Question

Discuss Hofstede’s dimensions of culture

Of considerable importance for a multinational corporation, or any company—small, medium or large—with operations in different countries is how a society’s culture affects the values found in the workplace. Management processes and practices may need to vary according to culturally determined work-related values. For example, if the cultures of Brazil and the United Kingdom or the United States and Sweden result in different work-related values, a company with operations in both countries should vary its management processes and practices to account for these differences.

The most famous study of how culture relates to values in the workplace was undertaken by Geert Hofstede. As part of his job as a psychologist working for IBM, Hofstede collected data on employee attitudes and values for more than 116,000 individuals. Respondents were matched on occupation, age, and gender. The data later on enabled him to compare dimensions of culture across 50 countries.

Students are to answer the main Question (Hofstede’s dimensions of culture), keeping in view the given paragraphs.

Answer 1

Answer:

Hofstede's Six Dimensions of Culture:

Renowned psychologist Dr Geert Hofstede, conducted one of the most extensive studies on the influence of culture on workplace values. Research has highlighted the importance of culture as a significant force in the context of business. However, Hofstede’s study brought out the features or dimensions of culture that can have a significant influence on work style and workplace values. It is an era of globalization and culture has emerged as a more powerful force than ever. A very large number of companies are operating in the international environment. Doing business in the global environment necessitates an understanding of the cross cultural factors that can impact work and productivity in specific regions. The Hofstede model highlights six important dimensions which help understand why the style of business differs from culture to culture. These cultural dimensions by Hofstede were based on extensive research conducted through a decade. Based on this research, he published his model near the end of the 70s. In his model, he has defined culture as the collective programming of the mind distinguishing a group from another. Japanese differ from the Chinese in their style of business and workplace values and so do the Chinese from Americans. Dr Hofstede studied people working for IBM in more than 50 countries as a part of his study. Initially, he identified only four dimensions and later added two more. He completed the study in cooperation with Michael Minkov and his research team. The Hofstede model is a widely researched model and a large number of studies have been conducted based on this model. These are:

1) Power Distance Index

2) Collectivism vs. Individualism

3) Uncertainty Avoidance Index

4) Femininity vs. Masculinity

5) Short-Term vs. Long-Term Orientation

6) Restraint vs. Indulgence

Hofstede, Bond and Minkov scored each country on a scale of 0 to 100 for each dimension. The Hofstede model can be applied in several areas including business, education, research and even leadership.

Let's look at the six dimensions in more detail.

1) Power Distance Index:

· The power distance index considers the extent to which inequality and power are tolerated. In this dimension, inequality and power are viewed from the viewpoint of the followers – the lower level.

· High power distance index indicates that a culture accepts inequity and power differences, encourages bureaucracy and shows high respect for rank and authority.

· Low power distance index indicates that a culture encourages organizational structures that are flat, decentralized decision-making responsibility, participative style of management, and places emphasis on power distribution.

2) Individualism vs. Collectivism:

· The individualism vs. collectivism dimension considers the degree to which societies are integrated into groups and their perceived obligation and dependence on groups.

· Individualism indicates that there is greater importance on attaining personal goals. A person’s self-image in this category is defined as “I.”

· Collectivism indicates that there is greater importance on the goals and well-being of the group. A person’s self-image in this category is defined as “We”.

3) Uncertainty Avoidance Index:

· The uncertainty avoidance index considers the extent to which uncertainty and ambiguity are tolerated. This dimension considers how unknown situations and unexpected events are dealt with.

· High uncertainty avoidance index indicates a low tolerance for uncertainty, ambiguity, and risk-taking. The unknown is minimized through strict rules, regulations, etc.

· Low uncertainty avoidance index indicates a high tolerance for uncertainty, ambiguity, and risk-taking. The unknown is more openly accepted, and there are lax rules, regulations, etc.

4) Masculinity vs. Femininity:

· The masculinity vs. femininity dimension is also referred to as “tough vs. tender,” and considers the preference of society for achievement, attitude towards sexuality equality, behavior, etc.

· Masculinity comes with the following characteristics: distinct gender roles, assertive, and concentrated on material achievements and wealth-building.

· Femininity comes with the following characteristics: fluid gender roles, modest, nurturing, and concerned with the quality of life.

5) Long-Term Orientation vs. Short-Term Orientation:

· The long-term orientation vs. short-term orientation dimension considers the extent to which society views its time horizon.

· Long-term orientation shows focus on the future and involves delaying short-term success or gratification in order to achieve long-term success. Long-term orientation emphasizes persistence, perseverance, and long-term growth.

· Short-term orientation shows focus on the near future, involves delivering short-term success or gratification and places a stronger emphasis on the present than the future. Short-term orientation emphasizes quick results and respect for tradition.

6) Indulgence vs. Restraint:

· The indulgence vs. restraint dimension considers the extent and tendency for a society to fulfill its desires. In other words, this dimension revolves around how societies can control their impulses and desires.

· Indulgence indicates that a society allows relatively free gratification related to enjoying life and having fun.

· Restraint indicates that a society suppresses gratification of needs and regulates it through social norms.