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 • • • • 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 • • • • • • • • 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 • • • 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