Hofstede explains this behavior by rendering it as Individualism or Collectivism. According to this theory, people find themselves deeply committed to a group, or assuming single, independent roles, just like the formation of the Japanese and American cliques. Friendship with Americans tends to be a shorter venture and is usually less intense due to excessive traveling, interstate and otherwise. Casual friendships are usually developed and it takes a very long time for that to turn into deep, serious relationships.
Another dimension that is clearly evident in the case of this organization is Power Distance. Since Fred is the Managing Director of the corporation, employees find it difficult to interact with him openly. Power distance can act as a potent deterrent to communication. While the Americans strongly took the floor for discussion and brought up their individualistic ideas, the Japanese considered it disrespectful not only to interrupt but to disagree with people who they consider their guests. In the states it is common to indulge with people higher you’re your respective rank, however, in Japanese, it is not considered very reverential. Since Fred’s rank has been openly communicated throughout the organization, most employees regard him in high esteem and are intimidated by his job title. This intimidation is often because of fear of being sacked, fear of being disgraced and openly misunderstood for speaking out of authority.
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