Use Specific And Real Examples Of Differences Between Countries To Evaluate The Usefulness And Limitations Of A Model Of Cultural Differences.

1774 words - 7 pages

1.0 IntroductionThis report aims to investigate the cultural differences between Indonesia and Australia using the Hofstede's Model of Cultural Differences. It will consider the usefulness of the model and look into other theories and thoughts of others.2.0 Hofstede's Model of Cultural DifferencesDr. Geert Hofstede researched on how values in the workplace are influenced by culture. During his period of working at IBM he gathered and studied data from 100,000 individuals that he collected from forty countries. The results from his findings helped him develop a model of cultural differences with four main dimensions: Power Distance Index (PDI), Individualism (IDV) Vs. Collectivism, Masculinity (MAS) Vs. Femininity and Uncertainty Avoidance (UA). Later he added a fifth dimension called Long-term Outlook. Hofstede scored national cultures on each of these dimensions.2.1 POWER DISTANCE INDEXThe PDI dimension deals with how inequality and hierarchy are accepted in the culture. It deals with the fact that individuals are unequal to others in physical and intellectuals ways. Countries with high PDI let inequalities grow, and signs of status and wealth are highly evident. There is a gap between subordinates and superiors since each consider the other as unequal. The subordinates tend not to initiate contact with superiors and often wait to be given instructions.Countries with low PDI tend to play down on inequalities and subordinates and superiors view each other as equal. There is a higher rate of interaction and communication, with subordinates frequently expressing their ideas to superiors.The PDI plays a big part in organisational behaviour. High PDI organisations will tend to be more centralised with superiors making all the decisions with no input from subordinates. Low PDI organisations will be more decentralised with information being shared, subordinates want to show their capabilities to superiors by using their initiative.Comparison between Australia and IndonesiaIndonesia's PDI is high: Rank, power and status is very important, the workplace is formal, professional decorum is necessary in meetings and when addressing elderly and those superior. When addressing someone, they must use the person's full name and title.Australia's PDI is low: Australians are friendly and open; opinion is respected and is candidly used for friendly discussion. Men wear casual trousers for meetings. One's status, position and title does not impress others.2.2 INDIVIDUALISM (IDV) VS. COLLECTIVISMIDV focuses on the relationship of a person's concern for belonging into a group. Attributes of those with high individualism indicate a high dependence for personal space, large and loose relationships. Countries with a high collectivism (low individualism) have closer ties between individuals; everyone looks out for those in their group. An organisation with a high collectivism rate has a culture with the desire for training, clean, comfortable and safe work...

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