Analysis of Hofstede’s Cultural Dimensions in Business Management

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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Conclusion.......................................................................................................................................5
References........................................................................................................................................6
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Introduction
The main objective of the essay is to analysis and assessment of Hofstede’s cultural dimensions
and its consistency and its legality. The purpose of the study is to meet the requirement for a
modern-day approach of Hofstede’s contribution and findings in the study of cultural dimension.
Psychologist Dr Geert Hofstede published his cultural dimension model in the year 1980, based
upon a survey. Hofstede’s cultural dimension model explains the cultural differences of various
aspects in the process of business management and activites. Based on his survey and research
Hofstede creates a standard for the swot up of cultural differences. This essay also includes the
research methods of analysing the Hofstede’s cultural dimension model. A realistic framework is
prepared within the critical analysis to find out the applications of dimensions of Hofstede’s
cultural dimension replica. Hofstede’s cultural dimension study method considered as the
international standard of the cultural study.
Discussion
The word “culture” comes from the Latin word “Cultura”, which means cult or inhabit. Thus, it
means the human behavior and actions. It also provides a guideline of human behavior. Hofstede
defined culture as “collective programming of the mind that distinguishes the members of one
human group from another”. Through the cultural dimensions study the author finds out the four
dimensions such as individualism or collectivism, power distance index, uncertainty avoidance
and masculinity or femininity. A critical analysis results the progress of the context. Hofstede’s
cultural dimension is based on the survey that was held in 1967 and in 1973 of works in the
multinational company of IBM (International Business Machine). Hofstede and his group
members prepare many questionnaires for the survey that happened in over 72 countries. To
analysis, the data information acquired from 40 countries (Ahlawat et al., 2016). The first study
was limited up to 40 countries and then it is expand among 50 more countries. Acquiring all the
data from the survey Hofstede prepared a replica of culure dimension model to study the culture
dimensions.
Power Distance index refers the “degree of inequality” and its acceptance between lower level
authority and higher-level authority. Hofstede defines Power distance as “the extent to which less
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powerful members of institutions and organizations within a country expect and accept that
power is distributed unequally” (Tombleson and Wolf, 2017). In other context, Fougere and
Moulettes in 2006 said that to evaluate power distance and find out the difference between Low-
level power distance and high-level power distance as “western traditional” (Pietersen, 2017).
The power distance happen due to lack of education, wealth and fair.
Adapting various management types such as perspective management, United States scores top
in power distance indexing. With high culture power distance index of a country have a
propensity of more hierarchical. Power distance index is also refers the “power inequality”
between growing country and subordinates (Bird and Mendenhall, 2016). The individual index
represents the self-growth of a business. It also includes the self-interest and self-achievement of
an individual. For an instance, United State is center of individualistic culture where every
individual system is self-obsessed. A country such as Mexico works on the cultural ethics.
Collectivist cultures are working with the collectivistic ethics and principals.
According to Hofstede, (2010), the extent to which the members of a culture feel threatened by
ambiguous or unknown situations defines uncertainty avoidance. Uncertainty avoidance also
means how the person of the social order reacts on an uncertain situation, wherein situations like
risk taking is strictly avoided by Britain. Companies that follow the dimension of uncertainty
avoidance need to look after the employee as well as company standards. Canada believes that
risk taking is an art of innovation. On order to achieve organizational goals, they used the
cultural dimension such as uncertainty avoidance. Hofstede defines the concept of masculinity or
Femininity as “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” (Cateora, 2011). The masculine culture is responsible for money transition,
site job roles and so on where as the femininity culture come under the important of tender
values, care for others, relationships and their services too. Role of different individuals is
important as the contrast of huge masculinity and low femininity. Except these four dimensions
later, he added two more dimension such as long-term orientation and short term orientation,
indulgence and restraint.
Hofstede defines high indulgence as focus on personal happiness whereas I believe that adoption
of certain strategies and implementation of such regulations are effective for organizational
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growth. In Hofstede model of culture dimensions, it has been defined about the term “power
distance index” on the perspective of low-level authority and high-level authority. To run an
organization properly all employees should be valued in the organization.
Hofstede defines the power distance from the perspective of high-level authority and low-level
authority whereas Fougere and Moulettes in 2006 said that to evaluate power distance and find
out the difference between low-level power distance and high-level power distance as “western
traditional” (Khlif, 2016). In modern aspect, an organization should give the equal importance to
female as well as male employees. Low power distance may helpful for long run of a business
organization.
Conclusion
There were several researchers from the various fields those who studies on culture.
Nevertheless, in the recent trend the concept of culture is used to understand the attitude and
behavior from the different organization of various countries. Culture creates a huge impact on
natural as well as organizational behavior. Hofstede’s research methods on cultural study
dimension are based on a huge data collected from the survey done in the year 1967 and 1973. It
passionately accepted by many of the researcher and now it is known as the international
standard of culture dimension. It is also adapted in organizational environment in 21st century.
From the above discussion, it can be concluded that Hofstede created a high point of cultural
dimension study and a motivating force for other culture researchers.
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References
Ahlawat, R., Banerjee, B., Krishan, R., Kaur, G., Agnihotri, N., Taunk, M., Devi, M., Kumari, A.
and Sharma, A., 2016. Culture and HRM-application of Hofstede’s cultural dimensions in
hospitality HRM. International Journal of Advanced Research in Management and Social
Sciences, 5(12), pp.130-139.
Bird, A. and Mendenhall, M.E., 2016. From cross-cultural management to global leadership:
Evolution and adaptation. Journal of World Business, 51(1), pp.115-126.
Cateora, P. R., M. C. Gilly,, and J. L. Graham (2011). International Marketing, 15th edition. New
York, NY: McGrawHill/Irwin.
Hofstede, G., 2010. Geert hofstede. National cultural dimensions.
Khlif, H., 2016. Hofstede’s cultural dimensions in accounting research: a review. Meditari
Accountancy Research, 24(4), pp.545-573.
O.C. Ferrell, John Fraedrich, and Linda Ferrell, Business Ethics: Ethical Decision Making and
Cases, forthcoming 9th ed. (Mason, OH: South-Western Cengage Learning, 2013).
Pietersen, C., 2017. Organizational culture: a foundational perspective. African Journal of
Economic and Management Studies, 8(3), pp.262-273.
Tombleson, B. and Wolf, K., 2017. Rethinking the circuit of culture: How participatory culture
has transformed cross-cultural communication. Public Relations Review, 43(1), pp.14-25.
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