Hofstede's cultural dimensions theory
The original theory proposed four dimensions along which cultural values could be analyzed: individualism-collectivism; uncertainty avoidance; power distance (strength of social hierarchy) and masculinity-femininity (task-orientation versus person-orientation).
[3] Each dimension highlights how cultures differ in terms of authority, social relationships, achievement focus, tolerance for uncertainty, time orientation, and levels of self-control..
The IVR index is a comparison between a country's willingness to wait for long-term benefits by holding off on instant gratification, or preferences to no restraints on enjoying life at the present.
Independent research in Hong Kong led Hofstede to add a fifth dimension, long-term orientation, to cover aspects of values not discussed in the original paradigm.
[citation needed] This initial analysis identified systematic differences in national cultures on four primary dimensions: power distance (PDI), individualism (IDV), uncertainty avoidance (UAI) and masculinity (MAS), which are described below.
They are often broader in scope than the theories of value of Adam Smith, David Ricardo, John Stuart Mill, Karl Marx, etc.
In 1991 Michael Harris Bond and colleagues conducted a study among students in 23 countries, using a survey instrument developed with Chinese employees and managers.
The results from this study led Hofstede to add a new fifth dimension to his model: long-term orientation (LTO), initially called Confucian dynamism.
Finally, Minkov's World Values Survey data analysis of 93 representative samples of national populations also led Geert Hofstede to identify a sixth last dimension: indulgence versus restraint.
The quantification of cultural dimensions enables people to make cross-regional comparisons and form an image of the differences between not just countries but entire regions.
For example, the cultural model of the Mediterranean countries is dominated by high levels of acceptance of inequalities, with uncertainty aversion influencing their choices.
Power distance index occurs more often in technological societies with a representative government and a good basic education system, whereas high PDI is associated with economic inequality.
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.
[23] When working in international companies, managers may provide training to their employees to make them sensitive to cultural differences, develop nuanced business practices, with protocols across countries.
Applying Hofstede's dimensions of culture, one can tailor management strategies in international settings by recognizing the spectrum of individualism and collectivism.
In contrast, management that values and encourages individual initiative and responsibility aligns well with individualistic cultures, leading to greater effectiveness in those settings.
Marieke de Mooij has studied the application of Hofstede's findings in the field of global branding, advertising strategy and consumer behavior.
The variety of application of Hofstede's abstract theory is so wide that it has even been translated in the field of web designing in which you have to adapt to national preferences according to cultures' values.
[27] Incorporating Hofstede's Uncertainty Avoidance Index (UAI) into international marketing, particularly in the travel and tourism sector, helps in crafting culturally congruent strategies.
For regions exhibiting high UAI, tourism promotions could focus on structured travel experiences like guided tours and fixed itineraries to appeal to the local preference for predictability.
[28] Conversely, in low UAI cultures, advertisements may showcase more spontaneous and flexible travel options, catering to their comfort with ambiguity.
[29] In societies that lean towards individualism, there is a tendency to design urban planning frameworks that favor the use of personal vehicles, often resulting in the development of expansive road networks.
This approach is instrumental for cities aiming to enhance traffic flow and mitigate congestion, ensuring that the transportation systems reflect the societal values and preferences.
[33] Ailon finds inconsistencies at the level of both theory and methodology and cautions against an uncritical reading of Hofstede's cultural dimensions.
There is sampling discrepancy that disqualifies the survey from being authoritative on organizations, or societies, or nations as the interviews involved sales and engineering personnel with few, if any, women and undoubtedly fewer social minorities participating (Moussetes, 2007).
Even if country indices were used to control for wealth, latitude, population size, density and growth; privileged males working as engineers or sales personnel in one of the elite organizations of the world, pioneering one of the first multinational projects in history, cannot be claimed to represent their nations.
Self-expression and individualism usually increase with economic growth (Inglehart, 1997) independent of any culture, and can help small populations faced with outside competition for resources.
The assumed "isomorphism of constructs" has been central to deciding how to use and understand culture in the managerial sciences (Van de Vijver et al. 2008; Fischer, 2009).
Hofstede's masculine-feminine dichotomy divides organizations into those exhibiting either compassion, solidarity, collectivism and universalism, or competition, autonomy, merit, results and responsibility.
Although liberal economies value assertiveness, autonomy, materialism, aggression, money, competition and rationalism, welfare socialism seeks protection and provision for the weak, greater involvement with the environment, an emphasis on nature and well-being, and a strong respect for quality of life and collective responsibilities.
