Teori Organisasi-Hosted

Hofstede’s Theory of
Organizational Culture
International Management
Andreea Dicu – Carmen Neghina - Alina Oprea - Teodora Vasileva

Agenda
Culture defined
Hofstede’s cultural dimensions
1) Power Distance
2) Uncertainty Avoidance
3) Individualism
4) Masculinity
5) Long-term orientation
Implications for management
Criticism
International Management / Andreea Dicu - Carmen Neghina - Alina Oprea - Teodora Vasileva 2
Culture and international business
▪ Why culture is important?

Culture defined
▪ Impacts the way strategic moves are presented. Hofstede’s dimensions

▪ Influences management, decision making, negotiations
1) Power Distance
▪ Culture makes international business difficult or easy
3) Individualism
4) Masculinity
Implications
Criticism
Globalization
Culture defined
Hofstede’s dimensions
1) Power Distance
3) Individualism
4) Masculinity
Implications
Criticism
What is culture?
Culture defined
Norms
Values 1) Power Distance
Beliefs
▪ Main features of culture: 3) Individualism
▪ Culture is shared 4) Masculinity

▪ Culture is intangible
▪ Culture is confirmed by others Culture
Implications
Criticism
Levels of culture
Culture defined
National Culture Hofstede’s dimensions
1) Power Distance
Business Culture 3) Individualism
4) Masculinity
Organizational and Implications

Occupational Culture
Criticism
Key Cultural Issues
▪ Cultural Etiquette – the manners and behavior that are

Culture defined
expected in a given situation

▪ Cultural Stereotypes – our beliefs about others, their 1) Power Distance
attitudes and behavior 2) Uncertainty Avoidance
▪ Ethnocentrism – looking at the world from a perspective 3) Individualism
shaped by our own culture 4) Masculinity
▪ Relativism – all cultures are good 5) Long-term orientation

▪ Cultural sensitivity
▪ Self-reference criteria Implications
Criticism
Universal cultural variables
Culture defined
Kinship Politics Hofstede’s dimensions
1) Power Distance
Economy Religion 3) Individualism
4) Masculinity
Education Recreation
Implications
Criticism
Hofstede’s Cultural Dimensions
Culture defined
1) Power Distance
Prof. Geert Hofstede 3) Individualism
4) Masculinity
C
“ ulture is more often a source of conflict than of synergy.
Cultural differences are a nuisance at best and often a
disaster.”
Implications
Criticism
Culture defined
Prof. Geert Hofstede
▪ Conducted perhaps the most comprehensive study of how values Hofstede’s dimensions
in the workplace are influenced by culture

1) Power Distance
▪ Analyzed a large data base of employee values scores collected
by IBM (HERMES) 2) Uncertainty Avoidance
▪ 1967 – 1973
▪ more than 50 countries 3) Individualism
▪ Developed a model that identifies four primary Dimensions to 4) Masculinity

assist in differentiating cultures:
1) Power distance 5) Long-term orientation
2) Uncertainty avoidance
3) Individualism
4) Masculinity Implications
+ Long-term orientation (added later)

Criticism
Hofstede’s work Culture defined
1) Power Distance
3) Individualism
4) Masculinity
Implications
Criticism
Power Distance
Culture defined
Power distance - The extent to which the 1) Power Distance
less powerful members of institutions
3) Individualism
and organizations within a country 4) Masculinity
expect and accept that power is 5) Long-term orientation
distributed unequally Implications
Criticism
Power Distance
Low power distance High power distance

Culture defined
Inequalities among people should Inequalities among people are

be minimized both expected and desired Hofstede’s dimensions
Interdependence between less and Less powerful people should be

1) Power Distance
more powerful people depended on the more powerful
Hierarchy in organizations means Hierarchy in organizations reflects 2) Uncertainty Avoidance
an inequality of roles the existential inequality
3) Individualism
Decentralization is popular Centralization is popular
Narrow salary range Wide salary range 4) Masculinity
Subordinated expect to be Subordinated expect to be told 5) Long-term orientation

consulted what to do
The ideal boss is a resourceful The ideal boss is a benevolent Implications
democrat autocrat or good father
Privileges and status are Privileges and status are both Criticism
disapproved expected and popular
Power Distance
High Culture defined

Malaysia
Arab Countries
Mexico
Orientation towards authority
India 1) Power Distance

France
Italy 2) Uncertainty Avoidance
Japan
3) Individualism
Spain
Argentina 4) Masculinity
US
Germany 5) Long-term orientation
UK
Denmark Implications
Israel
Low Austria Criticism
Power Distance
Culture defined
Example
▪ A company from Austria (low power distance) is considering Hofstede’s dimensions
entering the Mexican (high power distance) market. 1) Power Distance
3) Individualism
Power Distance Index

4) Masculinity
Implications
Criticism
Power Distance
Example (cont.) Culture defined
Communication tips for the Austrian manager: Hofstede’s dimensions
1) Give clear and explicit directions to those working with him 1) Power Distance
2) Deadlines should be highlighted and stressed 2) Uncertainty Avoidance
3) Do not expect subordinates to take initiative 3) Individualism
4) Be more authoritarian in his management style 4) Masculinity
5) Show respect and deference to those higher up the ladder 5) Long-term orientation
Implications
Criticism
Uncertainty Avoidance
Culture defined
1) Power Distance
Uncertainty avoidance – The extent to which
members of a society feel threaten by uncertain
3) Individualism
or unknown situations.
4) Masculinity
Implications
Criticism
Weak uncertainty avoidance Strong uncertainty avoidance

Culture defined
Uncertainty: normal feature of life Uncertainty : continuous threat

and each day is accepted as it comes that must be fought Hofstede’s dimensions
Low stress – subjective feeling of High stress – subjective feeling of

1) Power Distance
well-being anxiety
Aggression and emotions must not Aggression and emotions may be 2) Uncertainty Avoidance
be shown shown at proper times
3) Individualism
Comfortable in ambiguous situations Fear of ambiguous situations and
and with unfamiliar risk of unfamiliar risk 4) Masculinity
There should not be more rules than Emotional need for rules, even if
necessary they never work
Precision and punctuality have to be Precision and punctuality come
learned naturally Implications
Tolerance to innovation Resistance to innovation Criticism

Motivation by achievement Motivation by security
Greece
Japan
France 1) Power Distance
Korea
Desire for stability
Arab Countries 2) Uncertainty Avoidance

Germany
3) Individualism
Australia
Canada 4) Masculinity
US
UK 5) Long-term orientation
India
Denmark Implications
Singapore
Low Criticism
Example Culture defined
▪ A company from France (high uncertainty avoidance) is Hofstede’s dimensions

considering investing in Denmark (low uncertainty
1) Power Distance
avoidance)
Uncertainty Avoidance Index

3) Individualism
4) Masculinity
Implications
Criticism
Communication tips for the French manager:
1) Try to be more flexible or open in his approach to new 1) Power Distance
ideas than he may be used to 2) Uncertainty Avoidance
2) Be prepared to push through agreed plans quickly as they 3) Individualism
would be expected to be realized as soon as possible 4) Masculinity
3) Allow employees the autonomy and space to execute their 5) Long-term orientation
tasks on their own; only guidelines and resources will be

expected of him Implications
Criticism
Individualism
Culture defined
1) Power Distance
Individualism – The tendency of people to
look after themselves and their 3) Individualism
4) Masculinity
immediate family and neglect the needs
of society
Implications
Criticism
Individualism
Low individualism High individualism

Culture defined
Individuals learn to think in terms Individuals learn to think in terms

of “we” of “I” Hofstede’s dimensions
High-context communication Low-context communication

1) Power Distance
Diplomas provide entry to higher Diplomas increase economic
status groups worth and/or self- respect 2) Uncertainty Avoidance
Relationship employer- employee Relationship employer-employee 3) Individualism

is perceived in moral terms, like a is a contract based on mutual
family advantage 4) Masculinity
Hiring and promotion decisions Hiring and promotion are

take employees’ ingroup into supposed to be based on skills
account and rules only
Management is management of Management is management of Implications
groups individuals
Criticism
Relationship prevails over task Task prevails over relationship
Individualism
Australia Hofstede’s dimensions

US
UK 1) Power Distance
Canada
France
Germany 3) Individualism
Spain
Japan 4) Masculinity
Mexico
Italy
Korea
Singapore Implications
Low Criticism
Individualism
▪ A company from UK (high individualism) is considering Hofstede’s dimensions

investing in Mexico (low individualism)
1) Power Distance
3) Individualism
4) Masculinity
Individualism Index
Implications
Criticism
Individualism
Communication tips for the UK manager: Hofstede’s dimensions

1) Note that individuals have a strong sense of responsibility for their
1) Power Distance
family
2) Remember that praise should be directed to a team rather than
individuals 3) Individualism
3) Understand that promotions depend upon seniority and 4) Masculinity
experience
4) Be aware that the decision making process will be rather slow, as
many members across the hierarchy need to be consulted Implications
Criticism
Masculinity
Culture defined
1) Power Distance
Masculinity – The tendency within a society 2) Uncertainty Avoidance
to emphasize traditional gender roles 3) Individualism
4) Masculinity
Implications
Criticism
Masculinity
Low masculinity High masculinity

Culture defined
Dominant values: caring for others Dominant values: material success

and preservation and progress Hofstede’s dimensions
People and warm relationships are Money and things are important
1) Power Distance
important
Sympathy for the weak Sympathy for the strong 2) Uncertainty Avoidance
In family, both fathers and mothers In family, fathers deal with facts 3) Individualism
deal with facts and feelings and mothers with feelings
Stress on equality, solidarity , and Stress on equity, competition 4) Masculinity
quality of work life among colleagues and

performance
Managers use intuition and strive Managers are expected to be
for consensus decisive and assertive Implications
Resolution of conflicts by Resolution of conflicts by fighting Criticism

compromise and negotiation them out
Masculinity
Japan Hofstede’s dimensions
Mexico 1) Power Distance

Germany
UK 2) Uncertainty Avoidance
US
3) Individualism
Arabia
France 4) Masculinity
Korea
Portugal 5) Long-term orientation
Denmark
Sweden Implications
Low Criticism
Masculinity
▪ A company from Denmark ( low masculinity) is Hofstede’s dimensions

considering investing in Mexico (high masculinity)
1) Power Distance
3) Individualism
4) Masculinity
Masculinity Index
Implications
Criticism
Masculinity
Communication tips for the Danish manager : 1) Power Distance

1) Be aware that people will discuss business anytime, even at
social gatherings
3) Individualism
2) Avoid asking personal questions in business situations
4) Masculinity
3) Take into account that people are not interested in
developing closer friendships
4) Communicate directly, unemotionally and concisely Implications
5) In order to assess others use professional identity, not Criticism

family or contacts
Long- term orientation
Culture defined
1) Power Distance
Long- term orientation – A basic orientation
3) Individualism
towards time that values patience
4) Masculinity
Implications
Criticism
Long- term orientation
Culture defined
Short- term orientation Long-term orientation
Respect for traditions Adaptation of traditions to a
modern context 1) Power Distance
Little money available for Funds available for investment

investment
Quick results expected Perseverance towards slow 3) Individualism
results
4) Masculinity
Respect for social and status Respect for social and status
obligations regardless of cost obligations within limits 5) Long-term orientation
Concern with possessing the Truth Concern with respecting the
demands of Virtue Implications
Criticism
Implications

Work Centrality
▪ How important is work?

Culture defined
1) Power Distance
3) Individualism
4) Masculinity
Implications
Criticism
What do people value in work?
Culture defined
Cultural High power High High High
Context distance individualism uncertainty masculinity Hofstede’s dimensions
avoidance
Dominant Conform to Autonomy Security Pay 1) Power Distance
Work norms and
Motivators rules
3) Individualism
Meet moral Challenging Clear Training
obligations to work organizational opportunities 4) Masculinity
leaders hierarchy
Advancement Achievement
Implications
Example Mexico United States Belgium Japan
Criticism
Employees and Leaders
Leadership Issue Low Power Distance Medium Power High Power

Culture defined
Distance Distance
Subordinate’s Weak dependence Moderate Heavy dependence
Dependence Needs on superiors dependence on on superiors Hofstede’s dimensions
superiors
Consultation Strongly expected as Expect consultation, Expect autocratic 1) Power Distance
part of superior’s but will accept leadership
role autocratic 2) Uncertainty Avoidance
leadership
Ideal Superior A democrat A moderate An autocratic or a 3) Individualism
democrat paternalistic father
figure 4) Masculinity
Laws and Rules Apply to superiors Apply to all, but Superiors are above
and subordinates superiors have some the law and take 5) Long-term orientation
privileges advantages of
privileges
Implications
Status Symbols Viewed as not Accepted as Very important
appropriate symbolic of contributions to the
authority authority of Criticism
superiors
Leadership Styles
Cultural Low PD & low High PD & Low PD & High PD &
Culture defined
Context UA low UA high UA high UA
Leader Type “The “The Master” “The “The Boss” Hofstede’s dimensions
Democrat” Professional”
1) Power Distance
Recommende Supportive Directive Directive Directive
d Leadership 2) Uncertainty Avoidance
Styles Participative Supportive Supportive
3) Individualism
Achievement Participative
4) Masculinity
Example Great Britain China Germany France
Power Distance
Implications
Criticism
Uncertainty
Avoidance
Leadership Styles
Culture defined
1) Power Distance
3) Individualism
4) Masculinity
Power Distance
Implications
Criticism
Uncertainty
Avoidance
Leadership Styles
Culture defined
1) Power Distance
3) Individualism
4) Masculinity
Power Distance
Implications
Criticism
Uncertainty
Avoidance
Leadership Styles
Culture defined
1) Power Distance
3) Individualism
4) Masculinity
Power Distance
Implications
Criticism
Uncertainty
Avoidance
Organizational Structures
Culture defined
1. Adhocracy
▪ Flat organizational pyramid
▪
1) Power Distance
People can tolerate ambiguity in organizational roles
▪ Less need for formalized rules and regulations 2) Uncertainty Avoidance
▪ Distance between management and workers tends to 3) Individualism

be small
4) Masculinity
2. Professional Bureaucracy
Power Distance
3. Full Bureaucracy
Implications
4. Family Bureaucracy
Criticism
Uncertainty
Avoidance
Culture defined
1. Adhocracy
2. Professional Bureaucracy Hofstede’s dimensions
▪ Standardization of skills 1) Power Distance

▪ Centralized decision making
▪ Order and compartmentalization
3) Individualism
3. Full Bureaucracy
4) Masculinity
Power Distance
Implications
Criticism
Uncertainty
Avoidance
Culture defined
1. Adhocracy
1) Power Distance
3. Full Bureaucracy
▪ The most formalized 2) Uncertainty Avoidance
▪ Organization dominated by rules, procedures and 3) Individualism

hierarchical relationships
▪ Standardization of the work process 4) Masculinity
▪ Predictability & control

Power Distance
4. Family Bureaucracy Implications
Criticism
Uncertainty
Avoidance
Culture defined
1. Adhocracy
1) Power Distance
3. Full Bureaucracy
▪ Parallels an extended family: dominant father figure 3) Individualism
▪ Small 4) Masculinity
▪ Less specialization of roles
Power Distance
▪ Control: personal supervision
▪ Direct contact
Implications
▪ Highly centralized decision making
Criticism
Uncertainty
Avoidance
References
Cullen, J. (2002). Multinational Management , 2nd ed. Ohio: Sounth-Western Thomson

Learning.
Deresky, H. (2003). International Management , 4th ed. New Jersey: Prentice Hall.
Harris, P. & Moran, R. (2000). Managing cultural differences. Houston: Gulf Publishing
Company.
Hofstede, G. (1982). Culture’s Consequences. International Differences in

Work-Related Values. Newbury Park: SAGE Publications.
Hofstede, G. (1997). Cultures and organizations: software of the mind. New York:
McGraw Hill.
Intercultural Business Communication. Retrieved March 1, 2008 from Kwintessential

Cross Cultural Solutions
Website:
http://www.kwintessential.co.uk/intercultural-business-communication/tool.php?cult
ure1=17&culture2=17
Thank you for your attention!

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Hofstede’s Theory of

Andreea Dicu – Carmen Neghina - Alina Oprea - Teodora Vasileva

Hofstede’s cultural dimensions

Implications for management

▪ Why culture is important?

▪ Impacts the way strategic moves are presented. Hofstede’s dimensions

▪ Culture is shared 4) Masculinity

National Culture Hofstede’s dimensions

Business Culture 3) Individualism

Organizational and Implications

▪ Cultural Etiquette – the manners and behavior that are

expected in a given situation

▪ Cultural Stereotypes – our beliefs about others, their 1) Power Distance

attitudes and behavior 2) Uncertainty Avoidance

▪ Ethnocentrism – looking at the world from a perspective 3) Individualism

shaped by our own culture 4) Masculinity

▪ Relativism – all cultures are good 5) Long-term orientation

Kinship Politics Hofstede’s dimensions

Economy Religion 3) Individualism

Prof. Geert Hofstede 3) Individualism

in the workplace are influenced by culture

▪ Developed a model that identifies four primary Dimensions to 4) Masculinity

+ Long-term orientation (added later)

Hofstede’s work Culture defined

Power distance - The extent to which the 1) Power Distance

and organizations within a country 4) Masculinity

expect and accept that power is 5) Long-term orientation

distributed unequally Implications

Low power distance High power distance

Inequalities among people should Inequalities among people are

Interdependence between less and Less powerful people should be

Subordinated expect to be Subordinated expect to be told 5) Long-term orientation

High Culture defined

India 1) Power Distance

▪ A company from Austria (low power distance) is considering Hofstede’s dimensions

entering the Mexican (high power distance) market. 1) Power Distance

Power Distance Index

Example (cont.) Culture defined

Communication tips for the Austrian manager: Hofstede’s dimensions

2) Deadlines should be highlighted and stressed 2) Uncertainty Avoidance

3) Do not expect subordinates to take initiative 3) Individualism

4) Be more authoritarian in his management style 4) Masculinity

Weak uncertainty avoidance Strong uncertainty avoidance

Uncertainty: normal feature of life Uncertainty : continuous threat

Low stress – subjective feeling of High stress – subjective feeling of

Tolerance to innovation Resistance to innovation Criticism

High Culture defined

Arab Countries 2) Uncertainty Avoidance

Example Culture defined

▪ A company from France (high uncertainty avoidance) is Hofstede’s dimensions

Uncertainty Avoidance Index

Example (cont.) Culture defined

ideas than he may be used to 2) Uncertainty Avoidance

2) Be prepared to push through agreed plans quickly as they 3) Individualism

would be expected to be realized as soon as possible 4) Masculinity

tasks on their own; only guidelines and resources will be

look after themselves and their 3) Individualism

Low individualism High individualism

Individuals learn to think in terms Individuals learn to think in terms

High-context communication Low-context communication

Relationship employer- employee Relationship employer-employee 3) Individualism

Hiring and promotion decisions Hiring and promotion are