Hofstede Analysis Canada
Hofstede Analysis Canada
Canada is the top country in the world for an American business to expand because of its very similar culture to the United States. Geert Hofsted a prominent psychologist has studied the Canadian way of life and has set up a ranking system that proves why Canada is so ideal for American businesses to operate. Hofstede’s ranking system is based on analyzing 5 dimensions that target key aspects of a country’s society. These dimensions are power distance, individualism, uncertainty avoidance, career success and planning for the long term horizon.
Power Distance
This dimension measures the rigidity or flexibility of a country in terms of how its organizations structure their management and subordinate relationships. If a country has a high power distance, management structures seem to be more rigid or hierarchal and a chain of command system is in place. Rarely will an employee bypass his supervisor for it may be considered an act of insubordination. On the other hand, a country with a low power distance may have a management structure that is more flexible or flat. In this case it would be a cultural norm for an employee to go around his supervisor if it was the best way to accomplish his work (Adler, and Gundersen, 2008).
Looking at Hofstede’s ranking system, Canada has a score of 39 out of 53. On this scale 1 is a very high power distance and 50 is a very low power distance. The United States has a score of 38 and therefore almost identical to Canada.
The reasons why Canada’s power distance is so low has something to do with how open Canadians are with each other. Like the United States the government allows freedom of speech which gives its citizens more say in how they would like to be governed. This government style is also seen in the private sector where managers and subordinates communicate very openly in discussing how their businesses should operate. This business environment is very attractive to American businesses since they are
Canada is the top country in the world for an American business to expand because of its very similar culture to the United States. Geert Hofsted a prominent psychologist has studied the Canadian way of life and has set up a ranking system that proves why Canada is so ideal for American businesses to operate. Hofstede’s ranking system is based on analyzing 5 dimensions that target key aspects of a country’s society. These dimensions are power distance, individualism, uncertainty avoidance, career success and planning for the long term horizon.
Power Distance
This dimension measures the rigidity or flexibility of a country in terms of how its organizations structure their management and subordinate relationships. If a country has a high power distance, management structures seem to be more rigid or hierarchal and a chain of command system is in place. Rarely will an employee bypass his supervisor for it may be considered an act of insubordination. On the other hand, a country with a low power distance may have a management structure that is more flexible or flat. In this case it would be a cultural norm for an employee to go around his supervisor if it was the best way to accomplish his work (Adler, and Gundersen, 2008).
Looking at Hofstede’s ranking system, Canada has a score of 39 out of 53. On this scale 1 is a very high power distance and 50 is a very low power distance. The United States has a score of 38 and therefore almost identical to Canada.
The reasons why Canada’s power distance is so low has something to do with how open Canadians are with each other. Like the United States the government allows freedom of speech which gives its citizens more say in how they would like to be governed. This government style is also seen in the private sector where managers and subordinates communicate very openly in discussing how their businesses should operate. This business environment is very attractive to American businesses since they are
Bibliography: Adler, A. J., & Gundersen, A. (2008). International dimensions of organizational behavior. (5 ed., pp. 51-60). Mason,OH: South-Western Pub. Individualism in canada-historical sources. (n.d.). Retrieved from http://internationalbusiness.wikia.com/wiki/Individualism_in_Canada-Historical_Sources 2011 list of failed banks. (2011, August 15). Retrieved from http://www.bankrate.com/finance/savings/2011-list-of-failed-banks.aspx Hofstede: long term / short term. (n.d.). Retrieved from http://www.andrews.edu/~tidwell/HofstedeLongTerm.html