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In 1980, psychologist Geert Hofstede introduced the cultural dimensions theory

In 1980, psychologist Geert Hofstede introduced the cultural dimensions theory, which suggests that the behaviors of employees are based on the cultural norms and values of their country of origin. In total, he surveyed thousands of employees in 40 different countries and identified four initial clusters of cultural dimensions.
One of the cultural dimensions is called power distance. Power distance is the degree to which a country subscribes to a formal hierarchical structure and accepts an unequal distribution of power. In countries with high power distance, such as China and Russia, employees are more likely to accept decisions made by supervisors without criticism or resistance and less likely to approach or ask questions of supervisors. The opposite is true for countries with low power distance, like the United States. Imagine if an American employee publicly challenged a Chinese supervisor. If neither was aware of cultural differences, what kind of conflict might ensue? Hofstede’s theory illustrates how and why miscommunication and misunderstandings may occur in the workplace, especially if there is a lack of awareness about cultural differences.
In this Discussion, you will consider diversity-related challenges that occur in the workplace. As you do so, you will explore challenges related to ethnic and cultural differences, and dysfunctions among cross-cultural teams. You also will revisit the topic of discrimination from last week.

• Select a challenge related to workplace diversity to discuss. Examples include gender inequality, generation gaps, negative stereotypes, ethnic and cultural differences, discrimination, dysfunctions among cross-cultural teams, sexual harassment.
• Find a recent news story about an organization or industry struggling with this challenge.

Full Answer Section

Walmart's management attempted to transplant its U.S.-based corporate culture without adaptation, leading to several key points of contention:

Customer Service Norms: Walmart’s policy of having "greeters" at the door and its cheerful, almost overly-friendly customer service style were met with suspicion and ridicule by German shoppers, who are generally more reserved and prefer efficiency over enthusiasm.
Workplace Environment: Management tried to implement an American-style, upbeat corporate culture that included morning chants and employee-wide calisthenics. German employees, who value a clear distinction between their professional and personal lives, found these practices strange, infantilizing, and unprofessional.
Privacy and Personal Freedom: A particularly damaging conflict arose from Walmart's anti-fraternization policy, which prohibited romantic relationships between employees. This was viewed as an unacceptable intrusion into personal privacy by a German court, which ruled the policy illegal (Nienaber, 2017).

This news story perfectly illustrates the dangers of cultural unawareness. The U.S. has a relatively low power distance and a high level of individualism, which values a friendly, informal, and sometimes communal workplace atmosphere. In contrast, German culture, while also individualistic in many ways, maintains a stronger boundary between work and personal life. The failure to recognize these fundamental differences led to a breakdown in communication, employee alienation, and ultimately, a business failure. This case demonstrates that cultural differences are not just a matter of misunderstandings but can have severe, tangible consequences for an organization's bottom line.

Sample Answer

In today's globalized economy, the challenge of dysfunctions among cross-cultural teams and ethnic differences is a critical issue that can either fuel an organization's success or lead to its failure. Geert Hofstede’s theory provides a useful framework for understanding why miscommunication and conflict arise when cultural norms clash. A compelling news story that serves as a powerful case study for this challenge is Walmart's failed expansion into Germany. In the late 1990s, the retail giant Walmart entered the German market, aiming to replicate the phenomenal success it had in the United States. However, by 2006, after losing billions of dollars, the company withdrew from the country entirely. While a variety of business factors contributed to this failure, a significant and widely-documented cause was a profound cultural clash that caused friction with both German employees and consumers (Nienaber, 2017).