'Hofstede's Five-Dimension Model’ handout
Probably the most influential of all the ‘dimensionalists’, Hofstede uses the following five
dimensions to analyse cultural characteristics.
Power distance reflects the degree to which a society accepts the idea that power is to be
distributed unequally through hierarchical distinctions. The more this is accepted, the higher the
country's ranking in power distance. High power-distance culture can be characterized by a strong
hierarchal structure within their organizations. In such societies, managers are respected in and out
of the organization and are rarely publicly contradicted.
By contrast, low power-distance societies tend to value notions of empowerment for employees
and consensual decision-making. In Europe, current levels of power distance rather neatly match
the boundaries of the former Roman Empire. Former Roman spheres of influence tend to resolve
the essential tension between low and high power distance in favour of the latter. The opposite is
true in areas that were not influenced by Roman values.
Individualism versus collectivism
Individualism reflects the degree to which individual beliefs and actions should be independent of
collective thought and action. Individualism contrasts with collectivism, which is the belief that
people should integrate their thoughts and actions with those of a group (for example, extended
family, or employer). In individualistic societies people are more likely to pursue their own personal
goals.
In collective societies people are more likely to integrate their own goals with those of other group
members and tend to avoid putting people in situations where they might lose face. The cohesion
of the group plays a more important role than pursuing one's own individual achievement.
Uncertainty avoidance
Uncertainty avoidance reflects the degree to which a society feels threatened by ambiguous
situations and tries to avoid them by formulating rules and refusing to tolerate deviance. In
essence, it relates to an essential tension about the nature of 'truth'. The more a society accepts
that truth is 'absolute', the higher it ranks on uncertainty avoidance. Societies that rank high on
uncertainty avoidance have highly structured working environments. Employees and managers pay
attention to precise objectives and clear rules, detailed assignments and schedules set up well in
advance.
Masculinity and Femininity This dimension relates to essential tension between attitudes towards
gender. Masculinity describes the degree to which the focus is placed on assertiveness, task
achievement and the acquisition of material goods. This is contrasted with femininity in which
quality-of-life issues such as caring for others, group solidarity and helping the less fortunate are
valued.
Long-term versus short-term orientation CDI (Confucian Dynamism Index)
The essential conflict in this dimension relates to attitudes towards what is, and what is not,
considered 'virtuous'. Long-term cultures focuses on the distant future and emphasize the
importance of saving, persistence and achieving goals that may only come to fruition after several
generations. Short-term cultures emphasize the past and the present, and there is respect for
fulfilling social obligations and a consistent understanding of morality.
Hofstede claimed that Chinese people have a relatively high Confucian dynamism index value, while
American people have a relatively low Confucian dynamism index value. He suggested that this
distinction is reflected in business. In China top management emphasizes thrift and perseverance
and respect for tradition, and also maintains a long-term orientation (that is, the company is
regarded as a family). In contrast, in the USA, top management is said to focus on current needs,
creativity and adopting a short-term orientation.
