| The
                      bottom line, it never hurts to work on business
                      basics. That means  either building or reinforcing a foundation
                      for the inevitable recovery that
                      will
                      be taking place.
 Yes,
                      it is difficult to think about positive business results
                      when so many challenging  events are occurring 
                      around the world. But these problems will pass, and
                      the astute
                      business
                      person
                       that plans ahead will be ready to profit
                      from the
                      coming turn-around.  For
                      help with intercultural education, training and development
                      within your organization, please consider the worldwide
                      services of The
                      Sigma Two Group, international
                      business management consultants and trainers.                   the
                        International Business Center Staff                    
                     IBC
                        FOCUS ARTICLE: How do Hofstede's Dimensions correlate
                        with the World's Religions?by
                        Stephen J. Taylor, Senior Partner in The
                        Sigma Two Group                    and Director of
                        the International Business Center
  As
                        the war proceeds in Iraq, there’s increasing
                        discord throughout the Middle East, dissention in Europe,
                        and potential
                    conflict with North Korea in the Far East. Do these worldwide
                  conflicts have anything in common?
 This was a question recently proposed by several readers
                    of the International Business Center Newsletter. We will
                      respond to that question through the application of Geert
                      Hofstede’s research, along with the analysis
                    of countries’ religious backgrounds, to determine if
                    there is a correlation between religion and culture – and
                    ultimately the attitudes, beliefs, and behaviors of people
                    in the world.  An
                      interesting recent observation is how various countries
                      are responding
                      to current world situations. Some Middle
                    East leaders have called to their Muslim followers to thwart
                    the infidels and Crusaders. This is a reference to the conflicts
                    between the European Christian ‘Crusaders’, the
                    Muslims, and the Jews that occurred in the Middle East during
                    the 11th Century AD – over a thousand years ago! Yet
                    other countries that fought each other just over fifty years
                    ago (i.e. Japan, Germany, and the USA) are cooperative allies.  What
                      are the cultural and religious factors that have created
                      these two significantly different responses?  Over
                      the history of civilization, millions of people have lost
                      their lives under the auspices and banner of ‘religion’.
                    Could these conflicts be based more on the cultural dynamics,
                    or personalities of people, rather than their religious teachings
                    or philosophies? In other words, are groups of people – cultural
                    societies – more under the influence of their cultural
                    heritage than by religion? Or, have the two merged indiscernibly?  In order
                      to understand the centuries old discord between the World’s
                      religions, we decided to explore the differences not based
                      on dogma, but rather on the social-psychology of
                    each religion to see how, or if, they correlate with the
                    cultural dimensions researched and developed by Geert Hofstede.  The religions included in this study are Atheism, Buddhism,
                    Catholicism, Christianity, Hindu, Jewish, and Muslim.
 Recall briefly that Hofstede uses four primary dimensions
                      to delineate a cultural grouping. They are Power Distance
                      (PDI) the level of equality, or inequality, between people
                      within society. Individualism (IDV) the degree the society
                      reinforces individual or collective achievement and interpersonal
                      relationships. Masculinity (MAS) the degree the society
                      reinforces, or does not reinforce, the traditional masculine
                      work role model of male achievement, control, and power;
                      and Uncertainty Avoidance (UAI) or the level of tolerance
                      for uncertainty and ambiguity within the society - i.e.
                      unstructured situations. (Click here for more detail on
                      Hofstede’s Cultural Dimensions)
 Our methodology
                      for this study was to identify the predominant religion
                      (practiced by greater than 50% of the Country’s
                    population) in each of the countries used in Geert Hofstede’s
                    study. This data was obtained from the World Factbook 2002,
                    and was compiled in Table 1 with the Hofstede dimensions
                    for each country.  
                       TABLE
                        1To view the Hofstede scores for each
                  country visit:
 http://geert-hofstede.com/countries.html
 The
                      Table 1 data was integrated to create a logarithmic graph
                      for
                        each religion, and then analyzed for any correlation
                      between that predominant religion and one or more of Hofstede’s
                      Dimensions within the grouping. The final results are displayed
                      in Graphs 1-7. The result
                      was a relatively close correlation between each of the
                      World’s religions and one, or in some cases
                    two, Hofstede Dimensions. Therefore, the hypothesis of this
                    study is that a culture, society, or country is inextricably
                    linked with its religious foundation, and these socio-religious
                    links make change in any society very difficult. And, due
                    to the subjective and esoteric nature of religion, it is
                    not possible to make change based on logic or objectivity. 
                    Here
                        is a review of each of the World’s religions
                    and the correlation results: 
                    Atheist – China’s
                            religion is officially designated as Atheist by the government.
                            Some religious practice is
                          acceptable in China; however, the government sets limits.
                          Of the five Dimensions (includes LTO) for China, the closest
                          correlation is with Hofstede’s Power Distance (PDI).
                          (See Graph below)  
                    
 
 The high Power Distance ranking of an Atheist society
                        indicates a high degree of inequality between people in
                        the country's population. This high Power Distance ranking
                        reflects that an unequal balance of power and wealth have
                      been allowed to grow within the society.  This means a greater likelihood the country follows a
                        caste system that limits significant upward mobility of
                        its citizens. Any culture with a large Power Distance suggests
                        inherent inequality within the population, and the potential
                      for exploitation.  
                    Buddhist – Due
                              to the close approximation of Buddhist and Shinto societies,
                              these have been combined for this
                            study. These countries have the closest correlation with
                            Hofstede’s Uncertainty Avoidance Index (UAI), which
                          is the same with Catholic countries. (See Graph below)  
                    
 
 They also have an additional Dimension, that of Long Term
                          Orientation (LTO). Geert Hofstede added this Dimension
                          after the original study, and it has been applied to twenty-three
                      of the fifty original countries in the study.  The
                        Buddhist/Shinto Countries of Taiwan and Japan have LTO
                        as the most closely correlating Dimension. 
                    Catholic – In
                                the countries that have over 50% of their populations
                                practicing the Catholic religion we found
                              the primary correlating Dimension to be Uncertainty Avoidance
                              (UAI). There were two countries out of twenty-three that
                              did diverge from this correlation, Ireland and the Philippines.
                          (See Graph below) 
                    
 
 Recalling the characteristics of countries with high UAI
                            scores, they have a low tolerance for ambiguity. This creates
                            a highly rule-oriented society that institutes laws, rules,
                            regulations, and controls in order to reduce the amount
                      of uncertainty within the population.  
                    Christian – For
                                  this study, the definition for a Christian country indicates
                                  it has a population of over
                                50% that practice some form of Christianity, other than
                                Catholicism. In this group, the primary correlation was
                                a high Individuality (IDV) score from the Hofstede study.
                          (See Graph below) 
                    
 
 This
                                indicates that predominantly Christian countries have
                                a strong belief in individuality, with individual’s
                              rights being paramount within the society. Individuals
                              in these countries may tend to form a larger number of
                      looser relationships. 
                    Hindu -
                                    There is only one country with over 50% of its population
                                    practicing the Hindu religion – India.
                                  The Hofstede Dimension that correlates most with the Hindu
                                  religion is Power Distance (PDI), the same as the Atheists
                                  in China and the Muslims. (See Graph below) All three have
                                    a high level of Power Distance as the highest correlating
                                    cultural
                                    Dimension
                          with religions. 
                    
 
 
                    Jewish -
                                      The Country of Israel’s closest correlating
                                    Hofstede Dimension is Uncertainty Avoidance (UAI), approximating
                                    the results for both Catholic and Buddhist/Shinto countries.
                          (See Graph below) 
                    
 
 
                    Muslim – Again,
                                        we have identified a country as being predominantly Muslim
                                        if over 50% of its population
                                      are practicing Muslims. For this group, the Hofstede Dimensions
                                      for the ‘Arab World’ were utilized with a high
                                      correlation between the Muslim religion and the Hofstede
                                      Dimensions of Power Distance (PDI) and Uncertainty Avoidance
                          (UAI) scores. (See Graph below) 
                    
 
 The combination of these two high scores (UAI) and (PDI)
                                    create societies that are highly rule-oriented with laws,
                                    rules, regulations, and controls in order to reduce the
                                    amount of uncertainty, while inequalities of power and
                                    wealth have been allowed to grow within the society. These
                                    societies are more likely to follow a caste system that
                      does not allow significant upward mobility of its citizens. When
                                      these two Dimensions are combined, it creates a situation
                                    where leaders have virtually ultimate power and authority,
                                    and the rules, laws and regulations developed by those
                                    in power, reinforce their own leadership and control. It
                                    is not unusual for new leadership to arise from armed insurrection – the
                                    ultimate power, rather than from diplomatic or democratic
                                    change. 
                                                             Here is a summary of the results:  Atheist = Power DistanceHindu = Power Distance
 Muslim = Power Distance
 Buddhist = Uncertainty AvoidanceCatholic = Uncertainty Avoidance
 Jewish = Uncertainty Avoidance
 
 Christian = Individualism
 Note: No religion correlates with the Masculinity Dimension.  
 What
                      we see in this study is not surprising - there is a high
                      level of correlation between a country’s predominant
                    religion and one of the Hofstede Dimensions. This correlation
                    is validated in non-associated countries around the world,
                    i.e. comparing Catholic countries in Latin America to Catholic
                    countries in Europe.  Therefore, for those individuals who work in international
                    business, it is paramount to clearly understand and accept
                    the deeply ingrained ideas, beliefs, and attitudes of each
                    country and culture. For these are not based just on culture
                    alone, but also on religion. And, religion is a belief system
                    that cannot be challenged or changed with any form of logic,
                    education, or training.  IF conflicts and disagreements are analyzed from the perspective
                    of a combination of their cultural and religious foundations,
                    the disagreements frequently become more understandable.
                    It also becomes clear that resolution will be extremely difficult,
                  whether on a world scale, or a business-negotiating table.  Send
                  us your feedback@ibc-mail.com  
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                        Resource Spotlight? Each
                      month we Spotlight a free resource for  readers that focuses
                      on Global business. 
  International
                          Success Tips by Kimberley Roberts  Doing
                      business around the world has been streamlined with telephone
                      calls, e-mails and video conferences. But the importance
                      of a personal meeting with associates and clients will
                      never be replaced by modern technology. At times the meeting
                      will be between, or among, trusted colleagues who have
                      done business together for years. At other times, a first
                      meeting will be taking place with the hope of establishing
                      a beneficial and rewarding relationship.
 When
                      a meeting is scheduled with people from other cultures,
                      it’s wise to be cognizant of that culture’s
                      protocol. To establish a professional tone for the meeting
                      and make a good first impression, become familiar with
                      the standard greeting for the country, or the cultural
                      group within the country, you will be meeting.  The
                      handshake is used as a greeting throughout the world. In
                      western countries it’s the standard, and in other
                      countries it has replaced the more traditional greeting.
                      For countries that may use the handshake, in addition to
                      a traditional greeting, it is nice to know both. Then,
                      when greeting the other person, pause and wait for a clue
                      as to which greeting you should use.  Men
                      are safe in extending a hand to another man. However, the
                      rules may change when a man greets a woman; or a woman
                      greets a man, or even another woman. Following are several
                      tips that will simplify the greeting and give you some
                      helpful information. 
                     -
                        Germany and the United States have firm handshakes, with
                        the German being very brief and the US being about three
                        to four seconds
 - France, Guatemala, and Japan have more limp handshakes
 
 - Singapore has a longer handshake (10+ seconds)
 
 - Women should be the first to offer a hand for a handshake in New Zealand,
    Singapore, South Korea, or Taiwan
 -
                        In South Korea, more respect is shown by cupping your
                        left hand under your right forearm, as if supporting
                        your right forearm during the hand shake
 - A traditional bow may be used in China,
                                    Hong Kong, or Japan
 
 - Traditional greeting in India is namaste
                                    -place the hands in a praying position, palms
                                    together with the fingers just beneath the
                                    chin, bow and
      say namaste
 
 - Traditional greeting in Thailand places
                                    the hands, palms together, in front of the
                                    chin, bow the head to touch the top of the
                                    fingers, and say Wai
 
 - Women may greet other women by patting the right
                              forearm or shoulder in Chile, Costa Rica, El Salvador,
                    Honduras, Mexico, Nicaragua, or Panama
 -
        Countries with Hindu and Muslim religions forbid public contact between men
        and women. When in these countries, follow your host’s cue to determine
        if religious tradition will be followed.
 - Women should wait for a man to offer his hand first in a Hindu or Muslim
        country, if a western handshake is going to be used
 As
                      you can see from this list, even people in countries that
                      have religious beliefs forbidding public contact between
                      men and women may use the handshake as a business greeting
                      when meeting a businessman or businesswoman.  To
                      be professional each time you meet with people from countries
                      or cultures that have these strong religious beliefs, don’t
                      assume the handshake will be the appropriate greeting.
                      Anticipate the situation and what greeting options may
                      be needed. Then in a relaxed and confident manner, follow
                      the clue from the meeting’s host. 
                   Send
                  us your feedback@ibc-mail.com 
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