Long Term (LTO) vs. Short Term (STO) Orientation

Hofstede’s Cultural Value Framework
Relationship to Theory X and Theory Y
Theory X
Theory Y
McGregor’s Motivation Theories
Theory X
• Dislike work
• Must be coerced and
threatened
• Require close supervision
and direction
• Prefer to be directed
• Responsibility avoidance
• Exhibit low ambition
• Interested only in security
Theory Y
• Work is like play or rest
• Capable of self control and
direction
• Capable of seeking and
accepting responsibly
• Imaginative and creative
• Committed to organization
• Capacity for ingenuity
Five Dimensions of Hofstede’s
Cultural Value Framework
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Long Term vs. Short Term Orientation
Individualism vs. Collectivism
Masculinity vs. Femininity
Low Uncertainty Avoidance vs. High
Uncertainty Avoidance
• Low Power Distance vs. High Power Distance
Cultural Value Comparison
China
United States
Long Term (LTO) vs. Short Term (STO)
Orientation
• LTO
• STO
– Tend to attach more
importance to the future
– Value tradition
– Value thrift
– Tend to attach more
importance to the here
and now
– Accept change more
readily
– “The future belongs to
those who prepare for it
today”
– “You are only limited by
your own fears and
inaction”
China as a Theory X Nation
• Foxconn in China
– Assembly line work
– Long Hours
– Suicides 2010
– Dormitories
– Nets
Foxconn Dormitories
FoxConn
LTO values influence on Theory X
Attributes
Long Term Oriented Values
Theory X Attributes
• People value tradition
• People dislike work
• People value tradition
(hierarchy)
• Most people prefer to be
directed
• Attach more importance to
the future
• Only interested in security
America as a Theory Y Nation
2010 Average American Retirement
Savings
50%
45%
40%
35%
30%
Percentage of
25%
Americans
20%
15%
10%
5%
0%
$0-$1,000
$1000-$10,000
Savings in US dollars
America as a Theory Y Nation
• Americans have an inherent entrepreneurial
spirit.
– Wal-Mart
– Google
– Facebook
• Americans are more willing to give up old ideas
for new opportunities.
STO values influence on Theory Y
Attributes
Short Term Oriented Values
• Attach more importance to
the here and now
• Accept change more readily
Theory Y Attributes
• Think of work as a natural
activity, like play or rest
• Will learn to accept and
seek responsibility
• Capacity for imagination
and ingenuity
Works Cited
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Baculinao, Eric (2004). China grapples with legacy of its ‘missing girls’. Retrieved from
http://www.msnbc.msn.com/id/5953508/ns/world_news/t/china-grapples-legacy-its-missinggirls/#.TtKXPWNE0q5
Denise Rotondo Fernandez, Dawn S. Carlson, Lee P. Stepina &
Joel D. Nicholson (1997): Hofstede's Country Classification 25 Years Later, The Journal
of Social Psychology, 137:1, 43-54
The Economist (2009). The United States of Entrepreneurs. America still leads the world. Retrieved from
http://www.economist.com/node/13216037
The Economist (2006). Women in the workforce. The importance of sex. Forget China, India and the internet:
economic growth is driven by women. Retrieved from http://www.economist.com/node/6800723
Itim International (2009). Geert Hofstede Cultural Dimensions. Retrieved from http://www.geerthofstede.com/hofstede_china.shtml
Itim International (2009). Geert Hofstede Cultural Dimensions. Retrieved from http://www.geerthofstede.com/hofstede_dimensions.php?culture1=95&culture2=18
Itim International (2009). Geert Hofstede Cultural Dimensions. Retrieved from http://www.geerthofstede.com/hofstede_united_states.shtml
Johnson, Joel (2001). 1 Million Workers. 90 Million iPhones. 17 Suicides. Who’s to Blame?. Retrieved from
http://www.wired.com/magazine/2011/02/ff_joelinchina/all/1
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Robbins, Stephen P. and Timothy A. Judge. (2010). Essentials of Organizational Behavior, Tenth Edition (page 2829). Upper Saddle River, New Jersey: Prentice Hall.
U.S. Census Bureau (n.d.). 2012 Statistical Abstract. Population: Estimates and Projections by Age, Sex,
Race/Ethnicity. Retrieved from
http://www.census.gov/compendia/statab/cats/population/estimates_and_projections_by_age_s
ex_raceethnicity.html
Wang, Jim (n.d.). Working Americans Have Almost No Retirement Savings. Retrieved from
http://www.bargaineering.com/articles/working-americans-have-almost-no-retirementsavings.html