Hofstede Five Cultural Dimensions Dimensions

Hofstede’s Cultural Framework 1.Power Distance 2.Individualism vs. Collectivism 3.Masculinity vs. Femininity 4.Uncertainty Avoidance 5.Long Term Orientation

Power Distance “...the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.”

Power Distance High Power Distance Those in authority openly demonstrate their rank. Subordinates are not given important work and expect clear guidance from above. Subordinates are expected to take the blame for things going wrong. The relationship between boss and subordinate is rarely close/personal. Politics is prone to totalitarianism. Class divisions within society are accepted. Low Power Distance Superiors treat subordinates with respect and do not pull rank. Subordinates are entrusted with important assignments. Blame is either shared or very often accepted by the superior due to it being their responsibility to manage. Managers may often socialise with subordinates. Liberal democracies are the norm. Societies lean more towards egalitarianism.

Power Distance at Work Hierarchy Centralization Salary range Participation Ideal Boss Privilege & status symbols

Individualism vs. Collectivism Individualist societies: ties are loose and everyone looks out for himself or herself Collectivist societies: people integrated into strong, cohesive groups; protection is exchanged for loyalty

Individualism / Collectivism High Individualism A person's identity revolves around the "I" Personal goals and achievement are strived for It is acceptable to pursue individual goals at the expense of others 'Individualism' is encouraged whether it be personality, clothes or music tastes The right of the individual reign supreme; thus laws to protect choices and freedom of speech Low Individualism "We" is more important that "I" Conformity is expected and perceived positively. Individual's desires and aspirations should be curbed if necessary for the good of the group. The rights of the family (or for the common good) are more important. Rules provide stability, order, obedience

Individualism / Collectivism at Work Employee-employer relationship Hiring and promotion decisions Managerial focus Task vs. relationship priority

Masculinity vs. Femininity Masculine societies: social gender roles are distinct (men focus on material success; women on quality of life) Feminine societies: social gender roles overlap (both quality of life)

Masculinity vs. Femininity Low on the Masculinity In life the main priorities are the family, relationships and quality of life Conflicts should ideally be solved through negotiation Men and women should share equal positions in society Professionals "work to live", meaning longer vacations and flexible working hours High on the Masculinity Life's priorities are achievement, wealth and expansion It is acceptable to settle conflicts through aggressive means Women and men have different roles in society Professionals often "live to work", meaning longer work hours and short vacations

Masculinity / Femininity at Work Centrality of work Ways of managing & decision making Fem: equality, solidarity, quality of work life Mas: equity, compete, performance Conflict resolution

Uncertainty Avoidance “…the extent to which the members of a culture feel threatened by uncertain or unknown situations.” NOT the same as risk avoidance Presence of rules

Uncertainty Avoidance High on Uncertainty Avoidance Usually countries/cultures with a long history. The population is not multicultural, i.e. homogenous. Risks, even calculated, are avoided in business. New ideas and concepts are more difficult to introduce Low on Uncertainty Avoidance Usually a country with a young history, i.e. USA. The population is much more diverse due to waves of immigration. Risk is embraced as part of business. Innovation and pushing boundaries is encouraged Ability to embrace ambiguity

Uncertainty Avoidance at Work Necessity of rules Time orientation Precision & punctuality Interpretation of “What is different…” Appropriateness of emotional displays

Idiosyncrasies of North American Management Theory Stress on Market Processes Stress on the Individual Stress on Managers rather than Workers

Long term Orientation (Confucian Dynamism) The ‘newest’ dimension three universal dimensions and two fourth dimensions Truth vs. Virtue: What one believes vs. What one does

Confucian Dynamism Short-term orientation Social pressure to ‘keep up with the Joneses’ small savings expect quick results concern with possessing Truth Long-term orientation Thrift: being sparing with resources large savings perseverance toward slow results concern with respecting the demands of Virtue