enhancing and improving the chances of success in cross- border business development.
Professor Geert Hofstede is a Dutch researcher who has presented a comprehensive study about the influence of culture on the values in the workplace. Culture is defined by Hofstede as the mind’s collective programming through which distinction is made between the individuals of one group or category of people from others.
Professor Geert Hofstede conducted extensive research and formulated six dimensions of national culture with the help of his research team including Gert Jan Hofstede, Michael Minkov and others. This research is widely used in various academic settings and professional management. Independent preferences are signified by these cultural dimensions that lead towards the creation of differences between countries (Adam & Westlund, 2013).
Following are the six dimensions of national culture developed by Hofstede-
Power Distance Index (PDI) – This dimension of national culture provides the degree to which unequal power distribution is anticipated and acknowledged by the less powerful members of the society (Hu, Erdogan, Jiang, Bauer & Liu, 2018). The most important issue of this dimension is how the inequalities are handled among the members by the society. Members of the society accept a hierarchical order through which a great degree of Power Distance is exhibited. Everyone has a defined place in such hierarchical order. In societies with low power distance, public struggle for equal power distribution and demand the justification of inequalities of power (Hofstede, 2003).
Individualism versus Collectivism (IDV) – a fondness of loosely- knot social framework constitutes the upper side of this dimension and is called individualism. Such framework requires individuals to ensure the well-being of their immediate relatives and their own selves. The lower side of this dimension is known as collectivism which specifies the choice for a tightly- knit society framework (Favaretto, Dihl, Barreto & Musse, 2016). People here expect that their relatives or individuals belonging to a particular group will ensure their well- being in reaction of whole- hearted faithfulness. Society’s position is reflected in this dimension by the self- image of people which is either demarcated by “I” or “we” (Kwon, Kim & Koh, 2016).
Masculinity versus Femininity (MAS) – the masculinity side of the dimension represents the preference for heroism, assertiveness, achievement and solid reward for achievement in the society. Competition is considered to be an important aspect of society. The other side of this dimension represents feminism by demarcating preference for cooperation, modest, quality of life and caring for weak. Such society is largely consensus- oriented. With regard to businesses, masculinity versus femininity is also known as “tough versus tender” cultures (Hofstede Insights, 2018).
Uncertainty Avoidance Index (UAI) – the degree to which the individuals in a society feel uneasiness with uncertainty and ambiguity is represented by uncertainty avoidance dimension. Countries exhibiting strong UAI maintain rigid codes of belief and behavior. The significant issue of this dimension of the individuals in the society handles the fact that future is always uncertain. Societies having weak uncertainty avoidance index generally maintains a more relaxed attitude and are intolerant of behavior and ideas that are orthodox (Minkov & Hofstede, 2014).
Long Term Orientation versus Short Term Normative Orientation (LTO) – for the purpose of effective handling of future and present challenges, every society require to maintain a link with its past. Every society prioritizes the existential goal in a different manner. The societies that score low on this dimension signifies their preference for the maintenance of time- honored traditions and norms while deviously inspecting the society’s changes. Cultures scoring high on this dimension generally adopt a more pragmatic approach i.e. they aim to encourage efforts and thrifts in modern education for getting ready for future (Hofstede, Hofstede & Minkov, 2010).
Indulgence versus Restraint (IND) – societies that allow relatively free satisfaction of basic and regular human drives for having a great life are known as indulgence societies. On the other hand, the societies in which strict social norms tend to regulate and suppress the fulfillment of needs of the individuals are restraint societies.
The most common criticisms of the Hofstede’s cultural dimension model include that it relied on assumptions that were fundamentally flawed. Hofstede based its theory on the concept that the global organizational and occupational cultures are uniform. All the data for conducting research was obtained by Hofstede from the informants who worked with IBM Company. Therefore, it was impossible for such data to highlight the aspects of complete cultural system of the country. Moreover, cultural biased approach has been adopted in the research by making the use of surveys as instruments. Also, with the passage of time, the model has lost its significance and has become too old. The questions also arise on the fact that whether the questionnaires are capable of identifying national cultural dimensions which were not originally framed for that specific purpose (Silverthorne, 2005). Hofstede’s model also faced criticism in relation to one company approach, complexity of cultures, internationalization, globalization and research methodology and convergence of markets (Saleem & Larimo, 2017).
The population of most of the countries is heterogeneous but the study of Hofstede considers the domestic population of countries to be homogenous. West- centric approach has been adopted in the research without taking into account any alternative frameworks. The global scenario is changing with the passage of time which has changed the thinking of younger generation (Bakir, Blodgett, Vitell & Rose, 2015). Moreover, the cultures are merging and constantly changing.
The differences between the cultural diversity of countries can be easily recognized with the help of national culture dimensions. The world is in changing phase and has changed a lot from the time of development of national culture dimensions. The rate of development is also increasing rapidly (Minkov, 2012).
Only the cultural stereotypes were reinforced by Hofstede’s model. In my opinion, culture is more complicated than the dimensions specified by Hofstede. The applicability of this model is appropriate for the countries and nit for individuals. However, the recent researches appear to be more applicable for current scenario then the Hofstede’s model. Other models have become successful in providing better knowledge regarding cultural dimensions. The dimensions of culture identified by Trompenaars were based on the research conducted in 50 different countries on 15,000 managers. This leads it to cover broader aspects than the Hofstede’s model. It identified 7 dimensions of cultural variability of which 3 key dimensions included attitudes to time, relationship with people and attitudes to the environment. These dimensions are capable of providing a better understanding regarding the vision and minds of people (Trompenaars & Hampden- Turner, 2011). Exact culture of individuals is represented by the model by representing their preference and way of planning and handling their actions. Such knowledge is not clearly demarcated by Hofstede’s model.
The GLOBE survey builds on and expands Hofstede’s framework by further identifying national values dimensions such as assertiveness, performance orientation, gender equality and humane orientation. The GLOBE survey effectively investigates the relationship between leadership/ managerial effectiveness and culture. There is more dedicated exploration of the differences in cultures than the original model developed by Hofstede.
World Values Survey provides a great knowledge regarding the varying motivations, values and beliefs of people around the world. A survey is conducted with the help of a common questionnaire in every country. This survey is considered to be more reliable in comparison to the Hofstede’s model for gaining knowledge. The data provided by World Values Survey is also utilized by the World Bank for the purpose of analyzing the linkages between cultural dimensions and economic development. Therefore, the greater significance of these recent researches has replaced the Hofstede model.
Such criticisms have been responded by the Hofstede model by going deep into the different layers of culture and providing predictions of people’s behavior based on the acquired knowledge. The importance of Hofstede’s work is evident from the fact it is still a source of reference for the major researchers in developing their theories and models. It is still considered to be a comprehensive study of differences in cultures.
The joint venture entered into by Maruti Udyog Limited of India and Suzuki Motor Corporation of Japan. Maruti was in need for a collaborator for their business and Japan wanted to expand their business in the Indian Market. Maruti Udyog Limited was established in the year 1981. Suzuki Motor Corporation has been a global leader in compact and mini cars for the past three decades. The technological superiority of Suzuki provided a push to Maruti in the Indian market initial stages. Such joint venture can also be described by the characteristics of national culture of the involved companies.
The reason behind the entrance of Suzuki in the Indian market by entering into a joint venture with Maruti was the large Indian market. Suzuki had the available resources required for making cars according to the requirement of customers in India. Indian automobile market suffers from monopolistic trade. At the time of entering into joint venture agreement, India’s national cultural characteristics provided a view of an empowered rural economy which was slowly proceeding towards urbanization. Also, initially there were two competitors in the market i.e. Premier Padmini and Hindustan Ambassador. There were only a few number of cars found on the roads as the income of people in India was very low. Owning a car was out of reach of majority of people in India. Slow and gradual urbanization presented an opportunity for Suzuki as it will definitely result in adding new families to the economic mainstream. It identified that India is in need for cars that are fuel efficient and are easily affordable by them. Suzuki provided lightweight clean and fuel efficient engine to Maruti. India is masculine in displaying power and success which thy do by purchasing cars for showing off their status (Upadhyaya & Rittenburg, 2015).
Both the companies were trying to gain access to the Indian market at the time when there was no significant competitors. They knew that the economy is in growing phase which will slowly result in the entrance of number of competitors in the market. Japan recognized that there was no modern car available in the Indian market. At the same time, it figured out that that there was a stake of government in Maruti Udyog Limited which created trust in the minds of people. The Suzuki aimed to increase their sales in the Indian market by provided technological support to Maruti. The first car was launched in the year 1983 by the name Maruti 800.
The effectiveness of joint venture was evident from the fact that the strategy formulated y it for gaining popularity in the Indian automobile market in the initial stages as successful. The first car by Maruti Suzuki i.e. Maruti 800became the most economic car in India. With the passage of time, each and every family owned a Maruti 800 car. The effectiveness was due to the fact that they obtained the first mover advantage. The not so rich culture benefitted Maruti Suzuki in gaining huge profits from the Indian market. The daily use requirement was met by Maruti 800 and other models of Maruti Suzuki. All the models are known for their fuel efficiency and affordable prices for average Indian consumer. The success of the joint venture was also fostered by the changes in demographic profile, rapid increase in the per capita income and increase in availability of cheap consumer finance (Yan & Luo, 2016).
The success of the joint venture attained huge success. Even today, more than half of the vehicle sales by Suzuki Motor Corporation is accounted for Maruti Suzuki. The national cultural characteristics were effectively analyzed by Maruti Suzuki and the requirements were met accordingly (Singh & Salwan, 2015).
The corporate culture of Maruti Suzuki supported in its success through the adoption of appropriate strategy that targets the audience by properly analyzing the market. The reach was extended only through the wide operations of Maruti Suzuki. The structure and operating model adopted further contributed towards the success of the joint venture. Therefore, the success of the joint venture between Maruti and Suzuki can also be explained by the characteristics of corporate culture. The best possible support was provided by the corporate culture of Maruti Suzuki for obtaining the best advantage by fulfilling the needs of consumers. The success is evident from the sales figures of Maruti Suzuki. In the year 2016- 17, Maruti Suzuki made the total (domestic plus export) sales of 1.1 million cars including various models (Maruti Suzuki, 2018).
This example clearly explains that the proper understanding regarding the characteristics of national culture can lead to the success of the organization. This also requires complete support from the organizational culture.
Senior executives, technicians and managers need to make certain personal adaptations for the purpose of successfully working in cross- cultural teams and across cultures. Such personal adaptations include preparing themselves for handling new situations by way of staying positive all the time. They need to take up change as a source of opportunity and should confront it normally and positively. They should also get prepared at the time of moving into new settings by being capable of experimenting with new individualities and reinventing themselves. There is also a need for gaining expertise at the emotional and delicate aspects of transition. Adaption is also required to be made for acquiring ease in utilizing newer ways of risk taking and learning which would lead them towards self- efficacy (Engle & Nash, 2015).
Cultural gaps should be aimed to be acknowledged along with taking proper steps for working around them (Kim, 2017). Cross cultural knowledge should be adopted by the technicians, senior executives and managers by paying attention to the manner of communication utilized by the business colleagues, partners and team members belonging to different countries (Neuliep, 2017). The impact of culture on diversity should also be understood with the help of obtaining cross- cultural training. Confusion may arise as a result of differences in culture which should be eliminated by becoming an active listener (Chanlat, Davel & Dupuis, 2013). The misunderstandings will be easily clarified with the help of active listening skills. Senior executives and managers should also aim at introducing new and creative ways for stimulating the socializing and discussions process in small groups. Socializing with individuals will play a vital role for those who belong to a culture that is relationship oriented (Molinsky, 2013).
The selection of appropriate leadership style should be made by determining the cross- cultural expectations in advance. There are different preferences with regard to leadership styles among the people of different cultures. People of some culture prefer decision making to be made by their managers while some want themselves to be involved in decision making. The leadership style will result in avoidance of disengagement and frustration among the team members by properly analyzing their requirements in advance. The senior executives and managers should also gain knowledge regarding the motivation which will work across cultures namely rewards, incentives, promotion, etc. The personal adaptations also include proper evaluation of cross cultural strategies by being patient and improving the art of complying with diverse needs and cultural expectations (Slethaug, 2007).
The in- depth knowledge of the national cultural dimensions have the capability of resulting in the enhanced effectiveness of people. The framework of cross cultural communication is properly explained in the theory related to cultural dimensions provided by Hofstede (Kreuz & Roberts, 2017). All the important aspects of culture are taken into account by the theory by way of portraying the impact of culture on the values of the members of a specific society. The relationship between values and behavior is clearly explained by the dimensions with the help of factor analysis (Cullen & Parboteeah, 2013).
People belonging to different culture are different. In order to avoid misinterpretations and misunderstandings, awareness needs to be created regarding the diverse cultures of different nations. Hofstede’s dimensions of national culture throw light in the differences in culture by way of providing a general overview and understanding of various cultures (Ang & Van Dyne, 2015). Such understanding provides the knowledge regarding the way in which people of different cultures behave with the groups of different countries and what are their anticipations from them. There is an increase in the effectiveness of individuals when a clear understanding is gained regarding the dimensions of national culture as it will allow them to make effective dealings with people belonging to different cultures. This is possible with the help of cross- cultural communication. Various levels in communication are impacted by the cultural dimensions including non- verbal, verbal and etiquettes, etc. Therefore, the understanding of making communication across cultures makes its contribution towards the success of individuals in a number of aspects (Al- Kadi, 2017).
The international management and international negotiation skills of people is also automatically enhanced when they gain proper knowledge regarding the customs, values, communication style and expectations of the people belonging to different cultures. International marketing capability of people is also improved when in- depth understanding regarding national culture dimensions is gained. This is due to the fact that the national culture dimensions of Hofstede describe national values in both business and general context. A person is also enabled to address the fields of consumer behavior, global branding and advertising strategy by gaining the understanding of dimensions. The adaption of goods and services to local habits and preferences is also assisted by understanding the specificity of the market. A person gains the capability of analyzing the dissimilarities in the cultures of two different countries and creates consciousness regarding the fact that things acceptable in one country can be unpleasant in others (Thomas & Peterson, 2017).
The competency model can be defined as the standardization of individual behavior characteristics of those who are considered to be superior performers. A cluster of competencies are included in the competency model that is needed for a job and the grading behavior standard for every competency.
The competency model is increasingly being utilized by the international companies for guiding behavior of individuals. For the purpose of placing the individuals in a position where their full contribution can be obtained, there is a requirement for matching the individual competencies with the job competencies model. It is believed that the productivity of some people is a number of times better than others. There is no guarantee that competency model will result in the increased productivity of individuals but it will definitely be ensured that it will guide individuals towards the right path (Rogelberg, 2007).
International companies aim to guide the behavior of individuals with the help of competency model. The word competency does not take into account the duties but it is concerned about persons. The people who are effectively performing the assigned work have some unique characteristics which is contradictory from the fact that their job descriptions are completely work focused. This results in the incapability of the job descriptions to obtain outstanding results. Duties and activities are the key point in the job description which are subject to changes after recognition by organizations or changes in the way of doing work (Rothwell, Graber & Graber, 2010).
The findings of international companies provide that competencies last more than the job tasks. The characteristics of persons who are successfully performing their jobs are the center focus of competencies. The identification of outstanding characteristics of individuals can lead the international companies towards the path of success. This aspect is completely overlooked by the traditional job descriptions where only technical skills are covered. They do not pay attention to the abilities, skills and knowledge of the individuals which are irrelevant for the purpose of job (Xu, Yasinzai & Lev, 2012).
Therefore, by way of identifying the characteristics of people who are performing extremely well in their jobs, competitive advantage is being developed by the international companies. International companies are being assisted by the competency model by placing them in a better position to select, reward and promote the most competent people. Communication also becomes easier within the organization with the help of competencies. Individuals can make self- assessment and obtain the feedback of others. The gained information can be utilized for making comparison of their own competencies with those needed for being promoted to higher positions within the organization. The changes in the behavior of individuals are evident as they prepare themselves for getting promoted to higher positions in the organization (Waal, 2013).
Conclusion
Therefore, it can be concluded that Hofstede’s cultural dimension model is important for gaining knowledge regarding the cultural differences in different countries and taking the benefit of such knowledge for the effective management of cultural differences. Such model is highly criticized in the context of modern world due to which other recent researches are considered to be more relevant. The business expansion example of joint venture between Maruti Udyog Ltd. And Suzuki Motor Corporation as Maruti Suzuki assist in gaining knowledge regarding the fact that how the understanding of the national culture characteristics can result in the success of the business. These are the examples of business plans that can be described by the characteristics of the national culture of the involved companies. Certain personal adaptations are required to be made by the managers, senior executives and technicians for successfully working in cross- cultural teams and across cultures. The increased use of competency model by the international companies is helping them in guiding individual behavior towards right direction.
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