A framework used to distinguish between different national cultures and cultural dimensions, and their impact on a business setting
Hofstede’s Cultural Dimensions Theory is a framework used to understand the differences in culture across countries and 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, their impact on etiquette and to facilitate communication in areas ranging from business to diplomacy.
Hofstede’s Cultural Dimensions Theory was created in 1980 by Dutch management researcher Geert Hofstede who carried out an extensive survey during the 1960s and 1970s, investigating variations in values within different sectors of IBM, a global computer manufacturing company.
The study comprised over 100,000 employees from 50 countries across three regions.
Hofstede identified six categories that define culture:
The power distance index considers the extent to which inequality and power are tolerated.
For example, in countries with high power distance, parents may expect children to obey without questioning their authority. Conversely in countries with low power distance there tends to be more equality between parents and children, with parents more likely to accept children arguing or challenging their authority.
The individualism vs. collectivism dimension considers the degree to which societies are integrated into groups and their perceived obligations and dependence on groups.
This dimension considers how unknown situations, uncertainty, and unexpected events are dealt with.
Masculinity vs. Femininity
The masculinity vs. femininity dimension is often referred to as gender role differentiation and examines the extent to which a society values traditional masculine and feminine roles.
A high femininity score suggests that traditional feminine gender roles hold significant value within that society and for example, a country with a high rating would probably offer improved maternity benefits and more accessible childcare services.
On the other hand, a country with a lower femininity score is likely to highlight increased female representation in leadership roles and a higher prevalence of female entrepreneurship.
The long-term orientation vs. short-term orientation dimension considers the extent to which society views its time horizon.
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.
In a society characterized by high indulgence, you may see individuals allocating more funds to luxuries and relishing greater freedom in their leisure pursuits. Conversely, within a restrained society, the inclination leans towards thrift, savings, and practical necessities.
While Hofstede’s Cultural Dimensions Theory provides a framework to help in understanding etiquette and communication across cultures, considerations are needed when recommending its application.
Enhances cultural insight: It helps understanding of diverse cultures, fostering an appreciation for diversity.
Promotes global collaboration: It supports informed management of individuals from diverse cultures to reduce misunderstanding and conflict while optimizing communication and collaboration.
Dated dimensions: It could be argued that the dimensions of power distance index, masculinity/ femininity, individualism/ collectivism, short term versus long term orientation and uncertainty avoidance do not fully capture the intricacies of various social cultures.
Cultures not individuals: Although the model aims to define cultures and not individuals, every individual is still ultimately unique, shaped by personal experiences that influence their values throughout life.
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