Korea and australia hofstede cultural differences - Essay Example

Applying Hofstede’s Cultural Dimensions Theory to A Korean Firm Entering the Car Manufacturing Industry in Australia of the of theInstitution Applying Hofstede’s Cultural Dimensions Theory to A Korean Firm Entering the Car Manufacturing Industry in Australia Introduction In this group report we are going to simulate a case of a South Korean auto manufacturing company, Dassan Limited wanting to open up car manufacturing facilities in Australia. The opening of a business in a new country is not without risk and in this connection in addition to the market and readiness for the product, even the cultural dimensions become a rather important factor regarding acceptability of the new entrant, a foreigner.

The Hofstede Report refers to the groundbreaking work of Geert Hofstede, whose studies into different nations has revealed a common consensus of five cultural dimensions according to which different countries can be compared. The truth is that over time, these dimensions have evolved according to the historical traditions, geographic boundaries, national perspectives and anything else that forms the cultural character of a people or country[1]. Differences in the Two Cultures, Recommendations and Analysis 1.

Power Distance: Australians are used to a lower power distance between individuals than Koreans. Dassan Ltd. would therefore do well to cultivate an attitude of self respect and equality among people in its managers prior to sending them to Australia. This is a big mind shift from Korea, where the traditions demand respect from someone at a higher social or work position [2]. 2. Uncertainty Avoidance: Both Australians and South Koreans are used to a low level of uncertainty avoidance. But whereas listening to a statement made by management would be enough for its validity among most Australians, the Koreans would prefer that this be committed to writing in the form of policy before it is accepted in their hearts and minds [3]. 3. Collectivism vs Individualism: The South Koreans are used to a more collectivist mentality when dealing with management problems and would look for long term and lasting solutions, much like the Japanese.

The Australian mindset is geared more toward individualism and quick fix solutions, with a minimum of fuss. The Koreans have to learn to adapt to this new expectation in Australia. They would most likely find themselves the object of ridicule if they resorted to collectivism in decision making which would be considered a waste of time and dragging the issues by the Australians [4]. 4. Quality vs Quantity of Life: This refers to the capacity to lead a life according to one’s own desires. In South Korea the workers would be more likely to consider working overtime to meet company production goals.

In Australia they would have to put the idea to the workers, and in many cases this would depend on the workers will to work overtime or give more time to the family and individual goals [5]. 5. Time Orientation: Australians are known to be more laid back and relaxed than South Koreans. Management of Dassan Ltd. might invite labour wrath if they insist on longer working hours to meet production goals and increase efficiency. On the other hand, Australians believe in working hard for a fair wage.

Overtime is usually considered optional. Conclusion For a long term and fruitful entry strategy, the above points need to be taken into account by Dassan Ltd. prior to setting up facilities in Australia. It will help them at all stages of the management process, from planning to organizing, directing to staffing and control [6]. References 1. Hofstede, Geert (2001). Culture's Consequences: Comparing Values, Behaviours, Institutions, and Organizations across Nations. Thousand Oaks CA: Sage Publications. 2. Hooker, J. (2003). Working Across Cultures.

Stanford University Press. 3. Hofstede, Geert and Hofstede, Gert-Jan (2004). Cultures and Organizations: Software of the Mind.  New York: McGraw-Hill U.S.A. 4. Kinicki, A. & Kreitner, R.(2007). Organizational Behaviour, 8th ed. McGraw Hill/ Irwin. 5. Koontz, H. & Weihrich, H. (1990). Essentials of Management, 5th ed. McGraw Hill. 6. Werther, W. B. & Davis, K. (1995). Human Resources and Personnel Management. McGraw Hill Education.