Cross Cultural Management

Presentation on Cultures of China & India

HOFSTEDES CULTURAL DIMENSONS

Professor Geert Hofstede conducted studies on IBM employee between 1967 and 1973

The data covered more than 70 countries, first used 40

countries afterwards extended the analysis to 50 countries and 3 regions. The values that distinguished country cultures from each other are categorized into four groups.

HOFSTEDES CULTURAL DIMENSONS

The four groups of the Hofstede dimensions of national culture: Power Distance (PDI) Individualism versus Collectivism (IDV)

Masculinity versus Femininity (MAS)

Uncertainty Avoidance (UAI)

POWER DISTANCE
Power Distance measures the distribution of power and wealth between people in a nation, business or culture. The power-distance index seeks to demonstrate the extent to which subordinates or ordinary citizens submit to authority.

UNCERTAINITY AVOIDENCE
The uncertainty avoidance dimension expresses the degree to which a person in society feels uncomfortable with a sense of uncertainty and ambiguity. The fundamental issue is how a society deals with the fact that the future can never be known.

INDIVIDUALISM
Individualism is the degree to which individuals are integrated into groups. In an individualistic societies, the stress is put on personal achievements and individual rights.

MASCULINITY
Masculinity is the distribution of emotional roles between the genders. Masculine cultures' values are competitiveness,

assertiveness, materialism, ambition and power.

INDIA

POWER DISTANCE
India scores high on this dimension, 71, indicating an appreciation for hierarchy and a top-down structure in society and

organizations.
Employees expect to be directed clearly as to their functions and what is expected of them.

INDIVIDUALISM
India, despite an intermediate score of

49, is a society with clear collectivistic

traits. This means that there is a high preference for belonging to a larger social framework in which individuals are expected to act in accordance to the greater good of ones defined ingroup(s).

UNCERTAINITY AVOIDENCE
India scores 31 on this dimension and thus has a medium low preference for avoiding uncertainty

In India, there is acceptance of

imperfection; nothing has to be perfect nor has to go exactly as planned.

MASCULINITY
India scores 57 on this dimension
and is thus considered a

masculine society. Work is the center of ones life and visible symbols of success in

the work place are very important.

CHINA

POWER DISTANCE
China is a society that believes that inequalities amongst people are

acceptable which is also visible in its score at 74.

There exists a subordinate-superior

relationship and there is no defense against power abuse by superiors. Individuals are influenced by formal authority and sanctions.

INDIVIDUALISM
China with a score of 16 is a highly collectivist culture where people act in the interests of the group and not necessarily of themselves. In-group considerations affect hiring and promotions with closer in-groups

(such as family) are getting preferential

treatment. Personal relationships prevail over task and company.

MASCULINITY
China is a masculine society with a score of 68 which means a success oriented and driven society. The need to ensure success can be

exemplified by the fact that many

Chinese will sacrifice family and leisure priorities to work.

Leisure time is not so important.

UNCERTAINITY AVOIDENCE
China has a low score on uncertainty avoidance i.e. 21. This shows that they are stable when tackling uncertain situations.

The Chinese are comfortable with

ambiguity; the Chinese language is full of ambiguous meanings that can be difficult for Western people to follow. Chinese are adaptable and

entrepreneurial.

COMPARISON OF CHINA & INDIA

 Both the countries are on same level in the power distance dimension. Both countries society accept in-equalities between the power-privileged and those who have less power-privilege.

 Both the countries have low score in individualism dimension. The degree of collectivism in China is much higher as compared to India.

 Both societies are masculine but the degree of masculinity is higher in China as compared to India. China & India both are success oriented countries but the difference lies on the importance of leisure time. Leisure time for Chinese people is not important but in case of Indian people it is important for them.

 Uncertainty avoidance index of both countries are low which shows that they can handle unexpected situation and are also stable. In comparison to China, India is having less stability when tackling uncertain situations.

Thank You