Analysis of Cross-Cultural Management Using Hofstede's Cultural Model

This report explores cross-cultural management, focusing on the application of Hofstede's cultural dimensions in business organizations. It examines the six dimensions: Power Distance Index (PDI), Individualism versus Collectivism (IDV), Masculinity versus Femininity (MAS), Uncertainty Avoidance Index (UAI), Long-Term Orientation versus Short-Term Orientation (LTO), and Indulgence versus Restraint (IND). The report explains each dimension, providing insights into how they influence communication, motivation, and overall organizational effectiveness. It emphasizes the importance of understanding and managing these cultural differences to overcome communication barriers and foster a positive work environment. The report also discusses the implications of these dimensions for managers in addressing cross-cultural issues and creating a more inclusive and productive workplace.

Running head: CROSS CULTURE MANAGEMENT
CROSS CULTURE MANAGEMENT
Name of the Student
Name of the University
Author Note

1
CROSS CULTURE MANAGEMENT
Cultural difference can cause communication barrier in a business organization.
Cultural difference and barrier to communication can prove to be a hinder in order to build a
proper connection and motivate the staff or employees of a business organization. In addition,
cultural difference and barrier to communication also leads to de motivation of the staff or
employees of a business organization. This in turn would lead to decrease in the over-all
production of the business organization. As a result, in order to understand and to overcome
such communication barrier arising due to the cultural differences Psychologist Dr. Green
Hofstede formulated and published model on cultural dimensions during the end of the year
1970. It was based upon the years and decades of research by the Psychologist Dr. Green
Hofstede. The following paper aims to discuss the six dimensions of culture as discussed by
the Psychologist Dr. Green Hofstede in the cultural model. The application of this model on
cultural dimension by the manager would help to successfully overcome the various cross-
cultural issues arising in a business organization (Venaik, & Brewer, 2013).
The cultural dimensional theory proposed by the Psychologist Dr. Green Hofstede
acts a s framework for the proper cross cultural communications in an business organization.
The following cultural dimensional theory is beneficial in describing the various effects of
the culture of a society on the various values and belief of the different members of the
society. In addition the following cultural model also describe how the various values and
belief of the various member of the society are connected the behavior of the different
members with the help of the structured formulated after the factor Analysis. (Venaik, &
Brewer, 2013).
Various cultural dimensions of culture model as described by the Psychologist Dr. Green
Hofstede are:
1. Power Distance Index (PDI).

2
CROSS CULTURE MANAGEMENT
The Power Distance Index (PDI) can be described as the amount or extent of the
difference or inequality that is present and that is allowed or accepted between the people in
the business organization having power or position and with the people who are not having
any power in a business organization. The Power Distance Index (PDI) in simple refers to
the amount or degree of unequal distribution of power to which the not so powerful members
in a business organization or various institutions like the family would agree to and would
hope to. In the flowing context, inequality or power is understood from the point of view of
the different follower or the people from the lower section of the society. A higher Power
Distance Index (PDI) score or a degree of the Index indicates that the system or policy of
Hierarchy or distribution of power is positively implemented and flowed in the business
organization or various institutions like the family. While a lower Power Distance Index
(PDI) score or a degree of the Index indicates that the system or policy of Hierarchy or
distribution of power does not exist and that people in the business organization or various
institutions like the family should question the required authorities for the distribution of
power.
As per the correct procedure or system, a higher Power Distance Index (PDI) score or a
degree of the Index in business organization should be maintained by the manger in order to
proper manger the various cross cultural issues. If there were equal proper distribution of
power without any discrimination or biasness based on the cast, creed, sex and religion, all
the employees or staff would be motivated to work better and increase the overall production
in a business organization. There would not be any hard felling among the various staff due
to unequal distribution of power.
2. Individualism verses Collectivism (IDV)

3
CROSS CULTURE MANAGEMENT
Individualism verses Collectivism (IDV) index refers to the amount or degree to which
the that people in the business organization or various institutions like the family are
categorized into group together. In an Individualistic society, people present in the society
often only related or associated with his or her immediate family. In an Individualistic society
the word “I” is often given importance or valued over the word “We”. On the contrarily, the
collectivism society refers to the society there is tightly integrated relationship or connection
present between the of people of the society and their extended families and the various
others in group to which the people in the society are associated or connected with. There are
huge amount of love and loyalty present within the people of the society and their extended
families and the various others in group. In a situation, arise out of problems and conflicts the
people of the society and their extended families and the various others in group provide huge
amount of support to one another. In simple lay man term Individualism verses Collectivism
(IDV) index refers to the love, affection, bonding and support between the people of the
society and their extended families and the various others in group. A high Individualism
verses Collectivism (IDV) index refers to the weak or poor interpersonal connection between
the people who are not a part of the main core “family”. As a result, people tends to take less
amount of responsibility to the action and dead and the future outcome for other people. This
is mainly present in an Individualistic society. In an collectivism society , the Individualism
verses Collectivism (IDV) index would be low as the people of the society and their extended
families and the various others in group provide huge amount of support to one another
especially during the time of conflict and problem. The people in the collectivism society
would always tend to take responsibly for each other action deed and the following outcomes.
As per the correct procedure or system, a low Individualism verses Collectivism (IDV)
index should be maintained in a collective business organization by the manger in order to
proper manger the various cross cultural issues. People should have mutual love, trust, and

4
CROSS CULTURE MANAGEMENT
respect for one another in a business organization irrespective of the cast, creed, sex and
religion. This would help in creating a good working environment and hence would decrease
the various issues arising out of the cross cultural conflicts (Khlif, 2016).
3. Masculinity versus the Femininity (MAS)
Masculinity versus the Femininity (MAS) refers to the segregation of the work between
the male and the female employees in the business organization or in a society. In a male
dominated society or patriarchy society , the job of the male and the female members of the
society are inter connected or overlapped in a much lesser way. In a male dominated society
or patriarchy society, the male members are supposed to conduct themselves in a much more
assertive or a dominating way. Some of the traits and characteristics of the male in the male
dominated society or patriarchy society mainly includes showing off or exhibits one`s own
success or achievements, to be strong and fast than the opposite sex or gender that is the
females. In short, there is a notable gap between the different values of a men and women.
In a women or female dominated society, the job of the male and the female members of
the society are inter connected or overlapped in a much higher possible ways. Humility or
self effacement are supposed or considered to be the important to be the important or vital
virtues in a women or female dominated society.
In today`s time in majority of the place, both in the business organization and in the
institution called family, it is majorly dominated by the male members of the society and is
known as the patriarchy society. As per the correct procedure or system, a correct balance
between the Masculinity versus the Femininity (MAS) index should be maintained in a
collective business organization by the manger in order to proper manger the various cross
cultural issues. There should not be segregation or discrimination based on the sex or gender

5
CROSS CULTURE MANAGEMENT
of a person. Both male and female members should be treated equally. This would help to
increase the mutual trust and respect for one another and for the business organization as
whole.
4. Uncertainty avoidance index (UAI)
Uncertainty avoidance index (UAI) refers to how well the people in the business
organization can cope up or manage with the pressure and anxiety. People in a society or
business organization with a high Uncertainty avoidance index (UAI) are more conservative
and right to any kind of change. There are many kind of social convention present in the
society. People in a society or business organization with a low Uncertainty avoidance index
(UAI) are more open to change and are more open minded. There should be a correct balance
between the Uncertainty avoidance index (UAI) depending upon the situation by the manger
in order to proper manger the various cross cultural issues.
5. Long term orientation versus short term orientation (LTO)
The following Dimension refers to the connection of the past along with the future
actions. A short term orientation index refers to the maintenances of the various tradition
and values while a long term orientation index refers to adaptability and change. A
correct balance should be maintained in order to avoid any cross cultural issues. (Venaik,
Zhu & Brewer, 2013).
6. Indulgence versus Restraint (IND).

6
CROSS CULTURE MANAGEMENT
It refers to the amount of freedom given to people of the society in order fulfill all
their desires. The society or business organizations that are a level of indulgence are more
optimistic than the others. A correct balance between should be maintained in order to
avoid any cross cultural issues.

7
CROSS CULTURE MANAGEMENT
References
Favaretto, R. M., Dihl, L., Barreto, R., & Musse, S. R. (2016, September). Using group
behaviors to detect hofstede cultural dimensions. In 2016 IEEE International
Conference on Image Processing (ICIP) (pp. 2936-2940). IEEE.
Khlif, H. (2016). Hofstede’s cultural dimensions in accounting research: a review. Meditari
Accountancy Research, 24(4), 545-573.
Kim, M. S. (2017). Culture‐Based Conversational Constraints Theory. The International
Encyclopedia of Intercultural Communication, 1-10.
Minkov, M., & Hofstede, G. (2014). A replication of Hofstede’s uncertainty avoidance
dimension across nationally representative samples from Europe. International
Journal of Cross Cultural Management, 14(2), 161-171.
Ngai, E. W., Tao, S. S., & Moon, K. K. (2015). Social media research: Theories, constructs,
and conceptual frameworks. International journal of information management, 35(1),
33-44.
Schmitz, L., & Weber, W. (2014). Are hofstede's dimensions valid? a test for measurement
invariance of uncertainty avoidance. interculture journal: Online-Zeitschrift für
interkulturelle Studien, 13(22), 11-26.
Venaik, S., & Brewer, P. (2013). Critical issues in the Hofstede and GLOBE national culture
models. International Marketing Review, 30(5), 469-482.
Venaik, S., Zhu, Y., & Brewer, P. (2013). Looking into the future: Hofstede long term
orientation versus GLOBE future orientation. Cross Cultural Management: An
International Journal, 20(3), 361-385.

8
CROSS CULTURE MANAGEMENT
Yeganeh, H. (2013). A compound index of cultural dimensions: implications and
applications. International Journal of Organizational Analysis, 21(1), 53-65.