Transcript Minding your neighbour’s business

Culture’s recent consequences
Auckland University of Technology
11 April 2005
Geert Hofstede
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Citation: Hofstede, Geert (2005) Culture’s recent consequences PowerPoint® file,
http://crossculturalcentre.homestead.com/Publications.html, [17 July 2015]
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
Mental programmmes
Values
• Values are strong emotions with a
minus and a plus pole
• Like evil-good, abnormal-normal,
dangerous-safe, dirty-clean, immoralmoral, indecent-decent, unnaturalnatural, paradoxical-logical, uglybeautiful, irrational-rational
• What is rational is a matter of values
The learning of culture
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
Research into national cultures
Inhabitants of the world, William Darton, 1790
Research into national cultures
Culture’s Consequences, Geert Hofstede, 1980
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2.
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4.
5.
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
National culture dimensions: now scores
showing relative positions of > 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
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
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
SMALL PD, WEAK UA
NORDIC CTRS
ANGLO CTRS, USA
NETHERLANDS
GERMAN SPK CTRS
HUNGARY
ISRAEL
SMALL PD, STRONG UA
LARGE PD, WEAK UA
CHINA, HK, SINGAPORE
INDIA, BANGLADESH
INDONESIA, MALAYSIA
TAIWAN, THAILD, PAKIST
LATIN CTRS, E-EUROPE
JAPAN, KOREA
LARGE PD, STRONG UA
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
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
COLLECTIVIST,FEMININE
COLLECTIVIST,MASCULINE
THAILAND, KOREA, VIETN HK, CHINA, JAPAN, PHILS
INDON, MALAYS, SINGAP
INDIA, BANGLADESH
COSTA RICA, CHILE
MEXICO, VENEZUELA
PORTUGAL, RUSSIA
GREECE, ARAB WORLD
SPAIN
FRANCE
NETHERLANDS
NORDIC COUNTRIES
INDIVIDUALIST, FEMININE
CZECHIA, HUNGARY
POLAND, ITALY
GERMAN SPK CTRIES
ANGLO COUNTRIES, USA
INDIVIDUALIST,MASCULINE
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
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
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
Correlates of LTO
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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
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•
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•
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
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
Other examples of research
results (last 10 years)
1.
2.
3.
4.
5.
Consumer behavior
Entrepreneurship
Business goals
Human rights
Perceived corruption
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
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
Example of consumer behavior:
new communication technology in Europe
Adoption of PC’s, internet and mobile
phones: no influence of national wealth,
but slower where Uncertainty Avoidance
was stronger
Research: de Mooij, 2004
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
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
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
Business goals:
examples of country differences 1
relatively most important ascribed goals
in USA
in UK and NZ
Growth of the business
This year’s profits
This year’profits
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
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
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
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
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)
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
“Power tends to corrupt, and absolute
power corrupts absolutely”
(Lord Acton , 1890)
General conclusion from
culture studies
There is no such thing as a universal
economic or psychological rationality
NATIONALITY
constrains
RATIONALITY
Student-level book, 2005
Academic book, 2001