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Abstract
For those who work in international business, it is sometimes amazing how different people in other cultures behave. We tend to have a human instinct that 'deep inside' all people are the same - but they are not. Therefore, if we go into another country and make decisions based on how we operate in our own home country - the chances are we'll make some very bad decisions.
Geert Hofstede's research gives us insights into other cultures so that we can be more effective when interacting with people in other countries. If understood and applied properly, this information should reduce your level of frustration, anxiety, and concern. But most important, Geert Hofstede will give you the 'edge of understanding' which translates to more successful results.
Keywords: Small Power Distance, Large Power Distance, Individualism, Collectivsm, Masculinity, Femininity, Uncertainty Avoidance
JEL Classification: M31
1. Introduction
Gerard Hendrik Hofstede is an influential Dutch organizational sociologist, who studied the interactions between national cultures and organizational cultures. He is also an author of several books including Culture's Consequences and Cultures and Organizations, Software of the Mind, co-authored by his son Gert Jan Hofstede. Hofstede's study demonstrated that there are national and regional cultural groupings that affect the behavior of societies and organizations, and that are very persistent across time.
2. Hofstede's Dimensions
According to Hofstede the way people in different countries perceive and interpret their world varies along four dimensions:
- Small vs. Large Power Distance (Power Distance Index)
- Individualism vs. Collectivsm (Individualism Index)
- Masculinity vs. Femininity (Masculinity Index)
- Uncertainty Avoidance (Uncertain Avoidance Index)
- Long vs. short term orientation - describes a society's "time horizon," or the importance attached to the future versus the past and present. In long term oriented societies, values include persistence (perseverance), ordering relationships by status, thrift, and having a sense of shame; in short term oriented societies, values include normative statements, personal steadiness and stability, protecting ones face, respect for tradition, and reciprocation of greetings, favors, and gifts. China, Japan and the Asian countries score especially high (long-term) here, with Western nations scoring rather low (short-term) and many of the less developed nations very low; China scored highest and Pakistan lowest.
This last dimension was added in the 80's...