Hofstede’s Dimensions, measuring cultural differences between Australia and India

The past decade witnessed the radical increase in the interdependence and interaction between
nations. There has been a dramatic surge in the corporations managing offices and conducting
transnational activities throughout the globe, the rise of global businesses. As the cross-functional
teams transcend the national boundaries and become a cross-cultural center for business, cultural
awareness, its nuances, and intricacies become vital to corporate culture. An uninterrupted flow of
information and communication is pertinent to the success of any business. Effective interaction
within a multicultural workplace or a society demands an understanding of how people’s beliefs and
values may vary according to their cultural background their history.

Australia and India separated miles of ocean and years of history. Both nations have distinct pasts
and a quite contrasting way in which their cultures evolved over the years. India is a subcontinent
with a history dating back to 3500BC. The beliefs and values that guided Indian societies in the
prehistorian era still shape the present and the future for the nation. India is a multicultural
civilization that never ceased to exist. With one foot in the past, India is stretching the other leg
towards the future of a global superpower.

Contrary to this, Australia has a very different past. The last of the human-inhabited land to be
discovered by the “Conquistadors” of Europe in the 18 th century. Australia was originally home to
more than a quarter to million indigenous tribal people. Soon the race to colonialization and the gold
rush resulted in sailors from America, Europe, and China settling in the nation. Ideas of liberty,
justice, social welfare, business, economy, and human rights soon began to shape the new identity
of Australian society. And when the ANZAC (Australian and New Zealand Army Corps) fought side by
side in the trenches in the First World War against the monarchy of the Reich, the identity of the two
nations as the independent sovereign and republic state was born.

Dimensions of cultural differences were first introduced by Geert Hofstede, a Dutch social
psychologist. In theory, he wanted to measure the differential behaviors between diverse cultures.
According to him, there are six dimensions that could be studied and compared to draw contrasts
among different cultures.

 Power Distance Index

 Individualism versus Collectivism
 Masculinity versus Femininity
 Uncertainty Avoidance Index
 Long Term Orientation versus Short Term Normative Orientation
 Indulgence versus Restraint

Australia
India
The above graph summarizes the six dimensions and the contrast between the cultures in India and
Australia. The individual assessment of each of the cultural dimensions is done below.

1. Power Distance: measurement of the degree to which the lower section (in terms of economy
and opportunities) of the society expects and accepts the uneven distribution of the wealth,
privileges, and power. It expresses the attitude of the culture towards the inequalities. It helps
us get acquainted with the dependence relationship in a society or a business. In counties that
rank high on power distance, the true power is centralized, and it is ordinary for employees to
adhere to their supervisors and the responsibilities and opportunities delegated to them. In a
way, the inequalities are accepted. On the contrary, in low power distance countries, societies
and workplaces have subordinates that do not depend on their supervisors to the extent to
which the high power distance countries do.
India has a score of 77, highlighting the centralized power and appreciation for the hierarchy and
a top-down structure in an organization or society. Employees, more often than not, are
dependent on their supervisors for the direction. The manager, as a paternalistic leader, is
responsible for providing opportunities and delegation of responsibilities. He also gives meaning
to the work-life of his subordinates and often rewards and commands loyalty. Companies like
Tata Conglomerate have been following the top-down structure and management directive for
decades. Whereas Australia, with its low score of 38, is a low power distance country where the
dependency of the subordinates on their supervisors are meagre and mutual. As corroborated
through our interview, the subordinated feel comfortable in approaching seniors and have the
freedom to criticize the decision made. The workplace environment is openly challenging and
conducive for the free flow of ideas and opinions. A subordinate can make a decision without
conferring to his superior. Australians follow an egalitarian way of getting things done while
having a sense of balance in the visionary leadership style.

2. Individualism: measurement of the degree to which people are unified into unions and groups.
A cultural syndrome, collectivism, and individualism share a common outline of values, beliefs,
and attitudes. The fundamental aspect being evaluated here is the degree of interdependence
and the preservation of it in a society or a workplace. In simpler words, it defines the self-image
of its people in terms of “I” or “We.” In a high ranking, individualist society, people are expected
to look after themselves, and their scope of concern spans until their direct family only. Whereas
the collectivist society flourishes in the groups and the people take care of each other
India has a score of 48 and is a society with the traits of both individualism and collectivism. The
collective aspect of Indian society implies there is a high inclination for belonging to a larger
social context in which individuals are expected to act towards the greater good of all. Actions of
an individual are guided by various notions such as the opinion of one’s family, extended family,
neighbours, workgroup, and other such broader social networks. Australia on the other hand
with the score of 90, is an individualistic nation. A society where people are loosely attached and
independent in making their own choices. In a business setting, employees are expected to be
self-reliant and very little micromanagement is done. Employees also display leadership
characteristics by taking independent initiatives and they are encouraged to do so.

3. Masculinity: Despite all the controversy looming over the usage of the masculinity versus
femininity to be the cultural dimension. The dimension gives invaluable insights on the drivers of
the society. A high scoring nation in masculinity describes the society to be driven by
competition, achievement, and success. Material success, assertiveness, and toughness in
character are expected traits in the society. Whereas the low-ranking counties (feminine) are
 driven by the collective improvement of the quality of life. Modesty, tenderness and taking care
of one another are the dominant values of the society.
Australia scores 61 and is regarded to be a masculine society because their behaviours in
workplace and society are based on the shared values of “winner takes it all and “strive to be he
best you can be.” In a workplace, people take pride in their achievements in life and it is often
the basis for hiring and promotion decisions. Conflicts in a workplace are resolved at individual
level. On the contrary India with its score of 56 is a mix of both the masculine and the feminine
culture of the society. Display of power and success in quite common and ostentatious.
However, being a spiritual nation with age old religious philosophies and values, equal
importance to the humility and abstinence is given. Care giving and collective development is
preached and practised throughout the society.

4. Uncertainty Avoidance: measurement of the degree to which a society feels uncomfortable,

intimidated, and threatened by the uncertainty and ambiguity surrounding them. Having high
uncertainty index indicates a society more expressive and emotional, dislikes towards the
unexpected events and they tend to minimize the ambiguity by creating rules and planning. On
contrast the low uncertainty avoidance society tend to be more pragmatic and embrace any
uncertainty.
India with a score of 40 has a medium low preference for avoiding uncertainty. There is a
peculiar and yet common acceptance of imperfection in the society. It is not necessary that
everything has to go as planned and this thought process is shared. In India the tolerance for the
unexpected event is high and often greeted as a break from the repetitiveness. Phrases like
“bypass the system”, “juggad”, and “adjusting mentality” is quite popular and widely practised.
Australia ranks medium on uncertainty avoidance with the score of 51. Australian society is
tolerant towards ambiguities and display of aggression when faced with uncertainty is quite
rare.

5. Long term orientation: originally called the Confucian Dynamism, it is the measurement of the
degree to which the long term and short-term consequences and challenges are considered.
Societies with long term orientations are focussed on the future and practice delayed
gratification. They often sacrifice their short term emotional needs to pursue their future goals.
The short-term oriented societies give importance to the past and the present. They prefer to
preserve the time-honoured traditions and customs while being volatile, suspicious, and
apprehensive of the societal change.
Australia with the score of 21 is a short-term oriented nation or a normative culture. They value
personal stability and have great respect for traditions. They show relatively low inclination
towards saving for the future. Attitude is focused on achieving quick results and so for the
workplace as highlighted during the interview a lot of Australians are involved in the mining and
agriculture industry whereas for the corporate businesses they rely on outsourcing professionals
for the future outlook and growth. On the contrary India with a score of 51, is a long-term
oriented nation. Highlighting the prudent and perpetual attitude of the society, workplace in
India is mostly comprised on professionals joining and retiring from the same organization. Lack
of punctuality, tweaking strategy based on changing reality and a general comfort for the fated
path, “the Karma”, as one goes along is the dominant religious and philosophical thought and
practise.

6. Indulgence: measurement of the degree to which a society permits gratification of desires and
impulses. Nations ranking high on the dimension are often referred to as indulgent nations and
are characterised by the free indulgence of natural human drives, personal happiness and a
greater significance given to the free will and speech. On the other hand, the low ranking
countries referred to as restrained nations do not permit the free expression of thoughts,
emotions and opinions. Liberty, contentment, and leisure are given less prominence.
With score as high as 71, Australia can be considered as the indulgent nation. As revealed during
our interview, it is quite common for the companies to fund and serve alcoholic beverages in the
office. The break time or leisure is not defined or constrained as long the task at hand gets
completed within deadlines. The society in general has a positive attitude and often display
characteristics of optimism and tendency to enjoy life. On the contrary India with a low score of
26 is a restrained nation. Cynicism and pessimism towards the future and the people of power is
quite prominent. Restrained by social norms and sometimes orthodox beliefs, indulgence is
often frowned upon in the society. Workplace has strict rules and code of conduct which every
employee is expected to adhere to. Violation of these code of conduct often result in harsh
ramifications and sometimes termination of employment.

Thus, the analysis of the six cultural dimensions and the relative comparison of the two nations
reveal that the significant difference in the two culture lie in the dimensions like power distance,
individualism, and indulgence. The reasons for the stark contrast between the two cultures
could be derived from the origin and history of the two nations.