A Comparison of China and the United States using Hofstede’s Five Cultural Dimensions
BUS600: Management Communications with Technology Tools (MOA1512A)
Professor Stephen Griffith
March 30, 2015
The global marketplace has become a very competitive and stress filled environment. The way a country deals with the many obstacle’s encountered on a daily basis may very well be the fine line that separates success from failure. In this piece we’ll look at the similarities and differences the US and China have gauged by Professor Geert Hofstede’s five cultural dimensions.
As we examine the US and China, ...view middle of the document...
Becton, J. B, and Field, H. S. International Journal of Human Resource Management Aug 2009, Vol. 20 Issue 8, p 1651-1669. 19p. 4 charts another example of the US and China’s cultural differences would be in the area of long term orientation (LTO). China scored an 87, and the US scored a 26 (The Hofstede Centre). Most western countries score fairly low on this dimension (Hofstede 2006). China, for example has a long-term focus, and today China’s households save one quarter of their after-tax income, representing one of the highest saving rates in the world (Farrell, Gersch and Stephenson 2006). In contrast, the US has a short-term focus and has a saving rate between 1%-1.7% (Feldstein 2006). These numbers indicate that the US tends to live in the now, while China projects put and looks towards the future,
Given a scenario in which an upstart fortune 500 company had to do business with two organizations, one in the Us and on in China the game plan would go as follows. The sales and marketing team would be based in the US, per the Masculinity and Individualism score. These two cultural dimensions would ensure that the company’s sales and marketing department would be a very aggressive and competitive one. The “I” approach works well in this arena. All financial decisions and all aspects of producing product would be handled in China. China’s long term orientation (LTO), would secure the company’s financial future as well as groom the next generation of fiscally responsible executives. In the dimension of Power Distance (PDI), workers...