Page 109 - (DK) The Business Book

LIGHTING THE FIRE 107

See also: Creativity and invention 72–73 ■ Gods of management 76–77 ■ Hubris and nemesis 100–103 ■ Avoid groupthink
114 ■ Balancing long- versus short-termism 190–91 ■ The learning organization 202–07 ■ Creating an ethical culture 224–25

Hofstede’s five cultural
traits can be measured
120 across companies in
different countries.
Hofstede’s research
100 allocated a score between
1 and 120 for each trait.
For example, companies
80 in China received the
highest score—118—for
long-term orientation,
60 while companies in the
USA had a much
shorter-term focus,
40 receiving a score of 25 (in
Russia, data for this trait
was unavailable).
20
Brazil China
Russia USA
0
Power Individualism Masculinity vs. Uncertainty Long-term vs.
distance vs. collectivism femininity avoidance short-term
orientation

place”). In Russia, for example, Masculinity and femininity, more uncertain and ambiguous
employees have little access to Hofstede’s third cultural dimension, situations. British organizations, for
executives (power distance is high). are viewed differently from one example, are considered fairly at
Conversely, in low power-distance organization to another. Some place ease with unstructured and
cultures, such as many companies great emphasis on masculine traits unpredictable situations.
in Australia, decision making is (such as status, assertiveness, and Hofstede’s fifth dimension, long-
distributed more evenly throughout advancement), while others accord vs. short-term orientation, is the
the organization. feminine traits (such as humanism, extent to which organizations
Anthropologists have long cooperation, collegiality, and privilege the short-term (profit) over
theorized that collectivist cultures nurturance) greater value. Italian the long-term (value generation). ❯❯
control members through external organizations, for example, tend to
societal pressure (shame), whereas have assertive, competitive cultures.
individualistic cultures control their The fourth of Hofstede’s
members more through internal dimensions is known as
pressure (guilt). In his second uncertainty avoidance. This is the
dimension, Hofstede proposed that extent to which workers feel The thing I have learned
this tendency toward collectivism threatened by ambiguous at IBM is that culture
or individualism can be most situations. The more uncomfortable is everything.
clearly seen in the difference people are with “not knowing” how Louis V Gerstner Jr
between Asian and US companies. to react in a certain scenario, the
US businessman (1942–)
When problem-solving, US more rules and policies the
businesses tend to look to the company will need to introduce to
individual for a solution, whereas reduce that uncertainty. Companies
Asian companies prefer to pose with a low degree of uncertainty
the problem to a group. avoidance are likely to thrive in