developing Asian country

International Organizational Behavior-Cultural Differences in Job Satisfaction and Motivation Viktoryia Parris 12/15/2014 MT-302

Hofstede’s Cultural Dimensions Theory

Geert Hofstede, a Dutch Social Psychologist and former IBM employee, developed his original model: “Hofstede’s Cultural Dimensions Theory”, by conducting a world-wide survey of employee values and applying factor analysis to examine the results. The result was one of the first quantifiable theories on the impact of differences between cultures in employee job satisfaction. The research compares the job satisfaction across countries and the factors which have impact in each country.

To have a deep understanding on this study, let us compare the results of three countries in his research. The countries of choice are USA, a developed and economic super power- China, rapidly developing Asian country and Russia, a traditionalist nation with promising potential.

The following table gives the ratings from Hofstede’s research:

Power Distance Individualism Masculinity Uncertainty Avoidance Pragmatism Indulgence
USA 40 (avg) 91 (V high) 62 (high) 46 (avg) 26 ( v low) 68 (high)
China 80(V high) 20 ( v low) 66 (high) 30(low) 87 (V high) 24 ( v low)
Russia 93(V high) 39 (low) 36 (low) 95 (V high) 81(V high) 20 ( v low)

Comparison of Countries:

USA, being one of the oldest democracies the power distance is average while its very high in China, a communist country and Russia which is a communist turned Democracy. In Russia, the people believe that the power is concentrated only among a very few people and is not open to the commoners. Individualism is high in USA and low in the other two countries. Culturally Asian countries are collective in thinking while West is Individualistic. Both USA and China are Mascuine while Russia is Feminine. This is the reason why USA and China are highly competitive in all aspects right from Olympics to economy while Russians focus on Quality of life.

For similar reasons Russians avoid uncertainty to higher level while USA and China are tolerant to uncertainty to a considerable extent. The Asian countries which have rich culture, and high savings rate are high in Pragmatism while USA ranks low as its countrymen enjoy the moment rather than saving it for an uncertain future. USA is a restraint country while China and Russia are indulgent countries.

Job Satisfaction in the Countries:

Job Satisfaction will be high in USA than China and Russia, majorly due to low Power Distance. While the low indulgence score of China and Russia help in keeping the job satisfaction levels at a considerably better place.

Relevant Motivational Theories:

USA: Immediate Monetary Rewards, differentiation and acclamation for better performance.

Russia: Promotions, employee Stock Options. Salary hike in fixed part (Since Uncertainty avoidance is very high).

China: Promotions: Employee Stock Options, salary hike in variable part.

References:

1. Hofstede, Geert, Gert Jan Hofstede and Michael Minkov. Cultures and Organizations: Software of the Mind, 3rd ed. New York: McGraw-Hill. 2010.

2. Hofstede, Geert (1984). Culture’s Consequences: International Differences in Work-Related Values (2nd ed.). Beverly Hills CA: SAGE Publications. ISBN 0-8039-1444-X.

3. Hofstede, Geert (2001). Culture’s Consequences: comparing values, behaviors, institutions, and organizations across nations (2nd ed.). Thousand Oaks, CA: SAGE Publications. ISBN 978-0-8039-7323-7.

4. Witte, A. Making the Case for a (Post) Cultural Analysis of Organizations, Journal of Management Inquiry, April 2012, Vol. 21:2, pp. 141-159)