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Hofstede's Six Dimensions of Organizational Culture

Understanding the Cultural Elements that Shape Organizations

Introduction

  • Hofstede's six dimensions of organizational culture
  • Developed in the late 1960s
  • Based on a study of over 110,000 IBM employees
  • Initially consisted of four main dimensions, later expanded to six

Power Distance

  • Subjective willingness to accept unequal power distribution in an organization
  • High power gap in conservative structures
  • Flat hierarchies in modern management methods
  • Impact on job preferences of Generation Y and Z

Collectivism vs Individualism

  • Performance and self-realization vs group identity
  • US vs Asian or Latin American companies
  • Commission dependent sales organizations
  • Values and priorities in different organizational contexts

Masculinity vs Femininity

  • Stereotypical male and female behaviors
  • Not limited to actual gender distribution
  • Dominance and competition vs caring and cooperation
  • Recognizing diverse expressions of masculinity and femininity

Uncertainty Avoidance

  • Openness to change vs fear of uncertainty
  • Recognizing opportunities and taking risks
  • Preserving the status quo
  • Different approaches to change management

Long-term vs Short-term Orientation

  • Planning horizon and values
  • Long-term: frugality and perseverance
  • Short-term: selfishness and flexibility
  • Implications for organizational strategies

Indulgence vs Restraint

  • Perception of self-control and external determination
  • Freedom to develop in a free economy
  • Adherence to strict career paths
  • Implications for personal and organizational growth

Conclusion

  • Summary of the six dimensions of organizational culture
  • Importance of cultural awareness in shaping organizations
  • Considerations for individuals and employers

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