Cultures and Organizations: Software for the Mind, Third Edition » (Expanded)

Geert Hofstede (Maastricht, the Netherlands) is professor emeritus of Organizational Anthropology and International Management at the University of Maastricht, the Netherlands. He is also is the founder and director emeritus of the Institute for Research on Intercultural Cooperation (IRIC). He is a world-renowned business anthropologist, and founded and managed the Personnel Research Department of IBM Europe. He is a consultant to business and government organizations in Europe, Asia, and North America. He recently became the first Dutch author elected as Fellow of the Academy of Management, an award shared by some of the most influential management authors of the last 50 years, including Peter Drucker, Rosabeth Moss Kanter, Henry Mintzberg, and Michael Porter. Hofstede is also Distinguished Scholar of the Academy of International Business, Fellow of the Academy of Management and Doctor Honoris Causa of Nyenrode University in the Netherlands.

Gert-Jan Hofstede (Wageningen, the Netherlands), is a Ph.D. and a Professor at Wageningen University with extensive hands-on experience in teaching Intercultural Communication.

Michael Minkov (Sofia, Bulgaria) is a Ph.D. and Principal Lecturer at International University College in Sofia, Bulgaria.

The international bestseller on managing cross-cultural workforces—expanded and updated!

Named one of the top 20 most influential business thinkers of 2008 by The Wall Street Journal, business anthropologist Geert Hofstede has fully updated his classic work on how the place where we grew up shapes the way we think, feel, and act.

Since its original publication in 1991, Cultures and Organizations has been helping business leaders understand how people think as members of a group—which dramatically increases managers’ effectiveness leading and developing cross-cultural workforces. This groundbreaking work reveals:

• The unexamined rules behind the thoughts and emotions of people of different cultures
• Ways in which cultures differ in the areas of collectivism/individualism, assertiveness/modesty, tolerance for ambiguity, and deferment of gratification
• How organizational cultures differ from national cultures, and how they can be managed

New material in this expanded third edition includes the latest data from the author’s ongoing field research and new insight into how cultural factors contributed to the current economic situation.

Cultures and Organizations offers managers practical solutions for solving conflict between different groups and turning cultural differences to their advantage.

Geert Hofstede (Maastricht, the Netherlands) is professor emeritus of Organizational Anthropology and International Management at the University of Maastricht, the Netherlands. He is also is the founder and director emeritus of the Institute for Research on Intercultural Cooperation (IRIC). He is a world-renowned business anthropologist, and founded and managed the Personnel Research Department of IBM Europe. He is a consultant to business and government organizations in Europe, Asia, and North America. He recently became the first Dutch author elected as Fellow of the Academy of Management, an award shared by some of the most influential management authors of the last 50 years, including Peter Drucker, Rosabeth Moss Kanter, Henry Mintzberg, and Michael Porter. Hofstede is also Distinguished Scholar of the Academy of International Business, Fellow of the Academy of Management and Doctor Honoris Causa of Nyenrode University in the Netherlands.

Gert-Jan Hofstede (Wageningen, the Netherlands), is a Ph.D. and a Professor at Wageningen University with extensive hands-on experience in teaching Intercultural Communication.

Michael Minkov (Sofia, Bulgaria) is a Ph.D. and Principal Lecturer at International University College in Sofia, Bulgaria.

Preface xi

Part I The Concept of Culture

1 The Rules of the Social Game 3

Different Minds but Common Problems 4

Culture as Mental Programming 4

Symbols, Heroes, Rituals, and Values 7

Culture Reproduces Itself 10

No Group Can Escape Culture 11

Values and the Moral Circle 12

Boundaries of the Moral Circle: Religion and Philosophy 13

Beyond Race and Family 14

We and They 16

Ideologies as Group Markers 17

Layers of Culture 17

Culture Change: Changing Practices, Stable Values 18

National Culture Differences 20

National Identities, Values, and Institutions 22

What About National Management Cultures? 24

Cultural Relativism 25

Culture as a Phoenix 26

2 Studying Cultural Differences 27

Measuring Values 28

Dimensions of National Cultures 29

Using Correlations 32

Replications of the IBM Research 34

Extending the IBM Model: The Chinese Value Survey 37

Validation of the Country Culture Scores against Other Measures 38

Culture Scores and Personality Scores: No Reason for Stereotyping 39

Other Classifications of National Cultures 40

A Second Expansion of the Hofstede Dimensional Model: Minkov's Exploration of the World Values Survey 44

Cultural Differences According to Region, Ethnicity, Religion, Gender, Generation, and Class 45

Organizational Cultures 47

Reading Mental Programs: Suggestions for Researchers 47

Part II Dimensions of National Cultures

3 More Equal than Others 53

Inequality in Society 54

Measuring the Degree of Inequality in Society: The Power Distance Index 55

Power Distance Defined 60

Power Distance in Replication Studies 62

Power Distance Differences within Countries: Social Class, Education Level, and Occupation 64

Measures Associated with Power Distance: The Structure in This and Following Chapters 66

Power Distance Difference among Countries: Roots in the Family 67

Power Distance at School 69

Power Distance and Health Care 71

Power Distance in the Workplace 73

Power Distance and the State 75

Power Distance and Ideas 79

Origins of Power Distance Differences 82

The Future of Power Distance Differences 86

4 I, We, and They 89

The Individual and the Collective in Society 90

Measuring the Degree of Individualism in Society 92

Individualism and Collectivism in the World Values Survey: Universalism Versus Exclusionism 94

Individualism and Collectivism in Other Cross-National Studies 99

Are Individualism and Collectivism One or Two Dimensions? 102

Collectivism Versus Power Distance 102

Individualism and Collectivism According to Occupation 105

Individualism and Collectivism in the Family 106

Language, Personality, and Behavior in Individualist and Collectivist Cultures 112

Individualism and Collectivism at School 117

Individualism and Collectivism in the Workplace 119

Individualism, Collectivism, and the Internet 123

Individualism, Collectivism, and the State 125

Individualism, Collectivism, and Ideas 127

Origins of Individualism-Collectivism Differences 131

The Future of Individualism and Collectivism 133

5 He, She, and(S)he 135

Assertiveness Versus Modesty 136

Genders and Gender Roles 137

Masculinity-Femininity as a Dimension of Societal Culture 138

Masculinity and Femininity in Other Cross-National Studies 144

Masculinity Versus Individualism 146

Are Masculinity and Femininity One or Two Dimensions? 146

Country Masculinity Scores by Gender and Gender Scores by Age 148

Masculinity and Femininity According to Occupation 150

Masculinity and Femininity in the Family 151

Masculinity and Femininity in Gender Roles and Sex 154

Masculinity and Femininity in Education 158

Masculinity and Femininity in Shopping 163

Masculinity and Femininity in the Workplace 164

Masculinity, Femininity, and the State 170

Masculinity, Femininity, and Religion 175

Origins of Masculinity-Femininity Differences 180

The Future of Differences in Masculinity and Femininity 184

6 What Is Different Is Dangerous 187

The Avoidance of Uncertainty 188

Measuring the (In)tolerance of Ambiguity in Society: The Uncertainty-Avoidance Index 190

Uncertainty Avoidance and Anxiety 195

Uncertainty Avoidance Is Not the Same as Risk Avoidance 197

Uncertainty Avoidance in Replication Studies: Project GLOBE 198

Uncertainty Avoidance According to Occupation, Gender, and Age 199

Uncertainty Avoidance in the Family 200

Uncertainty Avoidance, Health, and (Un)happiness 202

Uncertainty Avoidance at School 205

Uncertainty Avoidance in Shopping 206

Uncertainty Avoidance in the Workplace 208

Uncertainty Avoidance, Masculinity, and Motivation 213

Uncertainty Avoidance, the Citizen, and the State 216

Uncertainty Avoidance and Corruption 221

Uncertainty Avoidance, Xenophobia, and Nationalism 224

Uncertainty Avoidance, Religion, and Ideas 226

Origins of Uncertainty-Avoidance Differences 232

The Future of Uncertainty-Avoidance Differences 233

7 Yesterday, Now, or Later? 235

National Values and the Teachings of Confucius 236

Implications of LTO-CVS Differences for Family Life 240

Implications of LTO-CVS Differences for Business 242

Implications of LTO-CVS Differences for Ways of Thinking 246

Long-Term Orientation Scores Based on World Values Survey Data 252

Long-Term Orientation and the GLOBE Dimensions 259

Long- and Short-Term Orientation, Family Relations, and School Results 260

Long- and Short-Term Orientation and Economic Growth 262

Economic Growth and Politics 267

Fundamentalisms as Short-Term Orientation 269

Short-Term Orientation in Africa 271

The Future of Long- and Short-Term Orientation 274

8 Light or Dark? 277

The Nature of Subjective Well-Being 278

Subjective Well-Being and the World Values Survey 279

Indulgence Versus Restraint as a Societal Dimension 280

Indulgence Versus Restraint and Subjective Well-Being in Other Cross-National Studies 288

Indulgence Versus Restraint, Subjective Health, Optimism, and Birthrates 289

Indulgence Versus Restraint, Importance of Friends, and Consumer Attitudes 290

Indulgence Versus Restraint and Sexual Relationships 293

Indulgence Versus Restraint in the Workplace 294

Indulgence Versus Restraint and the State 295

Origins of Societal Differences in Indulgence Versus Restraint 296

Part III Cultures in Organizations

9 Pyramids, Machines, Markets, and Families: Organizing Across Nations 301

Implicit Models of Organizations 302

Management Professors Are Human 307

Culture and Organizational Structure: Elaborating on Mintzberg 312

Planning, Control, and Accounting 315

Corporate Governance and Business Goals 320

Motivation Theories and Practices 327

Leadership, Decision Making, and Empowerment 331

Performance Appraisal and Management by Objectives 334

Management Training and Organization Development 336

Conclusion: Nationality Defines Organizational Rationality 337

10 The Elephant and the Stork: Organizational Cultures 341

The Organizational Culture Craze 343

Differences between Organizational and National Cultures: The IRIC Project 346

Qualitative and Quantitative Approaches in the IRIC Project 349

Results of the In-Depth Interviews: The SAS Case 351

Results of the Survey: Six Dimensions of Organizational Cultures 353

The Scope for Competitive Advantages in Cultural Matters 358

Organizational Culture and Other Organizational Characteristics 360

Organizational Subcultures 364

Individual Perceptions of Organizational Cultures 366

Gardens, Bouquets, and Flowers of Social Science 368

Occupational Cultures 368

Conclusions from the IRIC Research Project: Dimensions Versus Gestalts 370

Managing (with) Organizational Culture 371

Part IV Implications

11 Intercultural Encounters 381

Intended Versus Unintended Intercultural Conflict 382

Culture Shock and Acculturation 384

Ethnocentrism and Xenophilia 387

Group Encounters: Auto- and Heterostereotypes 387

Language and Humor 388

The Influence of Communication Technologies 391

Intercultural Encounters in Tourism 392

Intercultural Encounters in Schools 393

Minorities, Migrants, and Refugees 395

Intercultural Negotiations 399

Multinational Business Organizations 402

Coordinating Multinationals: Structure Should Follow Culture 406

Expanding Multinationals: International Mergers and Other Ventures 407

International Marketing, Advertising, and Consumer Behavior 409

International Politics and International Organizations 412

Economic Development, Nondevelopment, and Development Cooperation 416

Learning Intercultural Communication 419

Educating for Intercultural Understanding: Suggestions for Parents 423

Spreading Multicultural Understanding: The Role of the Media 425

Global Challenges Call for Intercultural Cooperation 426

12 The Evolution of Cultures 431

A Time-Machine Journey Through History 433

Five Million to One Million Years Ago: Lonely Planet 434

One Million to Forty Thousand Years Ago: Ice and Fire 436

Forty Thousand to Ten Thousand Years Ago: Creative Spark, Extermination 438

Twelve Thousand to Seven Thousand Five Hundred Years Ago: Villages and Agriculture 442

Seven Thousand Five Hundred Years Ago Until Now: Large-Scale Civilizations 447

Sources of Cultural Diversity and Change 453

The End of History? No! 455

The Essence of Evolution 456

Evolution: More than Genes 459

Evolution Beyond Selfishness: Groups over Individuals 464

Individuals and Institutions in the Stream of Life 466

Evolution at Work Today 468

The Future of Culture 473

Notes 479

Glossary 515

Bibliography 525

Name Index 547

Subject Index 549