Dijon Graham                                                                                                   GRA15401598 Cross Cultural Management Essay Contents Page In this essay I will be using Hofstede’s theory of ” cultural dimensions” to analyse the Cultures of USA and China , furthermore discuss the problems that may arise for people when these two countries do business together. Lastly I shall make some suggestions for possible solutions that will be able to resolve the issue. Hofstede’s theory of cultural dimensions is  an analytical tool developed by “Geert Hofstede” , in which he identified there are six dimensions that can be used to distinguish one culture from another ( Hofstede Insights, 2017). The first dimension is known as power distance index (pdi), this relates to the amount of inequality that exists and is acknowledged between people with and without power. A high pdi indicates a differing hierarchical distribution of power has been accepted by society with people aware of their place in the system , where as a low pdi  indicates power being shared and scattered with people in society not accepting power being distributed unevenly. The second dimension is known as individualism vs collectivism , this relates to the strengths of the bonds within a community that people have with others.The third dimension is known as masculine versus femininity, this relates to the roles that are distributed among men and women. Masculine societies suggests a preference for heroism , assertiveness , and material rewards for success , whilst feminine societies suggest a preference for cooperation , modesty and caring for the weak ( Cleverism ,2017). The fourth dimension is known as uncertainty avoidance index , this relates to the extent of people who do not accept ambiguity and uncertainty. The fifth dimension is known as long term orientation versus short term normative orientation.This dimension explains that society has to preserve some links from the past while handling challenges in the present and future , with society valuing these two subjective goals differently. The sixth and final dimension is known as indulgence versus restraint, this can be defined as the degree to which people in societies try to control their impulses and desires. There are many different viewpoints on Hofstede’s theory of cultural dimension , as such the theory has had its fair share of  criticism and limitations. Many researchers claim that the study is old and outdated to be of any modern value , especially with today’s ever changing environment and internationalisation. Hofstede countered this point by stating that cross cultural results are based on centuries of training , recent reproductions have supported the point that culture shall not change overnight ( M , Jones , 2007). The reliability of the theory can also seem questionable due to the methodology for the model being based on questionnaires , which already have their own limitations , furthermore in some cultures it is believed that the question asked is just as important as its content ( Clearly Cultural , 2004-2017). Other researchers such as “Meiyu Fang”  focusing on the fifth dimension argued that was a significant issue underlying the assumptions of this dimension due to the assumptions of short term oriented values being labelled as negative and the long term labelled as positive , which disagrees with the chinese principle of yin and yang ( Taylor and Francis Group , 2015).The first potential problem I have discovered that arises when the USA and China do business is inconsistent decision making , due to the cultural differences between USA and China , they both take different amounts of time to make a decision. A consequence of inconsistent decision making leads to a business becoming unreliable and unprofessional , and will surely result in a loss of business. Generally americans companies don’t waste any time in terms of decision making and can normally can reach a decision quick, as they value making quick decisions and taking action. On the other hand the chinese take much longer in terms of making decisions,  due to basing decision making on ensuring that a balance of all parties are taken into account ( IEDP , 2016) .This is because the chinese prefer to think about all aspects of an issue a covered first and all matters are thoroughly reviewed before finally making a decision, this characteristic can also be known as speed vs consistency ( MI Translations, 2016).According to Hofstede’s cultural dimensions model , looking at USA and China, the Power Distance index shows USA to have a figure of 40 which is considerably low as ,this is because in america hierarchies are believed to be essential for convenience, superiors are available and managers rely on specific employees and teams for their expertise, this plays a huge role in terms of decision making as superiors give leeway to subordinates so that they can make decisions quickly ,  which sometimes can lead to a few errors occuring. On the other hand China has a Power distance index figure of 80 which is quite high. China can be seen as very hierarchical as they can be seen as having a more structured ranking system within businesses , as such only one person makes the final decision on specific matters , causing decision making to be a longer process than normal.  Looking at both countries , China has an indulgence figure of 24 , which is very low , whilst USA has a high figure of 68.  China is seen as a restrained country and societies with a low figure in this dimension have a tendency for cynicism and pessimism in comparison to USA which is seen as indulgent , with people in the society normally exhibiting a positive attitudes and optimism ( Hofstede Insights , 2017).  Overall in order for China and USA to overcome their culture differences in terms on decision making , I would suggest that China look at implementing strategies or tactics that will give additional responsibilities to employees or staff as a way to promote integrity and trust within their businesses. For USA I would suggest that they slow down their decision making and consider all options before making a final decision.The second issue that could potentially arise when the USA and China do business is deficient teamwork. A consequence of bad teamwork leads to a poorly managed team , with members who cannot work with each other  preventing each member from displaying their original characteristics meaning each individual is less productive. One of the american values is individuality, as such from an early age americans are encouraged to be independant and produce their own ambitions in life. They are encouraged to not be too dependent on family and friends, as they will rewarded as they try to reach their goals as individuales ( Marian Beane , 2017).  In Comparison to the chinese ,  as when they are young are taught about teamwork and that more is accomplished as a group rather than individual. The collectivist nature of chinese people encourages individuals to worry about the group rather than themselves. The group has a responsibility to its members well being and must make sure that incentives are given out fairly, as such people remain loyal and status from the group ( IOR ,2017). According to Hofstede’s cultural dimensions model , looking at USA and China , the individualism indicates that USA has a figure of 91 which is very high whilst China has a low figure of 20. This is because in USA , employees are trained and expected to be independent , self resilient and shows signs of initiative.  Promotions , decisions are all based on what an individual has done or can do rather than a group. As china has a highly collectivist culture , it is clear that people will act in the interests of the group rather than as an individual. Promotions and hiring are affected by in group considerations , with closer in groups such as family getting advantageous treatment.  Overall in order for USA and China to overcome their cultural differences in terms of teamwork , I would suggest that USA look at implementing the value of effective teamwork amongst employees and staff. For China I would suggest trying to look at implementing more individualism, as such  it can bring positive results in the appropriate circumstances.In my opinion I consider  USA and China doing business together creating considerable amounts of issues due to the cultural differences between the two countries. However as issues are created their are also considerable amounts of advantages that could be produced through the countries working together by adapting to and accepting each other’s specific features of their culture. The first main problem that could potentially arise , is inconsistent decision making due to the americans being accustomed to the value of making quick decisions and taking action , whilst China are very hierarchical and only allow one person at the top of the hierarchy to finalise decisions. These issues can be resolved simply by China implementing tactics or strategies that would focus on sharing responsibilities amongst employees. An advantage of this would be that more than one person be be involved in decision making , therefore reducing the time consumption it normally requires to make decision. Another advantage would be that employees may feel more encouragement , trust and integrity for their business due to responsibilities being shared. For USA to resolve this issue , I suggest that they slow down the pace of their decision making , as it will allow them to have more time to consider all the options and aspects related to the decision before actually finalising the decision , thus encouraging a more accurate decision to be made. The second main problem that could potentially arise is , deficient teamwork due to americans valuing the importance of individualism and the Chinese valuing the collectivist nature. These issues can be resolved simply by USA looking at encouraging a collectivist nature amongst employees or implementing the value of effective teamwork. As an advantage it will most likely lead to better employee loyalty , relationships and business performance. For China to resolve this issue they could simply look at trying to implement more individualism amongst employees. This can provide useful in the appropriate circumstances , due to it encouraging motivated employees to strive for success and encouraging friendly competition amongst workers. If USA and China do business together it is likely that it could lead to employees showing increased creativity and innovation  as being able to adapt to  one another’s culture will lead to increased opportunity, especially in the market for businesses.  This can also lead to better business performance as currently China is one the world’s fastest growing economies , with forecasts predicting that it will someday overtake USA and become the world’s largest economy , with the world’s two largest economies doing business there is a lot of opportunity for expansion and profit.Stereotyping is characteristics imposed onto groups of people because of their sexual orientation , nationality , and race among others ( Nadra Nittle , 2017). Being stereotypical can be seen as a negative feature due to it making people disregard the differences between individuals , therefore thinking things about people which are not true , such as making generalisations. The effects of stereotyping can fluctuate depending on the individual , however mostly are negative. They include such things as preventing emotional identification , producing  untrue opinions of people and a reduction in performance. Stereotyping is seen as a serious matter and still happens in certain companies and organisations today. An example of this would be the case  which occurred in 2017 involving the british retailer and shoe manufacturer known as clarkes , in which the company was accused of sexcism. Clarkes released a new pair of shoes for girls known as “Dolly Babe” which were immediately being withdrawn as many people began accusing the retailer “Clarkes” as being sexist. The situation provoked the idea of sexism as a equivalent pair of shoes for boys was released known as ” Leader”. Both shoes are made out of black leather however have additional features to reflect stereotypical characteristics of a boy and girl. The Dolly Babe has a cloying detail of a pink insole printed with hearts , suggesting that girls prefer hearts , in comparison to the boys version which includes a football detail , suggesting that boys prefer football. Scotlands first minister known as Nicola sturgeon among many others thought the company made bad choices for the design , as she mentioned ” It is beyond belief that in 2017 a major company can think that this is acceptable in anyway whatsoever”. Suggesting how displeasuring the design of the shoes were. Some parents were posting their criticism online , however in fact were criticising the actual quality of the girls shoes compared to the boys instead of their names( Maev Kennedy ,2017).Online people mentioned that the boys shoes were comfortable , resilient and weatherproof ,  with the soles clearly developed to handle things such as climbing and running. In comparison to the girls shoes which people mentioned have inferior soles , not fully covered thus not weatherproof , not well padded at the ankle, therefore are not comfortable and cannot be used for outdoor activities like the boys shoes. As a result clarkes withdrew the girls shoes whilst the boys shoes are still available for sale ,  and have since then apologised in a statement to the bbc where the company mentioned ”  we are working hard to make sure our products reflect our gender natural ethos , we apologise for any unintended offense caused (Claire Zillman , 2017). Another example is a case which also occurred in 2017 , in which the company known as Google fired a computer engineer who caused a lot of controversy , when he asserted the gender gap of technology workers was due to the biological differences between men and women. The ex google employee submitted a ten page manifesto which accused the company of being bias against conservatives and mentioned that initiatives to encourage female programmers were unfair. The ex google employee later mentioned that he was dismissed by the company for perpetuating gender stereotypes.In the manifesto it mentioned that the main reason for the gap in pay for computer scientists between male and females is due to biological causes such as mens more active drive for status and women being more prone to anxiety ( James Titcomb , 2017).Both examples lead to a barrier for effective communication due to them being bias , in the example regarding the retailer clarks, the shoes that were produced  included biased names and features that were assumed each gender would prefer, for instance the boys shoe known as leader including detail of a football while the girls shoe was known as doll babe had a heart. Suggesting the stereotypes that boys like footballs and are leaders , and that girls like hearts. This prevents effective communication as the behaviour of individuals that are stereotypical lead them to always assume, as such they judge others and make assumptions based on the stereotypical role they partake. One advantage of stereotyping is that it allows people to respond to situations quickly as they may have been involved in a similar situation before. In the example case regarding the company google firing a computer engineer , the comments made about the difference in pay between male and female computer scientists were very stereotypical, due to men being portrayed as having the more active drive for status meaning men typically men are the harder workers for merit , whilst females are portrayed as being prone to anxiety suggesting  that females worry too much thus not being a hard worker like men. Stereotypes often lead to the development of being bias and showing a lack of empathy when communicating with other people. This can can also lead to the occurrence of a predicament known as stereotype threat , which is when a person disagrees to act or communicate to the best of their abilities due to them being self conscious of his perceived minority status (IAC , 2017). Stereotypes are seen as a type of prejudice and can cause stress for the individual who is being prejudged , due to the fact they might feel like they are being misunderstood , especially in circumstances where the stereotype is racially motivated.As a whole I consider stereotypes to be a barrier for effective communication , this point is reinforced by the amount of negative results from stereotyping outweighing the positive results. Another major reason for this is due the considerable negative effects that it causes , for instance in terms of stereotype threat ,individuals are prevented from showing their natural characteristics as they feel self conscious due to being judged, therefore they do not perform to the best of their abilities. In businesses stereotyping can lead to a bad public image as naturally people do not take kindly to biased opinions or assumptions,  resulting in a loss of business. In many businesses stereotyping still takes place , it also has huge effects on career growth as stereotyping can also prevent opportunity,  many businesses tailor their communication to others based on  stereotyping resulting in lack of encouragement , focus and performance , all of which reduce or harm career growth.  In my opinion I believe the ideal method to overcome this , is to  implement practises which focus on reducing negative subtext and allows free flow of information between people, if implemented correctly ideas will be the main focus for people rather than group identities and stereotypes.ReferencesSirjie Virkus,(2009) Dimensions of culture geert hofstede. Available at : http://www.tlu.ee/~sirvir/IKM/Leadership%20Dimensions/dimesnions_of_culture_geert_hofstede.htmlCleverism , (2017) Understanding cultures and people with hofstede dimensions. 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