The culture differences between Sony and B&O
The focus of our comparative analysis lies on two multinational corporations
competing within the business of audio-video equipment. The two corporations are
the Japanese company, Sony, and the Danish company, Bang&Olufsen (B&O). These
two corporations were chosen primarily because the two were in the same business
which sets the basis for our comparison. Secondly, we feel that the Japanese and the
Danish culture appear to be very dissimilar. Finally, we chose the two because of the
accessibiliy of useful information regarding them.
As Sony and B&O are in the same business, one can discuss to some degree, that
these two companies are competing for same customer groups; Sony is high volume
orientated, whereas B&O is using a strategy of focus. B&O is differentiating itself by
offering distinctive products with focus on design that appeal to high-scale customers.
Although the two companies are not targeting on the same market, their business
environment is similar in the aspect that they both produce high quality audio-video
equipment targeted to the global market. Because of the distinct difference in national
backgrounds of the two and despite somewhat different marketing strategies, we
believe it will be interesting to compare the two.
Power distance
The first dimension in a "natural" culture, called Power Distance, indicates to
what extent the society accepts that an organizations is controlling the power, and the
organization is distributing this power in its particular way. This belief is reflected in
the minds of both powerful as well as less powerful members of the society. The
dimension can be considered as the degree of inequality among people in a country
that is "accepted" by the people of that specific country. This ranges from relatively
equal to extremely unequal. We have chosen the following examples as extreme
examples of how the mindset of the society of a country could be. This is as said "the
extremes," therefore, almost everybody should fit into somewhere between the two
extremes:
Table : The Power Distance Dimension
Small Power Distance Large Power Distance
Superiors consider subordinates to be
people like me.
Superiors consider subordinates to be a
different kind of people.
The power should be legitimate and is
subject to the judgment as to whether it is good
or evil.
Power is a basic fact of society that
antedates good or evil. Its legitimacy is
irrelevant.
The way to change the a social system is
to redistribute power.
The way to change a social system is to
dethrone those in power.
The scores for the Power Distance dimension are respectively; 20 for Denmark’s
concern, and 54 for Japan. Hofstede has categorized the results on every dimensions
of the countries into the following three categories: high, medium and low. One thirds
of all the countries is represented in each category. The results in the Power Distance
dimension puts Denmark into the category of low Power Distance culture, although
Denmark is near to the category called medium in which Japan is presently
represented.
The problem-formulation listed five hypotheses. The hypotheses are our
expectations pertaining differences in the HRM approach of Sony and B&O. But how
exactly will these differences reveal themselves in relation to human resource
management in the respective companies and Hofstede’s five dimensions?
Our first hypothesis expects the power distance in Sony to be larger than that in
B&O We assume this will reveal itself by the following characteristics:
Sony has a higher pay differentials between boss and employees.
Sony has more formal relationship and formal communication.
B&O’s employees generally have more informal relationship with
their employer.
Individualism
The second dimension is individualism. It concerns the degree to which people
in a country prefer to act as an individual or as a member of a group. The opposite
extreme to individualism is collectivism. Collectivism is characterized as low
individualism. In a collectivist-oriented culture one learns to respect the group. It is
typically family, organization, or clan that serves as a platform for a group, and one
learns to respect the members. One expects a group to protect themselves as its
members. As a member of a collectivistic culture, one differentiates between in-group
members and out-group members. In countries with a individualistic culture, one is
educated to think of oneself as "I" instead of as a part of "we." One learns how to
stand on one’s own feet, and accordingly, feels a very low loyalty to the group. On the
other hand, one also doesn’t expect that the group will stand up for one in retuen. The
extremes on the Individualism-collectivism dimension, in a negotiation perspective is
described in the following:
Table : The Individualism Dimension
Collectivist Individualistic
Friendship are predetermined by stable
social relationships, but there is need for
The need is for specific friendship
prestige within these relationships
"We" consciousness hold sway "I" consciousness hold sway
There is emotional dependence of
individual on organizations and institution
There is emotional independence of
individual on organizations and institution
There is also a difference between the Individualism dimension. Denmark has
scored 75 on this dimension. As Denmark is considered as a "high individual culture,"
Denmark differed somewhat from Japan which only scored 46, which indicated a
medium collectivistic culture.
In relation to our hypothesis, the values of B&O compared with that of Sony is
more individualistic; we expect following findings:
Sony is, to a higher extent, looking for potential employees with
teamwork-skills.
The one time annual hiring done by Sony creates a belonging to a
group of a certain group year.
Bonus and salary are based on seniority and department- and
company-performance.
B&O’s salary are based on individual performance.
Training-sessions in Sony try to create teamwork by excursions,
parties etc.
Sony try to occupy their employees in their spare time.
Masculinity
The third dimension is called masculinity, and its opposite pole is femininity, just
as the collectivism was the opposite pole to individualism. The dimension explains to
what degree the "tough" values (masculine values) prevails over the "tender" values
which are associated with the role of women. The "tough"/masculine cultural values
cover such areas as money, assertiveness, performance, success and competition. The
"tender"/feminine values are values like quality of life, maintaining warm personal
relationships, service, a care for the weak, and solidarity. Although roles of women
and men differ from country to country, the masculine societies are characterized by
the larger differences between the role of men and women. The most relevant and
extreme poles on the masculinity are listed below:
Table : The Masculinity Dimensions
Feminine Masculine
Sex roles in society are more fluid Sex roles in society are early
differentiated
People and environment are important Money and things are important
One sympathizes with the unfortunate One admire the successful achiever
The margin between the scores for Denmark and Japan on the masculinity
reveals a large difference in relation to this particular category. The score is 17 for
Denmark, indicating one of the most feminine countries, whereas Japan is the most
masculine country with a score of 95.
Assuming that the values of Sony is much more masculine compared with that of
B&O, by putting this into the perspective of HRM-strategies it could reveal itself by
following:
In the management in B&O there is a higher percentage of women
Women in Sony are not recieving the same amount of training as the
male counterparts.
Women in Sony are getting a lower salary compared to their male
counterparts
Men and women are provided in B&O equal opportunities for
promotion
Sony’s employee value salary as the most important motivator
Competition within Sony is tougher than in B&O
Sony tries to create a more competitive atmosphere within the
company
Uncertainty Avoidance
The fourth dimension is labeled uncertainty avoidance, and refers to the extent to
which people prefer structured vagainst unstructured situations. A structured situation
is one characterized by many rules, and an individual employee always knows what
he/she should behave and what is expected of him/her in a specific situation. The
rules can be written or unwritten, similar to traditions. The main thing is that
individuals are aware of these rules. Countries which score high on uncertainty
avoidance have much nervous energy towards the unknown. Countries which score
low on the dimension consists of people that are characterized as more "easy going".
A weak uncertainty avoidance can be characterized as more flexible culture.
Table : The Uncertainty Avoidance Dimension
Weak uncertainty avoidance Strong uncertainty avoidance
The uncertainty in life is more easily The uncertainty inherent in life is felt as a
accepted and each day is taken as it comes. continuous threat that must be fought.
Deviation is not considered threatening;
greater tolerance is shown
Deviant persons and ideas are dangerous ;
intolerance holds sway
There is a more willingness to take risks
in life
There is great concern with security in life
The Uncertainty avoidance dimension indicates a large difference between
Denmark and Japan, and perhaps ultimately between Sony and B&O. Denmark is
categorized as a low certainty avoidance country (a score of 26) and Japan falls under
the label of high certainty avoidance countries (a score of 92).
The HRM policies in B&O is reflecting a lower degree of uncertainty avoidance
than in Sony. Some areas of HRM that we are able to measure a lower degree of
uncertainty avoidance are:
The Sony employee has a higher extent of guidance during training.
Sony checks the performance of their employee more frequently.
B&O’s ETD is left to the individual employee.
Long-term employment is relatively more important for an
employee of Sony
Long term orientation
The fifth and last dimension in the "extended" framework is long-term vs.
short-term orientation. Countries which score high on this dimension value future
obligations, and future opportunities. The countries which score low can be
characterized as short-term oriented. They are oriented towards the present and
consider the following as important: experience and fulfilling social obligations. We
find the following three factors as the most important polar extremes regarding to
HRM.
Table : Long Term Orientation
Long Term Orientation Short Term Orientation
Opportunities and relationships is
evaluated on future possibilities
Opportunities and relationships is
evaluated on past experience
Relationships is more important then
experience
Experience is more important then
relationships.
Opportunistic behavior is often ex-post Opportunistic behavior is often ex-ante
As this dimension has not yet been measured in Danish corporations, we make
an assumption that Denmark lies in between Holland and Germany in the interval of
31 to 44, which Hofstede categorizes as the medium group. The differences between
Denmark and Japan on this dimensions is relatively large, as Japan scores 80. Its not
surprising that Japan scores high on this dimension, keeping in mind, this dimensions
is "rooted" in the values of Confucius, the Chinese philosopher of 500 BC. However,
Japan does score lower than many of the Southeast Asian countries.
Compared to B&O, Sony has longer term orientation. But what implications
does this have on HRM? We think the following could indicate a longer term
orientation.
B&O believes that international experience outside of the company
is a plus to an employee.
Sony values the importance of employee training as the company
expects to have the employee for a long term
Sony´s management is recruited from within the company
B&O is more likely to hire experienced persons.
Summary
As discussed above, the cultural differences between Denmark and Japan are noticeable.
These differences have background in history, geographic influence and several other factors. The
Japanese culture profile could be overall defined as medium on Power Distance and Individualism
and high on the remaining three dimensions. Denmark can be defined as having low Power
distance and low Uncertainty Avoidance, high on Individualism, very feminine and medium term
oriented.
