Cultural differences can be another way to look at how employees from different cultures may view the workplace. Hofstede's Cultural Dimensions provide examples of how a society views the world can affect the way organizations operate. Understanding these dimensions can help managers understand how to best approach human resource management because they can put into context the way in which employees work and what they expect out of their careers depending on their cultures.
- Power Distance: This explains the way in which societies view inequalities among people in terms of power and hierarchy. When countries have a very high power distance, they see that everyone has a place in society based on a hierarchical order. This would be very apparent in India where the caste system dictates where people fit into society. In the business world, employees would know their hierarchical place in the organization, and they would not question authority. In contrast, the United States has very low power distance where people try to ensure everyone is treated equally; this is ingrained in American society with the idea that all men and women are created equal. It is not uncommon for a junior employee to question a senior level manager if he or she notices a mistake, for instance.
- Individualism vs. Collectivism: In very individualistic countries, the idea that people should take care of themselves and their immediate families only is extremely prevalent. This attitude is common in Germany where personal achievements and individual rights are stressed (self-image is defined as "I"). Individuals are much more competitive among teammates, and they often seek personal praise for their work. In contrast, Guatemala is very collectivist, meaning there is a strong sense of family and loyalty among the culture. This carries over into the workplace as well (self-image is defined as "we"). Guatemalan workers want to make sure the group succeeds rather than seek credit for individual accomplishments.
- Masculinity vs. Femininity: In this dimension, masculinity is defined as the sense of achievement, heroism, assertiveness, competition, and material reward for success. Hungry is a quite masculine society in that competition is key, particularly in the workplace. In contrast, femininity is when a society is highly cooperative, modest, and caring. For example, Sweden is a feminine society that is focused on reaching consensus in the business world; much more consideration is placed on making decisions that will satisfy the group.
- Uncertainty Avoidance: This dimension is focused on the comfort level a society has with uncertainty and ambiguity. Poland scores very high on this dimension, meaning workers are likely to feel more comfortable with rigid rules and structure. Countries that score low on this dimensions, however, are much more reliant on practices over principles. The United Kingdom, for example, has a much more relaxed attitude and is not anxious over varying levels of uncertainty.
It is important to understand where the United States falls in Hofstede's cultural dimensions for managers considering doing business globally:
As an HR manager looking to establish best practices for staffing, it would be crucial to understand how the teams across the world would interact. Here are some examples that an HR manager may want to consider:
- Due to differences in power distance, an Indian worker who is very comfortable with understanding his or her hierarchical position within the company may not understand when an American employee questions a manager's authority or offers suggestions to a manager. On the other hand, an American worker may not respond well to an Indian manager who is not open to hearing ideas from lower level staff members.
- Because of the difference between individualism and collectivism, a German employee would seek to earn praise for his or her individual work. In contrast, a Guatemalan worker would not want to boast about his or her achievements, rather focusing on the greater accomplishment of the group to cultivate a more cohesive, team-focused environment.
- Competition can cause conflict among workers with differences in masculinity and femininity. A Hungarian worker would likely be very competitive in the workplace, where a Swedish worker would be more likely to consider the feelings of the group as a whole before making decisions.
- Varying levels of uncertainty avoidance can also cause tension to rise. Polish employees seek a great deal of structure and direction from management to avoid feeling uncertain or insecure in the workplace, where an employee from the United Kingdom would be much more relaxed and less interested in working in a rigid and heavily regulated environment.