HOFSTEDE PART1

8/6/2019 HOFSTEDE PART1

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"Culture is more often a source of conflict than of synergy.

Cultural differences are a nuisance at best and often a disaster.³

- Dr. Geert Hofstede



Geert H. Hofstede w as born on

Oc tober 2, 1928 in Haarlem, the

Netherlands . He received

his M.Sc. from the Delft Institute

of Technology in 1953, his Ph.D.

from Groningen University in 1967.

Hofstede served in the Netherlands

Army from 1953 to 1955. In 1955,

he married Maaike A. Van den

Hoek.



Hofstede is most well known for his work on four dimensions of

c ultural variability, c ommonly referred to as "Hofstede's Dimensions."

These include: U n c ertainty Avoidan c e, Power Distan c e, Mas c ulinity-

Femininity, Individualism-Colle c tivism, Confu c ian Dynamism . These

dimensions w ere arrived in his 1980 publication, "Culture's consequences:

International differences in w ork-related values." The study took existing

survey data (sample size of 116,000) collected from a multinational

corporation (IBM). The result w as a score in each of the dimensions for 40

different countries.



As w ith any generalized study, the results may or may not be applicable to specific

individuals or events . In addition, although the Hofstede's results are categorized by

country, often there is more than one cultural group w ithin that country . In these

cases there may be significant deviation from the study's result.

An example is Canada, w here the majority of English speaking population and the

minority French speaking population in Quebec has moderate cultural differences.

Geert Hofstede's dimensions analysis can assist the business person or traveler in

better understanding the intercultural differences w ithin regions and bet w een

counties.





focuses on the degree of equality, or inequality,

bet w een people in the country's society.

High po w er distance cultures are characterized

by bosses w ho have much more po w er than

their subordinates, po w er holders w ho are

entitled to privileges and subordinates w ho

consider superiors as a different kind of people.

Ex amples of su c h c ultures in c lude Portugal,

Gree c e, Fran c e and Belgium.



Climate, measured by geographical latitude. Cultures in high-

latitude climate (moderate or cold climates) tend to have lo w

PDI scores. Cultures that have tropical climate tend to havehigh PDI scores.

Population: Generally, the more people w ithin the culture, the

greater the po w er distance is likely to be .

Distribution of Wealth: The more unequally the w ealth is

distributed w ithin a culture, the greater the culture's po w er

distance.



Most evident are family customs, the relationships bet w een

students and teachers, the young and the elderly, language

systems and organizational practices.



High po w er-distance cultures create:

Hierarchical organizational structures.

Loyal and committed subordinate w orkers.

Autocratic relationships bet w een managers and subordinates

Low Pow er Distance Organizations just as w ith lo w pow er distance cultures are

characterized by leadership styles that empo w er subordinates and treat them w ith respect.

These characteristics are evident in Good to Great (Jim Collins, 2001) companies, such as Kimberly-Clark,

General Electric, Walgreens, and Gillette. On the other hand, high po w er distance organizations have culturesw here the leadership styles are more authoritarian, w ith little regard for any initiatives from subordinates. In

such organizations, subordinates w ork for these leaders out of fear and are ready to jump ship as soon as the

opportunity presents itself. A retrospective revie w of the leadership styles of companies such as Enron Inc.,

WorldCom, and Tyco Inc. sho w s very high PDIs.



focuses on the degree the society reinforces individual or collective, achievement and

interpersonal relationships.

A High Individualism ranking indicates that individuality and individual rights are

paramount w ithin the societyThis is the opposite of collectivism and describes the extent to w hich individuals are

integrated into groups. Where individuals are high, people expect to take care only of

themselves and their immediate families and their relatives to look after them and be

more loyal to them, in exchange. Members of individualistic societies also place

emphasis on self respect; members of collectivist cultures place more importance on

fitting in harmoniously and face saving.

Individualism is highest in Anglo Sa x on c ountries, Italy, Belgium and Fran c e; it is

mu c h lower in Spain, Gree c e, Portugal, Latin Ameri c an c ountries and Japan.



Economic development. Wealthy cultures

tend to be individualistic, w hereas poor

cultures tend to be collectivistic.Climate. Cultures in colder climate tend to

be individualistic, w hereas cultures in

w armer climates tend to be collectivistic .



Collectivistic cultures tend to be group-oriented, impose a large psychological

distance bet w een in group and out group members and in group members are

expected to have unquestioning loyalty to their group.

In a conflict situation, members of the collectivistic cultures are likely to use

avoidance, intermediaries, or other face-saving techniques.

Conversely, people in the individualistic cultures do not perceive a large

psychological distance bet w een in group and out group members.

They value self-expression, see speaking out as a means of resolving problems, and

are likely to use confrontational strategies w hen dealing w ith interpersonal

problems.



If one thing is settled, it is that Apple is the epitome of American individualism.

More than probably any business leader in modern history, Apple's CEO Steve Jobs

individual leadership has defined Apple's design, focus, innovation, and business model,

and made Apple one of the most successful and influential companies on the planet.Another thing that is settled is that Google is the epitome of modern-day collectivism.

Google's w ell-kno w n collectivist mission is to "organize all the w orld's information and

make it universally accessible and useful."

Google's w ell-kno w n collectivist approach makes most all of its products and services,including its Android mobile operating system, free to the masses, w hile at the same

time opposing any concept of individual customer service.

Google CEO Eric Schmidt also has clearly declared Google's collectivist purpose: "The

goal of the company is not to monetize anything, the goal is to change thew

orld."



focuses on the degree the society reinforces, or does not

reinforce, the traditional masculine w ork role model of male

achievement, control, and po w er.

A High Masculinity ranking indicates the country

experiences a high degree of gender differentiation.

This is the extent to w hich the dominant values in society

are male-values such as assertiveness, the acquisition of

money and goods, and not caring for others.

Masculine societies also define gender roles more rigidlythan do µfeminine¶societies.

Hofstede¶s findings suggest that S c andinavian c ountries

are the most feminine, the U nited States is moderately

mas c uline and Japan and Austria are highly mas c uline.



Climate: Masculine cultures tend to live in w armer climate near the equator and

feminine cultures are likely to locate in colder climates a w ay from the equator.



Members of high MAS cultures believe that men should be assertive and w omen

should be nurturing. Sex roles are clearly differentiated, and sexual inequality is

seen as beneficial. The reverse is true for members in the feminine cultures



Feminity Organizations are flat, do w nplay rules and standards

,exhibit attentiveness and responsiveness to the needs of

others and they express relational orientations.

Masculine organisations are more hierarchical, rely on

impersonal rules and standards , adopt an instrumental

orientation and vie w members as means of goal

accomplishments



focuses on the level of tolerance for

uncertainty and ambiguity w ithin the

society - i.e. unstructured situations.

This creates a rule-oriented society

that institutes la w s, rules, regulations,

and controls in order to reduce the

amount of uncertainty.



Higher uncertainty avoidance indicates that people like to control the future. It is

associated w ith being dogmatic, authoritarian, traditional and superstitious.

Looking at fifty countries, the uncertainty avoidance index plotted against the

po w er distance index reveals several clusters of countries that are characterized by

strong uncertainty avoidance and large po w er distance. Most latin American and

European countries fall into this category but:

Countries such as Singapore, Hongkong and India combine large po w er distance

w ith w eak uncertainity avoidance , w hile Scandinavian and Anglo Saxon countries

and typically countries w ith small po w er distance and w eak uncertainty avoidance



No clear-cut predictors.

But in general, high UAI cultures tend to be those that are beginning to

modernize and are characterized by a high rate of change.Conversely, lo w UAI cultures tend to have reached the level of

modernization or have more stable or predictable in their rate of change



High UAI cultures tend to develop many rules to control social behaviors.

Low UAI cultures need fe w rules to control social behaviors.



High uncertainty-avoidance cultures create:

Formalized procedures to minimize unpredictability.

Clearly defined roles for employees.

Focus on security and trust.



Based on marked cultural differences among 40 countries, Hofstede recommends :

That American management theory should be adapted to local cultures rather than

imposed on them.

Behavior concepts of David Mclelland, A Maslow

, F Herzberg and Victor Vroomdeveloped their achievement needs, T w o factor and expectancy theories

respectively w ithin US cultural context. Hofstede believes it is not proper to expect

those theories to apply automatically on absolutely different cultures.

Hofstede¶s research does not attempt to tell international managers ho w to apply

various management techniques in different cultures. But it suggests for cultural

adaptation of American management theories and practices.





Differences in the culture .



It is also kno w n as Long-Term Orientation. It ranges

from long term orientation to short term orientation

. This dimension refers to the selective promotion of

particular set of ethics found in Confucian teachings

Particular teachings that lead to economic

development include thrift, perseverance, a sense of

shame, and follo w ing hierarch. Other Confucian

teachings are less emphasized such as tradition, and

protecting face.



Long-Term Orientation (LTO) focuses on the degree the society

embraces, or does not embrace, long-term devotion to traditional,

for w ard thinking values. High Long-Term Orientation rankingindicates the country prescribes to the values of long-term

commitments and respect for tradition . This is thought to support a

strong w ork ethic w here long-term re w ards are expected as a result

of today's hard w ork.

This is a recent addition to the Hofstede model, added as a ne w

dimension to the model in the second edition (2001).



There is a general thrift and dislike of w aste.

This leads to creating of products that are

economic in production and reliable in use.

It also leads to careful economy w ith finances

and consequent profitable firms and nations.

A high level of savings and reduced borro w ing

leads to more financially stable institutions.



There is a general perseverance and

tenacity in pursuing a goal.

Once something has been decided as

requiring action, people w ill w ork

through disappointment and difficult

problems in order to reach the desired

end position.



R elationships are clearly defined, w ith strong

hierarchies that people observe very carefully.

With a clear po w er relationship, people do not spend

time arguing and challenging orders -- they move

into the persistence that may be required to achieve

the goals that have been set for them by their

superiors



If goals are not reached, then it is considered

shameful -- a fact w hich leads to persistence.

Like w ise, shame drives relationships, w here to

be seen to fail or other w ise lose face is highly

undesirable.

Thrift, also, is affected by shame, as a cultural

thriftiness highlights individual overspending



Setting things for a long period or

anticipating future for a longer or bigger

period



Family Oriented means that a person in particular likes to

spend time w ith biological relatives like children, cousins,

siblings, parents, grandparents, etc. Family Oriented people

also like to have big families probably 3 kids or more.

In addition family oriented can also apply to a product,

service, film etc. "those movies over there are family

oriented." "that theme park is family oriented

So in short, if you are family oriented... you like family

friendly things.

Also, things in the community that are advertised as "fun

for the w hole family" or "safe for kids" are often family

oriented events.





There is no doubt that the t w o kinds of culture both exert po w erful

influences on people. It is anything but rare for employees, especially

those of foreign companies, to be facing conflicts betw

een them. Acompany¶s culture may be informal w hile a country¶s culture could be

rather formal. A company may be encouraging and re w arding risk-taking

in a country w here people are generally risk-averse. Or, vice versa.

An explicit recognition by the parent organization that its own particularways of managing human resources reflect some assumptions and values

of its home culture.



An explicit recognition by the parent organization that its particular w ays are neither

universally better nor w orse than others but are different and likely to exhibit strengths and

w eaknesses, particularly abroad

An explicit recognition by the parent organization that its foreign subsidiaries may have

other preferred w ays of managing people that are neither intrinsically better nor w orse, but

could possibly be more effective locally.

Willingness by headquarters staff not only to ackno w ledge cultural differences, but also to

take active steps to ensure these are discussed and incorporated w here appropriate.

The building of a genuine belief by all parties involved that more creative and effective w ays

of managing people could be developed as a result of cross cultural training.



The national culture of the country w ithin w hich an organization is based

w ill impact ho w a company operates. The home country is a significant

environmental factor for the company. This poses unique problems for multi-national companies. When a multinational company attempts to

bring it¶s corporate culture to a ne w country that is clearly different from

the national culture of the host country, problems may result.



The influences of national cultures shape strong value systems

among their members.

The resulting shared values, preferences, and behaviors of population groups differ w idely bet w een countries.

That is frequently also the case bet w een different subgroups w ithin

a country, so keep in mind that the term ³national culture´ can be

misleading.

It may only be referring to part of the people in a given country.



Culture is a completely different component that contributes

significantly to organizational functioning.

The benefit of cultivating a pronounced organizational culture is that

it helps establish common values and align behaviors among

employees.

Many multinational companies use employee handbooks, corporateethics guidelines, w ritten value definitions, and other tools for their

employees w orld- w ide in order to drive this kind of alignment



U niversalism vs. Parti c ularism

Universalism is about finding broad and general rules. When no rules fit, it finds the best rule.

Particularism is about finding exceptions. When no rules fit, it judges the case on its o w n merits, rather

than trying to force-fit an existing rule.

Analyzing vs. Integrating

Analyzing decomposes to find the detail. It assumes that God is in the details and that decomposition is

the w ay to success. It sees people w ho look at the big picture as being out of touch w ith reality.

Integrating brings things together to build the big picture. It assumes that if you have your head in the

w eeds you w ill miss the true understanding.

Individualism vs. Communitarianism

Individualism is about the rights of the individual. It seeks to let each person gro w or fail on their o w n,

and sees group-focus as denuding the individual of their inalienable rights.

Communitarianism is about the rights of the group or society. It seeks to put the family, group, company

and country before the individual. It sees individualism as selfish and short-sighted.



Inner-directed vs. Outer-directed

Inner-directed is about thinking and personal judgement, in our heads . It assumes that thinking is the most powerful

tool and that considered ideas and intuitive approaches are the best way.

Outer-directed is seeking data in the outer world. It assumes that we live in the 'real world' and that is where we

should look for our information and decisions.

T ime as sequence vs. T ime as synchronisation

T ime as sequence sees events as separate items in time, sequence one after another. It finds order in a serried array

of actions that happen one after the other.

T ime as synchronisation sees events in parallel, synchronised together. It finds order in coordination of multiple

efforts.

A chieved status vs. A scribed status

Achieved status is about gaining status through performance. It assumes individuals and organisations earn and lose

their status every day, and that other approaches are recipes for failure.

Ascribed status is about gaining status through other means, such as seniority. It assumes status is acquired by right

rather than daily performance, which may be as much luck as judgement. It finds order and security in knowing

where status is and stays.



E quality vs. Hierarchy

E quality is about all people having equal status. It assumes we all have equal

rights, irrespective of birth or other gift.

Hierarchy is about people being superior to others. It assumes that order happens

when few are in charges and others obey through the scalar chain of command.





HOFSTEDE PART1

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