Hofstede's Cultural Dimensions Theory

 

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 power distribution.

2. Collectivism vs Individualism : -  Individualism vs collectivism indicate about the degree to which societies are integrated into different groups. It shows how personal needs and goals are prioritized vs the needs and goals of the group /organization.

Individualism suggests that attaining personal goal is very important “ I “ defined as a person’s self - image.

Collectivism suggests that well being of group or team has greater importance. “ We “ shows person’s self - image.

 

3. Uncertainty Avoidance Index : - How conformable are people with changing the way they work or their tolerance for uncertainty. It refers to unexpected events and unknown situations.

High uncertainty avoidance index refers to low tolerance or acceptance for risk taking, ambiguity and uncertainty.

Low uncertainty avoidance index refers to high tolerance or acceptance for risk taking, ambiguity and uncertainty.

4. Feminine vs Masculine : - Masculine society have different rules for man and women.
Short vs long term orientation: - Long term perspective, planning for future, perseverance values vs short term plans or present oriented.

Masculinity focuses on material achievements, assertive distinct gender, cooperation, modesty, caring for weak and quality of life.

Femininity focuses on modest, nurturing, concerned about quality of life and fluid gender roles.

 

5. Short - term vs Long - term Orientation : -

 

The long-term orientation vs short - term orientation indicated towards the way society considers or view its time horizon.

Long-term orientation vs short-term orientation focuses on future events and considers delays short - term success or gratification over long - term success. Long term orientation also focuses upon perseverance and long- term growth.

Short - term orientation focuses upon near future or events and believes in delivering short – term success or goals. Short – term orientation emphasize on quick and immediate results.

 

6. Indulgence vs Restraint : - The indulgence vs Restraint indicates towards the tendency of particular society to achieve their desired goals. In other word’ s involving in basic drives related to living full of life or enjoying life and having fun vs regulating it via strict social norms.

Indulgence shows about the society that enjoy life and having fun.

Restraint shows about the society which avoid gratification and focuses on social norms.