Application of Hofstedes Principle on Goldman Sachs in U.S.

A and China :
Based on Hofestedes principle, we can differentiate between the work culture of G.S in
countries like China and the work culture of G.S in the U.S.A. The different postulates on
which the comparison can be made are
Power Distance - Power distance means the distribution of power amog the different
members in the organization. It means basically the degree of importance associated
with each employee. Low power distance means equal distribution of power, whereas
high power distance means there is an unequal distribution of power among the
members. In G.S, U.S.A, all the employees had equal powers, equal opportunities to
grow, equal access to the leaders of the organization, which was not the case in GS,
China.

Uncertainty Avoidance - Uncertainty avoidance refers to the degree of tolerance to
changes , risks and uncertainties of people of various cultures. High uncertainty
avoidance means people are averse to any changes in the routine, taking risks, and
dealing with uncertainties, thereby minimizing the scope of innovation. People with
low uncertainty avoidance are those who are willing to take risks in life, who are
willing to adapt to the changes in the routine, and hence are very innovative. In G.S,
U.S.A, the uncertainty avoidance of its employees is very low, whereas in China, the
uncertainty avoidance of the employees of G.S is very high.

Individualism Collectivism - This refers to the degree to which individual people
can integrate themselves into groups and teams. U.S.A is one of the most
individualistic countries in the world, whereas in China, people tend to work in small
groups and remain loyal to the group more than their personal self. This trait is
evident among the employees of G.S, U.S.A, and G.S, China.




Masculinity This is one of the major differences prevalent across cultures. In the
U.S.A, men and women are given the equal status, that is both are expected to work in
office, to cook food, to do the household jobs, etc. But in Asian countries like China,
men are expected to be the bread-earner of the family, whereas the woman has to take
care of the household. Therefore, we see that the ratio of male is to female employees
in G.S , U.S.A is almost 1 : 1, with 48 % of the employees being women, but in G.S,
China, the ratio of male is to female employees is very high, about 9% of the
employees in G.S , China are women.

Orientation The people of U.S.A have long term orientations, that is their interests
are long term, they look to develop long term relations with their clients, which was
prevalent in G.S, U.S.A. But people of Asian countries maintain short term
relationships with their clients, if they are otherwise unknown to them. This trait was
existent in G.S, China.
Application of Maslows theory on Goldman Sachs in U.S.A and China :



Maslows hierarchy of needs states that the needs of human beings develop in a particular
order. People first look to satisfy their physiological needs and then gradually go on
satisfying their other needs. In G.S, U.S.A, the employees were motivated to work for the
respect which Goldman Sachs had, as an organisation. The employees in the U.S.A worked to
maintain the reputation of Goldman Sachs. In China, the employees worked to satisfy their
physiological needs, as normally the Asian people are motivated in the satisfaction of their
social needs.
Thus, the work culture of Goldman Sachs, in U.S.A and China is shown based on the
Hofestedes principles, and on Maslows hierarchy of needs. As Goldman Sachs is a multi-
national, multi-cultural organisation, there will be differences across countries, nations,
cultures in the working of the employees of Goldman Sachs.