What are the five dimensions of culture identified by Geert Hofstede? How can an awareness of these dimensions benefit a firm in stage 5 of internationalization?

What will be an ideal response?

Answer: Summary of suggested answer -
• Power distance - the extent to which individuals expect a hierarchical structure that emphasizes status differences.
• Individualism - the degree to which a society values personal goals, autonomy, etc.
• Uncertainty avoidance - the degree to which society values reducing risk and instability.
• Masculinity/femininity - the society's view of assertive behavior and adherence to gender roles as key to success.
• Long-term/short-term orientation - the society's valuing of future as opposed to past or present.

In stage 5, the most advanced stage of internationalization, firms are often called transnational corporations because they owe little allegiance to their country of origin and have weak ties to any given country. Operations are highly decentralized; each business unit is free to make personnel decisions with very loose control from corporate headquarters. HRM practices at stage 5 companies are designed to blend individuals from diverse backgrounds to create a shared corporate (rather than national) identity and a common vision. Understanding Hofstede's cultural dimensions would be especially beneficial at this stage given the wide variety of cultural backgrounds involved with the firm. The five dimensions provide clues regarding the general configuration of HRM strategies that are most likely to mesh with a particular culture's values.