In: Finance
What are the dimensions of culture according the Hofstede? Describe each one, and explain how they might influence companies in their efforts to globalize.
Ans ) Dimensions of Culture : according to Hofstede model of national culture consists of six dimensions.cultural dimensions represent independent preference for one state of affairs over another that distinguishes countries from each other.
1 ) Power distance index ( PDI ) : dimensions express the degrees to which the less powerful members of a society accept and expect that power is distributed unequally .the fundamental issues here is how a society handle inequalities among people.
2 ) Individualism versus Collectivism IDV : high side of dimensions, called individualism ,can be defined as a preference for a loosely knit social frame work in which individual are expected to take care of only themselves and their immediate families .
3 ) Masculinity versus Femininity : the masculinity side of this dimensions represent a preference in society for achievement , heroism , assertiveness ,and materials reward for success . Society at large is more competitive in opposite , feminine stand for a preference for cooperation, modesty caring for the weak and quality of life.
4 ) Uncertainty avoidance index ( UAI ) : express the degrees to which the members of a society feel uncomfortable with uncertainty and ambiguity.fundamentalissue here is how a society deals with the fact that the future can never be known should we try to control the future or just let it happen .
5 ) long term orientation versus short term normative orientation LTO : every society has to maintain some links with it own past while dealing with the challenge of the present and future. Society priority these two goals differently. Who scored low dimensions ,for example , prefer to maintain time honoured tradition and Norm while viewing societal change.
6 ) Indulgence versus Restraint : indulgence stand for a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun . restraint stand for a society that suppress gratification of needs and regulates by means of strict social norms .
No society is homogeneous and there are surely subgroups that may deviated from the results Hofstede found . after reading all dimensions we can conclude how the dimensions effect company effort of globalisation.
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