Hofstede's cultural dimensions theory

Hofstede's cultural dimensions theory

Geert Hofstede proposed a systematic framework for assessing and differentiating national cultures best known as the cultural dimensions theory. He gathered and analyzed extensive data on the world's values and cultures, particularly through the IBM survey study, in order to build a comprehensive model which argues that people differ across on the extent to which they endorse six dimensions of values power (equality versus inequality), collectivism (versus individualism), uncertainty avoidance (versus tolerance), masculinity (versus femininity), temporal orientation, and indulgence (versus restraint).

Research history and methodology

In 1965, Geert Hofstede founded the personnel research department of IBM Europe (which he managed until 1971). Between 1967 and 1973, he executed a large survey study regarding national values differences across the worldwide subsidiaries of this multinational corporation: he compared the answers of 117,000 IBM matched employees samples on the same attitude survey in different countries. He first focused his research on the 40 largest countries, and then extended it to 50 countries and 3 regions, at that time probably the largest matched-sample cross-national database available anywhere..[1] This initial analysis identified systematic differences in national cultures on four primary dimensions: power distance (PDI), individualism (IDV), uncertainty avoidance (UAI) and masculinity (MAS), which are described below. As Hofstede explains on his academic website,[2] these dimensions regard four anthropological problem areas that different national societies handle differently: ways of coping with inequality, ways of coping with uncertainty, the relationship of the individual with her or his primary group, and the emotional implications of having been born as a girl or as a boy . In 1980 he published Culture's Consequences,[3] a book which combines the statistical analysis from the survey research with his personal experiences. In order to confirm the early results from the IBM study and to extend them to a variety of populations, six subsequent cross-national studies have successfully been conducted between 1990 and 2002. Covering between 14 to 28 countries, the samples included commercial airline pilots, students, civil service managers, 'up-market' consumers and 'elites'. The combined research established value scores on the four dimensions for a total of 76 countries and regions. In 1991, Michael Harris Bond [4] and colleagues conducted a study among students in 23 countries, using a survey instrument developed with Chinese employees and managers. The results from this study led Hofstede to add a new fifth dimension to his model: long term orientation (LTO) initially called Confucian dynamism. In 2010, the scores for this dimension have been extended to 93 countries thanks to the research of Micheal Minkov who used the recent World Values Survey.[5] Finally, Minkovs World Values Survey data analysis of 93 representative samples of national populations also led Geert Hofstede to identify a sixth last dimension: indulgence versus restraint.

Dimensions of national cultures

Power distance index (PDI): Power distance is the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally. Cultures that endorse low power distance expect and accept power relations that are more consultative or democratic. People relate to one another more as equals regardless of formal positions. Subordinates are more comfortable with and demand the right to contribute to and critique the decision making of those in power. In high power distance countries, less powerful accept power relations that are more autocratic and paternalistic. Subordinates acknowledge the power of others simply based on where they are situated in certain formal, hierarchical positions. As such, the power distance index Hofstede defines does not reflect an objective difference in power distribution, but rather the way people perceive power differences.

Hofstede's cultural dimensions theory Individualism (IDV) vs. collectivism: The degree to which individuals are integrated into groups. In individualistic societies, the stress is put on personal achievements and individual rights. People are expected to stand up for themselves and their immediate family, and to choose their own affiliations. In contrast, in collectivist societies, individuals act predominantly as members of a life-long and cohesive group or organization (note: The word collectivism in this sense has no political meaning: it refers to the group, not to the state). People have large extended families, which are used as a protection in exchange for unquestioning loyalty. Uncertainty avoidance index (UAI): a society's tolerance for uncertainty and ambiguity. It reflects the extent to which members of a society attempt to cope with anxiety by minimizing uncertainty. People in cultures with high uncertainty avoidance tend to be more emotional. They try to minimize the occurrence of unknown and unusual circumstances and to proceed with careful changes step by step by planning and by implementing rules, laws and regulations. In contrast, low uncertainty avoidance cultures accept and feel comfortable in unstructured situations or changeable environments and try to have as few rules as possible. People in these cultures tend to be more pragmatic, they are more tolerant of change. Masculinity (MAS), vs. femininity: The distribution of emotional roles between the genders. Masculine cultures values are competitiveness, assertiveness, materialism, ambition and power, whereas feminine cultures place more value on relationships and quality of life. In masculine cultures, the differences between gender roles are more dramatic and less fluid than in feminine cultures where men and women have the same values emphasizing modesty and caring. As a result of the taboo on sexuality in many cultures, particularly masculine ones, and because of the obvious gender generalizations implied by Hofstede's terminology, this dimension is often renamed by users of Hofstede's work, e.g. to Quantity of Life vs. Quality of Life. Long term orientation (LTO), vs. short term orientation: First called Confucian dynamism, it describes societies time horizon. Long term oriented societies attach more importance to the future. They foster pragmatic values oriented towards rewards, including persistence, saving and capacity for adaptation. In short term oriented societies, values promoted are related to the past and the present, including steadiness, respect for tradition, preservation of ones face, reciprocation and fulfilling social obligations. Indulgence, vs. restraint: Societies with a high rate of indulgence allow hedonistic behaviors: people can freely satisfy their basic needs and desires. On the opposite side, restraint define societies with strict social norms, where gratification of drives are suppressed and regulated.

Differences between cultures on the values dimensions

Putting together national scores (from 1 for the lowest to 120 for the highest), Hofstedes six dimensions model allow international comparison between cultures, also called comparative research:[6] Power distance index shows very high scores for Latin and Asian countries, African areas and the Arab world. On the other hand Anglo and Germanic countries have a lower power distance (only 11 for Austria and 18 for Denmark). For example, the United States has a 40 on the cultural scale of Hofstedes analysis. Compared to Guatemala where the power distance is very high (95) and Israel where it is very low (13), the United States is in the middle. In Europe, power distance tends to be lower in northern countries and higher in southern and eastern parts: for example, 90 for Romania, 57 for Spain vs. 31 for Sweden and 35 for the United Kingdom. Regarding the individualism index, there is a clear gap between developed and Western countries on one hand, and less developed and eastern countries on the other. North America and Europe can be considered as individualistic with relatively high scores: for example, 80 for Canada and Hungary. In contrast, Asia, Africa and Latin America have strong collectivistic values: Colombia scores only 13 points on the IDV scale, and Indonesia 14. The greatest contrast can be drawn comparing two extreme countries on this dimension: 6 points for

Hofstede's cultural dimensions theory Guatemala vs. 91 points score for the United States. Japan and the Arab world have middle values on this dimension. Uncertainty avoidance scores are the highest in Latin American countries, Southern and Eastern Europe countries including German speaking countries, and Japan. They are lower for Anglo, Nordic, and Chinese culture countries. However few countries have very low UAI. For example, Germany has a high UAI (65) and Belgium even more (94) compared to Sweden (29) or Denmark (23) despite their geographical proximity. Masculinity is extremely low in Nordic countries: Norway scores 8 and Sweden only 5. In contrast, Masculinity is very high in Japan (95), and in European countries like Hungary, Austria and Switzerland influenced by German culture. In the Anglo world, masculinity scores are relatively high with 66 for the United Kingdom for example. Latin countries present contrasting scores: for example Venezuela has a 73 point score whereas Chiles is only 28. High long term orientation scores are typically found in East Asia, with China having 118, Hong Kong 96 and Japan 88. They are moderate in Eastern and Western Europe, and low in the Anglo countries, the Muslim world, Africa and in Latin America. However there is less data about this dimension. There is even less data about the sixth dimension. Indulgence scores are highest in Latin America, parts of Africa, the Anglo world and Nordic Europe; restraint is mostly found in East Asia, Eastern Europe and the Muslim world.

Correlations of values with other country differences

Researchers have grouped some countries together by comparing countries value scores with other country difference such as geographical proximity, shared language, related historical background, similar religious beliefs and practices, common philosophical influences, identical political systems, in other words everything which is implied by the definition of one nations culture. For example, low power distance is associated with consultative political practices and income equity, whereas high power distance is correlated with the use of bribery and corruption in domestic politics and the unequal distribution of income. Individualism is positively correlated with mobility between social classes and with national wealth. In fact, when a country gets richer it has been observed that people get more individualistic. Another example of correlation has been drawn by the Sigma Two Group[7] in 2003. They have studied the correlation between countries cultural dimensions and their predominate religion,[8] based on the World Factbook 2002. On average, predominantly Catholic countries show very high uncertainty avoidance, relatively high power distance, moderate masculinity and relatively low individualism, whereas predominantly atheist countries tend to be collectivistic, with low uncertainty avoidance, moderate masculinity score and very high power distance.

Applications of the model

Why is it important to be aware of cultural differences? "Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster."[9] Despite the evidence that groups are different from each other, we tend to believe that deep inside all people are the same. In fact, as we are generally not aware of other countries cultures, we tend to minimize cultural differences. This leads to misunderstandings and misinterpretations between people from different countries. Instead of the convergence phenomena we expected with information technologies availability (the global village culture), cultural differences are still significant today and diversity tends to increase. So, in order to be able to have cross-cultural relations, we have to be aware of these cultural differences. With his five dimensions model, Geert Hofstede has lighted on these differences. Therefore, it is a great tool to use in order to have a general overview and an approximate understanding of other cultures and, to know how to behave towards individuals from other countries. Because, we still need to cooperate with members of other cultures, and maybe more than ever with the new problems which have arisen for several decades like environmental issues.

Hofstede's cultural dimensions theory Therefore cross-cultural understanding is indispensable. What are the practical applications of the theory? Geert Hofstede is perhaps the best known sociologist of culture and anthropologist in the context of applications for understanding international business. Many articles and research papers refer to his publications, with over 20,000 citations to his 2003 book Culture's Consequences: Comparing Values, Behaviors, Institutions and Organizations Across Nations[10] (which is an updated version of his first publication[3] ). The five dimensions model is widely used in many domains of human social life, and particularly in the field of business. Practical applications were developed almost immediately. In fact, when it comes to business, promoting cultural sensitivity will help people work more effectively when interacting with people from other countries, and will participate to make transactions are successful. International communication In business, it is commonly agreed that communication is one of the primary concerns. So, for professionals who work internationally; people who interact daily with other people from different countries within their company or with other companies abroad; Hofstedes model gives insights into other cultures. In fact, cross-cultural communication requires being aware of cultural differences because what may be considered perfectly acceptable and natural in one country, can be confusing or even offensive in another. All the levels in communication are affected by cultural dimensions: verbals (words and language itself), non verbals (body language, gestures) and etiquette dos and donts (clothing, gift-giving, dining, customs and protocol). And this is also valid for written communication as explained in William Wardrobes essay "Beyond Hofstede: Cultural applications for communication with Latin American Businesses".[11] International negotiation In international negotiations, communication style, expectation, issue ranking and goals will change according to the negotiators countries of origin. If applied properly, the understanding of cultural dimensions should increase success in negotiations and reduce frustration and conflicts.[12] For example, in a negotiation between Chinese and Canadian, Canadian negotiators may want to reach an agreement and sign a contract, whereas Chinese negotiators may want to spend more time for non business activities, small talks and hospitality with preferences for protocol and form in order to first establish the relationship. 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'. In Middle Eastern countries much negotiation takes place leading into the 'agreement', signified by shaking hands. However, the deal is not complete in the Middle Eastern culture. In fact, it is a cultural sign that 'serious' negotiations are just beginning.[9] International management These considerations are also true in international management and cross-cultural leadership. Decisions taken have to be based on the countrys customs and values.[13] When working in international companies, managers may provide training to their employees in ordrer to make them sensitive to cultural differences, develop nuanced business practices, with protocols across countries. Hofstede's dimensions offer guidelines for defining culturally acceptable approaches to corporate organizations. As a part of the public domain, Geert Hofstedes work is used by numerous consultancies worldwide.[14] But only 3 of them are regarded as partners and have Hofstedes a full support with regular contacts. The American firm ITAP International Inc. [15] and its ITAP International Alliance [16] propose full-service consulting based on Hofstedes approach using the Culture in the Workplace Questionnaire[17]

Hofstede's cultural dimensions theory Similarly, Itim international [18], headquartered in Sweden offers culture and management consultancy, training and coaching. Itim focus [19], in the Netherlands and Finland, concentrate on change consultancy at organizational level. International marketing As in communication, negotiation and management, the five dimensions model is very useful in international marketing too because it defines national values not only in business context but in general. Marieke de Mooij [20] has studied the application of Hofstedes findings in the field of global branding, advertising strategy and consumer behavior. As companies try to adapt their products and services to local habits and preferences they have to understand the specificity of their market.[21] For example, if you want to market cars in a country where the uncertainty avoidance is high, you should emphasize on their safety, whereas in other countries you may base your advertisement on the social image they give you. Cell phone marketing is another interesting example of the application of Hofstedes model for cultural differences: if you want to advertise cell phones in China, you may show a collective experience whereas in the United States you may show how an individual uses it to save time and money. The variety of application of Hofstedes abstract theory is so wide that it has even been translated in the field of web designing in which you have to adapt to national preferences according to cultures values.[22]

Limitations of Hofstedes model

Even though Hofstedes model is generally accepted as the most comprehensive framework of national cultures values by those studying business culture, its validity and its limitations have been extensively criticized. To give only one example, in a recent article in the Academy of Management's flagship journal, The Academy of Management Review, Galit Ailon deconstructs Hofstede's book Culture's Consequences by mirroring it against its own assumptions and logic.[23] Ailon finds inconsistencies at the level of both theory and methodology and cautions against an uncritical reading of Hofstede's cultural dimensions. Literature in subjects actually studying culture, such as anthropology or social psychology, don't even mention the existence of Hofstede's model.

Questionable choice of national level

Aside from Hofstede's 5 cultural dimensions, there are other factors on which culture can be analyzed. There are other levels for assessing culture. These levels are overlooked often because of the nature of the construction of these levels. Individual level: cultural dimensions versus individual personalities Hofstede acknowledges that the cultural dimensions he identified, as culture and values, are theoretical constructions. They are tools meant to be used in practical applications. Generalizations about one countrys culture are helpful but they have to be regarded as such, i.e. as guidelines for a better understanding. They are group-level dimensions which describe national averages which apply to the population in its entirely. Hofstede's cultural dimensions enable users to distinguish countries but are not about differences between members of societies. They dont necessarily define individuals personalities. National scores should never be interpreted as deterministic for individuals. For example, a Japanese person can have very comfortable in changing situation whereas on average, Japanese people have high uncertainty avoidance. There are still exceptions to the rule. Hofstedes theory can be contrasted with its equivalence at individual level: the trait theory about human personality.

Hofstede's cultural dimensions theory Organizational level Within and across countries, individuals are also parts of organizations such as companies. Hofstede acknowledges that the [] dimensions of national cultures are not relevant for comparing organizations within the same country.[2] In contrast with national cultures, embedded in values, organizational cultures are embedded in practices. From 1985 to 1987, Geerts institute IRIC (Institute for Research on Intercultural Cooperation)[24] has conducted a separate research project in order to study organizational culture. Including 20 organizational units in two countries (Denmark and the Netherlands), six different dimensions of practices, or communities of practice have been identified: Process-Oriented vs. Results-Oriented Employee-Oriented vs. Job-Oriented Parochial vs. Professional Open System vs. Closed System Loose Control vs. Tight Control Pragmatic vs. Normative

Managing international organizations involves understanding both national and organizational cultures. Communities of practice across borders are significant for multinationals in order to hold the company together. Occupational level Within the occupational level, there is a certain degree of values and convictions that people hold with respect to the national and organizational cultures they are part of. The culture of management as an occupation has components from national and organizational cultures. This is an important distinction from the organizational level. Gender level When describing culture, gender differences are largely not taken into consideration. However, there are certain factors that are useful to analyze in the discussion of cross-cultural communication. Within each society, mens culture differs greatly from womens culture. Although men and women can often perform the same duties from a technical standpoint, there are often symbols to which each gender has a different response. In situations where one gender responds in an alternative manner to their prescribed roles, the other sex may not even accept their deviant gender role. The level of reactions experienced by people exposed to foreign cultures can be compared similarly to the reactions of gender behaviors of the opposite sex. The degree of gender differentiation in a country depends primarily on the culture within that nation and its history.

References
Culture, leadership, and organizations: the GLOBE study of 62 societies (1st ed.). SAGE Publications. 29 April 2004. ISBN9780761924012., Read it [25]

Notes
[1] Whatsonmymind, September 2010, Geert Hofstede (http:/ / www. geerthofstede. nl/ media/ 1193/ whatsonmymindsept2010. doc) [2] Geert Hofstedes academic website (http:/ / www. geerthofstede. nl) [3] Hofstede, Geert (1984). Culture's Consequences: International Differences in Work-Related Values (2nd ed.). Beverly Hills CA: SAGE Publications. ISBN080391444X. [4] http:/ / michael. bond. socialpsychology. org/ [5] Minkov, Michael (2007). What makes us different and similar: A new interpretation of the World Values Survey and other cross-cultural data. Sofia, Bulgaria: Klasika y Stil Publishing House. ISBN9789543270231. (http:/ / www. geert-hofstede. com/ reviewminkov. pdf) [6] Hofstede's cultural dimensions (with world maps of dimensional values) (http:/ / www. clearlycultural. com/ geert-hofstede-cultural-dimensions/ ) [7] Geert Hofstede Dimensions by Predominant Religion (http:/ / www. geert-hofstede. com/ hofstede_resources/ hofstede_religion_1. shtml) [8] Predominate is here defined as over 50% of the country's population is identified as a member of that religion

Hofstede's cultural dimensions theory

[9] What are the practical applications for Geert Hofstede's research on cultural differences? (http:/ / www. geert-hofstede. com/ ) [10] Hofstede, Geert (2001). Culture's Consequences: comparing values, behaviors, institutions, and organizations across nations (2nd ed.). Thousand Oaks, CA: SAGE Publications. ISBN9780803973237. OCLC45093960. [11] Beyond Hofstede: Cultural applications for communication with Latin American, William Wardrobe, 2005, Association for Business Communication Annual Convention (http:/ / www. businesscommunication. org/ conventionsNew/ proceedingsNew/ 2005New/ PDFs/ 13ABC05. pdf) [12] negotiation styles, Michelle LeBaron, July 2003 (http:/ / www. beyondintractability. org/ essay/ culture_negotiation/ Culture-based) [13] The influence of national culture on strategic decision making: a case study of the Philippines, Richard P.M.Builtjens and Niels G. Noorderhaven, Tilburg University and Institute for Research on Intercultural Cooperation (http:/ / arno. uvt. nl/ show. cgi?fid=3406) [14] Hofstede's consequences: The impact of his work on consulting and business practices, An Executive Commentary by John W. Bing, Academy of Management Executive, February 2004, Vol. 18, No. 1 (http:/ / www. itapintl. com/ facultyandresources/ articlelibrarymain/ hofstedes-consequences-the-impact-of-his-work-on-consulting-and-business-practices. html) [15] http:/ / www. itapintl. com/ [16] http:/ / www. itapintl. com/ alliance/ alliance. html?lang= [17] Culture in the Workplace Questionnaire (http:/ / www. itapintl. com/ tools/ culture-in-the-workplace-questionnaire-cw/ itapcwquestionnaire. html) [18] http:/ / www. itim. org [19] http:/ / www. itimfocus. com [20] http:/ / www. mariekedemooij. com [21] The Hofstede model Applications to global branding and advertising strategy and research, Marieke de Mooij and Geert Hofstede, International Journal of Advertising, 29(1), pp. 85110, 2010 Advertising Association, [www.warc.com Warc] (http:/ / www. mariekedemooij. com/ articles/ demooij_2010_int_journal_adv. pdf) [22] Cultural Dimensions and Global Web Design: What? So What? Now What?, Aaron Marcus and Associates, Inc. (http:/ / laofutze. files. wordpress. com/ 2010/ 03/ ama_cultdim. pdf) [23] Ailon, G. (2008). Mirror, mirror on the wall: Culture's Consequences in a value test of its own design. The Academy of Management Review, 33(4):885904 (http:/ / aom. metapress. com/ app/ home/ contribution. asp?referrer=parent& backto=issue,5,14;journal,2,9;linkingpublicationresults,1:109447,1) [24] Tilburg University (http:/ / www. uvt. nl/ iric/ ) [25] http:/ / books. google. com/ books?hl=en& lr=& id=_KsXEJQg9pkC& oi=fnd& pg=PA1& dq=house+ culture+ leadership& ots=Cme8LrUigE& sig=H74D8ETjuLyGQVFp3mJjyECBE1c#v=onepage& q& f=false

External links
Geert Hofstede's academic website (http://www.geerthofstede.nl) Geert Hofstede Consortium (http://www.masterinternationalcommunication.eu) Hofstede Model for organisational culture measurement (http://www.feedbackcatalog.com) Culture in the Workplace Questionnaire (http://www.itapintl.com/tools/ culture-in-the-workplace-questionnaire-cw/itapcwquestionnaire.html) Hofstede's dimensions simplified (http://www.kwintessential.co.uk/intercultural/dimensions.html) Intercultural Business Communication tool (http://www.kwintessential.co.uk/ intercultural-business-communication/tool.php) The impact of Dr. Hofstede's work on business practices (http://www.itapintl.com/facultyandresources/ articlelibrarymain/hofstedes-consequences-the-impact-of-his-work-on-consulting-and-business-practices.html)

Article Sources and Contributors

Article Sources and Contributors

Hofstede's cultural dimensions theory Source: http://en.wikipedia.org/w/index.php?oldid=454728786 Contributors: Bearcat, Chris the speller, Dmalterman, Mandarax, MartinPoulter, Matt Whyndham, Mr Sheep Measham, MrKIA11, Namenotek, Ohconfucius, Passargea, Pdecombe, Physics is all gnomes, Prernas15, RanPrieur, Robertekraut, 8 anonymous edits

License
Creative Commons Attribution-Share Alike 3.0 Unported //creativecommons.org/licenses/by-sa/3.0/