Culture theory – Hofstede

Geert Hofstede was a Dutch social psychologist who conducted extensive research on cultural differences in the workplace. He studied over 100,000 employees at IBM in different parts of the world in an attempt to identify aspects of culture that might influence business behavior. Through his research, Hofstede identified four cultural dimensions that he believed were important in understanding cultural differences:

1. Individualism (vs. collectivism): This dimension measures the degree to which individuals are expected to be self-reliant and take care of themselves and their immediate families, as opposed to being integrated into strong, cohesive groups. Countries that score high on individualism include the United States and Australia, while countries that score low on individualism include China and Japan.
2. Uncertainty avoidance (UA) index: This dimension measures the degree to which a society is comfortable with ambiguity and uncertainty. Societies with high uncertainty avoidance tend to have strict rules and regulations in place to reduce uncertainty, while societies with low uncertainty avoidance are more comfortable with ambiguity and are more flexible. Countries that score high on uncertainty avoidance include Greece and Japan, while countries that score low on uncertainty avoidance include Singapore and Denmark.
3. Power distance (PD) index: This dimension measures the degree to which a society expects and accepts a hierarchy of power. Societies with high power distance tend to have more rigid hierarchies, while societies with low power distance tend to be more egalitarian. Countries that score high on power distance include Mexico and the Philippines, while countries that score low on power distance include Sweden and Norway.
4. Masculinity (vs. femininity): This dimension measures the degree to which a society values traditional gender roles. Societies with high masculinity tend to value assertiveness, competition, and achievement, while societies with high femininity tend to value caring, nurturing, and quality of life. Countries that score high on masculinity include Japan and Germany, while countries that score low on masculinity include Sweden and Norway.

In addition to these four dimensions, Hofstede later added two more: long-term orientation (vs. short-term orientation) and indulgence vs. restraint.

5. Long-term orientation (vs. short-term orientation): This dimension measures the degree to which a society values long-term planning and perseverance, as opposed to a focus on the present and immediate gratification. Countries that score high on long-term orientation include China and Japan, while countries that score low on long-term orientation include the United States and Australia.
6. Indulgence vs. restraint: This dimension measures the degree to which a society allows for the free gratification of basic and natural human desires related to enjoying life and having fun. Countries that score high on indulgence include the United States and Brazil, while countries that score low on indulgence include China and Japan.

Hofstede’s cultural dimensions can be used in business and management to help understand and navigate cultural differences in the global workplace.