This framework is used to understand the difference in cultures across countries and to discern the ways that business is done across different cultures. It helps to distinguish among different national cultures, the dimensions of cultures and the impact on business. Hofstede has defined six categories that define culture: 1. Power Distance Index 2. Collectivism vs Individualism 3. Uncertainty Avoidance Index 4. Femininity vs Masculinity 5. Short – term orientation vs Long - term Orientation 6. Restraint vs Indulgence 1. Power Distance : - The degree people are comfortable with influencing upwards. Accept inequality in distribution of power. High power distance index indicates about the culture which power difference and accepts inequality, it shows high respect for authority and rank, also encourages bureaucracy. Low power distance index reflects about the culture which encouraged flat and decentralized organizational structure. Emphasized on p
This framework is used to understand the difference in cultures across countries and to discern the ways that business is done across different cultures. It helps to distinguish among different national cultures, the dimensions of cultures and the impact on business. Hofstede has defined six categories that define culture: 1. Power Distance Index 2. Collectivism vs Individualism 3. Uncertainty Avoidance Index 4. Femininity vs Masculinity 5. Short – term orientation vs Long - term Orientation 6. Restraint vs Indulgence 1. Power Distance : - The degree people are comfortable with influencing upwards. Accept inequality in distribution of power. High power distance index indicates about the culture which power difference and accepts inequality, it shows high respect for authority and rank, also encourages bureaucracy. Low power distance index reflects about the culture which encouraged flat and decentralized organizational structure. Emphasized on p