A framework used to distinguish between different national cultures and cultural dimensions, and their impact on a business setting Show
What is the Hofstede’s Cultural Dimensions Theory?Hofstede’s Cultural Dimensions Theory, developed by Geert Hofstede, is a framework used to understand the differences in culture across countries and to discern the ways that business is done across different cultures. In other words, the framework is used to distinguish between different national cultures, the dimensions of culture, and assess their impact on a business setting. Hofstede’s Cultural Dimensions Theory was created in 1980 by Dutch management researcher Geert Hofstede. The aim of the study was to determine the dimensions in which cultures vary. Hofstede’s Cultural Dimensions TheoryHofstede identified six categories that define culture:
Power Distance IndexThe power distance index considers the extent to which inequality and power are tolerated. In this dimension, inequality and power are viewed from the viewpoint of the followers – the lower level.
Individualism vs. CollectivismThe individualism vs. collectivism dimension considers the degree to which societies are integrated into groups and their perceived obligations and dependence on groups.
Uncertainty Avoidance IndexThe uncertainty avoidance index considers the extent to which uncertainty and ambiguity are tolerated. This dimension considers how unknown situations and unexpected events are dealt with.
Masculinity vs. FemininityThe masculinity vs. femininity dimension is also referred to as “tough vs. tender” and considers the preference of society for achievement, attitude toward sexuality equality, behavior, etc.
Long-Term Orientation vs. Short-Term OrientationThe long-term orientation vs. short-term orientation dimension considers the extent to which society views its time horizon.
Indulgence vs. RestraintThe indulgence vs. restraint dimension considers the extent and tendency for a society to fulfill its desires. In other words, this dimension revolves around how societies can control their impulses and desires.
Country Comparisons: Hofstede InsightsHofstede Insights is an excellent resource for understanding the impact of culture on work and life. It can be accessed here to understand how the different dimensions differ among countries under the Hofstede’s Cultural Dimensions Theory. Related ReadingsThank you for reading CFI’s guide to Hofstede’s Cultural Dimensions Theory. To keep learning and advancing your career, the following CFI resources will be helpful:
Which of the following statements is true about countries that are high in uncertainty avoidance?Answer and Explanation: The correct answer is a) They prefer predictable rules and regulations to ambiguity and risk. A culture that supports high uncertainty avoidance has people inclined to rules and regulations more in order to reduce ambiguity and risk from their decisions.
What is uncertainty avoidance?What is Uncertainty Avoidance? Uncertainty avoidance is a cross-cultural phenomenon that describes how different cultures or societies react to and tolerate uncertainties. More specifically, it refers to how communities cope with unpredictability and uncertainty that are evident in the major aspects of governance.
What three countries have a strong uncertainty avoidance culture?Some of the highest uncertainty avoidance countries include Finland, Germany, Greece, Guatemala, Japan, Mexico, Portugal, and South Korea.
What is a characteristic of people from high uncertainty avoidance cultures?HIGH UNCERTAINTY AVOIDANCE societies have characteristics such as... Use formality in interactions with others. Are orderly and keep meticulous records. Rely on formalized policies and procedures.
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