UU-MAN-1110-MW Management

Week 1 – Topic Overview

Introduction to Management

Learning Objectives

At the end of week 1, you should be able to:

1. Explain the importance of managing both as an occupation and as a universal human activity.

2. Understand the meaning and importance of management.

3. Describe how organizations operate as open systems.

4. Define and give examples of each of the management functions: Planning,

Organizing, Leading and Controlling.

5. Recognize the difference between administration and management.

6. Understand the importance of National Culture and its implications in managing organizations.

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Table of Contents
1. Introduction .................................................................................................................................... 3

1.1 Meaning of Management ............................................................................................................. 3

1.2 Definition of Management ........................................................................................................... 3

2. Features or Characteristics of Management ................................................................................... 4

3. Functions of Management .............................................................................................................. 7

4. Importance of Management .......................................................................................................... 10

5. Administration and Management ................................................................................................. 12

5.1 Differences Between Administration and Management ............................................................ 13

6. Understanding National Culture and its Implications in Managing Organizations...................... 16

6.1 Hofstede’s Framework for Assessing Cultures. ......................................................................... 16

6.2 The Globe Framework for Assessing Cultures. ......................................................................... 16

References ............................................................................................................................................ 20

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1. Introduction

A business develops over time with complexities. With the increasing complexities, managing the
business concern becomes a difficult one. The need for the existence of management has increased
tremendously. Management is not only essential to business concerns but also essential to Banks,
Schools, Colleges, Hospitals, Hotels, Religious bodies, Charitable trusts, etc. Every business unit has
objectives of its own. These objectives can be achieved with the cooperative efforts of personnel. The
work of several persons is properly coordinated to achieve the objectives through the process of
management.

According to E. Demock, "the management is not a matter of pressing a button, pulling a lever, issuing
orders, scanning profit and loss statements, promulgating rules and regulations. Rather it is the power
to determine what shall happen to the personalities and happiness of entire people, the power to shape
the destiny of a nation and of all the nations which make up the world" (Kazutaka et al., 1998). Peter
F. Drucker has stated in his famous book "The Practice of Management" that, "the emergence of
management as an essential, a distinct and leading social institution is a pivotal event in social history.
Rarely has a new basic institution, a new leading group, emerged as fast as management since the turn
of this century. Rarely in human history has a new institution proved indispensable so quickly and
even less often has a new institution arrived with so little opposition, so little disturbance and so little
controversy" (Drucker, 2020).

1.1 Meaning of Management

Management is the art of getting things done by a group of people with the effective utilization of
available resources. An individual cannot be treated as a managing body running any organization. A
minimum of two persons is essential to form management. These persons perform the functions to
achieve the objectives of an organization.

1.2 Definition of Management

Peter F. Drucker defines, "Management is an organ; organs can be described and defined only through
their functions” (Drucker, 2020). According to Terry, "Management is not people; it is an activity like
walking, reading, swimming or running. People who perform management can be designated as
managers, members of management, or executive leaders." Ralph C. Davis has defined Management
as "Management is the function of executive leadership anywhere." According to McFarland,
"Management is defined for conceptual, theoretical and analytical purposes as that process by which

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managers create, direct, maintain and operate purposive organization through systematic, co-ordinated
co-operative human effort." Louis Allan, "Management is what a manager does." Henry Fayol, "To
manage is to forecast and to control." and plan, to organize, to compound, to coordinate Harold Koontz
says, "Management is the art of getting things done through and with an informally organized group."
William Spriegal, "Management is that function of an enterprise ‘which concerns itself with direction
and control of the various activities to attain business objectives. Management is essentially an
executive function; it deals with the active direction of the human effort." Ross Moore states,
"Management means decision-making." Kimball and Kimball, "Management embraces all duties and
functions that pertain to the initiation of an enterprise, it’s financing, the establishment of all major
policies, the provision of all necessary equipment, the outlining of the general form of organization
under which the enterprise is to Operate and the selection of the principal officers."

2. Features or Characteristics of Management

From a critical analysis of the above definitions, the following features or characteristics of
management evolve:

1. Art as well as science: Management is both an art and a science. It is an art in the sense of
possessing of managing skill by a person. In another sense, management is the science because
of developing certain principles or laws which are applicable in a place where a group of
activities is coordinated.

2. Management is an activity: Management is the process of activity relating to the effective

utilization of available resources for production. The term 'resources' includes men, money,
materials, and machine in the organization.

3. Management is a continuous process: The process of management mainly consists of

planning, organizing, directing, and controlling the resources. The resources (men and money)
of an organization should be used to the best advantages of the organization and the objectives
to be achieved. The management function of anyone alone cannot produce any results in the
absence of any other basic functions of Management. So, management is a continuous process.

4. Management achieving pre-determined objectives: The objectives of an organization are

laid down. Every managerial activity results in the achievement of objectives fixed well in
advance.

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5. Organized activities: Management is a group of organized activities. A group is formed not

only in a public limited company but also in an ordinary club. All organizations have their
objectives. These objectives will be achieved only by a group of people. These persons'
activities Should be organized in a systematic way to achieve the objectives. The objectives
cannot be achieved without any organized activities.

6. Management is a factor of production: The factors of production include land, labor,

capital, and entrepreneurs. Here, land refers to a place where production is carried on. Labor
refers to the paid employees of the organization who are working at different levels as skilled,
unskilled, semi-skilled, manager, supervisor, and the like. Capital refers to working capital in
the form of cash, raw materials, and finished goods, and fixed capital in the form of plant
facilities and production facilities. These land, labor, and capital could not realize the
organization's goals. The organization’s goals are achieved only when these are effectively
coordinated by the entrepreneur. An individual can do such type of job as in the case of small
businesses. In the case of big-sized business units, the coordination job is done by the
management. So, management is also treated as one of the factors of production. According to
Peter F. Drucker, "Whatever rapid economic and social development took place after World
War II, it occurred as a result of systematic and purposeful work of developing managers and
management. Development is a matter of human energies rather than economic wealth, and the
generation of human energies is the task of management. Management is the mover, and
development is a consequence" (Drucker, 2020).

7. Management as a system of activity: A system may be defined as a set of parts working as

a whole. Authority may be defined as a right to command others for getting a particular course
of organizational work done. Individuals are the foundation stones of management. An
individual has some goals as a member of the organization. There may be a conflict between
his own goals and the management's expectations of that individual. Such conflict is resolved
by the management by ensuring a balance between individual goals and organizational
expectations. Authority is vested with many persons to make decisions and influence the
behavior of the subordinates. The very purpose of using authority is to check and control the
behavior of the subordinates. The sources of authority rest with superiors as given in the
organization chart and social norms. The utilization of authority is based on the personality
factors of the user and the behavior of the person over whom it is used.

8. Management is a discipline: The boundaries of management are not exact as those of any

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other physical science. It may be increased by the continuous discovery of many more aspects
of business enterprise. So, the management status as a discipline is also increased in the same
manner.

9. Management is a purposeful activity: Management is concerned with the achievement of

the objectives of an organization. These objectives are achieved through the functions of
planning, organizing, staffing, directing, controlling, and decision-making. The organizational
objectives are clearly defined and explained to every employee.

10. Management is a distinct entity: Management is distinct from its functional activities.
The functions have the nature of "to do," but the management has the nature of "how to get
things done." A manager requires some amount of skill and knowledge to get work done.

11. Management aims at maximizing profit: The available resources are properly utilized to
get desired results. The results should be the maximizing profit or increasing profit by the
economic function of a manager.

12. Decision-making: There are several decisions taken by management every day. Decision-
making arises only when there is the availability of alternative courses of action. If there is only
one course of action, the need for decision-making does not arise. The quality of decisions
taken by the manager determines the organization’s performance. The success or failure of an
organization depends upon the degree of the right decision taken by the manager.

13. Management is a profession: Management is a profession because it possesses the

qualities of a profession. A fund of knowledge is imparted and transferred in this profession,
and the same is followed by management. The established principles of management are
applied in practice.

14. Universal application: The principles and practices of management apply not to any
industry alone but are applicable to every type of industry. The practice of management is
different from one organization to another according to its nature.

15. Management is getting the thing done: A manager does not perform the work, but he
gets things done by others. According to Knootz and O'Donnell, "management is the art of
getting things done through and with people in formally organized groups" (Bruch et al., 2010).

16. Management as a class or a team: A class may be defined as a group of people having

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homogenous characteristics to achieve common objectives. Engineers and doctors are grouped
as a class in society. Every doctor has the same objectives in life. Just like engineers and
doctors, management people have got similar aspirations to achieve corporate objectives.

17. Management as a career: Nowadays, management is developed as a career focussed on

certain specializations. Financial Management, Cash Management, Portfolio Management,
Marketing Management, Personnel Management, Industrial Management, and Business
Management are some of the specializations of management. Specialists are appointed to the
key posts of top management.

18. Direction and control: A manager can direct his subordinates in the performance of a
work and control them whenever necessary. If the available resources are not utilized properly
by him, he fails to achieve the corporate objectives in the absence of direction and control.
Generally, direction and control deal with the activities of human effort.

19. Dynamic: The management is not static. In the fast-developing business world, new
techniques are developed and adopted by the management. Management is changed according
to social change. Social change is the result of the changing business world.

20. Management is needed at all levels: The functions of management are common to all
levels of the organisation. The top executives perform the functions of planning, organizing,
directing, controlling, and decision-making. The same functions are also performed by the
lower level supervisor.

21. Leadership quality: Leadership quality is developed in the persons who are working in
top-level management. According to R.C. Davis, "Management is the function of executive
leadership everywhere” (Ramchandran et al., 2016).

3. Functions of Management

Scholars in the field of management have their classification of functions of management. Some
scholars add a few functions and delete some other functions. The important functions of management
are briefly discussed below:

1. Planning: Planning is the primary function of management. Nothing can be performed without
planning. In short, planning refers to deciding in advance that will be done shortly. In the

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business world, the organization should achieve its objectives. In order to achieve objectives,
the organization plans what is to be done, when it" is to be done, how it is to be done, and by
whom it is to be done. Messie says, "Planning Pervades Management" (Hake, 1991). George
R. Terry rightly said, "Planning is a constructive reviewing of future

needs so that immediate actions can be adjusted given the established goal. It is deliberate
conscious research used to formulate the design and orderly sequence of actions through which
it is expected to reach objectives. Planning should take place before doing; most individual or
group efforts are made by determining before any effective action takes place, what shall be
done, where, how, and who shall do it" (Ferraro et al., 2012).

2. Organizing: Organising is the distribution of work in group-wise or section-wise for effective

performance. The organization provides all facilities which are necessary to perform the work.
As the business develops, the organization takes responsibility to create some more
departments under different managers. Hence, the organization divides the entire work and
coordinates all the activities by authority relationship. Besides, organizing defines the position
of each person in the organization and determines the paths through which communication
should flow. The manager would determine who should report to whom and how. According
to Henry Fayol, "Organisation is of two kinds, i.e., organization of the human factor and
organization of the material factor. The organization of the human factor covers the distribution
of work to those who are best suitable, along with authority and responsibility. Organization
of the material factor covers the utilization of raw materials, plant, machinery, etc." According
to Knootz and O'Donnell, "Organising consists of conscious coordination of people towards a
desired goal" (Bruch et al., 2010).

3. Staffing: The staffing function comprises the activities of selection and placement of
competent personnel. In other words, staffing refers to the placement of the right persons in the
right jobs. Staffing includes the selection of the right persons, training to those needy persons,
promotion of the best persons, the retirement of old persons, performance appraisal of all the
personnel, and adequate remuneration of personnel. The success of any enterprise depends
upon the successful performance of the staffing function. According to Harold Knootz and
Cyril O'Donnell, "the managerial function of staffing involves handling the organizational
structure through the proper and effective selection, appraisal and development of personnel to
fill the roles designed into the structure" (Bruch et al., 2010).

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4. Directing: The actual performance of work starts with the function of Direction. Planning,
organizing, and staffing functions are concerned with the preliminary work for the achievement
of organizational objectives. However, the direction deals with making the workers learn
techniques to perform the jobs assigned to them. Direction includes guidance, supervision, and
motivation of employees. According to Joseph Massie, "Directing concerns the total manner
in which a manager influences the action of his subordinates. It is the final action of a manager
in getting others to act after all preparations have been completed".

5. Coordinating: All the activities are divided group-wise or section-wise under the organizing
function. Now, such grouped activities are coordinated toward the accomplishment of the
objectives of an organization. The difficulty of coordination depends upon the size of the
organization. The difficulty of coordination is increased with the increasing size of the
organization. According to Knootz and O'Donnell, "the last coordination occurs when
individuals see how their jobs contribute to the dominant goals of the enterprise. This implies
knowledge and understanding of enterprise objectives" (Bruch et al., 2010).

6. Motivating or actuating: The goals are achieved with the help of motivation. Motivation
includes increasing the speed of performance of a work and developing a willingness on the
part of workers. This is done by a resourceful leader. The workers expect favorable climate
conditions work, fair treatment, monetary or non-monetary incentives, effective
communication, and

a gentlemanly approach. According to Earl P. Strong, "Motivating is the process of

indoctrinating personnel with the unity of purpose and the need to maintain a continuous,
harmonious relationship” (Shen et al., 2015).

7. Controlling: Controlling function ensures that the achieved objectives conform to pre-planned
objectives. Necessary corrective action may be taken if there is any deviation. Control is very
easy whenever the organization has a fixed standard. A good system of control has the
characteristics of economy, flexibility, understanding, and adequacy to organizational needs.
Prof. Theo Haimann defines, "Control is the process of checking to determine whether or not,
proper progress is being made towards the objectives and goals and acting, if necessary, to
correct any deviation." According to Henry Fayol, "control consists in verifying whether
everything occurs in conformity with the plan adopted, the instructions issued, and principles
issued."

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8. Innovation: Innovation refers to the preparation of personnel and organization to face the
changes made in the business world. Constant changes are being made in the business.
Consumers are satisfied through innovation. Innovation includes developing new materials,
new products, new techniques in production, new package, new design of a product, and cost
reduction.

9. Representation: A manager must act as a representative of a company. He has dealings with

customers, suppliers, government officials, banks, financial institutions, trade unions, and the
like. Every manager must have good relations with others.

10. Decision-making: Every employee of an organization must take several decisions every day.
Decision-making helps in the smooth functioning of an organization.

11. Communication: Communication is the transmission of human thoughts, views, or opinions

from one person to another person. Workers are informed about what should be done, where it
is to be done, how it is to be done, and when it is to be done. Communication helps with the
regulation of jobs and coordination of activities. Planning, organizing, staffing, directing,
coordinating, motivating, actuating, and controlling are the main functions of management.
Innovation, representation, decision-making, and communication are the subsidiary functions
of management. Henry Fayol classifies the functions of management as forecasting, planning,
organizing, commanding, coordinating, and controlling.

4. Importance of Management

Management is a must for every enterprise. The existence of management ensures the proper
functioning and running of an enterprise. Management can plan the activities to achieve the objectives
and utilize the available resources at a minimum cost. Every business needs a direction. This direction
is given by the management. The resources of production are converted into production. The resources
will remain as resources in the absence of management. The conversion process is performed through
the coordination of management. The significance or importance of management is briefly explained
below:

1. Management meets the challenge of change: In the modern business world, there are
frequent changes. The changes place the business in a dangerous position. Only efficient
management can save the business from the dangers brought in by the challenges.

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2. The accomplishment of group goals: The achievement of the objectives of a business depends
upon three factors. The proper planning of available resources, adjusting the possibility of the
business unit with the existing business environment, and the quality of decisions taken and
control made by the business unit are the factors responsible for achieving objectives.

3. Effective utilization of business: There are eight M's in the business. These are said to be
man, money, materials, machines, methods, motivation, markets, and management.
Management is the topmost of all other 'M's. Management has control over other remaining
'M's.

4. The effective functioning of business: Ability, experience, mutual understanding,

coordination, motivation, and supervision are some of the factors responsible for the effective
functioning of the business. Management makes sure that the abilities of workers are properly
used, and co-operation is obtained with the help of mutual understanding. Besides,
management can know the expectation of workers, and the expectation is fulfilled through
motivation techniques.

5. Resource development: Efficient management is the lifeboat of any developed business. The
resource~ of the business may be identified and developed by the management. The term
'resources' includes men, money, material, and machines.

6. Sound organization structure: Management lays down the foundation for sound organization
structure. Sound organization structure clearly defines the authority and responsibility
relationship

who is responsible to whom, who will command whom, and who is responsible for what. Care
is taken in appointing qualified persons to the right job by the management.

7. Management directs the organization: The human mind directs and controls the functioning
of the human body. Similarly, the management directs and controls the functioning of an
organization.

8. Integrates various interests: Each person has his interests. These interests are different in
nature. Management takes steps to integrate various interests to achieve the objectives of an
organization.

9. Stability: The fluctuations of business are stabilized by the management. The fluctuations of

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business are caused by the changing policy of the government, pressures on the part of
competitors, and changing preferences of customers. Efficient management can run the
business as per the policy framed by the government, face the competitors in the market, and
produce the articles as per the preferences of customers.

10. Innovation: New ideas are developed by the management and implemented in the
organization. Better performance is achieved through new ideas.

11. Coordination and team spirit: All the activities of a business are grouped department-wise.
Management coordinates the activities of different departments and establishes team spirit to
achieve the objectives.

12. Tackling problems: Good Management acts as a friend or a guide to workers. While tackling
problems. When workers get overconfident in solving problems for the effective performance
of a job, they fail in tackling the problems efficiently.

13. A tool for personality development: Management gives direction to workers for the effective
performance of a job. Besides, new methods or techniques are taught to workers. The training
facilities are arranged by the management. In this way, management is a tool to develop the
personality of workers to raise their efficiency and productivity ability.

5. Administration and Management

The terms administration and management are used synonymously. Some writers argue that both
these terms have the same meanings, and there is no difference between these two terms. Running of
business requires skill which is called management and the functioning of government departments
and non-profit institutions requiring skill is called administration. Some writers argue that the
executive functions of a
business unit are referred to as Management and executive functions of other institutions are referred
to as administration. In this way, administration is distinguished as a top-level function while
management is a lower-level function. The policy and objectives of a business are determined by the
top-level executives (Administration). At the same time, the lower-level people (Management) work
to attain the objectives of the business unit and follow the policy framed by the administrators.

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Figure 1.1 Administration and Management (Ramasamy, 2009, p. 13)

5.1 Differences Between Administration and Management

Oliver Sheldon

"Administration is the function in the industry concerned with the determination of the corporate
policy, the coordination of finance, production, and distribution, the settlement of the compass
(structure) of the organization under the ultimate control of the executive." "Management is the
function in the industry concerned with the execution of policy within limits set up by the
administration and the employment of the organization for the particular objects set before it" (Bao,
2001).

William R. Spriegal

"Administration is that phase of business enterprise that concerns itself with the overall determination
of institutional objectives and the policies necessary to be followed in achieving those objectives.
Administration pre-determines the specific goals and lays down the broad areas within which those
goals are to be attained. The administration is a determinative function, management, on the other
hand, is an executive function which is primarily concerned with the carrying out of the broad policies
laid down by the administration" (Park and Dongwoo, 2015).

G.E. Milward

"Administration is primarily the process, and the agency used to establish the object or purpose which
an undertaking and its staff are to achieve, secondarily, the administration has to plan and stabilize the
broad lines of principles which will govern action. These broad lines are in their turn, usually called

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policies. Management is the process and the agency through which the execution of policy is planned
and supervised". Thus, administration is a thinking function, and management is a doing function.
According to this concept, owners of the business enterprise receive dividends in return for their capital
contributed. Managers, i.e., the management people get a salary for realizing the objectives of
administrators, i.e., the owners. Besides, the managers direct and control the subordinates within limits

fixed by the administrators. According to Professor Dalton E. Mc Farland, "In Government agencies,
the administration is preferred over management, although in recent years, the term management has
become widely used in government agencies. Another possible distinction refers to the levels of the
organization. In business, the term administration refers to the activities of the higher-ups in the
managerial ranks. Still another distinction related to the organizational level is that administration
refers to the determination of major aims and policies while management refers to the carrying out of
the operations designed to accomplish the aims and effectuate the policies. Here again, this distinction
is not widely followed, but it exists" (Yu, 2009).

Ordway Tead describes, "Administration is the process and agency which is responsible for the
determination of aims for which an organization and its management are to strive, which establishes
the broad policies under which they are to operate and which gives general oversight to the continuing
effectiveness of the entire operation in reaching the objectives sought. Management is the process and
agency which directs and guides the operations of an organization in the realizing of established aims"
(Pateli and Philippidou, 2011). Leffingwell and Robinson explain that "Administration determines the
policies upon which the enterprise is to be conducted while the function of management to carry out
the policies is laid down by the administrative group." Another view is that management is a broader
term including thinking and executive functions. Thus, the administration is a part of management and
carries out the objectives laid down by the management. Eminent writers like E.F.L. Brech, Barry
Pichman, Melwyn Copen, Henry Fayol, William Newman, and Theo Haiman used the terms
administration and management synonymously.

E.F.L. Brech

"Management is a social process entailing responsibilities for the effective and economical planning
and the regulation of the operation of an enterprise, in the fulfillment of a given purpose or task. The
administration is a part of management which is concerned with the installation and carrying out of
the procedures by which it is laid down and communicated and the process of activities regulated and
checked against plans" (Chell, 2007).

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Henry Fayol

"All undertakings require planning, organization, command, coordination and control and to function
properly, all must observe the same general principles. We are no longer confronted with several
administrative sciences but with one which can be applied equally well to public and private affairs"
(Ho et al., 2017).

Theo Haimann

"No two separate sets of personnel are required, however, to discharge administrative and managerial
functions. Each manager performs both activities and spends part of his time administrating and part
of his time managing" (Serpen and Maheshkumar, 2006). Top management of the enterprise spends
maximum time on policy framing and determination of objectives and spends a few minutes for
direction and control. Hence, the administration is also one of the functions just like other functions
that as purchase, sales, production, finance, etc.

Figure 1.2 Differences Between Administration and Management (Ramasamy, 2009, p. 13)

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6. Understanding National Culture and its Implications in Managing

Organizations

National culture includes the values and attitudes shared by individuals from a specific country that
shape their behavior and their beliefs about what is important.( Glater, J. D. 2001) Which is more
important to a manager—national culture or organizational culture? For example, is an IBM facility in
Germany more likely to reflect German culture or IBM’s corporate culture? Research indicates that
national culture has a greater effect on employees than their organization’s culture. (Henderson, I. R.,
2006). German employees at an IBM facility in Munich will be influenced more by German culture
than by IBM’s culture. Legal, political, and economic differences among countries are fairly obvious.
The Japanese manager who works in the United States or his or her American counterpart who works
in Japan can get information about laws or tax policies without too much effort. Getting information
about cultural differences isn’t quite that easy! The primary reason? It’s difficult for natives to explain
their country’s unique cultural characteristics to someone else.

6.1 Hofstede’s Framework for Assessing Cultures.

Geert Hofstede developed one of the most widely referenced approaches to helping managers better
understand differences between national cultures. His research found that countries vary on five
dimensions of national culture. These dimensions are described in Figure 1.3, which also shows some
of the countries characterized by those dimensions.

6.2 The Globe Framework for Assessing Cultures.

The Global Leadership and Organizational Behavior Effectiveness (GLOBE) research program
extended Hofstede’s work by investigating cross-cultural leadership behaviors and gives managers
additional information to help them identify and manage cultural differences.

Using data from more than 18,000 managers in 62 countries, the GLOBE research team (led by Robert
House) identified nine dimensions on which national cultures differ. (Brown et al., 2003). Two
dimensions (power distance and uncertainty avoidance) fit directly with Hofstede’s. Four are similar
to Hofstede’s (assertiveness, which is similar to achievement-nurturing; humane orientation, which is
similar to the nurturing dimension; future orientation, which is similar to long-term and short-term
orientation; and institutional collectivism, which is similar to individualism-collectivism). The
remaining three (gender differentiation, in-group collectivism, and performance orientation) offer

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additional insights into a country’s culture.

1. Individualistic—People look after their own and family interests

Collectivistic—People expect the group to look after and protect them

Individualistic Collectivistic

United States, Canada, Australia Japan Mexico, Thailand

2. High power distance—Accepts wide differences in power; great deal of respect for those in authority
Low power distance—Plays down inequalities: employees are not afraid to approach nor are in awe of
the boss

High power distance Low power distance

Mexico, Singapore, France Italy, Japan United States, Sweden

3. High uncertainty avoidance—Threatened with ambiguity and experience high levels of anxiety
Low uncertainty avoidance—Comfortable with risks; tolerant of different behavior and opinions

High uncertainty avoidance Low uncertainty avoidance

Italy, Mexico, France United Kingdom Canada, United States, Singapore

4. Achievement—Values such as assertiveness, acquiring money and goods, and competition prevail
Nurturing—Values such as relationships and concern for others prevail

Achievement Nurturing

United States, Japan, Mexico Canada, Greece France, Sweden

5. Long-term orientation—People look to the future and value thrift and persistence
Short-term orientation—People value tradition and the past

Short-term orientation Long-term orientation

Germany, Australia, United States, Canada China, Taiwan, Japan

Figure 1.3 Hofstede’s Five Dimensions of National Culture ( Robbins & Coulter, 2012, p.83)

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_____________________________________________________________________________________________
_____
Dimension Countries Rating Countries Rating Moderate Countries Rating High
Low

Assertiveness Sweden, New Zealand Egypt, Ireland, Philippines Spain, United States,
Switzerland Greece
Future orientation Russia, Argentina, Slovenia, Egypt, Ireland Denmark, Canada,
Poland Netherlands
Gender differentiation Sweden, Denmark, Italy, Brazil, Argentina South Korea, Egypt
Slovenia Morocco
Uncertainty avoidance Russia, Hungary, Israel, United States, Mexico Austria, Denmark,
Bolivia Germany
Power distance Denmark, England, France, Brazil Russia, Spain, Thailand
Netherlands,
South Africa
Individualism/collectivism Denmark, Singapore, Hong Kong, United States, Greece, Hungary,
Japan Egypt Germany

In-group collectivism Denmark, Sweden, Japan, Israel, Qatar Egypt, China, Morocco
New Zealand
Performance Orientation Russia, Argentina, Sweeden, Israel, Spain United States, Taiwan,
Greece New Zealand
Humane orientation Germany, Spain, Hong Kopng, Sweeden, Indonesia, Egypt,
France Taiwan Malaysia

Figure 1.4 GLOBE Highlights- provides information on how different countries rank on these
nine dimensions. ( Robbins & Coulter, 2012, p.84)

Here are descriptions of these nine dimensions:

1. Power distance: the degree to which members of a society expect power to be unequally
shared.

2. Uncertainty avoidance: a society’s reliance on social norms and procedures to alleviate

the unpredictability of future events.

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3. Assertiveness: the extent to which a society encourages people to be tough, confrontational,

assertive, and competitive rather than modest and tender.
4. Humane orientation: the degree to which a society encourages and rewards individuals for
being fair, altruistic, generous, caring, and kind to others.
5. Future orientation: the extent to which a society encourages and rewards future-oriented

behaviors such as planning, investing in the future, and delaying gratification

6. Institutional collectivism: the degree to which individuals are encouraged by societal

institutions to be integrated into groups within organizations and society.

7. Gender differentiation: the extent to which a society maximizes gender role differences

as measured by how much status and decision-making responsibilities women have.

8. In-group collectivism: the extent to which members of a society take pride in membership in
small groups, such as their family and circle of close friends, and the organizations in which
they’re employed.
9. Performance orientation: the degree to which a society encourages and rewards group

members for performance improvement and excellence.

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