Recent research by the GLOBE project extends Hofstede’s assessment and offers a broader understanding for today’s managers. The GLOBE (Global Leadership and Organizational Behavior Effectiveness) project used data collected from 18,000 managers in 62 countries to identify nine dimensions that explain cultural differences, including those identified by Hofstede.
1) Assertiveness: A high value on assertiveness means a society encourages toughness, assertiveness ,and competitiveness. Low assertiveness means that people value tenderness and concern for others over being competitive.
2) Future orientation: Similar to Hofstede’s time orientation this refers to the extent to which a society encourages and rewards planning for the future over short term, results and quick gratification
3) Uncertainty avoidance: As with Hofstede’s study, this is a degree to which members of a society feel uncomfortable with uncertainty and ambiguity
4) Gender differentiation: This dimensions refers to the extent to which a society maximizes gender role differences. In countries with low gender differentiation such as Denmark, women typically have a higher status and stronger role in decision making .Countries with high gender differentiation accord men higher social, political and economic status.
5) Power distance: This dimension is the same as Hofstede’s and refers to the degree to which people expect and accept equality or inequality in relationships institutions.
6) Societal collectivism: This term is defined as the degree to which practices in institutions such as schools, businesses and other social organizations encourage a tightly knit collectivist society in which people are an important part of a group, or highly individualistic society.
7) Individual collectivism: Rather than looking at how societal organizations favor individualism versus collectivism this dimension looks at the degree to which individuals take pride in being members of a family, close circle of friends team, or organization.
8) Performance orientation: a society with a high performance orientation places high emphasis on performance and rewards people for performance improvements and excellence. A low performance orientation means people pay less attention to performance and more attention to loyalty belonging and background.
9) Humane orientation: The final dimensions refers to the degree to which a society encourages and rewards people for being fair, altruistic generous, and caring. A country high on humane orientation places high value of helping others and being kind. A country low on this orientation expects people to take care of themselves . Self enhancement and gratification is of high importance.
Examples of country Rankings on selected GLOBE Value Dimensions
Low – Sweden, Switzerland, Japan
Medium — Egypt , Iceland , France
High – Spain, United states , Germany.
Low – Russia, Italy, Kuwait
Medium – Slovenia, Australia , India,
High – Denmark Canada Singapore.
Exhibit gives examples of how some countries rank on several of the GLOBE dimensions. These dimensions give managers an added tool for identifying and managing cultural differences. While Hofstede’s dimensions are still valid the GLOBE research provides a more comprehensive view of cultural similarities and differences.
Social values have great influence on organizational functioning and management styles. Consider the difficulty that managers have had implementing self directed work teams in Mexico. As shown in Exhibit Mexico is characterized by very high power distance and a reactively low tolerance for uncertainty characteristics that often conflict with the American concept of teamwork which emphasizes shared power and authority with team members working on a variety of problems without formal guidelines, rules, and structure. Many workers in Mexico as well as in France and Mediterranean countries, expect organizations to be hierarchical . In Russia people are good at working in groups, and like competing as a team rather than on an individuals basis. Organizations in Germany and other central European countries typically strive to be impersonal, well oiled machines. Effective management styles differ in each country depending on cultural characteristics.
Source: New Era Management