GEERT HOFSTEDE CULTURAL DIMENSIONS:

For those who work in international business, it is sometimes amazing how different
people in other cultures behave. We tend to have a human instinct that 'deep inside'
all people are the same - but they are not. Geert Hofstede's research gives us
insights into other cultures so that we can be more effective when interacting with
people in other countries.

When negotiating in Western countries, the objective is to work toward a target of

mutual understanding and agreement and 'shake-hands' when that agreement is
reached - a cultural signal of the end of negotiations and the start of 'working
together'.

HOFSTEDE’S FIVE CULTURAL DIMENSIONS:

Power Distance Index (PDI) that is the extent to which the less powerful members
of organizations and institutions (like the family) accept and expect that power is
distributed unequally. This represents inequality (more versus less), but defined from
below, not from above. It suggests that a society's level of inequality is endorsed by
the followers as much as by the leaders.

Individualism (IDV) on the one side versus its opposite, collectivism, that is the
degree to which individuals are integrated into groups. On the individualist side we
find societies in which the ties between individuals are loose: everyone is expected
to look after him/herself and his/her immediate family.

Masculinity (MAS) versus its opposite, femininity refers to the distribution of roles
between the genders which is another fundamental issue for any society to which a
range of solutions are found. The IBM studies revealed that (a) women's values differ
less among societies than men's values; (b) men's values from one country to
another contain a dimension from very assertive and competitive and maximally
different from women's values on the one side, to modest and caring and similar to
women's values on the other.

Uncertainty Avoidance Index (UAI) deals with a society's tolerance for uncertainty
and ambiguity; it ultimately refers to man's search for Truth. It indicates to what
extent a culture programs its members to feel either uncomfortable or comfortable in
unstructured situations.

Long-Term Orientation (LTO) versus short-term orientation: this fifth dimension

was found in a study among students in 23 countries around the world, using a
questionnaire designed by Chinese scholars It can be said to deal with Virtue
regardless of Truth.
Geert Hofstede analysis for China:

Geert Hofstede analysis for China has Long-term Orientation (LTO) the highest-
ranking factor (118), which is true for all Asian cultures. This Dimension indicates a
society's time perspective and an attitude of persevering; that is, overcoming
obstacles with time, if not with will and strength.

The Chinese rank lower than any other Asian country in the Individualism (IDV)
ranking, at 20 compared to an average of 24. This may be attributed, in part, to the
high level of emphasis on a Collectivist society by the Communist rule, as compared
to one of Individualism.The low Individualism ranking is manifest in a close and
committed member 'group', be that a family, extended family, or extended
relationships. Loyalty in a collectivist culture is paramount. The society fosters strong
relationships where everyone takes responsibility for fellow members of their group.
China’s religion is officially designated as Atheist by the State, although the concepts
and teachings of the ancient Chinese philosopher Confucius (500BC) are woven into
the society at large. Some religious practice is acceptable in China; however, the
government sets rigid limits.

Geert Hofstede analysis for India:

India has Power Distance (PDI) as the highest Hofstede Dimension for the culture,
with a ranking of 77 compared to a world average of 56.5. This Power Distance
score for India indicates a high level of inequality of power and wealth within the
society. This condition is not necessarily subverted upon the population, but rather
accepted by the population as a cultural norm.

India's Long Term Orientation (LTO) Dimension rank is 61, with the world average at
48. A higher LTO score can be indicative of a culture that is perseverant and
parsimonious. India has Masculinity as the third highest ranking Hofstede Dimension
at 56, with the world average just slightly lower at 51. The higher the country ranks in
this Dimension, the greater the gap between values of men and women. It may also
generate a more competitive and assertive female population, although still less than
the male population.India's lowest ranking Dimension is Uncertainty Avoidance (UAI)
at 40, compared to the world average of 65. On the lower end of this ranking, the
culture may be more open to unstructured ideas and situations. The population may
have fewer rules and regulations with which to attempt control of every unknown and
unexpected event or situation, as is the case in high Uncertainty Avoidance
countries.

Geert Hofstede analysis for Pakistan:

There is a high correlation between the Muslim religion and the Hofstede
Dimensions of Power Distance (PDI) and Uncertainty Avoidance (UAI) scores.

The combination of these two high scores (UAI) and (PDI) create societies that are
highly rule-oriented with laws, rules, regulations, and controls in order to reduce the
amount of uncertainty, while inequalities of power and wealth have been allowed to
grow within the society. These cultures are more likely to follow a caste system that
does not allow significant upward mobility of its citizens.

When these two Dimensions are combined, it creates a situation where leaders have
virtually ultimate power and authority, and the rules, laws and regulations developed
by those in power, reinforce their own leadership and control. It is not unusual for
new leadership to arise from armed insurrection – the ultimate power, rather than
from diplomatic or democratic change.

Criticism:

McSweeney’s critique (2002) rejects Hofstede’s model and finds national culture
implausible as a systematically causal factor of behaviour. His critique is examined
for its useful warnings to those who follow Hofstede’s research and for its logical
consistency. A paradigmatic perspective identifies where McSweeney argues
against Hofstede’s logic and where he rejects Hofstede’s paradigm and premises.
This indicates that both the functionalist and other paradigms are needed for future
research into national culture and for understanding social behaviour in different
national cultures.

References:

Critique of Hofstede's Fifth National Culture Dimension,International Journal of Cross

Cultural Management December 1, 2003 3: 347-368

Cross-cultural Differences in Compensation Level and Inequality across

Occupations: A Set-theoretic Analysis Organization Studies January 1, 2011 32: 85-
115

Hofstede, Geert (2001). Culture's Consequences: comparing values, behaviors,

institutions, and organizations across nations (2nd ed.)

Hofstede, Geert; Hofstede, Gert Jan (2005). Cultures and organizations: software of
the mind (Revised and expanded 2nd ed.). New York: McGraw-Hill.

McSweeney, Brendan (January 2002). "Hofstede's Model Of National Cultural

Differences And Their Consequences: A Triumph Of Faith - A Failure Of Analysis".
Human Relations 55 (1): 89–118.