HOFSTEAD CULTURAL DIMENTION

Presented By:

Abhishek
Devender
Omkar
Geert Hofstede (born 1928) Netherland. He studied cultural
differences of different countries in order to understand
behavioural aspect of an individual belongs to a particular
culture.

A survey was conducted in 53 countries with 117,000

personnel working for IBM mostly mid-level managers
between 1967 and 1973.
 HOFSTEAD SIX CULTURAL DIMENTION INDEXES
1. Power Distance Index (PDI)
2. Individualism Versus Collectivism (IDV)
3. Masculinity Versus Femininity (MAS)
4. Uncertainty Avoidance Index (UAI)
5. Long- Versus Short-Term Orientation
6. Indulgence Versus Restraint (IVR)
 Power Distance Index (PDI)
Power Distance (PD) This refers to the degree of inequality
that exists – and is accepted – among people with and
without power. A high PD score indicates that society accepts
an unequal distribution of power, and that people understand
"their place" in the system. Low PD means that power is
shared and well dispersed. It also means that society members
view themselves as equals.
 HIGH PDI LOW PDI
Moral Discipline Adaptability

Parents and grandparents are treated with formal Children contradict their parents. When children grow up, they start relating
to their parents as friends, or at least as equals.
Grandparents often live with their children’s families. Parents should make their own provisions for when they become old.

Teachers involve the parents and expect them to help set the child straight. Parents often side with the child against the teacher.

Grandparents often live with their children’s families. Parents should make their own provisions for when they become old.

In societies with high PDI (Power Distance Index) authority is usually Leaders are more likely to " consult" and " guide " than they are to "impose ".
centralized and autocratic, clearly distinguishing between leaders and The societal structure is flat and great emphasis is placed on the importance
followers, with both parties endorsing such level of inequality of equal rights and opportunities

Centralized companies Flatter organizations

 HIGH PDI
Detailed instructions are provided to employees.
Communication (vertical/downwards) is cautious.
Leaders spend most of their time micro-managing and controlling and they
cannot focus on the "big picture ".
Hierarchy is normal and accepted, there is an emotional distance between
individuals believed to be at different social levels
Power holders are entitled to special treatment are not usually approachable
by their subordinates.
Large gaps in compensation, authority, and respect
Employees are afraid to express disagreement with their managers. There is
considerable dependence of subordinates on bosses.
LOW PDI
Authority is usually decentralized and democratic
Social harmony exists and high level of personal accountability is expected.
It is common for employee to question the authority, since critical thinking is
encouraged from an early age
Employee involvement and participation are important: supervisors
encourage workers to take initiative, to act autonomously, to share their
experiences and their views
People tend to address power holders on a first name basis and to socialize
with them during informal gatherings.
Supervisors and employees are considered almost as equals. Attitude
towards managers are informal and on first name basis
Limited dependence of subordinates on bosses, and there is a preference for
consultation. subordinates will rather easily approach and contradict their
bosses
 COUNTRY SCORE SCORE
Malaysia 104 Pakistan 54
Philippines 94 US 40
Russia 93 Canada 39
Arab 80 Australia 38
China 80 UK 35
India 77 Germany 35
Singapore 74 Switzerland Gr 26
Switzerland Fr 70 Sweden 28
France 69 New Zealand 22
Belgium 67 Israel 13
Spain 57
 Individualism Versus Collectivism (IDV)
This refers to the strength of the ties that people have to others within their
community.
A high IDV score indicates weak interpersonal connection among those who
are not part of a core "family." Here, people take less responsibility for others'
actions and outcomes.

In a collectivist society, however, people are supposed to be loyal to the group

to which they belong, and, in exchange, the group will defend their interests.
The group itself is normally larger, and people take responsibility for one
another's well-being.
 HIGH IDV LOW IDV
Use of the word “I” is encouraged Use of the word “I” is avoided
Personal time: have a job that leaves you sufficient time Training: have training opportunities (to improve your
for your personal or family life skills or learn new skills)
Freedom: have considerable freedom to adopt your own Physical conditions: have good physical working condit
approach to the job ions (good ventilation and lighting, adequate work space,
etc.)
Challenge: have challenging work to do—work from which Use of skills: fully use your skills and abilities on the job
you can get a personal sense of accomplishment
Individual interests prevail over collective interests. Collective interests prevail over individual interests.
Self-actualization by every individual is an ultimate goal. Harmony and consensus in society are ultimate goals.
Rewards individual achievement Self is defined in relation to others
Values uniqueness of individual Cooperation, not competition
Everyone is expected to have a private opinion. Opinions are predetermined by group membership.
 HIGH IDV
Hiring and promotion decisions are supposed to be based
on skills and rules only.
In the individualist society, family relationships at work
are often considered undesirable, as they may lead to
nepotism and to a conflict of interest.
Poor performance on the part of the employee and a
better pay offer from another employer are both
legitimate and socially accepted reasons for terminating a
work relationship.
Acknowledge individual accomplishments.
Don't mix work life with social life too much.
Encourage debate and expression of people's own ideas
LOW IDV
Hiring and promotion decisions take employee’s in-group
into account.
Usually, preference is given to hiring relatives, first of all of
the employer, but also of other persons already employed
by the company.
Poor performance of an employee in this relationship is
no reason for dismissal. Performance and skills, however,
do determine what tasks one assigns to an employee
Suppress feelings and emotions that may endanger
harmony.
Avoid giving negative feedback in public.
Saying "No" can cause loss of face, unless it's intended
to be polite. For example, declining an invitation several
times is expected.
 COUNTRY SCORE COUNTRY SCORE
United State 91 India 48
Australia 90 Russia 39
United Kingdom 89 Arab 32
Canada 80 Phillipins 30
Netherland 80 China 20
Sweden 71 Singapore 20
German 69 Pakistan 14
United State 91
 Masculinity Versus Femininity (MAS)
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. Values like earning, recognition, advancement, challenging
work are given more preferences.

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, cooperation, healthy work environment and
employment security.
 HIGH MAS
sense of responsibility, decisiveness, liveliness, and ambitiousness were
considered characteristics for men only while caring and gentleness were
seen as for women only
In the family, fathers deal with facts, and mothers deal with feelings.
The standard pattern is that the father earns, and the mother cares.
Girls cry, but boys don’t; boys should fight back, and girls shouldn’t fight at
all.
Boys play to compete; girls play to be together.
Careers are compulsory for men, optional for women.
There is a lower share of working women in professional jobs.
There is a well defined distinction between men's work and women's work.
LOW MAS
In the more feminine cultures, all these terms were considered as applying
to both genders.
In the family, both fathers and mothers deal with facts and feelings.
Parents share earnings and caring roles.
Both boys and girls are allowed to cry, but neither should fight.
Boys and girls play for the same reasons.
Careers are optional for both genders.
There is a large number of working women in professional jobs.
A woman can do anything a man can do. Powerful and successful women are
admired and respected.
 HIGH MAS LOW MAS
Management is decisive and aggressive. Resolution of conflicts by letting Management prefer intuition and consensus. Resolution of conflicts by
the strongest win. Rewards are based on equity. compromise and negotiation. Rewards are based on equality.

Preference for larger organizations. People live in order to work. Preference for smaller organizations. People work in order to live.

More money is preferred over more leisure time. More leisure time is preferred over more money.

Earnings: have an opportunity for high earnings Manager: have a good working relationship with your direct superior

Recognition: get the recognition you deserve when you do a good job Cooperation: work with people who cooperate well with one another
Advancement: have an opportunity for advancement to higher-level jobs Living area: live in an area desirable to you and your family

Be aware that people may expect male and female roles to be distinct. Ensure job design and practices are not discriminatory to either gender.
Treat men and women equally.
 COUNTRY SCORE SCORE
Japan 95 Arab 53
Italy 70 Pakistan 50
Switzerland Gr 70 Israel 47
Germany 66 France 43
United Kingdom 66 Spain 42
China 66 South Korea 39
USA 62 Russia 36
New Zealand 58 Netherland 14
Switzerland Fr 58 Sweden 05
India 56
 Uncertainty Avoidance Index (UAI)
In societies that score highly for Uncertainty Avoidance, people attempt to
make life as predictable and controllable as possible. If they find that they can't
control their own lives, they may be tempted to stop trying.

People in low UAI-scoring countries are more relaxed, open or inclusive.

All human beings have to face the fact that we do not know what will happen
tomorrow: the future is uncertain, but we have to live with it anyway.
In uncertainty avoidance we try to reduce ambiguity and increase clarity.
 HIGH UAI (Avoid Uncertainty) LOW UAI (Welcome Uncertainty)

People have more worries about health and money. People have fewer worries about health and money.

Students are comfortable in structured learning situations Students are comfortable with open-ended learning
and concerned with the right answers. situations and concerned with good discussions.

Conservative investments Risky investments

Teachers supposed to have all the answers Teachers may say ‘I don’t know’

Fewer changes of employer, longer service More changes of employer, shorter service

Need for quality and formalization Tolerance for ambiguity

 HIGH UAI (Avoid Uncertainty)
Top managers are concerned with daily operations.
Worse at invention, better at implementation (Japan)
Very formal business conduct with lots of rules and
policies.
Differences/ Changes are avoided.
Manager should be clear and concise about expectations
and goals, and set clearly defined parameters. But
encourage creative thinking and dialogue where you can.
It is important for a manager to have at hand precise
answers to most of the questions that subordinates may
raise about their work.
LOW UAI (Accepting Uncertainty)
Top managers are concerned with strategy
Better at invention, worse at implementation (Sweden)
Informal business attitude.
Accepting of change and risk
Manager Ensure that people remain focused, but don't
create too much structure.
Openness to change or innovation, and generally
inclusive. More inclined to open-ended learning or
decision making
 COUNTRY SCORE COUNTRY SCORE
Greece 112 Canada 60
Belgium 100 Netherlands 53
Russia 96 Australia 51
Japan 92 New Zealand 50
France 86 USA 46
Spain 86 India 40
Pakistan 70 China 30
Arab 68 Sweden 29
Germany 65 Singapore 8
 Long- Versus Short-Term Orientation (LTO)
This refers to how much society values long-term – practical approach – as
opposed to short-term – traditions and values. This is the fifth dimension that
Hofstede added in the 1990s, after finding that Asian countries with a strong
traditional values acted differently from Western cultures. A Chinese Value
Survey (CVS) was conducted and its relation with economical growth was
studied.
It has also been observed that countries with Long Term Orientation displayed
high growth post 1970s.
 HIGH LTO (Pragmatic)
Thrift, being careful with resources.
Perseverance, sustained efforts toward slow results. Serve
the stakeholders and society at large for many generations
to come.
Having a sense of humbleness
Respect for circumstances independent of traditions. People
guided by virtues and practical good examples. ( China
doesn’t much believe in religion)
Marriage is a practical aspect of life
Living with in-laws a normal
Young woman associate affection with a husband
Old age is a happy period, and it starts early
Children get gifts for education and development as a price
LOW LTO (Normative)
Social pressure toward spending. Small propensity to
save for the future.
Efforts should produce quick results.
Having a sense of guarding Pride.
Respect for traditions. Normative in their thinking.
Confucian hypothesis.
Marriage is a moral obligation
Living with in-laws is a source of trouble
Young women associate affection with a boyfriend
Old age is an unhappy period, but it starts late
Children get gifts for fun and love.
 HIGH LTO (Pragmatic) LOW LTO (Normative)

Main work values include learning, honesty, adaptiveness,
accountability, and self-discipline.
Leisure time is not important.
Focus is on market position. If market is doing good, we all
will reap the benefit.
Importance of profits ten years from now.
Owner, managers and workers share the same aspirations.
Fast economic growth of poor countries
Main work values include freedom, rights, achievement,
and thinking for oneself.
Leisure time is important
Focus is on the “bottom line”
Importance of this year’s profits
Managers and workers are psychologically in two camps
Slow or no economic growth of poor countries

Funds available for investment Little money for investment

Investment in real estate Investment in shares.
 COUNTRY SCORE COUNTRY SCORE
China 118 Sweden 33
Hong Kong 96 Poland 32
Taiwan 87 Australia 31
Japan 80 Germany 31
South Korea 75 New Zealand 30
Brazil 66 United States 29
India 61 United Kingdom 25
Thailand 56 Zimbabwe 25
Singapore 48 Canada 23
Netherland 44 Philippines 19
Bangladesh 40 Nigeria 16
Pakistan 00
 Indulgence Versus Restraint (IVR)
Indulgence stands for a tendency to allow relatively free gratification of basic and
natural human desires related to enjoying life and having fun.

Restraint, reflects a conviction that such gratification needs to be curbed and

regulated by strict social norms.

Note that the gratification of desires on the indulgence side refers to enjoying life
and having fun, not to gratifying human desires in general.
 HIGH IVR (Indulgent)
Higher importance of having friends and leisure time
Less moral discipline
Thrift is not very important
Higher optimism in countries with well-educated population
Lower death rates from cardiovascular diseases
More satisfying family life
Freedom of speech is viewed as relatively important.
A perception of personal life control.
Extrovert personality
LOW IVR (Restraint)
Lower importance of having friends and leisure time
Moral discipline
Thrift is important
Lower percentages of people who feel healthy
Higher death rates from cardiovascular diseases
Less satisfied with family life
Freedom of speech is not a primary concern
They believe that their life is subject to not only their
own decisions.
Worried personalities
 HIGH IVR (Indulgent) LOW IVR (Restraint)

Employees cannot easily be motivated with material Material reward is expected

rewards
No need for status objects Status objects are important

Employees encouraged to speak up Very hierarchical working environment, lower employees

do not voice their own opinions
Incentives like free time, Emphasize flexible working and People live to work, employees are expected to work as
work-life balance. late as the boss

flexible work hours and places makes employee Indulging and using too much money on yourself is
productive thought of as wrong
Manager should encourage debate and dialogue in Manager should avoid making jokes when engaged in
meetings or decision making formal sessions. Instead, be professional
 COUNTRY SCORE COUNTRY SCORE

Venezuela 100 Saudi Arabia 52

Sweden 80 France 48

New Zealand 75 Spain 44

Australia 71 Japan 42

United Kingdom 69 Germany 40

Canada 68 India 26

USA 68 Pakistan 0
Reference : Cultures and Organizations - Software of the Mind
3rd_edition 2010
Geert Hofstede, Netherland
Gert Jan Hofstede, Netherland
Michael Minkov, Bulgaria