1. Universalism vs.

Particularism
This dimension can be summarized by asking what matters more, rules or
relationships?
Cultures based on universalism try to treat all cases the same, even if they
involve friends or loved ones. The focus is more on the rules than the
relationship. Universalist cultures include Canada, the U.S., the U.K., and
Australia.

Cultures based on particularism will find relationships more important than

rules. You can bend the rules for family members, close friends, or important
people. Each case has to be examined in light of its special merits.
Particularist cultures include Latin America, Korea, China, and Russia.

2. Individualism vs.
Communitarianism
This dimension can be summarized by asking do we work as a team or as
individuals? Do people desire recognition for their individual achievements, or
do they want to be part of a group?
Individualistic cultures believe that your outcomes in life are the result of your
choices. In these cultures, decision makers make decisions and they don’t
need to consult to do so. Thus, decision makers can make decisions at speed.
It is your responsibility to look after your happiness and fulfillment.
Individualistic cultures include Canada, the U.S., the U.K., and Australia.

Cultures based on communitarianism believe your quality of life is better when

we help each other. Thus, these cultures organize themselves around groups.
There is a strong sense of loyalty within the group. As a result of this group
tendency, decision making is slower as everyone gives input. Job turnover will
be lower due to high group loyalty. The group gets rewarded for high
performance, not the individual. Communitarian cultures include Japan, much
of Africa, China, and Latin American countries.

3. Neutral vs. Affective

This dimension can be summarized by asking do we show our emotions?

In a neutral culture, people tend not to share their emotions. Emotions are of
course felt by the individual, but they are kept in check and controlled.
Observing these people you would consider them cool and rational. Neutral
cultures include Germany, Netherlands, and the U.K.
In an affective culture, people tend to share their emotions, even in the
workplace. In an affective culture, it considered normal that people share their
emotions. Examples of affective cultures include Italy, Spain, and Latin
America.

4. Specific vs. Diffuse

This dimension of Trompenaars Cultural Dimensions Model can be
summarized by asking how separate is our personal and professional life?
In a specific culture, people tend to keep their personal and work life separate.
These cultures don’t see an overlap between the two spheres. These cultures
tend to be schedule focussed and direct and to the point in their
communications. They focus more on the goal than the relationship.
Examples of specific cultures include Germany, the U.S., the U.K., and the
Netherlands.

In a diffusive culture, people tend to see their personal and work life as
interconnected. These cultures believe that objectives can be better achieved
when relationships are strong. As such, in these cultures work colleagues
socialize with each other outside of work more. These cultures are courteous
and respect age, status, and background more. Examples of diffusive cultures
include China, India, Argentina, and Spain.
5. Achievement vs. Ascription
This dimension of Trompenaars Cultural Dimensions Model can be
summarized by asking do we prove ourselves to get status or is it given to us?

In an achievement culture, you earn status through knowledge or skill. Job

titles are earned and reflect this knowledge and skill. Anyone can challenge a
decision if they have a logical argument. Examples of achievement cultures
include the U.S., the U.K., Germany, and Scandinavia.

In an ascription culture, you are given status based on who you are. This could be because of
your social status, your education, or your age. You earn respect in these cultures because of
your commitment to the organization, not your abilities. A decision will only be challenged by
someone with higher authority. Examples of ascription cultures include Japan, Italy, and France.

6. Sequential time vs. Synchronous

time.
This dimension can be summarized by asking, do things get done one at a
time or do many things get done at once?

In a sequential time culture, time is very important. People like projects to be

completed in stages. Time is money, and so it is important that each stage is
finished on time. It is rude to be late for meetings in these cultures. Examples
of sequential time cultures include the U.S., the U.K., and Germany.
In a synchronous time culture, people see the past, present, and future as
interwoven. Because of this people do several things at once, as time is
interchangeable. This results in plans and deadlines being flexible. It also
explains why punctuality is less important. Examples of synchronous time
cultures include Japan, India, and Mexico.
7. Internal direction vs. External
direction
This dimension of Trompenaars Cultural Dimensions Model can be
summarized by asking do we control our environment or are we controlled by
it?
In an internal direction culture, people believe that they can control their
environment to achieve their goals. The focus is selfish (one’s self, one’s
team, and one’s organization). Winning is important in these cultures and
aggressive personalities are thus prevalent. Examples of internal direction
cultures include the U.S., the U.K., and Australia.

In an external direction culture, people believe that they must work with their
environment to achieve their goals. In these cultures winning isn’t as important
as maintaining a strong relationship. They focus on environmental factors e.g.
relationships to achieve their goals. Examples of external direction cultures
include China, Russia, and Saudi Arabi

Multinational companies are faced with two opposing forces when designing the
structure of their organization. They are faced with the need for differentiation that
allows them to be specialized and competitive in their local markets. They are also
faced with the need to integrate. The structures adopted therefore have to find a
balance between these opposing needs and also remain in strategic alignment for the
company to thrive. Multinational companies have therefore evolved many structural
permutations to suit their business needs.

Subsidiary Model
Owning foreign subsidiaries is one of the most basic structural models of a
multinational company. The subsidiaries are self-contained units with their own
operations, finance and human resource functions. Thus the foreign subsidiaries are
autonomous allowing them to respond to local competitive conditions and develop
locally responsive strategies. The major disadvantage of this model however is the
decentralization of strategic decisions that makes it difficult for a unified approach to
counter global competitive attacks.

Product Division
Organizational structure of the multinational company in this case is developed on the
basis of its product portfolio. Each product has its own division that is responsible for
the production, marketing, finance and the overall strategy of that particular product
globally. The product organizational structure allows the multinational company to
weed out product divisions that are not successful. The major disadvantage of this
divisional structure is the lack of integral networks that may increase duplication of
efforts across countries.

Area Division
Organization using this model is again divisional in nature, and the divisions are based
on the geographical area. Each geographical region is responsible for all the products
sold within its region. Therefore all the functional units for that particular region namely
finance, operations and human resources are under the geographical region
responsibility.This structure allows the company to evaluate the geographical markets
that are most profitable. However communication problems, internal conflicts and
duplication of costs remain an issue.

Functional Structure
Functions such as finance, operations, marketing and human resources determine the
structure of the multinational company in this model. For example, all the production
personnel globally for a company work under the parameters set by the production
department. The advantage of using this structure is that there is greater
specialization within departments and more standardized processes across the global
network. The disadvantages include the lack of inter department communication and
networking that contributes to more rigidity within the organization.

Matrix Structure
Matrix organizational structure is an overlap between the functional and divisional
structures. The structure is characterized by dual reporting relationships in which
employees report both to the functional manager and the divisional manager. Work
projects involve cross-functional teams from multiple functions such as finance,
operations and marketing. The members of teams would report both to the project
manager as well as their immediate supervisors in finance, operations and marketing.
The advantage of this structure is that there is more cross-functional communication
that facilitates innovation. The decisions are also more localized. However there can
more confusion and power plays because of the dual line of command.

Transnational network
Evolution of the matrix structure has led to the transnational network. The emphasis is
more on horizontal communication. Information is now shared centrally using new
technology such as “enterprise resource planning (ERP)” systems. This structure is
focused on establishing “knowledge pools” and information networks that allow global
integration as well local responsiveness.

References

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