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Long Term vs Short Term
This is the last dimension discovered in the Hofstede Model . By
looking at the terms itself, we can
easily defined thatthis dimension is only a matter of time. Long
term behavior will focusing on the future
while short term applied to time perspectives by solving
obstacles with time, if not with will and
strength. Many people did not know that the origin of this
dimension is strongly related to the theory of
Confucianism. Now the question is, what is Confucianism theory
and how is it related?
According to Itim International ,an international consulting
organization that utilized Prof Hofstede s
concept , in their website stated that this dimension is
discovered base from a questionnaire design by
Chinese scholars among students in 23 countries around the
globe. Both values in this dimension are
applied in the confusias philosophy by a great Chinese
philosopher. Hence, this dimension is mostly
used in ASEAN countries who have Confucian heritage.
To put it in a nutshell, Hofstede has his own opinion in
explaining this dimension. Long Term Orientation
stands for the fostering of virtues oriented towards future
rewards, in particular perseverance and thrift.
It s opposite pole, Short Term Orientation, stands for the
fostering of virtues related to the past and
present, in particular, respect for tradition, preservation of
face and fulfilling social obligations.
Hofstede (2001), Culture s Consequences, 2nd ed., p 359
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Now as we already know what is the definition of long and short
term, let us look on how this dimension
is related to management in organization. In real life, there
are lots of differences in people s cultures
geographically. It is their practice and believe in everyday
life. However, in the modern world today,
business will never acknowledge barrier. Every seconds billions
of transaction occurs around the world
and millions of agreements declared between countries. Hence, in
order to succeed it is very important
for organization to fully understand the difference in national
cultures and ways to respect and adapt
with it when dealing. In other words, this differences will
directly impact people management in an
organization.
Hofstede helps us to encounter the differences using this
dimension. For example, the ASEAN countries
rather choose long term dimension. On the other hand, most
western Europe countries apply short
term dimension. Let us discuss more about this dimension by
taking United States and China
management as our model reference.
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W e can clearly see the difference in the long term dimension of
both countries. Referring to Appendix
A.2, China leads the LTO by 115% meanwhile US only applied 29%
LTO dimension. That means in China,
the managers often accepting profit after a long period
meanwhile the people management in US would
like to see quick results. China is a giant economical power in
the world. It has become the largest
global recipient of foreign direct investment in recent years
(UNCTAD, 2003). annual sales revenues for
these ventures increased by $227 billion (China s National
Bureau of Statistics,2004). So how can the
international venture sustain their investment in a foreign
country like China? They design their
management back according to the culture in China. For example,
if company A from US want to have
an agreement with company B in China, they need to understand
that management culture of people in
company B are looking forward on future investment and
profitability. Hence, company A will focusing
their management in China by concentrating more to the long term
profitability.
