Dr. Geert Hofstede published his cultural dimensions model at the end of the 1970s, which was based on a decade of research with people who worked for IBM in more than 50 countries. He identified four dimensions early on, adding a fifth and sixth later.

Power Distance Index (high and low)

  • Describes the way power is distributed across a cultural group and how members view that distribution. Although inequality exists in all groups, in relative terms, some are more equal than others.
  • In high-power distance cultures, members accept that hierarchies exist and that everyone has a place within the hierarchy. There is no need to justify these power differences. 
  • In low-power distance cultures, members expect relations that are more democratic, or egalitarian.

Individualism and Collectivism

  • Perceptions of identity and to what extent there is integration of individuals into groups.
  • Individualistic groups stress achievement, individual rights, and independence - focusing on the needs of the self and immediate family. The focus of the individual is on “I”.
  • Collectivist groups place greater importance on the goals and well being of the group. Interdependence is important, and the focus of the individual is on "We."

Masculinity and Femininity

  • The extent to which a society values traditional masculine and feminine roles – also known as gender role differentiation.
  • A masculine-oriented group values assertiveness, courage, strength, and competition.
  • A feminine-oriented group values cooperation, nurturing, and quality of life.

Uncertainty Avoidance Index (high and low)

  • A society's tolerance for uncertainty and ambiguity. It basically refers to how threatening change is to a cultural group.
  • High uncertainty avoidance cultures have a low tolerance for uncertainty, ambiguity, and risk. The unknown is minimized through rules, and regulations.
  • Low uncertainty avoidance cultures accept and feel comfortable in unstructured environments and are fine when less rules apply. There is more tolerance for, and adaptability to change.

Short- and Long-Term Orientation

  • A cultural group’s search for truth and gratification, or virtue and perseverance.
  • Cultural groups with a short-term orientation are concerned with finding and holding the truth. Focus is on quick results in both personal and work endeavours.
  • Cultural groups with a long-term orientation are more concerned with remaining virtuous, patient, and persistent, regardless of how long it takes to find resolution.

Indulgence and Restraint

  • The way a cultural group fulfills its desires.
  • High levels of indulgence may be demonstrated by a preference for gratification in terms of spending money, and engaging in free-time activities.
  • High levels of restraint may be demonstrated by regulation, moderation, and the suppression of gratification. There may be more of a focus on saving and practicality.

Exercise

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