Question

Explain the Hofstede’s Cultural Dimensions framework? (300 words)

Answer 1

Cultural dimensions theory of Hofstede is developed by Geert Hofstede and serves as a framework for understanding cultural differences between countries and discerning the ways in which business takes place across cultures. In other words, the Framework is used to define the dimensions of culture and their effect on a business environment between different national cultures.

Hofstede identified six categories that define culture:

Power Distance Index- The power distance index takes account of the degree to be accepted by inequality and wealth. This dimension is seen from the point of view of the followers: the lower level, inequality and power. The high power distance indice shows that a culture takes on inequalities and differences in power, encourages bureaucracy, and shows high respect for class and power. Low power distance index means that a society encourages flat organization, collective decision-making, a participatory way of managing and emphasizes the transfer of resources.

Individualism vs. Collectivism- The dimension of individualism vs. collectivism takes into account the extent to which societies are integrated into groups and their perceived duties and group dependence. Individualism indicates that the accomplishment of personal goals is more important. The self image of a person is defined as "I" in this category. Collectivism indicates that the interests and the well-being of the community are more important. In this category a person's own image is described as "We."

Uncertainty Avoidance Index- The Uncertainty Avoidance Index considers how accepted are uncertainties and ambiguities. This dimension looks at how unknown and unforeseen situations are handled. A high Avoidance index for uncertainty, confusion, and risk taking suggests a low tolerance. Strict rules , regulations, etc. minimize the unknown. A low avoidance index of uncertainty suggests a high tolerance to uncertainty, confusion and risk management. The unknown is accepted more openly and lax rules, regulations and so on.

Masculinity vs. Femininity- The aspects of masculinity vs. femininity are called "tough vs. tender," and find society's desire for success, attitude toward fair sexuality, behavior, and so on. The following characteristics are given for masculinity: gender roles distinct, assertive and centered on material accomplishments and building wealth.
The attributes of femininity are: fluid gender roles, humble, physical, and quality of life.

Long-Term Orientation vs. Short-Term Orientation- The dimension of long-term focus vs. short-term orientation takes into account the degree to which society regards its time horizon. Long-term focus is on the future and requires a short-term success or reward to reach long-term success. Long-term emphasis stresses sustainability, perseverance and long-term growth. Short-term emphasis is on the near future, requires short-term performance or satisfaction and focuses more on the present than the future. The short-term emphasis highlights fast outcomes and conventional respect.

Indulgence vs. Restraint- The aspect of indulgence vs. Restraint considers the complexity and propensity of societies to fulfill their desires. In other words, this dimension is about society's ability to control its impulses and desires. Indulgence  demonstrates that a culture permits reasonably free satisfaction with life and pleasure.
Restraint demonstrates that the fulfillment of needs is denied and governed by social norms in a society.