National culture has a greater effect on employees than does their organisations culture. 1Managers understanding of culture give a basis on what to predict and what negotiations might respond to managers' offer.
Hofstede's framework for assessing cultures is one of the most widely referenced approaches to helping managers better understand differences between national cultures. Managers and employees vary on five dimensions of national culture.
Individualism is the degree to which people in a country prefer to act as individuals. In an individualistic society, people are supposed to look after their own interests and those of their immediate family and do so because of the large amount of freedom that and individualistic society allows its citizens. British are in nature of individualism while Indians are somewhat collective. Collectivism is characterised by a social framework. In collectivism, people prefer to act as members of groups and expect others in groups of which they are part (such as family or an organisation) to look after them and to protect them.
Hofstede used the term power distance as a measure of the extent to which a society accepts the fact that power in institutions and organisations is distributed unequally. A high power distance society accepts wide differences in power in organisations. Employees show a great deal of respect for those in authority. ...