INTRODUCTION:

Cultures around the world are getting more and more interconnected and the business world
is becoming increasingly global. For managers this means that they should be able to work
with a large variety of people from different countries and cultural backgrounds. However,
since most people are so strongly immersed in their own culture, they often fail to see how it
affects their patterns of thinking or their behaviour .
To overcome this, researchers suggest some kind of tools or mechanisms with which to
compare countries on cultural similarities and differences. A number of attempts have been
made to combine these cultural differences across borders (e.g. the GLOBE study,
Trompenaars’ cultural dimensions and Hall’s cultural dimensions). However, the most-used
and best-known framework for cultural differences is Geert Hofstede’s Cultural Dimensions
theory.

WHAT IS THE HOFSTEDE’S CULTURAL DIMENSIONS THEORY?

Hofstede’s Cultural Dimensions Theory was created in 1980 by Dutch management

researcher Geert Hofstede. The aim of the study was to determine the dimensions in which
cultures vary.
It is a framework used to understand the differences in culture across countries and to discern
the ways that business is done across different cultures. In other words, the framework is used
to distinguish between different national cultures, the dimensions of culture, and assess their
impact on a business setting.

HOFSTEDE IDENTIFIED SIX CATEGORIES THAT DEFINE

CULTURE:
 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.

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

Bangladesh, China, India, Singapore, Malaysia, and Arab countries have very
high power distance scores; therefore, these countries are examples of high PDI in
2022. For example, Bangladesh and China ranked high power distance countries with
scores of 80. Additionally, India scores 77, and Singapore scores 74 in the power
distance dimension. People from the following countries easily accept the inequalities
between people with high and low power status. People in these countries do not
complain; instead, they admit it as a social order.

 A low power distance index indicates that a culture encourages flat organizational
structures that feature decentralized decision-making responsibility, participative
management style, and emphasis on power distribution.

Austria, Israel, Denmark, New Zealand, Norway, Germany, and United

Kingdom are examples of low power distance countries in 2022. According to
Hofstede’s cultural dimensions theory, Austria has achieved the lowest PDI country
with 11, following Israel with 13, Denmark with 18, New Zealand with 22, Norway
with 31, Germany with 35, and United Kingdom with 35. People from these countries
do not accept the inequity between high and low influential people in society,
community, and organization. They raise voices against injustice and discrimination
in society.

2. INDIVIDUALISM VS. COLLECTIVISM

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

 Individualism indicates that there is a greater importance placed on attaining personal

goals. A person’s self-image in this category is defined as “I.”

Usually, individualist cultures are prevalent in western countries. For example, the
United States, Australia, United Kingdom, Canada, Netherland, New Zealand,
and Ireland are individualistic countries. According to Hofstede’s Dimensions of
National Culture, the  United States scores 91, following Australia with 90, the United
Kingdom with 89, Canada with 80, Netherland with 80, New Zealand with 79, and
 Ireland with 70. Therefore, people from these countries prefer to work alone and
foster independent achievement.

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

Collectivist cultures are common in Asian and Latin American countries. Guatemala,
Ecuador,  Venezuela, Indonesia, Pakistan, Taiwan, South Korea, China,
Bangladesh, and Malaysia are considered the most collectivistic nations globally.
According to Hofstede’s cultural dimensions model, the low score in this dimension
indicates a collectivistic society. For example, Guatemala has ranked the most
collectivistic country in the world with a score of 06, following Ecuador with 08,
Venezuela with 12, Indonesia with 14, Pakistan with 14, Taiwan with 17, South
Korea with 18, China with 20, Bangladesh with 20, and Malaysia with 26. So, people
from these countries prefer to work in groups and intend to achieve shared goals.

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.

 A high uncertainty avoidance index indicates a low tolerance for uncertainty,

ambiguity, and risk-taking. The unknown is minimized through strict rules,
regulations, etc.

Greece, Guatemala, Russia, Portugal, Belgium, and Japan are considered as the
high uncertain avoidance countries. According to Hofstede’s cultural dimensions
theory, Greece has become the highest uncertainty avoidance country with a score of
100, following Guatemala (98), Russia (95), Portugal(95), Belgium(94), and
Japan(92). So, people from these countries prefer to lead a planned life to avoid
unwanted risks.

 A 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.

Singapore (8), Jamaica(13), Denmark(23) and Hongkong(29), Sweden (29), and

also Malaysia 36 are examples of low uncertainty avoidance countries. People from
these low UAI countries accept the risk easily and do not scared to encounter
unwanted situations.
 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 toward sexuality equality,
behavior, etc.

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

Slovakia, Japan, Hungary, Austria, Venezuela, Italy, Mexico, and China are
considered masculine countries for their high score in this dimension. For example,
Slovakia scores 100, following Japan(95), Hungary(88), Austria (79), Venezuela (73),
Italy with 70, Mexico (69), and China (66). So, the gender role of these countries is
specific and overlap very little.

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

Sweden, Norway, Netherland, Denmark, Costa Rica, and Finland are considered
as the most feminine countries in the world for their low MAS score in this
dimension. According to Hofstede’s cultural dimensions theory, Sweden ranked the
most feminine country in the world with a score of 5, following Norway (8),
Netherland (14), Denmark (16), Costa Rica (21), and Finland (26). So, the gender role
of these countries is fluid that overlaps significantly.

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.

According to Hofstede’s cultural dimensions theory, South Korea(100), Taiwan(93),

Japan (88), China(87), Germany(83), and Singapore(72) are the long-term
orientation countries in the world. So, people from these countries set long-term goals
and expect perseverance satisfaction.
  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.

According to Hofstede’s cultural dimensions model, Ghana(4), Nigeria(13),

Australia(21), United States(26), Philippines(27), and also Norway(35) are
considered as the short-term oriented countries in the world. So, people from these
countries set short-term goals and expect immediate satisfaction.

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 society allows relatively free gratification related to

enjoying life and having fun.

According to Hofstede’s cultural dimensions, the most indulgent countries in the

world are Venezuela(100), Mexico(97), Puerto Rico(90), El Salvador(89),
Nigeria(84), Colombia(83), Germany(83), Trinidad and Tobago(80), Sweden(78),
Australia (71), Canada(68), Australia(68), and also Argentina(62).

 Restraint indicates that society suppresses gratification of needs and regulates it

through social norms.

According to Hofstede’s cultural dimensions model, the restraint countries in the

world are Pakistan(0), Egypt(4), Latvia(13), Ukraine(14), Albania(15),
Belarus(15), Estonia(16), Iraq917), Russia(20), and also China(24).

THE TWO ADDITIONAL DIMENSIONS OF GLOBAL CULTURAL DIFFERENCES

ARE HIGH CONTEXT VERSUS LOW CONTEXT AND MONOCHRONIC VERSUS
POLYCHRONIC TIME. IN 1976, EDWARD T. HALL INTRODUCED THESE
CULTURAL DIMENSIONS THAT DIFFERENTIATE ONE FROM ANOTHER NATION.

HIGH CONTEXT AND LOW CONTEXT

High context: High context members consider background, interpersonal history, and

nonverbal communication cues when communicating. Messages are implied and context-
sensitive-for example, Japan, China, Greece, Mexico.
Low Context: Low-context members want facts a clear, direct communication. Messages are
explicit, factual, and objective—for example, England, the US, and Germany.

MONOCHRONIC AND POLYCHRONIC

Monochronic: Monochronic members focus on one task at a time and work hard to meet
deadlines. They also adhere to plans, schedules, and deadlines because time is valuable. For
example, people in North America and Northern Europe are mostly monochronic.

Polychronic: Polychronic members are frequently late, do many things at once, are easily
distracted, and tolerate interruptions. Additionally, they are not obsessed with promptness or
schedules because time is not highly valued. For example, people in Kenya, Argentina,
African Americans, and Asia are polychronic. The monochronic versus polychronic time is
an example of chronemics nonverbal communication.

STRENGTHS OF HOFSTEDE’S 6 CULTURAL DIMENSIONS MODEL

1. Hofstede’s Cultural Dimension model helps reflect on personal assumptions

regarding norms.
2. A non-profit organization can use this approach to review its anticipations or
expectations, and behaviors. It will assist in refining and expanding
fundraising practices.
3. Multinational managers use Hofstede’s Cultural Dimension to increase
employees’ motivation levels and minimize conflicts. It will improve the
performance of a business organization.

LIMITATIONS OF HOFSTEDE’S 6 DIMENSIONS MODEL

1. One limitation lies in the original research methodology. The survey was
limited to IBM’s employees and only included sales and marketing personnel.
Hence, people believe that Hofstede’s Cultural Dimension model is based on
inconclusive research.
2. The world has seen many modifications in cultural and political movements.
Technology has progressed, and this change has revolutionized people’s
thinking and behavior patterns worldwide. The theory must be reviewed and
updated according to current conditions.