Though my cultural intelligence journey began nearly a decade ago, I took my first formal class on cultural intelligence about two years ago. My professor said first thing first, I had to read “Cultures and Organizations: Software of the Mind” by Geert Hofstede. I will be honest; it reads much like a doctorate thesis or encyclopedia. So to save you the trouble, I am going to outline and define the key takeaway: Hofstede’s six cultural dimensions. (If you are a CQ nerd like me, I highly recommend the book!)
Much of Hofstede’s work presented in his book is based on findings made by analyzing employee opinion surveys he had conducted while working at IBM International. Hofstede collected information from managers representing over thirty different countries within IBM and data from his students at the International Institute for Management Development. After a few years, his extensive analysis of his collected data allowed him to deduce six specific dimensions of national culture. The first four are: the power distance index, individualism versus collectivism, masculinity versus femininity, and uncertainty avoidance index. The two recent additions to the dimensions are indulgence versus restraint and long- versus short-term orientation. The database has also expanded to include cultural dimension comparisons of over seventy countries (Hofstede Insights).
We’ll provide an introduction on each cultural dimension, defining and highlighting its importance, saving you from deep diving into “Cultures and Organizations: Software of the Mind”. So let’s begin…
Cultural Dimension #1 - Power Distance Index
Power distance is ‘the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally’ (Hofstede, 1991, p. 28). In small power distance societies, the society strives for greater equality, meaning parents/teachers and children treat each other as equals, organizations are decentralized with flatter hierarchies, and privileges and status symbols are generally frowned upon (p. 37). People making up large power distance societies prefer the opposite- a strict hierarchy with those in prominent societal roles demanding obedience and respect. Superiors also differ significantly from inferior social members regarding salary and demonstrate their status through symbols and materials (p.37).
Cultural Dimension #2 - Individualism Vs. Collectivism
Individualism concerns 'societies in which the ties between individuals are loose: everyone is expected to look after himself or herself and his or her immediate family’ (p.51). Collectivism pertains to ‘societies in which people from birth onwards are integrated into strong, cohesive ingroups, which throughout people’s lifetime continue to protect them in exchange for unquestioning loyalty’ (p. 51). In collectivist groups, one’s identity is linked to one’s social network, and this network impacts hiring and promotions as those in the ingroup are favored. Relationships take precedence over work and completing tasks. Additionally, diplomas symbolize the achievement of learning how to do something and provide a step toward higher social status (p.67). In Individualist societies, a person thinks in terms of “I” versus “we,” and his or her actions are motivated by how the consequences will impact their self-respect and/or economic worth. Individualists speak their minds and value personal skill and merit over relationships (67).
Cultural Dimension #3 - Masculinity Vs. Femininity
In the masculinity versus femininity dimension, masculinity pertains to ‘societies in which social gender roles are clearly distinct (i.e., men are supposed to be assertive, tough, and focused on material success, whereas women are supposed to be more modest, tender, and concerned with the quality of life); femininity pertains to societies in which social gender roles overlap’ (pp. 82-83). Masculine societies value material success and progress and demonstrate greater sympathy towards the strong and successful (p. 96). There is more tremendous stress on competition and performance, which results in conflicts in achieving outstanding performance generally being fought out. The opposite holds true for feminist cultures that value relationships and the well-being of others. These cultures sympathize with the weak, seek equality in gender roles across the gender spectrum, and stress solidarity and conflict resolution through compromise and negotiation (p. 96).
Cultural Dimension #4 - Uncertainty Avoidance
Uncertainty avoidance is defined by Hofstede (p. 113) as ‘the extent to which the members of a culture feel threatened by uncertain or unknown situations… expressed through nervous stress and a need for predictability: a need for written and unwritten rules’. Weak uncertainty avoidance cultures accept ambiguity as a fact of life, allowing them to be more tolerant of unknown risks, comfortable with lenient rules, and curious about what is different (p. 125). These cultures tend to be more relaxed and arguably lazy, making precision and punctuality a trait that must be learned. Strong uncertainty avoidance cultures are subjective to feeling anxious as they see anything different or unfamiliar as risky. They must rely on rules and business to distract or suppress bad ideas and behavior (p.125).
Cultural Dimension #5 - Long-Term Vs. Short-term Orientation
The long-term orientation (LTO) index measures 'the degree of long-term orientation in a country’s culture, based on the Chines Value Survey research project’ (p. 261). This measurement helps to define long-term orientation cultures as those that value 'persistence (perseverance), ordering relationships by status and observing this order, thrift, and having a sense of shame’ (p. 165). Short-term orientation cultures value ’personal steadiness and stability, protecting your ‘face’, respect for tradition, and reciprocation of greetings, favors, and gifts’ (p. 166).
Cultural Dimension #6 - Indulgence Vs. Restraint
The final dimension, indulgence versus restraint, describes countries with a high rating as countries that ‘encourage relatively free gratification of people’s own drives and emotions, such as enjoying life and having fun’ and those with a low rating as countries that place ‘more emphasis on suppressing gratification and more regulation of people’s conduct and behavior, and there are stricter social norms’ (The Mind Tools Content Team).
Importance and Uses For Hofstede's Cultural Dimensions Model
I genuinely believe that a foundational understanding of Hofstede’s six dimensions is imperative because it provides a framework for understanding cultural differences and how they impact communication, business practices, and social interactions. It allows you to view multicultural interactions from a cultural viewpoint and pinpoint problematic encounters resulting from cultural misunderstandings.
Hofstede’s model is widely used in intercultural communication and applied to various fields, including management, marketing, and education. By implementing his model to your daily interactions and decision-making strategies, you can increase your cultural intelligence and become more equipped to effectively adapt your communication and behavior when interacting with people from different cultures.
For example, knowing that a particular culture values hierarchy and respect for authority (high power distance) can help someone from a culture that values equality and individualism (low power distance) to avoid unintentionally disrespecting someone from the high power distance culture. This is something that I really wish I had known before working for one of my former bosses. It would have saved me so much energy and wasted frustration! However, that experience is one of many that has lit the fire in my soul to share about CQ so that others don’t find themselves in similar predicaments.
Incorporating Hofstede’s model into business strategies helps companies develop effective cross-cultural strategies for marketing and global expansion. For example, knowing that a culture values collectivism and group harmony can help businesses tailor their marketing messages to emphasize the benefits of group membership and collaboration. Many companies have failed marketing campaigns due to overlooking the cultural backgrounds of their target audiences (just do a quick Google search to humor yourself- you won’t regret it!). Such a lack of attention to culture negatively affected profits and brand reputation.
The Benefits of Incorporating Hofstede's Cultural Dimensions Model
As you should surmise, understanding Hofstede’s cultural dimensions can help you and businesses to navigate the complexities of cross-cultural communication and interactions, leading to more successful outcomes, positive relationships, and harmonious societies.
Read: Hofstede's “Cultures and Organizations: Software of the Mind”.
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