Managing Across Cultures Essay Example | Topics and Well Written Essays - 2750 words - 1

Managing Across Cultures - Essay Example Along with the major changes in the structure and flow of business transactions today, developed countries continuously aim to increase their returns on investment not only by transferring the Western management practices all over the developing countries but also in learning more about the culture and sub-culture of other countries (Jaegar, 1993). One of the most influential research studies on cultural values was conducted by Geert Hofstede. In line with this, Hofstede conducted an extensive research study which involved 74 different countries all over the world where he identified the unique cultural values in each country using the five dimensions known as: high vs. low power distance, individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance vs. uncertainty acceptance, and short-term vs. long-term orientation (itim International, 2011; Tian, 2004, p. 18). Upon examining the culture and sub-culture in different countries, Hofstede concluded that â€Å"cul ture is more often a source of conflict than of synergy† (itim International, 2011). ... Sub-cultures in China Based on Hofstede’s research survey report, China’s score on Hofstede’s five dimensions include the following: PDI IDV MAS UAI LTO China 80 20 66 30 118 Source: itim International, 2011; Anonym, 2006, p. 4 Power Distance The rank of China’s Power Distance is 80. This figure is considered high as compared to the average score of 60 in other Far East Asian countries and the world’s average of 55 (itim International, 2011; Anonym, 2006, p. 4). As explained by Hofstede (1980), â€Å"Power Distance explains how different societies treat inequalities in social structure†. It means that people in China wholeheartedly accept differences in authoritative power within a hierarchy in the society and that people in China gives low importance on egalitarianism (Hunter and Tan, 2005, p. 210). This is possible because of the historical background of Chinese people who were accustomed in having a centralized government authority which f ollows the law of Confucianism (Schwartz, 2007, p. 121; Hu and Grove, 1999, p. 6; Bargiela-Chiappini and Harris, 1997, p. 42). To simplify the concept of Power Distance, this particular cultural dimension is simply referring to the norms that are heavily reflected in China’s economic and cultural background including the existing relationship between a typical husband and wife, relationship between the parents and their children, the way political issues are being managed and religious beliefs which significantly affect the progress of China’s economic condition (Tian, 2004, p. 19). A high score of Power Distance is pointing out the way businesses are formed in China particularly with regards to whom among the family members have