Culture 1

Cross Cultural Communication
Hofstede Cultural Framework
1. Individualism vs. Collectivism

2. Power Distance
3. Masculinity vs. Femininity
4. Uncertainty Avoidance
5. Long/Short Term Orientation
(Pragmatic vs. Normative)
6. Indulgence vs. Restraint
Individualistic & Collectivistic
 Individualist culture is a culture in which the goals of the

individual take precedence over the goals of the group.
 Collectivistculture is a culture in which the goals of the group
take precedence over the goals of the individual.
In other words…
 In an individualist culture, success is measured by how far one

stands out from the crowd.
EX: self-made millionaires, employees of the month, standing
out…
 Ina collectivist culture, success is measured by one’s
contributions to the group as a whole.
EX: loyalty to company or country, specialized skills, fitting
in…
Nations
Individualistic:
France, Netherlands, Nordic countries, Czech, Hungary, Poland, Italy,
German Speaking Countries, USA, Anglo Countries
Collectivistic:
Thailand, Korea, Costa Rica, Chile, India, Russia, Bulgaria, Portugal,
Spain, China, Japan, Mexico, Venezuela, Arab World, Greece
Power Distance
 “...the extent to which the less

powerful members of institutions
and organizations within a country
expect and accept that power is
distributed unequally.”
In High PD
 Authority is perceived as vertical and formal.

 People in authority are considered superior.
 Superiors typically show leadership and initiative.
 Less likely to question the boss.
 Ideas are not expressed openly.
 Directness and informality are considered as insulting.
 People prefer being called by titles and last names.
 India, Russia, China, Middle East, Mexico
In Low PD
 Authority is perceived as horizontal and informal.

 Manager or boss is just a member of the team.
 Any member may show initiative.
 Likely to question the boss/manager.
 Ideas are expressed openly.
 Indirectness and formality are considered as pompous and arrogant.
 People prefer being called by first names.
 United Kingdom, Germany, USA
Power Distance at Work
 Hierarchy
 Centralization
 Salary range
 Participation
 Privilege & status symbols
Masculinity vs. Femininity
 Masculine societies: social gender

roles are distinct (men focus on
material success; women on quality
of life)
 Feminine societies: social gender
roles overlap (both quality of life)

High Masculine Low Masculine (Feminine)
Social norms ego oriented relationship oriented
money and things are important quality of life and people are important
live in order to work work in order to live
Politics & economic growth high priority environment protection high priority
conflict solved through force conflict solved through negotiation
economics
Religion most important in life less important in life
only men can be priests both men and women as priests
Work larger gender wage gap smaller gender wage gap

fewer women in management more women in management
preference for higher pay preference for fewer working hours
Family & school traditional family structure flexible family structure

girls cry, boys don’t; boys fight, both boys and girls cry; neither/both
girls don’t fight
failing is a disaster failing is a minor accident
Masculinity/Femininity at Work
 Centrality of work
 Ways of managing & decision making
 Femininity: equality, solidarity, quality
of work life
 Masculinity: equity, competition,
performance
 Conflict resolution
(India scores 56 on Hofstede’s
Masculinity Index)
What is Uncertainty?
 A statewherein outcomes and conditions are unknown or

unpredictable.
Uncertainty Avoidance
 “…the extent to which the members

of a culture feel threatened by
uncertain or unknown situations.”
 NOT the same as risk avoidance
 Presence of rules
Characteristics
People in a country with Low Uncertainty Avoidance Index Score (say 8):
 Ambiguity
 Entrepreneurial
 Less structured rules
 Examples: USA, UK, India, China, Singapore
People in a country with High Uncertainty Avoidance Index Score (say 73):
 Stability
 Structured rules
 Social norms
 Examples: Italy, Korea, Mexico, Belgium, Russia
Uncertainty Avoidance at Work
 Necessity of rules
 Time orientation
 Precision & punctuality
 Interpretation of “What is
different…”
 Appropriateness of emotional
displays
High Uncertainty Avoidance Cultures
People in cultures with a low tolerance to uncertainty will also tend to
establish laws, rules, regulations and control mechanisms to prevent
any ambiguity or risk. In a business context, this means that in cultures
that have a low tolerance to uncertainty you may find:
 Employees tend to stay with one employer for a long period of time
 Decisions are made by consensus
 Traditional gender roles
 Job roles often require a very high level of expertise
 Projects are carefully planned
 Many rules, laws and regulations in place
Low Uncertainty Avoidance Cultures
Low uncertainty avoidance cultures, on the other hand, are open to new
ideas and influences. Flat organisational structures are favoured and
people are flexible and more willing to take risks.
 In a business context, this would mean that:
 People will be more open to innovation and change
 There is an increased willingness and readiness to take risks
 People approach projects from different angles and have a more
flexible attitude to deadlines
 There is a preference for flexible rules and informal activities
Confucian Dynamism
Short-term orientation Long-term orientation

 Emphasis on quick results  Emphasis on persistence
 Status not a major issue in  Relationships ordered by status
relationships  Personal adaptability important
 Personal stubbornness  Face considerations are common but
 Protection of one’s face is important seen as a weakness
 Leisure time important  Leisure time not too important
 Spend
 Save (Thrifty)
 Belief in absolutes about good and
 Good or evil depends on circumstances
evil  Concerned with respecting the
 Concerned with possessing TRUTH demands of VIRTUE
Examples
 Long-term orientation: China, Hong Kong, Japan, South

Korea, India (61)
 Short-term orientation: Russia, Germany, Canada, USA,
Indonesia
 Canadian negotiators may want to quickly reach an
agreement, whereas Chinese negotiators may want more
time for non business activities to first establish the
relationship.
Examples
Mortgages
 Here is one fairly short and simple example: for how long does a house
mortgage run in the Western World? A typical number would be somewhere
between 20 and 30 years.
 However in Hong Kong, and China there are plenty of cases where a mortgage
runs for 80 years if not longer. This means it carries over a generation!
Business Plans
 The second example is about the length of a business plan in years. What’s a
good average for a Western company? 5 years? Or only 3 years? Usually with a
rolling forecast.
 A couple of years ago, a large Japanese producer of photocopiers, trimmed down
the length of their business plan from 150 (!) years to 80 years. Again, this spans
several generations.
Indulgence / Restraint
 Indulgence stands for a society that allows relatively free

gratification of basic and natural human drives related to
enjoying life and having fun.
 Restraint stands for a society that suppresses gratification
of needs and regulates it by means of strict social norms.
Indulgence / Restraint
Indulgent societies Restrained societies

 People feel healthier and happier  People feel less happy and less
 A perception of personal life control healthy
 Leisure ethic
 What happens to me is not my doing
 Optimism, positive attitude
 Work ethic
 More extraverted personalities
 Pessimism, cynicism
 Having friends very important
 More introverted personalities
 Active participation in sports
 Having friends less important
 Less moral discipline
 Less sports participation
 Stricter moral discipline
Long/Short Term Orientation x Indulgence/Restraint
Indulgent, Short-term Indulgent, Long term
Nigeria, South Africa Sweden, Netherlands

South America Austria, Switzerland
USA, Canada, Australia Britain, Belgium
Poland, Portugal Italy, Germany

Zimbabwe, Islamic countries Eastern Europe
Japan, India, China
Restrained, Short-term Restrained, Long-term

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Cross Cultural Communication

Hofstede Cultural Framework

1. Individualism vs. Collectivism

 Individualist culture is a culture in which the goals of the

 In an individualist culture, success is measured by how far one

 “...the extent to which the less

 Authority is perceived as vertical and formal.

 Authority is perceived as horizontal and informal.

 Masculine societies: social gender

Work larger gender wage gap smaller gender wage gap

Family & school traditional family structure flexible family structure

 A statewherein outcomes and conditions are unknown or

 “…the extent to which the members

Short-term orientation Long-term orientation

 Long-term orientation: China, Hong Kong, Japan, South

 Indulgence stands for a society that allows relatively free

Indulgent societies Restrained societies

Nigeria, South Africa Sweden, Netherlands

Poland, Portugal Italy, Germany

Restrained, Short-term Restrained, Long-term

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