Chapter 5 CONCLUSIONS AND SUGGESTIONS
5.5 Conclusions
The purpose of this study was to contribute to Hofstede’s description of national culture differences by measuring the relative importance of HPD, MAS and LTO from the point of view of Mongolian employees, the statistical analysis found significant differences between levels of dissatisfaction in situations pertaining to HPD and LTO as well as between those pertaining to MAS and LTO yet no difference between HPD and MAS from the sample.
The finding of this study in particular, identifying LTO as least impactful difference contradicts Barkema and Vermeulen (1997)’s finding, whose study found LTO difference as having the most detrimental effect on survival of international joint ventures. Nevertheless, the contradiction is not surprising since this study looked at cultural value differences’ effect on people not on organizations as already discussed in the literature review. Thus, the results of this study to a certain extent add new knowledge into Hofstede’s cultural framework by shedding some light on relative importance of cultural values from a particular nation’s viewpoint as well as a methodology that might be employed to quantify those differences.
Further, results from the second part of the survey that was administered during this study
suggests certain key points with regard to workplace situations about which Mongolia employees in general more likely to feel unsatisfied; those practical suggestions can be seen from the managerial implication section.
It is worth emphasizing that the existing cross-cultural literature indicates that even though national cultural studies delineate nations on certain dimensions and offer dissimilarities to foreign executives and managers, cross-cultural researchers have recently noted that only knowing national differences are not sufficient. Also, the researcher of this study noted that if there are more than one cultural value differences, the question of which one cultural value is perceived as having most impact remains unknown even though the relative size of the gaps between indices may suggest that they do not have an equal impact.
For more than a decade, Chinese entrepreneurs have been increasingly coming to Mongolia and have struggled to manage local employees. As a result, they mostly prefer Chinese workers because Mongolian culture entails radically different characteristics which were evidenced by two replications of Hofstede’s IBM study. It was in this connection that, this study was initiated, but at this point, it could still not decisively answer the question regarding which cultural value has the most impact. Yet it discovered that among the sampled respondents, LTO differences have least effect on Mongolian workers in comparison with MAS and HPD differences. However, we believe that a future researcher may be able to find an answer for the question regarding the wider Mongolian workplace.
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Appendix A
Монгол Улсад Оршин Сууж Байгаа Гадаадын Иргэд/Улсаар/
Table 1 source: Mongolian
immigration-http://immigration.gov.mn/index.php?module=menu&cmd=content&id=216&menu_id=137 2011)
Гадаадын Иргэд Монгол Улсад Оршин Суух Зөвшөөрөл Олгосон Байдал
/2012 он Статусаар/
Table 2 source: Mongolian
immigration-http://immigration.gov.mn/index.php?module=menu&cmd=content&id=213&menu_id=137
МОНГОЛ УЛСАД БҮРТГЭГДСЭН ГХО-ТАЙ КОМПАНИЙН ТОО - САЛБАРААР
№ Салбарын нэр % Total 1990-2004 2005 2006 2007 2008 2009 2010 2011 2012.
06.30 1 Худалдаа, нийтийн хоол 67.9 8,232 969 522 1,112 1,505 1,515 572 731 872 434
2 Бусад 12.4 1,504 860 297 262 21 3 15 14 15 17
3
Геологи, уул уурхайн
эрэл хайгуул, олборлолт 3.4 413 272 27 22 23 4 12 14 22 17
Table 3 source: http://www.mongolchamber.mn/
МОНГОЛ УЛСАД БҮРТГЭГДСЭН ГШХО - УЛСААР
1000 ам.дол
№ Улсын нэр % Total 1990-2004 2008 2009 2010 2011 2012.06.30
1 БНХАУ 31.71 3,650,996.96 441,786.38 497,800.88 613,058.80 176,038.36 1,015,265.04 167,496.52 2 Нидерланд 23.16 2,667,036.01 5,265.58 4,069.20 51,028.60 232,962.18 1,816,714.10 556,240.28 3 Люксембург 9.01 1,037,196.26 2,911.70 195.80 1,012.65 25,589.47 476,652.07 525,896.34 4 Виржини арлууд
(UK) 7.48 861,441.27 48,394.23 6,157.89 19,305.18 101,986.27 610,933.11 28,070.02 5 Сингапур 5.45 627,075.05 8,513.28 32,339.86 9,359.44 31,075.00 402,738.17 136,974.92 6 Канад 4.23 487,595.94 174,206.58 2,739.57 1,028.00 147,811.12 72,288.16 15,302.75 7 БНСУ 2.93 337,736.42 85,180.14 41,765.41 31,673.98 38,763.43 54,972.59 26,950.22 8 АНУ 2.54 292,657.89 45,725.48 6,466.89 2,571.52 13,911.20 127,238.95 49,728.36 9 БНХАУ
/Гонконг/ 1.80 207,007.21 25,033.35 1,757.81 11,032.44 80,148.35 54,366.84 25,289.38
Table 4 source: http://www.mongolchamber.mn/
Appendix B Characteristics of Cultures
Power Distance Index-PDI
Mongolia 7.4 China 80 East Asian Average 71
Table 1. Key Differences Between Low and High Power Distance
Societies: The Workplace
LOW POWER DISTANCE CULTURES HIGH POWER DISTANCE CULTURES
Hierarchy in organizations means an inequality of roles, established for convenience.
Hierarchy in organizations reflects existential inequality between higher and lower levels.
Power is decentralised. Power is centralised.
There are fewer supervisory personnel. There are more supervisory personnel.
There is a narrow salary range between the top and bottom of the organization.
There is a wide salary range between top and bottom of the organization.
Managers rely on their own experience and on subordinates.
Managers rely on superiors and on formal rules.
Subordinates expect to be consulted. Subordinates expect to be told what to do.
The ideal boss is resourceful democrat. The ideal boss is a benevolent autocrat or
"good father".
Subordinate-superior relations are pragmatic. Subordinate-superior relations are emotional.
Privileges and status symbols are frowned upon.
Status and privileges are normal and popular.
Manual work has the same status as office work
White-collar jobs are valued more than blue-collar jobs
(G. Hofstede & G. J Hofstede, 2005, p.59).
Masculinity
Mongolia 6.2 China 66 East Asian Average 57
Table 3. Key differences Between Feminine and Masculine
Societies: The Workplace
Resolution of conflict by letting the strongest win.
Rewards are based on equality. Rewards are based on equity.
Preference for smaller organizations. Preference for larger organizations.
People work in order to live. People live in order to work.
More leisure time is preferred over money. More money is preferred over leisure time.
Careers are optional for both genders. Careers are compulsory for men, optional for women.
There is a higher share of working women in professional jobs.
There is lower share of working women in professional jobs.
(G. Hofstede & G. J Hofstede, 2005, p.147).
Long-term orientation
Mongolia 28 China 118 East Asian Average 82
Table 5.
SHORT-TERM ORIENTATION LONG-TERM ORIENTATION
Immediate gratification required Deferred gratification Traditions are sacred and upheld Traditions adapt to change
Consumption values are taught Frugality and perseverance is taught
Spend Save or invest
Quick profits Building a lasting business income
Analytical thinking Synthetic thinking
Table 6. Key differences Between Short-and Long-Term Orientation
Societies: Business and Economics
Leisure time is important. Leisure time is not important.
Focus is on bottom line. Focus is on market position.
Importance of this year's profits. Importance of profits 10 years from now.
Managers and workers are psychologically in two camps.
Owner-managers and workers share the same aspirations.
Meritocracy, reward by abilities. Wide social and economic differences are undesirable.
Personal loyalties vary with business Investment in lifelong personal networks, guanxi.
Small savings quote, little money for investment.
Large savings quote, funds available for investment.
Investment in mutual funds. Investment in real estate.
(G. Hofstede & G. J Hofstede, 2005, p.225).
Appendix C
Study on cultural values effect on Mongolians in the workplace
This study intends to find out whether work-related cultural differences exist among people of the two nations particularly between those of Chinese employers and Mongolian employees while cooperating in Mongolia, and if there are differences what are the most serious ones from a Mongolian viewpoint. Your participation in this survey is voluntary and invaluable for our work, and supplied data will surely be anonymous and confidential.
Thank you for your contribution to our research.
First we would like to ask a few questions about you.
Q1.What is your gender?
a. Male b. Female Q2. What is your age?
a. 18-24 b. 25-29 c. 30-34 d. 35-39 e. 40-44 f. 45-49 g. 50-60 Q3. How many years you have worked in the current company?
___________
Q4. In what industry does your company operate?
___________
Q5. What is your highest level of education?
1. High school
2. Technical / vocational training 3. Bachelor degree
4. Master degree 5. Doctoral degree
The below statements are hypothetical, and in case you are involved in these situations in which circumstance how would you feel about them? Please indicate your satisfaction on each of these situations by rating them on a scale from #1 very satisfied to #7 very dissatisfied.
1 2 3 4 5 6 7
1. _____ Power in the organisation is centralized.
2. _____ The organization's structure is hierarchical.
3. _____ There is a wide salary range between top and bottom of the organization.
4. _____ There are more supervisory personnel.
5. _____ Managers rely on superiors and on formal rules.
6. _____ Managers tell exactly what to do instead of consulting.
7. _____ Conflicts are resolved by letting the most powerful win.
8. _____ The management is decisive and aggressive in the organization.
9. _____ Employees in the organization live in order to work.
10. _____ Rewards are based on equity.
11. _____ More money is preferred over leisure time.
12. _____ Careers are compulsory for men but optional for women.
13. _____ Management expects from you certain work values such as honesty, accountability, and self-discipline.
14. _____ Your boss willingly delays worker's material or social success or even short-term emotional gratification to prepare for the future.
15. _____ Profits 10 years from now are more important than today’s fulfillment.
16. _____ From boss's viewpoint leisure time is not important.
17. _____ Managers and workers share the same aspirations.
18. _____ Wide social and economic differences are undesirable.
Have you ever experienced any of these unpleasant situations in your real life? If so, could you thick the statement or the statements that match your real experiences. (More than one
statement can be ticked as long as you have encountered them) Power in the organisation is centralised
The organization's structure is hierarchical
There is a wide salary range between top and bottom of the organization There are more supervisory personnel
Managers rely on superiors and on formal rules Managers tell exactly what to do instead of consulting Conflicts are resolved by letting the most powerful win
The management is decisive and aggressive in the organization Employees in the organization live in order to work
Rewards are based on equity
More money is preferred over leisure time
Careers are compulsory for men but optional for women
Management expects from you certain work values such as honesty, accountability, and self-discipline.
Your boss willingly delays worker's material or social success or even short-term emotional gratification to prepare for the future
Profits 10 years from now are more important than today’s fulfilment From boss's viewpoint leisure time is not important
Managers and workers share the same aspirations Wide social and economic differences are undesirable