International Management - By: Robert II Smith

These value orientations can be related to effective management practices in different locations. The following suggestions illustrate how these orientations may be related to management. In a society that believes humans are subjugated by nature, planning would be futile, because the future is preordained. In a society that is present-oriented, rewards would be closely tied to current performance. In a society that believes in the basic goodness of human beings, participative management is likely to be the normal approach. In a society that is primarily being-oriented, decisions are likely to be intuitive with less concern for logic. In a society that is hierarchical, organization structures are likely to reflect this in formal, authority-based hierarchy.

The value survey model (VSM), introduced by Hofstede (1980), has been widely discussed in International management literature, and it appears to provide information of relevance from a managerial point of view. The model proposed 4 dimensions of culture, and a fifth dimension was later added based on research in the Far East (Chinese Culture Connection, 1987). The five dimensions are as follows.

Individualism (IDV) is the degree to which individual decision making and action are accepted and encouraged by the society. Where IDV is high, the society emphasizes the role of the individual; where IDV is low, the society emphasizes the role of the group. This was explained by Triandis (1972).

Uncertainty avoidance index (UAI) is the degree to which a society is willing to accept and deal with uncertainty. Where UAI is high, the society is concerned with certainty and security, and seeks to reduce uncertainty; where UAI is low, the society is comfortable with a high degree of uncertainty and is open to the unknown.

Power distance index (PDI) is the degree to which power differences are accepted and sanctioned by a society. Where PDI is high, the society believes that there should be a well defined hierarchy in which everyone has a rightful place; where PDI is low, the prevalent belief is that all people should have equal rights and the opportunity to change their position in the society.

Masculinity (MAS) is the degree to which traditional male values are important to a society. Traditional male values incorporate assertiveness, performance, ambition, achievement and material possessions, while traditional female values focus on the quality of life, the environment, the nurturing and concern for the less fortunate. In societies that are high of MAS, sex roles are clearly differentiated and men are dominant; If MAS is low, sex roles are more fluid
Confucian Dynamism (CD) is a complex dimension based on beliefs of the Chinese philosopher, Confucius. The dimension incorporates ideas of time and activity. Here, for simplicity, CD is defined as a time orientation only – taking a long term or short term view. A society that is high on CD has a long time horizon and looks to the future. A society which is low on CD has a shorter time horizon and is more concerned with events in the present and immediate future.

Hofstede reports scores from 1 to 100 for each country in his sample. The scores reported by Hofstede are based on employees within one organization, a large U.S. multinational company. Certain types of individuals are attracted to such an organization, and this is reflected in these scores. These scores should not, therefore, be interpreted as an accurate description of the national culture as a whole; rather, they should be seen as an indication of the similarities and differences that one might expect to find among employees in this type of organization in different countries.

In addition, these scores represent a central tendency in a particular population, but there is likely to be a wide array of values in any country; organizations and industries will attract and retain individuals with value systems that fit into the organizational culture. For example, a study of fast food restaurant managers in Canada and the United States revealed a very low level of individualism combined with no uncertainty avoidance and high power distance and masculinity (Punnett & Withane, 1990). This is quite dissimilar from the Canadian and U.S. value profile presented by Hofstede; but it appears to match the needs of an industry where people must work in close coordination, where there is little job security, and where there are clear distinctions of power and a great deal of competition.

About the Author

Robert Smith was born in New York in 1956. He has spent more than 12 years working as a professor at New York University. He likes assisting students with writing papers and essays. At this time he spends most of his time with his family and shares his education experience in writing papers He is a right person to ask about where to find essay writing help and research paper writing help.

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