INFLUENCE OF NATIONAL

CULTURE

HOFSTEDES FRAMEWORK
FOR ASSESSING CULTURES
1

Indias score : 77 (2010)

LOW/HIGH POWER
DISTANCE
Low power distance

High power distance

There should be a minimum of equality

since it can exploit others

Inequality is unavoidable and everyone has the

place they deserve

People who are the superiors or

subordinates are all the same

Superiors and subordinates are different kind

of people

Subordinates should be consulted

Subordinates should be told what to do

If there is a hierarchy in an organization it

is only for the sake of convenience
Everyone should enjoy the same privileges
: there should be no status symbol
Individuality is to be respected

Manager should be a resourceful democrat

Hierarchy in an organization reflect in natural

difference

Power holders are entitled to privileges and

status symbol
Authority is to be respected

Manager should be a benevolent autocrat

Indias score : 48 (2010)

INDIVIDUALISM/
COLLECTIVISM
Collectivist

Individualist

we mentally

I mentally

Decisions are primarily made according to

what is best for the group

Decisions are primarily made on individual

needs

Identity is based on ones social group

Relationship prevail over task

Focus is on belonging to an organization

Values differ according to the group
(particularism)

Identity is based on the individual

Task prevail over Relationship

Focus is on individual initiative and

achievement

Value standard apply to all(universalism)

Indias score : 56 (2010)

MASCULINITY /
FEMININITY
Masculinity

Femininity

Distinct gender roles

Fluid gender roles

Stress on competition and performance

Stress on co-operation and

environmental awareness

Men are assertive ,women are nurturing

Acquisition of wealth

Ambition motivates

Men and women are in nurturing roles

Quality of life

Service motivates

Live to work

Work to live

Managers are expected to be decisive and

assertive

Managers use intuition and strive for

consensus

Sympathy for the successful- achiever

Independence ideal

Sympathy for the unfortunate

Inter-dependence ideal

4
Indias score : 40 (2010)

Indias score : 61 (2010)

LOW/HIGH UNCERTAINTY
AVOIDANCE
High uncertainty avoidance

Low uncertainty avoidance

Uncertainty in life is threatening and

must be reduced

Uncertainty is a fact of life: take things as

they come.

Predictability and clarity are preferable

Ambiguity is tolerated

Intolerant of deviant persons and ideas

Concern about security
Resistance to change

Formal regulations are necessary

Consensus is better than conflict

Belief in experts and their knowledge

There is an inner urge to work hard

Deviance is not a threat

Readiness to take risk

Toleration of innovation

The fewer the rule there are the better

Competition and conflict can be
constructive

Belief in generalist and common sense

Hard work as such is not a virtue

SHORT/LONG TERM
ORIENTATION
ShortTerm Orientation

Long Term Orientation

Need for achievement ,selfdetermination

Need for accountability and selfdiscipline

People should be rewarded

according to their ability

Large social and economic

differences should not be tolerated

Loyalty towards others can vary

according to the needs of the
business
Stress is on short-term profits

Managers and employees are in

different camps.

Develop and maintain lifelong

personal network

Stress is on future market positions

Owners-managers and workers

share the same aspirations

INTEGRATING CULTURE AND

MANAGEMENT: THE GLOBE
PROJECT
GLOBE: Global Leadership and Organizational Behavior Effectiveness.
Project extends and integrates previous analyses of cultural attributes and
variables.

Evaluates nine different cultural attributes using middle managers from

951 organizations in 62 countries.

Multi-cultural team of 170 scholars from around the world worked together
to survey 17,000 managers in 3 industries: financial services, food
processing, and telecommunications.

Covered every major geographic region of the world.

CULTURAL PROFILE (GLOBE

STUDY)
1. Power distance:
o India: 5.47 (rank 16).
o Morocco : 5.80 (highest score).
2. Institutional collectivism:
o India : 4.38 (rank 25).
o Sweden: 5.22 (highest score).

3. In-group collectivism:
o India: 5.92 (rank 4).
o Philippines: 6.36 (highest score).

4. Uncertainty avoidance:
o India: 4.15 (rank 29).
o Switzerland: 5.37 (highest score) .

Source: Chhokar, J., Brodbeck, F., & House, R (Eds) .(2007). Culture and leadership across the world. The
GLOBE book of in-depth studies of 25 societies. Lawrence Erlbaum Associates. Mahwah, New Jersey.

"Global Leadership and Organizational Behavior Effectiveness" (GLOBE) Research Program was conceived in
1991 by Robert J. House of the Wharton School of Business.

CULTURAL PROFILE (GLOBE

STUDY)
5. Performance orientation:
India: 4.25 (rank 9).
Switzerland : 4.94 (highest score).
6. Assertiveness:
India: 3.73 (rank 53).
Albania : 5.80 (highest score).

7. Future orientation:
India : 4.19 (rank 15).
Singapore: 5.07 (highest score).
8. Gender egalitarianism:
India: 2.90 (rank 55).
Hungary: 4.08 (highest score).
9. Humane orientation:
India: 4.57 (Rank 9).
Zambia: 5.23 (highest score).

DEFINITION OF CULTURAL DIMENSIONS

(GLOBE STUDY)
Power distance: The degree to which organizations and societies accept power.

Institutional collectivism: The degree to which organizational and institutional

practices encourage collective action.

In-group collectivism: The degree to which individuals in societies reflect collectivist

behavior.
Uncertainty avoidance: The degree to which organizations and societies avoid
uncertainty by relying on practices and procedures.

Performance orientation: The degree to which upper management in organizations

and leaders in societies reward group members for performance excellence.
Assertiveness: The degree to which individuals in organizations or societies are
assertive in social relationships.

Future orientation: The degree to which individuals in organizations or societies plan

for the future.

Gender egalitarianism: The degree to which organizations or society promote gender

equality.
Humane orientation: The degree to which individuals in organizations or societies
reward individuals for positive behavior.

ASSESSING
CULTURE

THE DOUBLE S CUBE

SOCIABILITY comes from mutual esteem and concern for one's colleagues.
The main driving force in decisions is emotion and social concern. High
sociability is people-based, low sociability has a greater task focus.
Positive sociability is people helping one another to succeed. Negative
sociability is covering up for other people and tolerating poor
performance in the name of friendship or saving face.

SOLIDARITY is the degree to which people think together in the same

ways, sharing tasks and mutual interests. The main driving force in
decisions is logic.

Positive solidarity gets the job done efficiently and effectively. Negative
solidarity does not care for other people and can have high levels of
internal conflict or inefficient self-interest.
***Rob Goffee and Gareth Jones, The Character of the Corporation, 1998

THE DOUBLE S CUBE

FOUR ORGANIZATIONAL
CULTURES
NETWORKED CULTURE: this type of organizational culture is
characterized by high levels of sociability and low levels of
solidarity.
Mercenary culture: this type of organizational culture is
characterized by a low degree of sociability and a high degree
of solidarity.
Fragmented culture: this type of organizational culture is
characterized by a low degree of sociability and a low degree
of solidarity.
Communal culture: in the double s cube, this type of
organizational culture is characterized by both a high degree
of sociability and a high degree of solidarity.

Flexibility, Discretion, Dynamism

Clan

Adhocracy

Hierarchy

Market

Stability, Order, Control

External Focus,
Differentiation, &
Rivalry

Internal Focus, Integration,

& Unity

THE COMPETING VALUES

MODEL

CLAN
Common Characteristics:
Friendly place to work
High degree of individual development
Leaders play developmental roles
Promotion from within
Long tenures

HIERARCHY
Common Characteristics:
Leader role = organizing, monitoring, and evaluating
subordinates
Financial and production functions are relatively
powerful

MARKET
Common Characteristics:
Directed toward competing in their market segment
Leaders use strict performance measures to control
subordinate behavior
Good for competitive, driven people

ADHOCRACY
Common Characteristics:
Leaders play entrepreneurial role
Constant competition to be first to market
Risk taking encouraged
Intense place to work

WHICH CULTURE IS BEST?

The best culture depends on structural characteristics of
industry
Clans are best in stable industries with high barriers to
entry
Markets are best when industry has dynamic
competition and barriers to entry are low

WEAK VERSUS STRONG

CULTURES
Weak Culture = Has a great deal of variance in the way
people think and behave
Strong Culture = Has very little variance in the way
people think and behave