Describe 5 cultural dimensions of Hofstede. Give examples of countries to explain.
HOFSTEDE'S FIVE DIMENSIONS OF CULTURAL DIFFERENCES
1. POWER DISTANCE
Definition: The extent to which the less powerful members of institutions and organizations within a
country expect and accept that power is distributed unequally
State of play: The power distance in Asia is higher than that in Europe
Comparision between low and high power distance:
Low power distance:
Minimize the inequalities among people
Interdependence between less and more powerful people
Flat hierarchy pyramid
Slope hierarchy pyramid
Power decentralization
Narrow salary range
Subordinated expect to be consulted
The ideal boss is a resourceful democrat
Privileges and status are disapproved
Flat hierarchy pyramid
High Power Distance:
Inequalities among people are expected & desired
Less powerful people should be depended on the more powerful
Slope hierarchy pyramid
Power centralization
Wide salary range○ Subordinated expect to be told what to do
The ideal boss is a benevolent autocrat/good father
Privileges and status are both expected and popular
Example
A company from Denmark (low power distance) is considering entering Mexico (high power distance)
market.
Communication tips for Denmark managers:
Give clear and explicit directions to those working with him
Deadlines should be highlighted and stressed
Do not expect subordinates to take initiative
Be more authoritarian in his management style
Show respect and deference to those higher up the ladder
2. UNCERTAINTY AVOIDANCE
Definition: The extent to which members of a society feel threaten by uncertain or unknown situations
Weak uncertainty avoidance
Uncertainty = Normal feature of life and
each day is accepted as it comes
Low stress–subjective feeling of wellbeing○ Aggression and emotions must
not be shown○ Comfortable in
ambiguous situations and with unfamiliar
risk
There should not be more rules than
necessary
Precision and punctuality have to be
learne
Tolerance to innovation
Motivation by achievemen
Strong uncertainty avoidance
Uncertainty= A continuous threat that
must be fought
High stress–subjective feeling of anxiety○
Aggression and emotions may be shown
at proper times
Fear of ambiguous situations and of
unfamiliar risk
Emotional need for rules, even if they
never work
Precision and punctuality come naturall
Resistance to innovation
Motivation by security
Example:
A company from France (high uncertainty avoidance) is considering investing in Denmark (low
uncertainty avoidance)
Communication tips for the French manager:
Try to be more flexible or open in his approach to new ideas than he may be used to
Be prepared to push through agreed plans quickly as they would be expected to be realized as
soon as possible
Allow employees the autonomy and space to execute their tasks on their own; only guidelines
and resources will be expected of him
3. INDIVIDUALISM AND COLLECTIVISM:
Definition of dividualism: The tendency of people to look after themselves and their immediate family
and neglect the needs of society
Comparision between low and high individualism:
Low Individualism
Individuals learn to think in terms of“we”
Diplomas provide entry to higher status
groups Relationship employer-employee
is perceived in moral terms, like a family
Hiring and promotion decisions take
employees’ingroup into account
Management is management of groups
Relationship prevails over task
High Individualism
Individuals learn to think in terms of“I”
Diplomas increase economic worth
and/or selfrespect
Relationship employer-employee is a
contract based on mutual advantage
Hiring and promotion are supposed to be
based on skills and rules only
Management is management of
individuals
Task prevails over relationship
Example:
A company from UK (high individualism) is considering investing in Mexico (low individualism)
Communication tips for the UK manager:
Note that individuals have a strong sense of responsibility for their family
Remember that praise should be directed to a team rather than individuals
Understand that rewards depend upon seniority and experience
Be aware that the decision making process will be rather slow, as many members across the
hierarchy need to be consulted
4. MASCULINITY OR FEMINITY:
Definition: The tendency within a society to emphasize traditional gender roles
Comparision between low masculinity and high masculinity:
Low masculinity
Dominant values: caring for others and
preservation
People and warm relationships are
important
Sympathy for the weak
In family, both fathers and mothersdeal
with facts and feelings
Stress on equality, solidarity, and quality
of work life
Managers use intuition and strive for
consensus
Resolution of conflicts by compromise
and negotiation
High masculinity
Dominant values: material success and
progress○ Money and things are
important
Sympathy for the strong
In family, fathers deal with facts and
mothers with feelings
Stress on equity, competition among
colleagues and performance
Managers are expected to be decisive
and assertive
Resolution of conflicts by fighting them
out
Example: A company from Denmark (low masculinity) is considering investing in Mexico (high
masculinity)
Communication tips for the Danish manager:
Be aware that people will discuss business anytime, even at social gatherings
Avoid asking personal questions in business situations
Take into account that people are not interested in developing closer friendships
Communicate directly, unemotionally and concisely
In order to assess others use professional identity, not family or contacts
5. LONG-TERM ORIENTATION
Definition: A basic orientation towards time that values patience
Comparision:
Short-term orientation
Respect for traditions
Little money available for investment
Quick results expected
Respect for social and status obligations
regardless of cost
Concern with possessing the Truth
Long-term orientation
Adaptation of traditions to a modern
context
Funds available for investment
Perseverance towards slow results
Respect for social and status obligations
within limits
Concern with respecting the demands of
Virtue