Question

According to Hofstede:
1.Analyze the six dimensions. Where are there drastic differences and similarities?
2. What could this information do for us if we were trying to do business in China?

Answer 1

According to Hofstede the six dimensions are discussed below.

1) Power distance index (PDI): The power distance index refers to the degree of inequality that exist & is accepted by people with & without power. This is about how a society handles inequalities among people. People in societies with higher degree of power distance accept a hierarchical order in which everybody has a place and without doubt or reason. In societies with lower degree of power distance people struggle to get equal distribution of power & demand justification from authority.

2) INDIVIDUALISM VERSUS COLLECTIVISM (IDV): This index refers to the degree to which people in a country are integrated into groups. Individualistic societies prefer loosely knit social framework in which individuals are expected to take care of only themselves and their immediate families. Its counterpart, collectivism refers to a society which prefers a tightly-knit framework where individuals can expect their relatives or members of a particular in-group to look after them in exchange for undoubted loyalty & support each other when a conflict arises.

3) Uncertainty avoidance index (UAI): This index refers to the degree to which the members of a society feel uncomfortable with uncertainty and ambiguity. Countries exhibiting higher degree in this index maintain stiff codes of behavior, guidelines, laws, and generally rely on absolute truth. Countries with lower degree of this index shows more acceptance of differing thoughts or ideas. Here practice is given more importance than principles.

4) MASCULINITY VERSUS FEMININITY (MAS): This index defines how much a society is “tough or tender”. cultures. Here Masculinity refers to a preference in society for achievement, heroism, assertiveness and material rewards for success. Society at large is more competitive. FEMININITY refers to the preference for cooperation, modesty, caring for the weak and quality of life.

5) Long-term orientation vs. short-term orientation (LTO): This dimension defines the extent to which a society maintains some links with its own past while dealing with the challenges of the present and the future. Societies with a high degree in this index (long-term) exhibit more pragmatic approach. They view adaptation and circumstantial, pragmatic problem-solving as a necessity. Countries with low degree of this dimension prefer to maintain time-honored traditions and norms.

6) INDULGENCE VERSUS RESTRAINT (IND): This dimension refers to the degree to which a country is happy. Indulgence refers to a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun. Restraint refers to a society that suppresses gratification of needs and regulates it by means of strict social norms.

The drastic difference is seen in Long-term orientation vs. short-term orientation and the biggest similarity is seen in Power Distance index.