Hofstede analysis Essay
1. Power distance: the extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed unequally. 2. Individualism- the degree of interdependence a society maintains among its members. 3. Masculinity / Femininity-The fundamental issue here is what motivates people, wanting to be the best (masculine) or liking what you do (feminine). 4. Uncertainty avoidance – The extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these 5. Long term orientation- the extent to which a society shows a pragmatic future-oriented perspective rather than a conventional historical short-term point of view.
Thailand scores 64 on PDI index, slightly lower than the average Asian countries (71). It is a society in which inequalities are accepted; a strict chain of command and protocol are observed. Each rank has its privileges and employees show loyalty, respect and deference for their superiors in return for protection and guidance. This may lead to paternalistic management. Thus, the attitude towards managers are more formal, the information flow is hierarchical and controlled. Individualism
With a score of 20 Thailand is a highly collectivist country. This is manifest in a close long-term commitment to the member ‘group’ (a family, extended family, or extended relationships). Loyalty to the in-group in a collectivist culture is paramount, and over-rides most other societal rules and regulations. The society fosters strong relationships where everyone takes responsibility for fellow members of their group. In order to preserve the in-group, Thai are not confrontational and in there communication a “Yes” may not mean an acceptance or agreement. An offence leads to loss of face and Thai are very sensitive not to feel shamed in front of their group.
Personal relationship is key to conducting business and it takes time to build such relations thus patience is necessary as well as not openly discuss business on first occasions. Masculinity / Femininity
Thailand scores 34 on this dimension and is thus considered a feminine society. Thailand has the lowest Masculinity ranking among the average Asian countries of 53 and the World average of 50. This lower level is indicative of a society with less assertiveness and competitiveness, as compared to one where these values are considered more important and significant. This situation also reinforces more traditional male and female roles within the population. Uncertainty avoidance
Thailand scores 64 on this dimension indicating a preference for avoiding uncertainty. In order to minimize or reduce this level of uncertainty, strict rules, laws, policies, and regulations are adopted and implemented. The ultimate goal of this population is to control everything in order to eliminate or avoid the unexpected. As a result of this high Uncertainty Avoidance characteristic, the society does not readily accept change and is very risk adverse. Change has to be seen for the greater good of the in-group. Long term orientation
With a score of 56 Thailand is a Long Term Oriented culture though not as much as for most Asian countries. LTO is manifest on their respect for tradition and inequality between people. Amongst the values that are praised, working hard and having a sense of moderation are dominant. The investment in personal relationships and network is paramount. Protecting one’s face is key and a protocol in their non confrontational behavior. Their concern is not to look for one truth which helps them be flexible and pragmatic in negotiations. Thai favor long term oriented perspective and thus Thailand deadlines and timescales are fluid.