Hofstede

Five Cultural Dimensions Dimensions

Hofstedes Cultural Framework

1. Power Distance 2. Individualism vs. Collectivism 3. Masculinity vs. Femininity 4. Uncertainty Avoidance 5. Long Term Orientation

Power Distance
...the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.

Power Distance
High Power Distance
Those in authority openly demonstrate their rank. Subordinates are not given important work and expect clear guidance from above. Subordinates are expected to take the blame for things going wrong. The relationship between boss and subordinate is rarely close/personal. Politics is prone to totalitarianism. Class divisions within society are accepted.

Low Power Distance

Superiors treat subordinates with respect and do not pull rank. Subordinates are entrusted with important assignments. Blame is either shared or very often accepted by the superior due to it being their responsibility to manage. Managers may often socialise with subordinates. Liberal democracies are the norm. Societies lean more towards egalitarianism.

Power Distance at Work

Hierarchy Centralization Salary range Participation Ideal Boss Privilege & status symbols

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U.S.A. Canada Germany Japan France

PD

Netherlands Hong Kong Indonesia West Africa Russia P.R.C

Individualism vs. Collectivism

Individualist societies: ties are loose and everyone looks out for himself or herself Collectivist societies: people integrated into strong, cohesive groups; protection is exchanged for loyalty

Individualism / Collectivism
High Individualism
A person's identity revolves around the "I" Personal goals and achievement are strived for It is acceptable to pursue individual goals at the expense of others 'Individualism' is encouraged whether it be personality, clothes or music tastes The right of the individual reign supreme; thus laws to protect choices and freedom of speech

Low Individualism
"We" is more important that "I" Conformity is expected and perceived positively. Individual's desires and aspirations should be curbed if necessary for the good of the group. The rights of the family (or for the common good) are more important. Rules provide stability, order, obedience

Individualism / Collectivism at Work

Employee-employer relationship Hiring and promotion decisions Managerial focus Task vs. relationship priority

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U.S.A. Canada Germany Japan France

ID

Netherlands Hong Kong Indonesia West Africa Russia P.R.C

Masculinity vs. Femininity

Masculine societies: social gender roles are distinct (men focus on material success; women on quality of life) Feminine societies: social gender roles overlap (both quality of life)

Masculinity vs. Femininity

Low on the Masculinity
In life the main priorities are the family, relationships and quality of life Conflicts should ideally be solved through negotiation Men and women should share equal positions in society Professionals "work to live", meaning longer vacations and flexible working hours

High on the Masculinity

Life's priorities are achievement, wealth and expansion It is acceptable to settle conflicts through aggressive means Women and men have different roles in society Professionals often "live to work", meaning longer work hours and short vacations

Masculinity / Femininity at Work

Centrality of work Ways of managing & decision making Fem: equality, solidarity, quality of work life Mas: equity, compete, performance Conflict resolution

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U.S.A. Canada Germany Japan France

MA

Netherlands Hong Kong Indonesia West Africa Russia P.R.C

Uncertainty Avoidance
the extent to which the members of a culture feel threatened by uncertain or unknown situations. NOT the same as risk avoidance Presence of rules

Uncertainty Avoidance
High on Uncertainty Avoidance
Usually countries/cultures with a long history. The population is not multicultural, i.e. homogenous. Risks, even calculated, are avoided in business. New ideas and concepts are more difficult to introduce

Low on Uncertainty Avoidance

Usually a country with a young history, i.e. USA. The population is much more diverse due to waves of immigration. Risk is embraced as part of business. Innovation and pushing boundaries is encouraged

Ability to embrace ambiguity

Uncertainty Avoidance at Work

Necessity of rules Time orientation Precision & punctuality Interpretation of What is different Appropriateness of emotional displays

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U.S.A. Canada Germany Japan France

UA

Netherlands Hong Kong Indonesia West Africa Russia P.R.C

Idiosyncrasies of North American Management Theory

Stress on Market Processes
Stress on the Individual Stress on Managers rather than Workers

Long term Orientation (Confucian Dynamism)

The newest dimension three universal dimensions and two fourth dimensions Truth vs. Virtue: What one believes vs. What one does

Confucian Dynamism
Short-term orientation Social pressure to keep up with the Joneses small savings expect quick results concern with possessing Truth Long-term orientation Thrift: being sparing with resources large savings perseverance toward slow results concern with respecting the demands of Virtue

Hofstede Framework Comparisons

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U.S.A. Canada Japan Netherlands

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P.R.C

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MA

UA

LT