Summary AND Notes Lectures Cross Cultural Management BI Oslo
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Module
Cross-cultural management (E_IBA1_CCM)
Institution
Vrije Universiteit Amsterdam (VU)
Book
Understanding Cross-Cultural Management 3rd edn
Summary containing all the relevant theory discussed in the course book of the course Cross Cultural Management given during the International Business Administration course at the BI Norwegian Business School in Oslo. By learning this summary I personally passed the final exam and final report.
CHAPTER 2 DIMENSIONS OF CULTURE: HOFSTEDE AND GLOBE
Hofstede used the results of his research to produce a comparison between cultures on five
dimensions:
1) Power distance (high/low)
= attitudes to authority, the distance between individuals in a hierarchy.
= the extent to which members of a culture expect and accept that power is unequally
distributed in society.
Low power distance people are equal, individual is respected
High power distance people are not equal, authority is respected
2) Individualism versus collectivism
= independence and interdependence, the loyalty towards oneself and towards a group.
3) Masculinity versus femininity
= importance of work goals (earnings, advancement) compared with personal goals (co-
operation, relationships).
, 4) Uncertainty avoidance (high/low)
= the degree of tolerance for uncertainty or instability.
= the extent to which a society, organization or group relies on social norms, rules, and
procedures to alleviate the unpredictability of future events.
High Uncertainty Avoidance a preference for strict rules and structure to minimize
uncertainty, often associated with risk aversion and resistance to change.
Low Uncertainty Avoidance greater comfort with ambiguity, adaptability, and a willingness
to take calculated risks.
Two dimensions, power distance and uncertainty avoidance, are particularly important in this
respect. As Hofstede himself says: Both dimensions help answer two fundamental questions:
Who should have the power to decide what? What rules or procedures should be followed in
order to attain the desired ends?
5) Short-term versus long-term orientation
= fostering virtues related to the past and present or virtues related to the future
Short-term orientation emphasizes immediate results and gratification, focusing on quick
gains and current needs.
Long-term orientation prioritizes long-range planning, delayed gratification, and future-
oriented thinking, valuing persistence and adaptability over time.
The dimensions do not account for cultural differences in absolute terms but in relative terms.
Cultural dimensions according to GLOBE
= Global Leadership and Organizational Behavior Effectiveness research programme
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