HOFSTEDE MODEL OF CULTURAL DIMENSIONS

SHRM
Submitted by- Anjali Mishra
UID: 2019-2808-0001-0001
Introduction
• Geert Hofstede, Dutch • Year 1980
Management
Researcher

Who? When?

How? Why?
• Surveyed 88000 • Globalization
employees in IBM • Immigration.
Subsidiaries in 72 • Diversification.
countries.
THE HOFSTEDE MODEL
 National Cultural Dimensions

Power Distance Index Individualism vs. Masculinity vs. Uncertainty Long-term vs. short- Indulgence vs.
(PDI) Collectivism Feminity Avoidance Index term Orientation Restraint
• This dimension expresses • Individualism refers to the • The Masculinity is degree (UAI) • Long term orientation is • Indulgence stands for a
the degree to which the less degree to which a society to which a society • Degree to which the the future- perseverance society that allows relatively
powerful members of a focuses on the relationship emphasizes traditional members of a society feel and thrift and ordering free gratification of basic
society accept and expect of the individual to the masculine qualities, such as uncomfortable with relationships by status. and natural human drives
that power is distributed group.  advancement and earnings. uncertainty and ambiguity. • Short-term orientation related to enjoying life and
unequally.  • Collectivism refers to the • Femininity, stands for a fosters virtues related to having fun.
• The fundamental issue here degree to which a society preference for cooperation, past or present – respect for • Restraint stands for a
is how a society handles focuses on the relationship modesty, caring for the tradition, personal society that suppresses
inequalities among people. of the group as a whole. weak and quality of life. steadiness and stability. gratification of needs and
regulates it by means of
strict social norms.
Characterization

Low High

Egalitarian Power Distance Embraces Hierarchy

Collectivist Collectivism vs. Individualism Individualist

Comfortable with Uncertainty Avoidance Index Uncomfortable with

uncertainty certainty

Nurture important Feminity vs. Masculinity Power Important

Traditional and Short-term vs. long-term orientation Futuristic and long-

short-term term

Normative Restraint vs. Indulgence Satisfaction is good

Repression
 Implications of Dimensions
IMPLICATIONS OF POWER DISTANCE
Type of High Power Distance
Work/Activity
Organizational  Very Centralized
Structures  Tall hierarchies with clear levels
of managers and subordinates.
Marginal  Concentration of authority at
Authority the top
 Managers rely on formal rules
to manage
 Authoritative managerial style
and decision making.
Relationship  Subordinates expect to be told
with supervisors what to do
 Perfect boss is seen as one who
is an autocrat
 Information sharing
constrained by hierarchy
Other issues  Wide salary gap between top
and bottom of organization
 Managers often feel underpaid
and dissatisfied with career.
Low Power Distance
 Decentralized Structure
 Flat Organization hierarchies
 Dispersed authority
 Managers rely on personal
experience
 More consultative or
collaborative forms of decision
making.
 Subordinates often expected to
be consulted
 Ideal manager is seen as a
democratic leader
 Openness to sharing information
 Low salary gap between top and
bottom of company
 Managers feel paid adequately
and are satisfied
IMPLICATIONS OF INDIVIDUALISM
Type of Low Individualism/High Collectivism High Individualism/Low Collectivism
Work/Activity
Relationship with  Employees act in the interest of in-  Employees act in their own interests
companies group (members of the family or same
university)
 Employee commitment to organizations
high
 Employee commitment to company
relatively low
 Employee-employer relationship based on
the market.
 Employee-employer relationships is
almost like a family link
Human resource  Hiring and promotion takes in-group  Hiring and promotions based on rules
management into consideration
 Family relationships unimportant in hiring
 Better to reward based on equality (give
everyone the same reward) rather than
equity (base reward on work effort)  Better to reward based on equity
Relatives of employees preferred in
hiring  Training done best individually
 Training best when focused at group  
level.
Other issues  Belief in collective decisions  Belief in individual decision making
 Treating friends better than others is  Treating friends better than others at the
normal workplace is considered unethical
 Support of teamwork  More mobility across occupations within
company
 Less mobility across occupations
 Tasks and company prevail over personal
relationships in business.
 Personal relationships very critical in
business.
 Implications of Dimensions
Type of Work/Activity
Relationship with companies
Characteristics of
supervisors/managers
IMPLICATIONS OF UNCERTAINTY AVOIDANCE
Low Uncertainty Avoidance High Uncertainty Avoidance
 Weak loyalty to companies
 Average duration of employment
shorter
 Preference for smaller
organizations
 Superiors optimistic about
subordinate ambition and
leadership abilities
 Top managers usually involved in
strategy
 Power of superiors based on
relationships and position
IMPLICATIONS OF MASCULINITY
Type of Work/Activity High Masculinity Low Masculinity
Relationship with work
 Work in order to live
 Strong loyalty to employing  Live in order to work
organizations  Preference for lower number of work
 Preference for high pay
hours
 Employment are long term in  Workers look for security, pay and
interesting work  Workers look for better working
duration conditions and relationships in work
Managers’ characteristics
 Preference for larger companies
 Managers seen as cultural heroes  Managers are employees like others
 Superiors pessimistic about  Successful managers primarily  Successful managers are seen as
subordinate ambition exhibit male characteristics possessing both male and female
characteristics
 Managers need to be competitive,
 Top managers often involved in firm, aggressive, and decisive  Managers hold fairly modest career
Managers are very ambitious ambition
operations
 Fewer women in management  More women in management
 Power of superiors based on  Managers prepared to move  Managers less prepared to uproot
control of uncertainties family for career reasons family because of career move

 Transformational leaders  Hierarchical control roles preferred

preferred Other issues

 Low salary gap between top and

Entrepreneurship and
innovation
 Innovators feel less constrained
by rules
 Renegade championing
 Tolerance for ambiguity in
procedures and structures
 Innovation welcomed
 Large pay gap between genders
 Innovators feel constrained by rules Job applicants oversell their
abilities
 Rational championing  Absences due to sickness lower
 General preference for larger
 Formalized management companies
structures
 Conflicts are resolved through
fighting until the best “man” wins
 Innovation resisted
bottom of company [what about
gender gap?]
 Managers feel paid adequately and
are satisfied
 Absences because of sickness higher
 Preference for smaller organizations
 Conflicts are resolved through
compromise and negotiations
Conclusion
• Cross-cultural misunderstandings quite evident which might hamper productivity and profitability.
• Hofstede developed this cultural model primarily on the basis of differences in values and beliefs regarding work
goals existing in various cultural regions.
• The table below showcases some of the countries and their levels of cultural dimensions -

Countries Power Distance Individualism Uncertainty Masculinity

Avoidance
Australia Low High Low High
Canada Low High Low High
China High Low Medium Medium
Germany Low High Medium High
Mexico High Medium High High
France High High High Low
Spain Medium Medium High Low
Greece Medium Medium High Medium
Denmark Low High Low Low
Finland Low High Medium Low
Brazil High Medium Medium Medium
India High Medium Low Medium
Japan Low Medium High High
U.K. Low High Low High
U.S.A. Low High Low High
THANK YOU