PART and respect. Low power distance score means that

PART A Description of the Hofstede’s Five (5) cultural dimensions

Milgliore (2011) stated that “Hofstede
defines culture as, the collective programming of the mind that distinguishes
the members of one group or category of people from another”. Hofstede’s cultural dimensions theory is a framework
for cross-cultural, developed by Geert Hofstede. The five cultural dimensions
are Power Distance, Uncertainty Avoidance, Individualism versus Collectivism,
Masculinity versus Femininity and Long-term versus Short-term orientation. Every
country can score ranging from 1 to 100. A score of greater than 70 is
considered being high, and a score below 40 is considered low. This will show
us whether that country has a high or low score on the Hofstede’s five cultural
dimensions.

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Power Distance Index (high versus
low)

The dimension of Power
Distance is defined as people belonging to a specific culture how they view
power relationships. High power distance score “indicates that a society
accepts an unequal, hierarchical distribution of power and that people
understand their place in the system” (“Hofstede’s Cultural Dimensions:
Understanding Different Countries”, 2018). This can also mean when there
is a large gap in compensation, authority and respect. Low power distance score
means that “power is shared and is widely dispersed, and that society members
do not accept situations where power is distributed unequally”
(“Hofstede’s Cultural Dimensions: Understanding Different Countries”,
2018). This can also be when its flatter organization meaning supervisors and
employees are considered almost as equal.

Uncertainty Avoidance Index (high versus low)

The
dimension Uncertainty Avoidance
is where the outcome and conditions of a results is unknown
or unpredictable. Some people are more comfortable with uncertainty than
others, and the degree to which individu/.als
participate in certain behavior to stay in comfortable situation is called
uncertainty avoidance. A low score on the
uncertainty avoidance index indicates that the people in the country are more comfortable with
ambiguity, more entrepreneurial, more likely to take risks, and less
dependent on structure rules. Countries with high uncertainty avoidance scores
desires more stability, more structured rules and social norms, and are less
comfortable taking risks.

Individualism Versus Collectivism

The dimension Individualism
versus Collectivism can be defined as two opposite ways of thinking in a
country’s culture. The first way is individualism, which states that each
individual is acting on his or her own. This can be explained by them making
their own choices and the extent to which they interact with the rest of the
group. Whereas collectivism is the second way and it views the group as the
primary entity. They would like to work with groups. High individualist
cultures believe individual is most important and they identify everyone in the
workforce as individuals. They make decisions based on individual needs and
they have the “I” mentality. High collectivistic cultures believe group is most
important they think that working as a group is better then doing it alone.
They identify as a social system, they make decisions based on what is best for
the group and they have the “we” mentality.

Masculinity Versus Femininity

The dimension of
Masculinity versus Femininity according to the Hofstede’s cultural dimensions,
the masculine/feminine dimension has mainly to do with the degree of
differentiation between gender roles. A high score on this dimension indicates
that the society will be driven by competition, achievement and success, with
success being defined by the “winner” or “best-in -the-field”. This value
system starts in school and continues throughout one’s life. A low score on the
dimension means that the dominant values in society are caring for others and
quality of life is the sign of success and standing out from the crowd is not
admirable. (“Country Comparison
– Hofstede Insights”, 2018)

 

Long-term Versus short-term orientation

The
dimension Long-term versus Short-term orientation is where your cultural
perspective is either you focus on getting quick results or focus on the future
results. Short term orientation is where you focus on the present or past and
consider them more important than the future. Whereas Long term orientation is
only focusing on the future. If you use short term orientation you value
persistence, perseverance, saving and being able to adapt. “You should note that the concepts of long-term orientation
and short-term orientation address the different ways cultures view time and
the importance of the past, present and future” (“Hofstede LongTerm /
Short Term Traits”, 2018).

 

 

 

 

 

 

 

 

 

 

 

 

 

PART B (HOFSTEDE’S 5 CULTURAL DIMENSIONS)

Figure
1

 

China

Australia

Germany

Mexico 

Power distance

80

36

35

81

Uncertainty Avoidance

30

51

65

82

Individualism/collectivism

20

90

67

30

Masculinity/Femininity

66

61

66

69

Long term/ short term orientation

87

21

83

24

Figure 1: (“Country Comparison –
Hofstede Insights”, 2018)

 

 

CHINA

AUSTRALIA

GERMANY

MEXICO

CULTURAL
PROFILE

 
 
 

 

 

 

 

SIMILARITIES AND DIFFERENCES

 

 

CHINA/AUSTRALIA

CHINA/GERMANY

CHINA/MEXICO

POWER
DISTANCE

The difference is that
china (80) has higher power distance then Australia (36).
 
 
 

the difference is that
china (80) has a higher power distance then Germany (35).

the similarity is the
power distance is (80) to (81).

UNCERTAINTY
AVOIDANCE

China has (30) and
Australia has (51) its closer then china with Germany or china with Mexico.
 
 
 

The difference is that
Germany (65) has higher then china (30) in uncertainty avoidance.

The difference is
uncertainty avoidance is high in Mexico (82) and low in china (30).

INDIVIDUALISM/COLLECTIVISM

There is a big
differences Australia has (90) whereas china has (20).
 
 
 

There is difference
between china (20) and Germany (67) when it comes to individualism vs
collectivism.

Mexico (30) and China
(20) have got similarly on whether they country is individualism or
collectivism.

MASCULINITY/FEMINITY

China (66) and
Australia (61) have similarity score which makes they are both more
 
 
 

Germany (66) and China
(66) have the same percentage when it comes to masculinity vs Femininity.

China (66) and Mexico
(69) have similarity.

LONG/SHORT
TERM ORIENTATION

The difference is that China (87) has a higher score
then Australia (21). This means that china’s culture is more long-term
orientation. Whereas Australia is more short-term orientation
 
 

China (87) and Germany
(83) has the nearly the same score. Which means that Germany and china are
both long-term orientation.

China (87) and Mexico
(24) have two different scores.

 

 

 

 

 

 

 

 

 

 

 

 

                                                                         

PART C Recommendations

It is important to understand and
acknowledge that every country will have a different or same score for
Hofstede’s cultural dimensions. From this section we will see whether china’s
cultural dimension matching with Germany’s cultural dimensions. And to find
recommendation that will help the company expand to Germany. This understanding
will be the awareness that will help the country to expand to another country
knowing that the culture will be different. As you know Huawei wants to expand
to Germany. The expansion will neither be good or bad idea. As you can see from
the above table that China and Germany have two similarities in Masculinity
versus femininity (66 for china) (66 Germany) and Long-term versus Short-term
orientation (87 for China) (83 for Germany). The recommendations are that China
must train their employees before expanding to Germany this will increase the
employees’ self-awareness about cultural differences. The second recommendation
is that China should have a strategic plan before expanding to Germany since
some of the cultural dimensions are different.