Hofstede Prototype – Cultural Dimensions

Avishek Chakraborty

Department of Business Administration, University of Louisiana at Lafayette.

Dr. Ericka Tapia

October 20, 2020

University of Louisiana at Lafayette IBUS540-020_860-202120

Hofstede Prototype – Cultural Dimensions

ABSTRACT

Geert Hofstede’s work on culture is the most broadly quoted in existence. His analysis
provides scholars with a highly valuable insight into the dynamics of cross-cultural relationships.
Hofstede provided six dimensions to explain cross-cultural relationships round the world.
Though his work has been discredited by number of academics since such innovative work
cannot escape criticism, similar happened to him as well. Still on the other side of this
controversial arguments, there are certain major academics which support Hofstede prototype.
There are far more scholars who support Hofstede work and prestigiously quote the same in their
own findings than those who criticize him. These scholars take Hofstede findings as absolute
assumptions and a strong starting point for their research.
This paper takes a deep dive in explaining the six cultural dimensions in Geert
Hofstede’s paradigm. His findings are also applied as a practical environment analysis using two
countries as role-model namely United States and India. After this practical environment
analysis, this paper also explains the importance and practicality of using Hofstede’s model
before doing international business.
After weighing the evidence, including observing a dialogue between Hofstede and
his antagonists, a greater argument exists which support Hofstede than exists which dispute his
work. Although not all of what Hofstede has said stands up to public enquiry, the majority of his
findings, have weathered the storms of time, and will continue to guide multi-national
practitioners into the ‘global’ future.

INTRODUCTION

According to Cambridge dictionary, the word culture (in noun form) means “the way
of life of a particular people, esp.
as shown in their ordinary behavior and habits, their attitudes toward each other,
and  their moral  and religious beliefs”
Before explaining the concept of culture, let us first see how scholars define culture
and certain key words used by them. Geert Hofstede defines culture as “A collective
programming of the mind which distinguishes one group from another” (Hofstede 1980, 25).
“Mental programming … patterns of thinking and feeling and potential acting” (Hofstede 1991a,
4). I think the primary word to focus here is ‘Mental programming’, so culture is not something
which is easily acquired or learned from textbooks. The elements of culture is something which
we acquire from childhood as we grow up and factors influencing those elements are parenting,
schooling, friendship, family norms and regulations, workplace regulations and numerous other
sources. I think culture is a slow process of growing into a society which includes: -

 learning values (dominant beliefs and attitudes).

 partaking of rituals (collective activities),
 modelling against heroes (role models),
 understanding symbols (myths, legends, dress, jargon, lingo…)

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Culture is important for many aspects of business life especially when a business
must interface with people, either as customers, employees, suppliers, or stakeholders. Cross-
cultural research has had most value therefore when it has been able to provide substance to
modern management practices and techniques. Many cross-cultural researchers, including
Hofstede, have been criticized for not providing this valuable guiding intelligence.

HOFSTEDE’S STUDY

Geert Hofstede carried out a gigantic research in collaboration with IBM staffs over the
course of the years from 1967 till 1978, the research comprised of 116,000 questionnaires, from
which over 60,000 people responded from over 50 countries. This research effort is among the
ones mostly celebrated in the year 1980. From the data he obtained he provided a factor analysis
of 32 questions in 40 countries. From this he identified four bipolar dimensions namely: -

1. Power Distance
2. Individualism/Collectivism.
3. Uncertainty Avoidance
4. Masculinity/Femininity

These four dimensions became his first basis for the characterization of culture in each country.
A following study was conducted by Geert Hofstede and psychologist Michael Harris Bond
during the year 1984 which introduced a fifth dimension named Long-term/Short-term
Orientation which was an attempt to fit the uncertainty avoidance dimension into the Asian
culture. Dimension indulgence verses restraint is the sixth and the most recent dimension, this is
based on another study conducted by Geert Hofstede and Dr. Michael Minkov during the year
1995 till 2002 with the data collected from 93 different countries.

Thus, the six cultural dimensions defined in Hofstede’s prototype are: -

1. Power Distance
2. Individualism/Collectivism.
3. Uncertainty Avoidance
4. Masculinity/Femininity
5. Long-term/Short-term Orientation
6. Indulgence

Hofstede, Bond and Minkov scored each country on a scale of 0 to 100 for each of the above
mentioned dimension and when Hofstede analyzed his database of culture statistics, he found
clear patterns of similarity and difference along the four dimensions. Because his research
focused solely on IBM employees, he could attribute those patterns to national differences, and
minimize the impact of company culture. Hofstede’s model has been instrumental in the
implementation of many business systems, including: compensation practices; budget control
practices; entrepreneurial behavior; training design; conflict resolution; workgroup dynamics and
performance; innovation; leadership styles; management control systems; participative
management, and of course many other cross-cultural issues. The comparative study of work-
related values by Hofstede covers an unusually large number of national cultures across

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countries, first the study included 40 countries later 53 countries. It therefore overlaps partly with
most other cross-national studies as far as the countries covered are concerned. The population
used for Hofstede’s studies consist of employees of different holdings of the same multinational
business corporation, a narrow but well-matched set of samples.

HOFSTEDE’S FINDINGS – EXPLANATION OF CULTURAL DIMENSIONS.

As a result of multi-dimension study, Dr. Geert Hofstede established six cultural dimensions to
characterize cross-cultural differences, these are as discussed below: -

Power Distance (PD)

This term was used for the first time by a Dutch psychologist named Mark Mulder
with different individuals whom he gave different power relations Hofstede’s definition of Power
Distance is “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.” This in turn means that distance in power always exists with people at the bottom,
never with the individual at the top. There is always somebody at the top of any society or nation
who would like to have power provided the people at the bottom allow him/her to have and
accomplish it. In other words, this dimension is used to explain the degree of inequality that
exists and is accepted between people with or without power.
Hofstede measured Power Distance using an index called Power Distance Index
(PDI), he numbered the 76 countries from where data is obtained according to his survey in a
scale of 0 to 100 with 0 indicating lowest PD country and 100 indicating highest PD country. A
high PDI score indicates that a society/country accepts an unequal distribution of power whereas
a low PDI score indicates power is shared and is widely dispersed. The members of such
society/country do not accept that power is unequally distributed. However, most countries fall
somewhere in between according to his study.
A few characteristics of high and low PDI society as mentioned by Hofstede is as follows: -
High PDI: -
 Larger Inequality among members of the society.
 Centralized organizations with complex hierarchies, superiors are considered as
superior beings.
 Power comes first, anything else is secondary. This creates large gap in
compensation, authority, and respect.
 In education ‘Respect’ is the most important thing a child should learn.
Low PDI: -
 Less inequality among members, if inequality exists, it should be diminished.
 Flatter organizations with less complex hierarchy.
 Good/evil comes first irrespective of who has the power, law is equal for everyone
no matter who hold the power, this in turn shows supervisors and employees are
considered almost equal.
 In education ‘Independence or Individuality’ is the most important thing that a
child can learn.

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According to Hofstede’s study Russia has the highest power distance, followed by Mexico,
China, Arab countries (UAE) and India. Among European countries the one having largest
power distance is France. Then on the low side the countries are United States, United Kingdom,
Japan, Germany, and Australia.

Individualism/Collectivism.
As per Hofstede, the terms Individualism and collectivism is used for the first time
in 19th century to define political IDs and they were used for the first time to identify political
ideology. Later round 1960 the term individualism was used to identify personality of individuals
however no one ever mentioned anything about collective personality. As per Hofstede the terms
individualism vs collectivism is defined as “Individualism does not mean egoism. It means that
individual choices and decisions are expected. Collectivism does not mean closeness. It means
that one "knows one's place" in life, which is determined socially. With a metaphor from physics,
people in an individualistic society are more like atoms flying around in a gas while those in
collectivist societies are more like atoms fixed in a crystal. “
In other words, individualism is used to define a society where individuals look after
their immediate family like parents, wife, and children. Whereas collectivism is used to define a
society where individuals look after their immediate family plus extended family and groups
within extended family. Infect this refers to the strength of the ties that people have to others
within their community. This is measured by an index called Individualism index or IDV within
a scale of 0 to 100. Countries with IDV values on the lower side or closer to 0 indicates more
collectivist society whereas those having IDV index on the higher side means more individualist
society which  indicates weak interpersonal connection among those who are not part of a core
"family." Here, people take less responsibility for others' actions and outcomes.
A few characteristics of countries with high IDV and low IDV index are as follows: -
High IDV: -
 High value placed on people's time and their need for privacy and freedom.
 An enjoyment of challenges, and an expectation of individual rewards for hard
work.
 Respect for privacy.
Low IDV: -
 Emphasis on building skills and becoming master of something.
 People work for intrinsic rewards.
 Maintaining harmony among group members overrides other moral issues

Uncertainty Avoidance
Uncertainty avoidance mainly deals with a society’s tolerance for uncertainty and
ambiguity. According to Hofstede uncertainty avoidance has nothing to do with risk avoidance,
nor with following rules. It has to do with anxiety and distrust in the face of the unknown, and
conversely, with a wish to have fixed habits and rituals, and to know the truth. Hofstede
mentions ‘The term Uncertainty Avoidance was used for the first time in 1960 in a well-known
American book explaining the theory of the firm explained by Syed and March”. In other words,
this dimension describes how well people can cope with anxiety. In societies that score high for
Uncertainty Avoidance, people attempt to make life as predictable and controllable as possible.
If they find that they cannot control their own lives, they may be tempted to stop trying. On the
other hand, society with low Uncertainty Avoidance, people tend to be more relaxed, open, or

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inclusive. This is measured with an index called Uncertainty avoidance Index in a scale from 0 to
100. Certain specific characteristics for countries with high and low UAI are as follows: -
High UAI: -
 Conservative, rigid, and structured, unless the danger of failure requires a more
flexible attitude.
 Many societal conventions.
 People are expressive, and can show anger or emotions, if necessary.
 A high energy society, if people feel that they are in control of their life instead of
feeling overwhelmed by life's vagaries
Low UAI: -
 Openness to change or innovation, and generally inclusive.
 More inclined to open-ended learning or decision making.
 Less sense of urgency.

Masculinity/Femininity
According to Hofstede masculine and feminine does not actually mean men and
female. It means man like and woman like, so a man can be called feminine and a woman can be
called masculine. Among the six dimensions, the interesting fact about this dimension is that data
changes if collected from man or woman, in all other dimensions data remains unchanged
whether collected from male or female.
This refers to the distribution of roles between men and women. In masculine
societies, the roles of men and women overlap less, and men are expected to behave assertively.
Demonstrating your success, and being strong and fast, are positive characteristics.
In feminine societies, however, there is a great deal of overlap between male and female roles,
and modesty is perceived as a virtue. Greater importance is placed on good relationships with
your direct supervisors or working with people who cooperate well with one another. This is
measured
In a masculine society, men are supposed to be tough. Men are supposed to be from
Mars, women from Venus. Winning is important for both genders. Quantity is important and big
is beautiful. In a feminine society, the genders are emotionally closer. Competing is not so
openly endorsed, and there is sympathy for the underdog. Certain characteristics of masculine
and feminine society are as follows: -
High MAS: -
 Strong egos – feelings of pride and importance are attributed to status.
 Money and achievement are important.
Low MAS: -
 Relationship oriented/consensual.
 More focus on quality of life.

Long-term/Short-term Orientation
Hofstede introduced this dimension in 1991, it was the result of a research conducted
by Dr. Michael Bond with a set of questionnaires prepared by Chinese scholars. That research
raised the necessity to create another dimension called Long-term/Short-term Orientation. In a
long-time-oriented culture, the basic notion about the world is that it is in flux and preparing for
the future is always needed. In a short-time-oriented culture, the world is essentially as it was
created, so that the past provides a moral compass, and adhering to it is morally good.

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This dimension was originally described as "Pragmatic Versus Normative (PRA)." It

refers to the time horizon people in a society display. Countries with a long-term orientation tend
to be pragmatic, modest, and thriftier. In short-term oriented countries, people tend to place more
emphasis on principles, consistency, and truth, and are typically religious and nationalistic.
Certain characteristics of society with long- and short-term orientation is as follows: -
Long-term orientation: -
 People often wonder how to know what is true. For example, questions like
"What?" and "How?" are asked more than "Why?"
 Thrift and education are positive values.
 Modesty.
 Virtues and obligations are emphasized.
Short-term orientation: -
 People often want to know "Why?"
 Strong convictions.
 As people tend to oversell themselves, others will assess their assertions critically.
 Values and rights are emphasized.

Indulgence
The dimension Indulgence vs restrain is the sixth and the most recent dimension, the
terms are coined by Dr. Michael Minkov for covering certain differences found in the ‘World
value Survey’ which has still not being found in other dimensions. This is mainly related to the
subjective happiness or unhappiness and the control of people’s own life and opposite. This is
identified by an index called IVR ‘Indulgence vs Restrain Index in a scale from 0 to 100.
Countries with a high IVR score allow or encourage relatively free gratification of
people's own drives and emotions, such as enjoying life and having fun. In a society with a low
IVR score, there is more emphasis on suppressing gratification and more regulation of people's
conduct and behavior, and there are stricter social norms.
Certain characteristics of high indulgence vs high restraint countries are as follows: -
High Indulgence: -
 Optimistic.
 Importance of freedom of speech.
 Focus on personal happiness.
High Restraint: -
 Pessimistic.
 More controlled and rigid behavior.

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A TWO-COUNTRY ANALYSIS USING HOFSTEDE PROTOTYPE

Australia and India are the two countries which have been selected to analyze Hofstede
paradigm. Though these two countries are relatively close to each other geographically, yet there
is a large cultural gap between them which can be explained by the six cultural dimensions
mentioned by Hofstede.
Note: - For each of the dimensions, the country scenarios will be explained with an assumption
an Australian Manager working in India.

Power Distance
The two countries are poles apart on this dimension. An Australian working in
Indonesia will find the following differences from his or her more familiar cultural environment:
 A formal hierarchy with each tier wielding more power than the rank below.
 Management will be centralized; subordinates are unlikely to be consulted or
expected to participate in decision-making.

Individualism/Collectivism
These two countries may not be poles apart in this dimension, still there are quite
some differences. Australia is highly individualist, the IDV index is between 77-91, India is
somewhat low individualist, the IDV index is somewhat between 42-49. So, an Australian
manager working in India will notice: -
 The employees will be team-oriented, and group motivated. An individual’s
achievement will be attached to group promotion. While the Australian will say “I
did this”, an individual in Indonesia will say “we did this”.

Uncertainty Avoidance
The countries were similar in this dimension, both tending to plan for future events,
neither culture has much fear of making decisions or of the unknown.

Masculinity/Femininity
There is only a small variance on this scale between Australia and India. Both
countries tending to be middle of the road, Australia slightly biased towards a Masculine culture.
The Indian workforce will show more affection and compassion than would the Australian
workforce who will be more task oriented and result focused. An Australian working in India
will find:
 Indian workers will have strong bonds and maintain personal relationships.
Belonging to the group is more important than pleasing the boss. Workers will
tend to socialize at work, more than Australian workers.

Long-term/Short-term Orientation
The countries were similar in this dimension, both tend to be more towards
‘flexhumbility’ i.e. long-term orientation. Both the countries tend towards long-term orientation
culture thinking future planning is always needed.

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Indulgence
Australia is a highly indulgent country as specified by Hofstede, people are optimistic,
and importance is given to the freedom of speech. However, we do not have data for India for
this cultural dimension.

HOSSTEDE MODEL-IMPORTANT FOR INTERNATIONAL BUSINESS

While the criticisms may be sound, Hofstede’s research is one of the most widely used
pieces of research among scholars and practitioners, it has many appealing attributes (Furrer
2000, 358; Ross 1999, 14; Søndergaard 1994). Søndergaard (1994) found that Hofstede’s 1980
study received 1,036 citations, while another highly regarded study on strategy by Miles and
Snow received only 200 citations. Many researchers agree on the following points which
reinforce the value of the study.  When it comes to business, promoting cultural sensitivity will
help people work more effectively when interacting with people from other countries, which in
turn will participate in making all transactions a success.

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; Hofstede's
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: verbal (words and language itself), non-verbal (body language,
gestures) and etiquette do's and don'ts (clothing, gift-giving, dining, customs and protocol). 

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.

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 has studied the application of Hofstede's 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 must understand the specificity of
their market.

CONCLUSION

This paper explains the six cultural dimensions in Hofstede’s paradigm. It also analyses the
cultural differences in two countries using his prototype. While the level of controversy
surrounding this work is still quite high, it remains the most valuable piece of work on culture for
both scholars and practitioners.

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REFERENCES

1. Hofstede findings – explanation of cultural dimensions referred from

https://www.mindtools.com/pages/article/newLDR_66.htm
2. Culture. (n.d.). Retrieved October 17, 2020, from
https://dictionary.cambridge.org/us/dictionary/english/
3. https://ro.uow.edu.au/cgi/viewcontent.cgi?
referer=&httpsredir=1&article=1389&context=commpapers – This is referred while
writing the paragraph ‘What is Culture?’
4. https://www.americanheritage.com/nation-immigrants - Immigrants influencing
American heritage is referred from here.
5. https://www.saada.org/ - Details about the SADDA project are referred from this site.
6. https://en.wikipedia.org/wiki/Patel_Brothers - data about Patel Brothers are referred from
this site.
7. Hofstede model – important for international business referred from -
https://sites.google.com/site/brackensinternational/hofstede-s-studies
8. Hofstede’s citations referred from https://geerthofstede.com/culture-geert-hofstede-gert-
jan-hofstede/6d-model-of-national-culture/
9. Hofstede’s study referred from https://ro.uow.edu.au/cgi/viewcontent.cgi?
referer=&httpsredir=1&article=1389&context=commpapers
10. Other general references: -
 https://www.cyborlink.com/besite/hofstede.htm#:~:text=Geert%20Hofstede%20
 https://smallbusiness.chron.com/apply-hofstedes-classification-scheme-global-
marketing-context-75008.html
 https://openstax.org/books/principles-management/pages/6-2-hofstedes-cultural-
framework

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