Hofstede’s Cultural Dimensions Theory

- Slide 2:
The Dutch management researcher Geert Hofstede created the cultural
dimensions theory in 1980.
A framework used to understand the differences in culture across
countries.
- Slide 3:
- Slide 4: Power Distance
Power Distance is defined as the extent to which the less powerful
members of organisations and institutions (like the family) accept and
expect power to be distributed unequally.
- Slide 5: Individualism vs collectivism
Individualism and collectivism, respectively, refer to the integration
of individuals into groups.
Individualistic societies stress achievement and individual rights,
focusing on the needs of oneself and one’s immediate family.

A person’s self-image in this category is defined as “I.

In contrast, collectivist societies place greater importance on the

goals and well-being of the group, with a person’s self-image in this
category being more similar to a “We.
Those from collectivist cultures tend to emphasize relationships
and loyalty more than those from individualistic cultures.

- Slide 6: Uncertainty Avoidance

The uncertainty avoidance index is defined as "a society's tolerance for
ambiguity", in which people embrace or avert an event of something
unexpected, unknown, or away from the status quo.
This dimension reflects the extent to which members of a society
attempt to cope with their anxiety by minimizing uncertainty. In its
most simplified form, uncertainty avoidance refers to how
threatening change is to a culture
A high uncertainty avoidance index indicates a low tolerance for
uncertainty, ambiguity, and risk-taking. Both the institutions and
individuals within these societies seek to minimize the unknown
through strict rules, regulations, and so forth.

People within these cultures also tend to be more emotional.

In contrast, those in low uncertainty avoidance cultures accept and

feel comfortable in unstructured situations or changeable
environments and try to have as few rules as possible. This means
that people within these cultures tend to be more tolerant of
change.

The unknown is more openly accepted, and less strict rules and
regulations may ensue.

For example, a student may be more accepting of a teacher saying

they do not know the answer to a question in a low uncertainty
avoidance culture than in a high uncertainty avoidance one

- Slide 7: masculinity vs femininity

This dimension measures what the dominant value is insociety.In a masculine society,
sex roles in society areclearly differentiated, money and things are important and
competing with each other is prevalent.In a feminine society, there should be equality
between the sexes, pursuing quality of life is emphasized and being a winner is not
admirable.
Masculinity includes the following characteristics: distinct gender roles, an
appreciation of assertiveness, courage, strength, and competition.
Femininity includes characteristics such as fluid gender roles, modest, nurturing, and
concerned with the quality of life.

- Slide 8:
- Long-term orientation stands for “the fostering of
virtues oriented toward future rewards. Short-term
orientation stands for the fostering of virtues related
to the past and present”.
- The values of long-term-orientation cultures can be
described as learning, being honest, self-discipline,
and pursuing longterm personal relationships; while
with short-term-orientation culture, people pursue
freedom, rights, achievement and individual
interests.
- Slide 9:
 - The indulgence vs. restraint dimension considers the
extent and tendency for a society to fulfill its desires.
In other words, this dimension revolves around how
societies can control their impulses and desires.
- Indulgence indicates that society allows relatively
free gratification related to enjoying life and having
fun.
- Restraint indicates that society suppresses
gratification of needs and regulates it through social
norms.
PRESENT HOFSTEDE'S CULTURAL DIMENSIONS
OF VIET NAM AND AMERICA
1.VN
The Power Distance in Vietnam is high, which means that people accept a hierarchical
order in which everybody has a place and which needs no further justification. Hierarchy
in an organization is seen as reflecting inherent inequalities, centralization is popular,
subordinates expect to be told what to do and the ideal boss is a benevolent autocrat.
Challenges to the leadership are not well-received.

With a low score on Individualism, Vietnam is a collectivistic society. This is manifest in

a close long-term commitment to the “member” group, be that a family, extended family
or extended relationships. Loyalty in a collectivist culture is paramount and overrides
most other societal rules and regulations. Such a society fosters strong relationships,
where everyone takes responsibility for fellow members of their group. In collectivistic
societies, offense leads to shame and loss of face. Employer/employee relationships are
perceived in moral terms (like a family link), hiring and promotion take account of the
employee’s in-group. Management is the management of groups.

The score of Vietnam is low on Masculinity dimension and hence, it is considered as a

Feminine society. In Feminine countries the focus is on “working in order to live”,
managers strive for consensus, people value equality, solidarity and quality in their
working lives. Conflicts are resolved by compromise and negotiation. Incentives such as
free time and flexibility are favored. Focus is on well-being; status is not shown. An
effective manager is a supportive one, and decision making is achieved through
involvement.

Vietnam has a low preference for avoiding uncertainty. Such societies maintain a more
relaxed attitude in which practice counts more than principles and deviance from the
norm is more easily tolerated. In such societies, people believe there should be no more
rules than are necessary and if they are ambiguous or do not work they should be
abandoned or changed. Schedules are flexible, hard work is undertaken when necessary
but not for its own sake, precision and punctuality do not come naturally, innovation is
not seen as threatening.

On the dimension of Long Term Orientation, Vietnam is considered to have a pragmatic

culture. In societies with a pragmatic orientation, people believe that truth depends very
much on situation, context and time. They show an ability to adapt traditions easily to
changed conditions, a strong propensity to save and invest. thriftiness and perseverance
in achieving results.

A low score of 35 on the Indulgence dimension indicates that the culture of Vietnam is
characterized as Restrained. Societies with a low score in this dimension have a tendency
to cynicism and pessimism. Also, in contrast to Indulgent societies, Restrained societies
do not put much emphasis on leisure time and control the gratification of their desires.
People with this orientation have the perception that their actions are Restrained by social
norms and feel that indulging themselves is somewhat wrong.

2. US
Hofstede in his research positioned American culture based on five pairs of opposing
values with the following scores: Pair Equality - Hierarchy (or Power Distance): 40;
Individualism vs collectivism: 91; masculinity vs femininity: 62; Access
Risk Acceptance - Risk Avoidance: 46; access Long-term bias - Short-term bias (Time):
26.
The position of American culture in terms of contrasting values is presented by Hofstede
in the following chart:
Based on his research, Hofstede decoded the main expressions of American culture based
on five pairings as follows:

First, with a low power distance score (40), and a high individualism score (91),
American culture exhibits characteristics such as: Americans place the premise on
fairness and self-esteem. due to every aspect of life and even within the government
system; In organizations, without formality, taking place directly, without reservation,
relationships in society
American society is quite loose, individuals take care of themselves, do not rely on others
nor rely on other family members, Americans are used to doing business or interacting
with people they do not know clearly so they do not hesitate to approach their potential
partners to get or seek information. In the business world, employees must know how to
promote themselves and demonstrate their abilities to be promoted and recognized by
society and the community.
Second, the score of the American masculinity vs femininity is quite high: 62,9
points above the average. Combined with a very high score of individualism, American
culture exhibits the following characteristics: In life, study, as well as work, Americans
make great efforts, Americans love to show off and show off. discuss their successes and
achievements. Many American evaluation systems are based on accurate goal setting,
through which American employees can perform well at their jobs based on the
completion of set goals. Normally, Americans "live to work" and always strive to receive
salary increases and promotions based on their actual abilities. To become a "winner",
there must inevitably be conflict and competition, which has gradually led to polarization
in American culture, leading to increasing injustices and disparities between social
classes. Congress, gradually weakening America's money for "liberty and justice for all."

Third, the score of the Risk Avoidance - Risk Acceptance pair is 46, below the average of
53. This according to Hofstede means that Americans can accept new ideas, innovative
products and ready Willing to try something new and different to a reasonable degree,
they often embrace free speech and are very willing to listen to other people's ideas and
perspectives. Compared to other cultures, Americans show less expressive emotions.

Fourth, for the pair Long-term bias - Short-term bias (Time), the US scored quite
modestly: 26 points, lower than the average of 27 points. This score shows that
Americans highly value truth and truth, they always analyze things as "right" or "wrong",
"good" or "bad". In business, American businesses often evaluate performance on a short-
term basis through a series of quarterly profit and loss reports. This has motivated
individuals in the business to strive to complete work more quickly and effectively.

THE INFLUENCE OF HOFSTEDE CULTURAL DIMENSIONS ON BUSINESS

PERFORMANCE (MARKETING, HUMAN RESOURCE...)
Hofstede's cultural dimensions theory is a framework for understanding how the culture
of a society impacts the values of its members, and how these values relate to behavior. It
has been widely used to analyze the influence of culture on various aspects of business
performance, including marketing and human resource management.
In marketing, understanding cultural dimensions such as individualism versus
collectivism or uncertainty avoidance can help companies tailor their marketing strategies
to different cultures. For instance, in individualistic cultures, marketing campaigns may
focus on personal benefits and autonomy, whereas in collectivist cultures, they might
emphasize community benefits and social harmony.
In human resource management, cultural dimensions can influence leadership styles,
motivation, and communication within the organization. For example, high power
distance cultures may accept hierarchical structures and centralized decision-making,
while low power distance cultures might prefer participative management and
decentralized decision-making.
Studies have shown significant correlations between certain Hofstede's dimensions and
Total Quality Management (TQM) performance. For instance, power distance and
masculinity versus femininity have been found to affect employees' TQM performance¹.
Additionally, adaptability and innovativeness in organizations have been influenced by
cultural dimensions in various ways².
Understanding and adapting to these cultural dimensions can lead to improved
organizational performance, better employee satisfaction, and more effective marketing
strategies. It's important for businesses to consider these cultural factors to enhance their
performance and competitiveness in the global market. For more detailed insights, you
might find the research articles on the influence of national cultural dimensions on
quality management performance and their impact on organizational performance in
specific countries quite informative¹².