1. Power Distance Index measures the
extent to which the less powerful members of organizations and institutions
(like the family) accept and expect that power is distributed unequally. This
represents inequality (more versus less), but defined from below, not from
above. It suggests that a society’s level of inequality is endorsed by the
followers as much as by the leaders. For example, Germany has a 35 on the
cultural scale of Hofstede’s analysis. Compared to
Arab countries where the power distance is very high (80) and Austria where it
very low (11).
2. Individualism is the one side versus
its opposite, collectivism, that is the degree to which individuals are
integrated into groups. On the individualist side we find societies in which
the ties between individuals are loose: everyone is expected to look after
him/herself and his/her immediate family. On the collectivist side, we find
societies in which people from birth onwards are integrated into strong,
cohesive in-groups, often extended families (with uncles, aunts and
grandparents) which continue protecting them in exchange for unquestioning
loyalty. For example, Germany can be considered as individualistic with a
relatively high score (67) on the scale of Hofstede
compared to a country like Guatemala where they have strong collectivism (6 on
the scale). The United States can clearly been seen as individualistic (scoring
a 91). The “American dream” is clearly a representation of this. This is the
Americans’ hope for a better quality of life and a higher standard of living
than their parents’. This belief is that anyone, regardless of their status can
‘pull up their boot straps’ and raise themselves from poverty.
3. Masculinity versus its opposite,
femininity refers to the distribution of roles between the genders which is
another fundamental issue for any society to which a range of solutions are
found. The IBM studies revealed that (a) women’s values differ less among
societies than men’s values; (b) men’s values from one country to another
contain a dimension from very assertive and competitive and maximally different
from women’s values on the one side, to modest and caring and similar to
women’s values on the other. The assertive pole has been called ‘masculine’ and
the modest, caring pole ‘feminine’. For example, Germany has a masculine
culture with a 66 on the scale of Hofstede
(Netherlands 14). Masculine traits include assertiveness, materialism/material
success, self-centeredness, power, strength, and individual achievements. The
United States scored a 62 on Hofstede’s scale. So
these two cultures share, in terms of masculinity, similar values.
4. Uncertainty Avoidance Index deals with
a society’s tolerance for uncertainty and ambiguity; it ultimately refers to
man’s search for Truth. It indicates to what extent a culture programs its
members to feel either uncomfortable or comfortable in unstructured situations.
Unstructured situations are novel, unknown, surprising, and different from
usual. Uncertainty avoiding cultures try to minimize the possibility of such
situations by strict laws and rules, safety and security measures, and on the
philosophical and religious level by a belief in absolute Truth; ‘there can
only be one Truth and we have it’. For example, in Germany there is a reasonable high uncertainty avoidance (65) compared to
countries as Singapore (8) and neighbouring country
Denmark (23). Germans are not too keen on uncertainty; by planning everything
carefully they try to avoid the uncertainty. The United States scores a 46
compared to the 65 of the German culture. Uncertainty avoidance in the US is
relatively low, which can clearly be viewed through the national cultures.
5. Long-Term Orientation was added after
the original four to try to distinguish the difference in thinking between the
East and West. Hofstede created a value survey which
was distributed across 23 countries. From these results, and with an
understanding of the influence of the teaching of Confucius on the East, long
term vs. short term orientation became the fifth cultural dimension. Below are
some characteristics of the two opposing sides of this dimension:
Long term orientation
-persistence
-ordering relationships by status and observing this order
-thrift
-having a sense of shame
Short term orientation
-personal steadiness and stability
-protecting your ‘face’
-respect or tradition
-reciprocation of greetings, favors, and gifts