Analysis of Hofstede's Cultural Dimensions and Leadership Impact

This report evaluates Hofstede's Cultural Dimensions, a framework developed to understand the impact of culture on organizational behavior. The report begins with an introduction to Hofstede's theory, which includes dimensions like Individualism-Collectivism, Masculinity-Femininity, Uncertainty ...Read More

Hofstede Cultural Dimensions

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
1. Evaluate Hofstede's Cultural Dimensions...............................................................................1
2. Agree and Disagree.................................................................................................................2
3. Suggestions.............................................................................................................................3
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Hofstede's Cultural Dimensions theory is a framework developed by Professor Greet
Hofstede who describes the relationship between cultures, values and behaviours of employees
and organizational environment. This theory had originally propounded four dimensions which
can impact business and its activities, namely – Individualism-Collectivism, Masculinity-
Femininity, Uncertainty Avoidance and Power Distance. This theory has been used in several
fields for the cross-communication factor. It also helps in measurement of national culture on
business and its value and behaviour (GEERT HOFSTEDE CULTURAL DIMENSIONS, 2018).
Report will highlight the evaluation of cultural dimensions and its agreed and disagree aspects.
Report will also give suggestions related to the cultural dimensions.
MAIN BODY
1. Evaluate Hofstede's Cultural Dimensions
Hofstede explained 4 cultural dimensions which can influence the business, its activities
and its environment. These 4 dimensions are as follows -
1. Individualism/Collectivism – Individualism cultural dimension refers to the extent to
which people are self-oriented. In this approach, the focus in on “I”. People are self-
interest and self- focused. Employee only focuses on the completion of his tasks,
individual initiative and self-achievement. Another side, Collectivism cultural dimensions
refers to the extent to which people are integrated with his team or group. In this
approach, the focus in on “WE”, rather than “I”. Here, employees are working with his
team to achieve the collective common goals. Here the achievement is goes to whole
team, rather than single person. IDV of UK is 89 which is high (Minkov and et.al., 2017).
2. Masculinity/Femininity – This dimension is not related to the particular gender. It is
related to the motivational approach that a leader adopts. Masculinity is related to the
result oriented which is similar to the task oriented. In task oriented, leader focuses on the
task completion and for that he will do motivate employees. It's opposite side, Femininity
is related to relationship oriented which is similar to the people oriented. In people
oriented leader focuses on the building relationships which helps him to understand his
employees' capabilities. This will help leader to complete tasks by motivating employees.
MAS of UK is 66 which is come between moderate and high.
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3. Uncertainty Avoidance – This dimension will help the company to measure the comfort
level of employees regarding accepting new changes. Uncertainty Avoidance refers to the
extent to which employees are ready to adopt new changes. It can be measure by 2 ways-
High Uncertainty Avoidance and Low Uncertainty Avoidance. High degree of
uncertainty avoidance tells that employees are not ready to accept the changes. They are
highly relied on formal processes and procedures. Lower degree of uncertainty avoidance
tells that employees are ready to accept the changes. They are risk taker and innovator.
They are ready to accept the new processes and procedures. UAI of UK is 35 which is
low (Kim, 2017).
4. Power Distance – It is also known as Power of Authority. This dimension refers to the
degree to which low power authority accepts the fact that distribution of power is
unequal. Power Distance also defined the hierarchical structure of organization. It can be
measure in 2 ways – High degree of power distance which defined that employees are
clearly understood the hierarchical structure and distribution of power. Low degree of
power distance which refers that employees are not understood the hierarchical structure
and demand for equal distribution of power. PDI of UK is 35 which is low.
2. Agree and Disagree
I agree with 2 dimensions – Collectivism and High degree of Power Distance and
disagree with 2 dimensions – Individualism and High degree of Uncertainty Avoidance.
I agree with Collectivism because it focuses on team objectives. To achieve that
objectives, employees work together. This will help in building relationships and gaining trust.
This all lead to team spirit. If team is able to achieve objectives, this will give recognition to
whole team which boosts the confidence of team as well as team members too (Abdullah, 2017).
I agree with High Degree Of Power Distance because it refers to the clearly
understanding of distribution of power and organizational hierarchical structure. This will help
company to manage its activities properly. Employees also get to know that whom to report and
whom to communicate. This will lead to no conflict and confusion in organization which help to
maintain friendly environment.
I disagree with Individualism which emphasis on self-development. This will lead to
completion of personal objectives which may or may not be match with organizational
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objectives. In this approach, employee focuses on self-achievement which lead to create conflict
between him/her with his manager, supervisor, team leader or team members.
I disagree with High Degree Of Uncertainty Avoidance. It refers to the avoidance of new
changes by employees. They are not ready to adopt changes, which can be harmful for
organization. Because, changes make organization upgraded which is essential for organizational
success. Also, changes can bring more qualitative production with reduction in costs (Hofstede,
2017).
3. Suggestions
I would like to suggest that company can adopt femininity cultural dimensions which
emphasis on people oriented approach. This approach helps organization to gain loyal employees
because leaders and managers focus on building relationships. For this, they do informal
communication with them, help them to achieve their goals, provide them incentives for better
performance, take suggestions of them and involve them in decision making process. This all
feel employees that they are important for organization. This will cause to reduction in employee
turnover and improvement in efficiency. The work environment becomes good and friendly. This
approach encourages good team work and focus on collective objectives. Better work
environment lead to positive productivity, which helps organization to earn profit and gain
competitive advantages over its competitors.
CONCLUSION
From the above study, it has been summarises that Hofstede's cultural dimensions plays
an important role in organizational success. No dimension is perfect for organization, because
every dimensions has its own advantages and disadvantages which impact the organization
environment. Thus, every organization should adopt the organizational culture according to the
nature of business and impact of external environment on the business.
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REFERENCES
Books and Journals
Abdullah, A.B.M., 2017. Cultural Context. In Managing the Psychological Contract. (pp. 23-
41). Palgrave Macmillan, Cham.
Hofstede, G., 2017. Why is culture so important?.
Kim, S., 2017. National culture and public service motivation: investigating the relationship
using Hofstede’s five cultural dimensions. International Review of Administrative
Sciences. 83(1_suppl). pp.23-40.
Minkov, M., and et.al., 2017. A revision of Hofstede’s individualism-collectivism dimension: A
new national index from a 56-country study. Cross Cultural & Strategic Management.
24(3). pp.386-404.
Online
GEERT HOFSTEDE CULTURAL DIMENSIONS. 2018. [ONLINE]. Available through;
<http://clearlycultural.com/geert-hofstede-cultural-dimensions/>
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