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Hofstede Framework

Overview of Hofstede Framework
Module

Contemporary Cultural Challenges in International Business (M2N124363)

6 Documents
Students shared 6 documents in this course
Academic year: 2017/2018
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Glasgow Caledonian University

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Hofstede Framework

Professor Geert Hofstede Conducted a comprehensive study of how values in the workplace are influenced by country.

Hofstede conducted his research by undertaking a survey of over 100,000 employers of IBM in over 50 countries. Surveys were conducted between 1967 and 1973. Hofstede’s model of national culture consists of six cultural dimensions each representing an individual preference for one state of affairs over another. These can distinguish individual countries from each other. It is an internationally recognised standard for understanding cultural differences.

Power distance index (PDI)

Expresses the degree to which less powerful members of our society accept and expect power to be distributed unequally.

The fundamental issue is essentially how a society handles in equality amongst people.

Countries with a high PDI score are more likely to accept a hierarchical distribution of power where power is distributed unequally. There is clear authority in these countries.

Countries with low power distance often strive to equalise the distribution of power and demand justification for inequalities of power. Everyone is treated equally.

Individualism vs Collectivism

Focus of this dimension is the question of whether people prefer to be left alone to look after themselves or if they wish to remain in a closely knitted network.

Individualists believe that the individual is the most important and that people should take care of themselves and their immediate families. Decisions will be made based on needs of individuals. There is a high focus on economic development through modern industry and that laws/regulations should be the same for everyone.

Collectivist cultures believe that groups are the most important. There is a strong emphasis on belonging and loyalty to the group is expected. As such, decisions are made based on what is best for the group. Collectivist cultures are also likely to have less economic development.

Masculinity vs Femininity

Masculinity represents a society’s preference for achievement, heroism, assertiveness and rewards for success. Therefore, there is high recognition for getting the job done.

In high masculine countries money is important and people live in order to work. Work is challenging however completion leads to a sense of achievement. In terms of work there is large gender pay gap with fewer women in managerial positions.

Femininity represents a preference for modesty, cooperation, quality of life and caring for the weak. Gender roles are clearly not distinct.

Quality of life and people are considered more important with a work in order to live ethos.

In terms of work there is a preference for fewer working hours and working with people you can interact well with. There is small gender pay gap with more women in management roles.

Uncertainty Avoidance Index

Expresses the degree to which societies feel uncomfortable with uncertainty and ambiguity. Indicates the extent to which members of the society feel uncomfortable in unknown, surprising or unstructured situations.

The key question is ‘Should society try to control the future or just let it happen?’

Countries with a high index will often try to minimise the risk of situations with high levels of uncertainty by imposing strict laws and regulations and safety and security measures.

Countries with a low index are more open to change and will encourage innovation. There are also fewer laws and regulations.

For example, Germany is a country with a high uncertainty avoidance index. Germans are not keen on uncertainty thus plan everything carefully to avoid it.

Long term orientation vs Short term orientation

How societies prioritise maintaining links with the past whilst dealing with challenges of the future.

Long term orientation focuses on the future. There is a pragmatic ethos and willingness to adapt to changing circumstances. Belief that traditions can be changed if necessary and norms are applied dependent on each situation. There is also a willingness to learn from other countries.

Short term orientation focuses more on the past or present which are considered to be more important than the future. Strongly values tradition which is considered too important to be interfered with. People are proud of their own country thus reluctant to learn from others.

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Hofstede Framework

Module: Contemporary Cultural Challenges in International Business (M2N124363)

6 Documents
Students shared 6 documents in this course

University: Glasgow Caledonian University

Was this document helpful?
Hofstede Framework
Professor Geert Hofstede Conducted a comprehensive study of how values in the workplace
are influenced by country.
Hofstede conducted his research by undertaking a survey of over 100,000 employers of IBM
in over 50 countries. Surveys were conducted between 1967 and 1973. Hofstede’s model of
national culture consists of six cultural dimensions each representing an individual
preference for one state of affairs over another. These can distinguish individual countries
from each other. It is an internationally recognised standard for understanding cultural
differences.
Power distance index (PDI)
Expresses the degree to which less powerful members of our society accept and expect
power to be distributed unequally.
The fundamental issue is essentially how a society handles in equality amongst people.
Countries with a high PDI score are more likely to accept a hierarchical distribution of power
where power is distributed unequally. There is clear authority in these countries.
Countries with low power distance often strive to equalise the distribution of power and
demand justification for inequalities of power. Everyone is treated equally.
Individualism vs Collectivism
Focus of this dimension is the question of whether people prefer to be left alone to look
after themselves or if they wish to remain in a closely knitted network.
Individualists believe that the individual is the most important and that people should take
care of themselves and their immediate families. Decisions will be made based on needs of
individuals. There is a high focus on economic development through modern industry and
that laws/regulations should be the same for everyone.
Collectivist cultures believe that groups are the most important. There is a strong emphasis
on belonging and loyalty to the group is expected. As such, decisions are made based on
what is best for the group. Collectivist cultures are also likely to have less economic
development.
Masculinity vs Femininity
Masculinity represents a society’s preference for achievement, heroism, assertiveness and
rewards for success. Therefore, there is high recognition for getting the job done.

Students also viewed

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