Hofstede Comparison of Germany and China Essay

Hofstedes five dimensions argon a useful tool to give some hotshot an appreciation of different cultures. These elements give a coun softens behaviour tendencies rather than an exact prescription. There be weaknesses to Hofstedes Five Dimension theory as it whitethorn too easily encourage stereotyping. Even in countries as small as the UK, non all citizens are alike e.g. it is argued that the culture in the North of England is quite different to the S tabuh. Hofstede has as well as been criticized for being too simplistic however Hofstedes theory does give us a general hateful to transaction from. 74 countries are listed on Hofstedes website from which information can be drawn to make comparisons not only between countries but against the mankind average to give a broader picture. The following graph gives a comparison between Germany and china. It also allows for assessment against the Asian average and World average and our own British culture as benchmarks.Hofstede Compa rison UK, Germany, chinawareAsian Average and World AverageComparison of Germany and mainland ChinaPower maintain Index Germany 35 beginning China 80 HIGHIndividualism Germany 67 HIGH China 66 LOWMasculinity Germany 66 HIGH China 66 HIGH un accreditedness Avoidance Germany 65 HIGH China 30 LOWLong Term Orientation Germany 31LOW China 118 HIGHPower Distance Index PDIPower Distance measures equality of power in high society and how much pile are willing to allow or give in to superiority. Countries with high haves tend to operate with power being given to the top a couple of(prenominal), with little room for lower rank intervention. Low scoring countries each spread power through delegation or encourage in regurgitate from more levels of society.Germany 35 China 80 World Average 55LOW POWER DISTANCE CULTURESHIGH POWER DISTANCE CULTURESDemocratic managementAutocratic managementManagement and subordinates treat one another as eq uals. unc bulge outh respect is given. Managers evaluate subordinates to obey them. Subordinates automatic respect with expecting it to be earned. Power is de-centralisedPower is centralisedSubordinates expect to offer their ideas and take chess opening Managers take the initiative and subordinates obey given instructions. Subordinates expect to be consultedSubordinates expect to be told what to do.Status is disapprovedStatus and privileges for passenger vehicles is expected and respected Social interactions are informalSocial interactions are formalNarrow range of salariesWider range of salariesDespite a large difference in PDI scores, Germany and China share some similarities with how workers accept authority and power. The to a higher place table attests typical examples of low power distance cultures however, Germany does not necessarily follow these traits despite having a low PDI score. Germans like order and regulations and in a both business and society people tend to know what is allowed and what is forbidden. Power Distance is a low 35 in Germany. It is the same as in the UK merely significantly below the World average of 55. This score indicates German society, work and families treat people with equality, encouraging collaboration and a fair heathenish environment. German managers and employees are often close, (reflected in the medium to low power distance (PD) in German culture) because they believe that they are workings together to name a good product. Germany hasa democratic political system and is de-centralised.Business organisations tend to contribute flat structures with relatively small numbers of supervisors, however it also is known to be departmentalised and centralised (Dereksy, 2011). In business, Germans are known to be assertive, though not aggressive. Decisions are centralised although on occasion consensus is sometimes sought- afterward(a) if the situation warrants it. Employees do not question the authority of their managers and are genuinely loyal to their companies. Before close to business deals are done, there has been considerable diminutive analysis before commitment. Once a project or deal is committed to, staff gravel high trust in the order and China has a high ranking of 80 than both Germany and the World Average which means that the power distance remains high in business and in society in general. This means that people are less willing to challenge authority which is likely due to old communism beliefs which still have a strong influence on peoples behaviour. China continues to receive criticism for not taking human rights seriously. When doing business in China one must be aware of this large hierarchy gap. It is often hard to move up on their corporate ladder compared to other cultures. PDI Suggestions for manager coming from Germany to ChinaIn China, greetings are always done in age order, so ensure the eldest in the room is greeted first. Status is very important in China s o do not call someone by their Christian name until they invite you to do so. Instead, always lot them by using their full title, eg Dr or Professor. Ensure your business cards have your full qualifications on. If any large announcements to general staff are needed, predication a senior member of management do it. Do not expect senior management to accept your ideas. Whilst they most likely will have no intention of accepting any ideas you may offer, they may politely say they will consider them to save face. Let us weigh somewhat it is the Chinese way of saying no Use power to exercise authorityTell subordinates what to do do not expect them to work it out themselves.IndividualismIndividualism refers to how independent people are. Countries with highscores indicate people are self- motivated, more self-reliant and self-concerned whereas countries with lower scores suggest citizens conform to societys norms and consider company needs as more important than their own. Germany 6 7China 20World Average 43Germany scored 67 points on individualism, the tendency of people to look after themselves and their immediate family only. That score is 56% higher than the world average score for individualism. Therefore, Germany has a highly individualistic society. In such cultures individuality, independence, and self-determination are valued. Trompenaar agrees that Germans place high priority on looking after themselves and their immediate family. At work, however, Germans jointly assume responsibilities and achieve goals in groups. Negotiating decisions is often referred to committees. Hofstede piece that wealthier countries tended to have higher scores in Individualism (Hodgetts et al, 2006) however, given that China is now the second largest economy in the World and their IND score is only 20 Hofstedes theory can be disputed. The Chinese rank lower than any other Asian country in the Individualism (IDV) ranking, at 20 compared to an average of 25. This may be att ributed, in part, to the high level of emphasis on a Collectivist society by the Communist rule, as compared to one of Individualism.Confucianism also plays a large part as Chinese place value on long term satisfaction than short-term greed. Harmony is achieved by giving face to others and avoiding losing your own face. In collectivist cultures such as China, people work together in groups and often put the needs of that group ahead of their own personal wants. They embrace shared responsibility. Chinese business habits tend to stay with the same partners or suppliers to keep loyalty and not overleap relationships. So when doing business with others it is a good idea to select a good strong partnership that has potential to last a long time. It is looked eat up upon if you frequently change business partners.IDV Suggestions for manager coming from Germany to ChinaFocus on how change is good for the group (appeal to the common interest). Allow the group to mull over and ask questi ons.Allow the group to consult with each other and spend time working out their responses, questions, and concerns Aim to build lasting relationshipsTry working through an individual or an organization who introduces you formallyChinese like to work with people they know Avoid asking pointed questionsDo not expect decisions make at meetings as meetings are merely forums for exchange of information Allow time in meetings for team members to consent and consult Standing out from the crowd can be viewed as very negative and result in personal difficulties, therefore try to blend in with the group and put their needs first.MasculinityMasculinity looks at how people react to one another. Countries with high masculine scores tend to have a society which esteem stereotypical manlike behaviour hedonistic, materialistic, dominant, aggressive and competitive, viewing feminine behaviour as weak. Countries with low masculinity scores tend to have strong eudaimonia support and more equality b etween the sexes.Germany 66 China 66 World Average 50Germany scored 66 points on masculinity, a cultural character in which success, money and material possessions form the dominant set in society. That score is 32% higher than the world average score for masculinity withal equal to that of the UK and China. According to Hofstedes model, Germans place greater importance on earnings, recognition, advancement and challenge. Germany is a male-dominated society few married women work outside the crustal plate However, this is slowly changing in the younger generations of Germany. Women are becoming more accepted in higher positions. Officially, women in China have the same rights as men in the workplace and the party has promoted this sense of equality over the past thirty years or so. However, traditional Confucian thinking does not sit easily with this notion of gender equality and it is somewhat ironic that the liberalisation policies of the last decade might have reversed ma ny of the advances made by women in Chinese society under the previous hard-line regimes.In China, the strong preference of boys is due to the traditional values. Men hold most of the responsibility and power positions although there is a high level ofconsensus between genders in China. However, the responsibility for finding childcare still tends to fall with women which may be a contributor to the low numbers of women in senior management positions. The value placed on work is similar in Germany and China, according to Hofstede, yet both countries have few women in senior management. MAS Suggestions for manager coming from Germany to ChinaForeign businesswomen will be treated with great respect and courtesy. They may find that, within a delegation, the Chinese defer to male colleagues regardless of the actual seniority of the western party the Chinese assumption being that the male will naturally be the decision-maker. Therefore a German woman manager must anticipate this and not be offended by this response so she saves face Gradually over time, this apparent sexism will fade if she takes the time and gentle grace to build relationships slowly.Uncertainty Avoidance IndexUncertainty avoidance, as the name suggests, focuses on how and by whom risk is managed. Countries with low levels of uncertainty indicate strong governmental control to maintain as much constancy and order as possible for risk elimination. Countries with lower scores tend to allow individuals to manage their own risks, which provide environments with more innovation.Germany 65 China 30 World average 64Germany scored 65 points on Hofstedes uncertainty avoidance index. That score is only 1% above the world average score for uncertainty avoidance. Thanks to their need for security, Germans insist on written rules and detailed codes of conduct. Germans are not keen on uncertainty, by planning everything carefully they try to avoid the uncertainty. In Germany there is a society that relie s on rules, laws and regulations. Germany wants to reduce its risks to the minimum and proceed with changes step by step. China presents a high gunpoint of acceptance of uncertainty, which is a characteristic of a society that does not try to take control of the future, and that is not afraid of unforeseen situations. Contrary to Germany, Chinese society does not determine such an urge to establish strict rules toovercome uncertainty or ambiguity. It is also characteristic of a society that is more patient towards opinions, behaviours that are different from its own, and changes. And it is a more meditative society which does not feel the need of controlling its environment.UAI Suggestions for manager coming from Germany to ChinaPresent a bottom line and an objective, then build your case around questions Expect frequent rescheduling of meetings. It is a good idea to set up appointments a few weeks in advance and reconfirm 1-2 days before the scheduled meetingLong-term Orientatio nLong-term Orientation concerns how cultures view time and perseverance, whether business and relationships are nurtured over a period of time or if more emphasis is placed on short-term reward. Long-Term Orientation is the fifth dimension of Hofstede which was added after the original four to try to distinguish the difference in thinking between the East and West. From the original IBM studies, this difference was something that could not be deduced. Therefore, Hofstede created a Chinese value survey which was distributed across 23 countriesGermany 31 China 118 World Average 45.Short-term OrientationLong-term OrientationImmediate gladness requiredDeferred gratificationTraditions are sacred and upheldTraditions adapt to changeConsumption values are taughtFrugality and perseverance is taughtSpendSave or redactQuick profitsBuilding a lasting business incomeAnalytical thinkingSynthetic thinkingGermany is typical of Westernised cultures with regards to having short-term orientation . Germany is renowned for its appreciation of efficiency. wad from cultures where managers are expected to develop a closer, more intimate ambience can see the German manager-subordinate relationship as distant and cold. Germans put integrity and directness before diplomacy, believing that the fact is the important issue and that personal emotions should not deflect the truth from being spoken. This directness can be interpreted by certain cultures such as China, as rude. China slow and steady wins the race for business deals. Building strong, reliable, lasting relationships is key for the Chinese. A certain amount of trust must be gained before any decision is met. It may take three to four times the length of time to closing curtain the business deal compared to your cultural standards. So if you do not come to a fast agreement, dont be discouraged, make the client feel comfortable and show your patience.The Chinese never like to rush into things. Geert Hofstede analysis for Ch ina has Long-term Orientation (LTO) the highest-ranking factor of all countries. China has such a high LTO score, it is even 30% higher than the Asian average score which is already nearly twice the World average. This shows how much emphasis China places on this dimension, indicating a societys time perspective and an attitude of persevering that is, overcoming obstacles with time, if not with will and strength. This means that perseverance and economy are the basic values in China, these values being taught by Confucianism, which is widely established in China. Also, Chinese culture is neutral, contrary to the French culture which is affective. Which means that in China feelings are not readily expressed and physical contact avoided, while in France like in all other Mediterranean cultures the behaviour is expressive and gestured, and people like to express their feelings and physical contact. Chinese culture is marked by respect and loyalty, which makes them reliable partners. Th ey favour the interest of the group and in incident are extremely perseverant and formidable business people.LTO Suggestions for manager coming from Germany to ChinaThis is arguably the area requiring the most attention from a German manager.Meetings are about building relationships and exchanging information it is rare for a decision to be made within the meeting. Therefore a German manager must not show impatience. Use less direct languageHold back on the truth, to help others save faceBuild relationships slowly.Try gift giving, as a thank you is often not considered enough, and at worst rude. Allow the group to consult with each other and spend time working out their responses, questions, and concernsBing., J.,W., 2011. Hofstedes consequences The impact of his work on consulting and business practices, An Executive Summary. ITAP International Inc . Available fromhttp//www.itapintl.com/facultyandresources/articlelibrarymain/hofstedes-consequences-the-impact-of-his-work-on-consul ting-and-business-practices.html Accessed 17 March 2011.Burke, R., J., Cultural Values and Womens Work and move Experiences. Deresky, H., 2011. International Management Managing Across Borders and Cultures. 7th ed. New Jersey Prentice Hall Hodgetts, R., M., and Luthans, F., and Doh, J. P., 2006. International Management. 6th ed. New York McGraw-Hill WorldBusinessCulture.com, 2011. For both China and Germanyhttp//www.worldbusinessculture.com/Women-in-Business-in-China.html