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Hofstede’s Dimensions
Dr. Chhavi Jain
Problem Statement
• Neeti's boss has asked her to manage a
large, global team. In this new role, she'll
be working closely with people in several
different countries. She's excited about the
opportunities that her connectedness will
present, but she's also nervous about
making cross-cultural faux pas.
• She knows that cultural differences can
act as a barrier to communication, and that
they could affect her ability to build
connections and motivate people. So, how
can she begin to understand these
differences and work effectively with
people from different cultures?
Hofstede’s Dimensions
• Psychologist Dr Geert
Hofstede published his cultural
dimensions model at the end
of the 1970s. Since then, it's
become an internationally
recognized standard for
understanding cultural
differences.
Hofstede’s Dimensions
• Hofstede studied people who worked for IBM in more
than 50 countries. Initially, he identified four dimensions
that could distinguish one culture from another.
• Later, he added fifth and sixth dimensions, in cooperation
with Dr. Michael H. Bond and Michael Minkov.
Hofstede’s Dimensions
1. Power Distance Index (high versus low).
2. Individualism Versus Collectivism.
3. Masculinity Versus Femininity.
4. Uncertainty Avoidance Index (high versus
low).
5. Pragmatic Versus Normative.
6. Indulgence Versus Restraint.
• Hofstede, Bond and Minkov scored each
country on a scale of 0 to 100 for each
dimension.
• When Hofstede analyzed his database of
culture statistics, he found clear patterns
of similarity and difference along the four
dimensions. He could attribute those
patterns to national differences and
minimize the impact of company culture.
Power Distance
Power Distance Index (PDI)
• The Power Distance Index is designed to measure ‘the
extent to which power differs within the society,
organization and institutions (like the family) are
accepted by the less powerful members’.
• As Hofstede stressed, there is no absolute value and
PDI is useful only as a method to compare countries.
Power Distance Index (PDI)
• Power Distance: This dimension explains
the extent to which members who are less
powerful in a society accept and also
expect that the distribution of power takes
place unequally.
Power Distance Index (PDI)
• Power distance stands for inequality that is
defined not from above, but from below. It
is, in fact, the extent to which
organizations and societies accept power
differentials.
Power Distance Index (PDI)
• A high PDI score indicates that a society accepts
an unequal, hierarchical distribution of power,
and that people understand "their place" in the
system.
• A low PDI score means that power is shared
and is widely dispersed, and that society
members do not accept situations where power
is distributed unequally.
Power Distance Index (PDI)
Societies with large power distance are characterized by
the following features:
• Autocracy in leadership;
• Authority that is centralized;
• Paternalistic ways of management;
• A number of hierarchy levels;
• The acceptance of the privileges that come with power;
• A lot of supervisory staff;
• An expectation of power differences and inequality.
• For example. Belgium, France, Malaysia,
and the Arab World can be regarded as
examples of countries or regions with high
PDI cultures.
Power Distance Index (PDI)
Societies that have small power distance possess the
following features:
• Participative or consultative style of management;
• Decision-making responsibility and authority
decentralized;
• Flat structure of organizations;
• Supervisory staff small in proportion;
• Questioning the authority and lack of acceptance;
• An inclination toward egalitarianism;
• Consciousness of rights.
• Examples of countries with low PDI are
the Netherlands, the United Kingdom, the
United States, Germany, and the Nordic
countries.
Power Distance Index (PDI)
Power Distance Index (PDI)
• Implications on Effects on management style
• In organisations with high power distance, employees acknowledge
their lesser standing, and are respectful and submissive towards
their superiors; who in turn, are more likely to give orders rather than
consult with their employees while making decisions.
• Status symbols are often displayed and flaunted.
• Employers or managers would not have meals together with their
subordinates, and might have private facilities such as rooms,
parking lots, and elevators.
• Having a high level of education is important to climb the corporate
ladder, and the higher-ranking members of the organization are
often paid much more than their employees in comparison with
companies with lower power distance.
Power Distance Index (PDI)
• Implications on Effects on management style
• On the other hand, in businesses with low power
distance, bosses are not as concerned with
status symbols and would be more open to
employee discussion and participation.
• Employees are less submissive to their
superiors, and are more likely to make
themselves heard or to challenge the
management.
Power Distance Index (PDI)
 
Austria 11 India 77 Malaysia 100
Power Distance Index (PDI)
• India’s score 77 indicates an appreciation for hierarchy
and a top-down structure in society and organizations.
• These means:
– dependent on the boss or the power holder for direction,
– acceptance of un-equal rights between the power-privileged and
those who are lesser down in the pecking order,
– immediate superiors accessible but one layer above less,
– paternalistic leader,
– management directs, gives reason / meaning to ones work life
and rewards in exchange for loyalty from employees.
Power Distance Index (PDI) in
India
• Real Power is centralized even though it may
not appear to be and managers count on the
obedience of their team members.
• Employees expect to be directed clearly as to
their functions and what is expected of them.
• Communication is top down and directive in its
style and often feedback which is negative is
never offered up the ladder.
Power Distance Index (PDI)
• Malaysia has one of the highest levels of power distance, with
a score of 100 on Hofstede’s Power Distance Index (PDI).
• This signifies that Malaysians would generally consent to, and
not question, hierarchies in which everyone has a place.
• They would perceive hierarchy in organisations as mirroring
intrinsic inequalities.
• Leaders are expected to be autocratic, and to instruct their
subordinates on what to do.
• Malaysian society is often centralised, and opposition to
authority is generally not welcomed.
Power Distance Index (PDI)
• According to the model, in a high PDI
country, such as Malaysia (100), team
members will not initiate any action, and
they like to be guided and directed to
complete a task. If a manager doesn't take
charge, they may think that the task isn't
important.
Power Distance Index (PDI)
• With a PDI score of 11, Austria is one of the countries
with the lowest levels of power distance.
• Austrians believe in independence, equal rights,
approachable leaders, that chain of command should
only be for convenience, and that supervision should
facilitate and empower.
• Power is typically decentralised, with leaders often
consulting or relying on their subordinates.
• First names are usually used even with superiors, and
communication is direct and two-way.
Uncertainty Avoidance
Uncertainty Avoidance
• The Uncertainty Avoidance dimension
expresses the degree to which the
members of a society feel uncomfortable
with uncertainty and ambiguity.
Uncertainty Avoidance
• Countries exhibiting strong UAI maintain rigid
codes of belief and behaviour and are intolerant
of unorthodox behaviour and ideas. They opt for
stiff codes of behavior, guidelines, laws, and
generally rely on absolute Truth, or the belief
that one lone Truth dictates everything and
people know what it is.
Uncertainty Avoidance
• Strong uncertainty avoidance is represented by the
following aspects:
– Tendency to avoid risk;
– Organizations that have a number of standardized procedures, written rules, and
clearly delineated structures;
– Strong requirement for consensus;
– Respect for authority;
– Requirement for predictability highlighting the significance of planning;
– Minimal or no tolerance for deviants;
– Promotions depending upon age or seniority.
Uncertainty Avoidance
• In societies that score highly for Uncertainty
Avoidance, people attempt to make life as
predictable and controllable as possible. If they
find that they can't control their own lives, they
may be tempted to stop trying. These people
may refer to "mañana," or put their fate "in the
hands of God."
Uncertainty Avoidance
• Weak UAI societies maintain a more
relaxed attitude in which practice counts
more than principles. They show more
acceptance of differing thoughts/ideas.
Society tends to impose fewer regulations,
ambiguity is more accustomed to, and the
environment is more free-flowing
Uncertainty Avoidance
• Weak uncertainty avoidance comes with
the following features:
– Undertaking risk;
– Flexibility;
– Tolerance toward differing opinions and behaviors.
Uncertainty Avoidance
• People in low UAI-scoring countries are more
relaxed, open or inclusive.
• Bear in mind that avoiding uncertainty is not
necessarily the same as avoiding risk. Hofstede
argues that you may find people in high-scoring
countries who are prepared to engage in risky
behavior, precisely because it reduces
ambiguities, or in order to avoid failure.
• Examples of countries with low uncertainty
avoidance scores include the United States,
England, India, China, and Singapore.
• Examples of countries with high uncertainty
avoidance scores include Italy, Korea, Mexico,
Belgium, and Russia.
Uncertainty Avoidance
Uncertainty Avoidance Index
 
Singapore 08 India 40 Greece 100
Uncertainty Avoidance in India
• India’s scores 40 on this dimension and has a medium
low preference for avoiding uncertainty.
• In India, there is acceptance of imperfection; nothing
has to be perfect nor has to go exactly as planned.
• India is traditionally a patient country where tolerance for
the unexpected is high ; even welcomed as a break from
monotony.
Uncertainty Avoidance in India
• People generally do not feel driven and compelled to
take action-initiatives and comfortably settle into
established rolls and routines without questioning.
• Rules are often in place just to be circumvented and one
relies on innovative methods to “bypass the system”.
• It is this attitude that is both the cause of misery as well
as the most empowering aspect of the country. There is
a saying that “nothing is impossible” in India, so long as
one knows how to “adjust”.
Uncertainty Avoidance
• Application: In Hofstede's model, Greece tops the UAI
scale with 100, while Singapore scores the lowest with
eight.
• Therefore, during a meeting in Greece, you might be
keen to generate discussion, because you recognize that
there's a cultural tendency for team members to make
the safest, most conservative decisions, despite any
emotional outbursts. Your aim is to encourage them to
become more open to different ideas and approaches,
but it may be helpful to provide a relatively limited,
structured set of options or solutions.
Uncertainty Avoidance
Application: Singapore scores 8 on this dimension and thus scores
very low on this dimension. In Singapore people abide to many rules
not because they have need for structure but because of high PDI.
Singaporeans call their society a “Fine country. You’ll get a fine for
everything”.
Individualism vs. Collectivism
Individualism vs. Collectivism
• The focus of this dimension is on the
question regarding whether people have a
preference for being left alone to look after
themselves or want to remain in a closely
knitted network.
Individualism vs. Collectivism
• A high IDV score indicates weak interpersonal
connection among those who are not part of a core
"family." Here, people take less responsibility for others'
actions and outcomes.
• In a collectivist society, people are supposed to be loyal
to the group to which they belong and, in exchange, the
group will defend their interests. The group itself is
normally larger, and people take responsibility for one
another's wellbeing.
Individualism vs. Collectivism
• The high side of this dimension, called individualism, can
be defined as a preference for a loosely-knit social
framework in which individuals are expected to take care
of only themselves and their immediate families.
• Its opposite, collectivism, represents a preference for a
tightly-knit framework in society in which individuals can
expect their relatives or members of a particular in-group
to look after them in exchange for unquestioning loyalty.
• A society's position on this dimension is reflected in
whether people’s self-image is defined in terms of “I” or
“we.”
Individualism vs. Collectivism
• Individualist cultures, such as those of
the United States and Western Europe,
emphasize personal achievement regardless of
the expense of group goals, resulting in a strong
sense of competition.
• Collectivist cultures, such as those
of China, Korea, and Japan, emphasize family
and work group goals above individual needs or
desires.
Individualism vs. Collectivism
• Individualistic cultures are characterized by:
• Fostering contractual relationships that revolve around the fundamentals
of exchange. These cultures engage in the calculation of profit and loss
prior to engagement in a behavior.
• Concentration on self or at the most very near and dear ones, and concern
with behavioral relationships as well as own goals, interests, and needs.
• Emphasis on personal enjoyment, fun, and pleasure, over duties and
social norms.
• Self-sufficiency and value independence and placement of self-interest over
collective interest. Confrontation is accepted as an attribute.
• Stress on horizontal relationships (such as the relationship between spouse
and spouse) rather than vertical relationships (such as the relationship
between parent and child).
• The notion that they hold unique beliefs.
Individualism vs. Collectivism
• Collectivistic cultures are characterized by:
• Behavior as per social norms that are established for maintenance of social
harmony among in-group members;
• Considering the wider collective with regards to implications of their actions;
• Sharing of resources and readiness to give up personal interest keeping in
mind the collective interest;
• Favoring some in-groups (such as friends and family);
• Being a part of a few in-groups that have an influence on their lives. Rather
than being individualistic, they have an increased inclination towards
conformity;
• Increased concern regarding in-group members. They show hostility or
indifference toward out-group members;
• Emphasis on harmony and hierarchy within group;
• Regulation of behavior with the help of group norms.
Individualism vs. Collectivism
Individualism vs. Collectivism
 
Guatamala 06 India 48 Germany 67 US 91
Collectivism Individualism
Individualism vs. Collectivism
• Application: Central American
countries Panama and Guatemala have very
low IDV scores (11 and six, respectively i.e.
More of collectivism). In these countries, as an
example, a marketing campaign that
emphasizes benefits to the community would
likely be understood and well received, as long
as the people addressed feel part of the same
group.
Individualism vs. Collectivism
• In Germany people stress on personal achievements and
individual rights.
• Germans expect from each other to fulfil their own needs.
• Group work is important, but everybody has the right of his
own opinion an is expected to reflect those.
• In an individual country like Germany people tend to have
more loose relationships than countries where there is a
collectivism where people have large extended families.
Individualism vs. Collectivism
• India scored 48; a society with both collectivistic and Individualist traits.
• The collectivist side means that there is a high preference for belonging to a
larger social framework in which individuals are expected to act in
accordance to the greater good of one’s defined in-group(s).
• The actions of the individual are influenced by various concepts such as the
opinion of one’s family, extended family, neighbours, work group and other
such wider social networks that one has some affiliation toward.
• For a collectivist, to be rejected by one’s peers or to be thought lowly of by
one’s extended and immediate in-groups, leaves him or her rudderless and
with a sense of intense emptiness.
Individualism vs. Collectivism
• India: The Individualist aspect of Indian society is seen as
a result of its dominant religion/philosophy - Hinduism.
• The Hindus believe in a cycle of death and rebirth, with
the manner of each rebirth being dependent upon how
the individual lived the preceding life.
• People are, therefore, individually responsible for the way
they lead their lives and the impact it will have upon their
rebirth.
• This focus on individualism interacts with the otherwise
collectivist tendencies of the Indian society which leads to
its intermediate score on this dimension.
Individualism vs. Collectivism
• India: The employer/employee relationship is
one of expectations based on expectations –
Loyalty by the employee and almost familial
protection by the Employer. Hiring and
promotion decisions are often made based on
relationships which are the key to everything in a
Collectivist society.
Masculinity vs. Femininity
Masculinity vs. Femininity
• It refers to the distribution of roles between men and
women. In masculine societies, the roles of men and
women overlap less, and men are expected to behave
assertively. Demonstrating your success, and being
strong and fast, are seen as positive characteristics.
• In feminine societies, however, there is a great deal of
overlap between male and female roles, and modesty is
perceived as a virtue. Greater importance is placed on
good relationships with your direct supervisors, or
working with people who cooperate well with one
another.
Masculinity vs. Femininity
• A high score (Masculine) on this dimension indicates that the society
will be driven by competition, achievement and success, with
success being defined by the winner / best in field – a value system
that starts in school and continues throughout organisational life.
• A low score (Feminine) on the dimension means that the dominant
values in society are caring for others and quality of life. A Feminine
society is one where quality of life is the sign of success and
standing out from the crowd is not admirable.
• The fundamental issue here is what motivates people, wanting
to be the best (Masculine) or liking what you do (Feminine).
Masculinity vs. Femininity
• The Masculinity side of this dimension represents a preference in
society for achievement, heroism, assertiveness and material
rewards for success. Society at large is more competitive.
• Femininity, stands for a preference for cooperation, modesty, caring
for the weak and quality of life. Society at large is more consensus-
oriented.
• In the business context Masculinity versus Femininity is sometimes
also related to as "tough versus tender" cultures.
Masculinity vs. Femininity
• In a masculine society, men are supposed to be tough.
Men are supposed to be from Mars, women from Venus.
Winning is important for both genders. Quantity is
important and big is beautiful. In a feminine society, the
genders are emotionally closer. Competing is not so
openly endorsed, and there is sympathy for the
underdog.
• This is NOT about individuals, but about expected
emotional gender roles. Masculine societies are much
more openly gendered than feminine societies.
Masculinity vs. Femininity
Masculinity vs. Femininity
• Masculine cultures possess the following characteristics:
• Clearly distinct gender roles;
• Benevolence has little or no significance;
• Men are expected to be tough and assertive with a concentration on
material achievements;
• Much value is associated with mastery of people, nature, job, and
the like;
• Sense of humor, intelligence, affection, personality are considered
preferred characteristic traits of a boyfriend by the women;
• Understanding, wealth, and health are considered desirable
characteristic traits of a husband by the women.
Masculinity vs. Femininity
• Feminine cultures possess the following characteristics:
• Overlapping of social gender roles;
• Men, as well as women, are expected to be tender,
modest, with focus on the quality of life;
• Emphasis on the non-materialistic angles of success;
• The preferred traits in boyfriends and husbands are the
same.
Masculinity vs. Femininity
 
Sweden 05 India 56 Japan 95
Feminism Masculinity
Masculinity vs. Femininity: India
• India scores 56 on this dimension and is thus considered a
Masculine society.
• India is very Masculine in terms of visual display of success and
power.
• The designer brand label, the flash and ostentation that goes with
advertising one’s success, is widely practiced.
Masculinity vs. Femininity: India
• However, India is also a spiritual country with millions of deities and
various religious philosophies. It is also an ancient country with one
of the longest surviving cultures which gives it ample lessons in the
value of humility and abstinence.
• This often reigns in people from indulging in Masculine displays to
the extent that they might be naturally inclined to.
• In more Masculine countries the focus is on success and
achievements, validated by material gains. Work is the center of
one’s life and visible symbols of success in the work place are very
important.
Masculinity vs. Femininity
• Application: As we've highlighted, Japan has the highest MAS
score of 95, whereas Sweden has the lowest measured value of
five. Therefore, if you open an office in Japan, you should recognize
you are operating in a hierarchical, deferential and traditionally
patriarchal society. Long hours are the norm, and this, in turn, can
make it harder for female team members to gain advancement, due
to family commitments.
• At the same time, Japan is a culture where all children (male and
female) learn the value of competition and winning as part of a team
from a young age. Therefore, female team members are just as
likely to display these notionally masculine traits as their male
colleagues.
Masculinity vs. Femininity
• Application:
• Sweden scores 5 on this dimension and is therefore a Feminine society. In
Feminine countries it is important to keep the life/work balance and you
make sure that all are included.
• An effective manager is supportive to his/her people, and decision making is
achieved through involvement.
• Managers strive for consensus and people value equality, solidarity and
quality in their working lives.
• Conflicts are resolved by compromise and negotiation and Swedes are
known for their long discussions until consensus has been reached.
• Incentives such as free time and flexible work hours and place are favoured.
• Jante Law” is a fictional law and a Scandinavian concept which counsels
people not to boast or try to lift themselves above others.
Long-Term vs. Short-Term
Orientation
Long-Term (Pragmatic) vs. Short-
Term (Normative) Orientation
• This dimension describes how every society has to maintain
some links with its own past while dealing with the challenges
of the present and future and societies prioritise these two
existential goals differently.
• Normative societies. which score low on this dimension, for
example, prefer to maintain time-honoured traditions and norms
while viewing societal change with suspicion.
• Those with a culture which scores high, take a more pragmatic
approach: they encourage thrift and efforts in modern education as a
way to prepare for the future.
Long-Term vs. Short-Term
Orientation
• Every society has to maintain some links with its own past while
dealing with the challenges of the present and the future. Societies
prioritize these two existential goals differently.
• Societies who score low on this dimension, for example, prefer to
maintain time-honoured traditions and norms while viewing societal
change with suspicion. Those with a culture which scores high, on
the other hand, take a more pragmatic approach: they encourage
thrift and efforts in modern education as a way to prepare for the
future.
• In the business context this dimension is related to as "(short term)
normative versus (long term) pragmatic" (PRA).
Long-Term vs. Short-Term
Orientation
• Societies with a high degree in this index (long-
term) views adaptation and circumstantial,
pragmatic problem-solving as a necessity.
• A poor country that is short-term oriented usually
has little to no economic development, while
long-term oriented countries continue to develop
to a point.
Long-Term vs. Short-Term
Orientation
Long-term orientation reflects the following:
• A futuristic, dynamic mentality;
• Emphasis on a relationship order depending on status, and
observance of this order;
• Emphasis on persistence and perseverance;
• Stress on possessing a sense of shame;
• Stress on thrift;
• Positive association with economic growth;
• Inclination toward interrelatedness represented in sensitivity toward
social contacts.
Long-Term vs. Short-Term
Orientation
Short-term orientation is characterized by the following:
• Orientation toward past and present;
• Focus on respect for tradition;
• A comparatively static, more conventional mentality;
• Emphasis on saving face;
• Emphasis on personal steadiness;
• Focus on stability;
• Emphasis on reciprocation of gifts, favors, and greetings;
• Negative association with economic growth.
Long-Term vs. Short-Term
Orientation
• This dimension associates the connection of the past
with the current and future actions/challenges.
• A lower degree of this index (short-term) indicates that
traditions are honored and kept, while steadfastness is
valued.
• Societies with a high degree in this index (long-term)
views adaptation and circumstantial, pragmatic problem-
solving as a necessity.
Long-Term vs. Short-Term
Orientation
Long Term Oriented
societies
• Large savings quote,
funds available for
investment
• Companies seek market
share, long-term profits
• Investors prefer family
business and real estate
• In poor countries, faster
economic growth
Short Term Oriented
societies
• Small savings quote, little
money for investment
• Companies report
quarterly results, stress
bottom line
• Investors prefer shares
and mutual funds
• In poor countries, slower
economic growth
Long-Term vs. Short-Term
Orientation
Long-Term Oriented
societies
• Good and evil are relative
• Which norms apply
depends on the situation
• Traditions can be
changed
• Opposing truths can be
integrated
• Common sense and
choosing the middle way
Short-Term Oriented
societies
• Good and evil are
absolute
• Fixed norms apply
always, whatever the
circumstances
• Traditions are sacrosanct
• Truth A always excludes
its opposite B
• Religious and ideological
fundamentalisms
Long-Term vs. Short-Term
Orientation
Long-Term Orientation refers to the degree to which people
need to explain the inexplicable, and is strongly related
to religiosity and nationalism.
• Countries that score high for long term orientation tend
to be pragmatic, modest, long-term oriented, and more
thrifty.
• In low-scoring countries, people tend to be religious and
nationalistic. Self-enhancement is also important here,
along with a person's desire to please their parents.
Long-Term vs. Short-Term
Orientation
Long-Term vs. Short-Term
Orientation
 
Egypt 07 India 51 Japan 88
Normative Pragmatic
Short Term Long Term
Long-Term vs. Short-Term
Orientation: India
• Application: India scores 51 in this dimension
• In India the concept of “karma” dominates religious and philosophical thought.
• Time is not linear, and thus is not as important as to western societies.
• Countries like India have a great tolerance for religious views from all over the
world.
• Hinduism is often considered a philosophy, a religion; an amalgamation of ideas,
views, practices and esoteric beliefs.
• In India there is an acceptance that there are many truths and often depends on
the seeker.
• Societies that have a high score on pragmatism typically forgive a lack of
punctuality, a changing game-plan based on changing reality and a general
comfort with discovering the fated path as one goes along rather than playing to
an exact plan.
Long-Term vs. Short-Term
Orientation
• Application:
• At 88 Japan scores as one of the most Long Term Orientation oriented societies.
• Japanese see their life as a very short moment in a long history of mankind. From
this perspective, some kind of fatalism is not strange to the Japanese. You do your
best in your life time and that is all what you can do.
• Notion of the one and only almighty God is not familiar to Japanese. People live their
lives guided by virtues and practical good examples.
• In corporate Japan, you see long term orientation in the constantly high rate of
investment in R&D even in economically difficult times, higher own capital rate,
priority to steady growth of market share rather than to a quarterly profit, and so on.
They all serve the durability of the companies. The idea behind it is that the
companies are not here to make money every quarter for the share holders, but to
serve the stake holders and society at large for many generations to come.
Long-Term vs. Short-Term
Orientation
• Application:
• Egypt's very low score of 7 indicated that its culture is
very normative. People in such societies have a strong
concern with establishing the absolute Truth; they are
normative in their thinking. They exhibit great respect for
traditions, a relatively small propensity to save for the
future, and a focus on achieving quick results
Indulgence vs. Restraint
Indulgence vs. Restraint
• This revolves around the degree to which
societies can exercise control over their
impulses and desires.
Indulgence vs. 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 vs. Restraint
• One challenge that confronts humanity, now and in the
past, is the degree to which small children are socialized.
Without socialization we do not become “human”. This
dimension is defined as the extent to which people try
to control their desires and impulses, based on the
way they were raised.
• Relatively weak control is called “Indulgence” and
relatively strong control is called “Restraint”.
Indulgence vs. Restraint
Indulgent societies
• People feel healthier and
happier
• A perception of personal life
control
• Optimism, positive attitude
• More extraverted personalities
• Having friends very important
• Active participation in sports
• Less moral discipline
Restrained societies
• People feel less happy and
less healthy
• What happens to me is not my
doing
• Pessimism, cynicism
• More introverted personalities
• Having friends less important
• Less sports participation
• Stricter moral discipline
Indulgence vs. Restraint
Indulgent societies
• Freedom of speech for all is
rated as very important
• Higher crime rates, smaller
police force
• In countries with educated
population, higher birthrates
• In wealthy countries, more
obesitas
• Higher approval of foreign
music and films
Restrained societies
• Maintaining order in the nation
is rated as very important
• Lower crime rates, larger
police force
• In countries with educated
population, lower birthrates
• In wealthy countries, less
obesitas
• Lower approval of foreign
music and films
Indulgence vs. Restraint
Indulgence vs. Restraint
 
Egypt 04 India 26 Mexico 97
Restraint Indulgence
Indulgence vs. Restraint:
India
Application:
• India receives a low score of 26 in this dimension, meaning that it is a
culture of Restraint.
• 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.
Indulgence vs. Restraint
• Application:
• With a very high score of 97, Mexican culture has a definite
tendency toward Indulgence.
• People in societies classified by a high score in Indulgence
generally exhibit a willingness to realise their impulses and desires
with regard to enjoying life and having fun.
• They possess a positive attitude and have a tendency towards
optimism. In addition, they place a higher degree of importance on
leisure time, act as they please and spend money as they wish.
Indulgence vs. Restraint
• Application:
• With a very low score of 4, Egypt is shown to be a very Restrained country.
• Societies with a low score in this dimension have a tendency to cynicism
and pessimism.
• 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.
Related Terms
• Case 1
• “A father and son were involved in a car
accident and both were taken to hospital.
The father died immediately on arrival, but
the son survived, so he was taken to the
operating theatre for an emergency
operation. The surgeon said: “I can’t
operate on this boy because he’s my son”.
”
• Case 2
• “A man and his young son were
apprehended in a robbery. The father was
shot during the struggle and the son, in
handcuffs was rushed to the police
station. As the police pulled the struggling
boy into the station, the mayor, who had
been called to the scene, looked up and
said “My God, it’s my son!” ”
Cultural Transmission
• The elements of culture are transmitted
among the members of the culture from
one generation to the next and to the new
members admitted into the culture.
Dr. Chhavi Jain
Cultural Accumulation
• It enables man to build upon the
achievements of the past. Cultural
DIFFUSION is the spread of cultural
elements from one place to another.
Dr. Chhavi Jain
Cultural Conformity
• Individuals in a culture tend either to
conform to the cultural norms or to deviate
from them.
Dr. Chhavi Jain
Cultural Conformity
• If a society is characterised by blind conformity,
it would be very difficult to market new
revolutionary ideas in such a society.
• Special efforts may be required in such society
to change the attitudes of the people in favour of
unconventional ideas.
• Coffee drinking children defy their tea drinking
parents in Japan.
Dr. Chhavi Jain
Cultural Lag
• It means that the various parts of modern
culture do not change at the same rate,
and that since there is a co-relation and
interdependence of parts, a rapid change
in one part of a culture requires re-
adjustments through other changes in
various co-related parts of that culture.
Dr. Chhavi Jain
Cultural Lag
• Cultural lag places constraints on the
scope of social change through
technological development.
• Factors that contribute to cultural lag
include ignorance, wrong notions,
sentimental factors, political factors, etc.
Dr. Chhavi Jain
Cultural Traits
1. Low Context and High Context Culture
2. Monochronic and Polychronic Societies
3. Universalism V/S Particularism
4. Neutral V/S Emotional
5. Specific V/S Diffuse
6. Achievement V/S Ascription
7. Cultural Streotypes
Dr. Chhavi Jain
LOW CONTEXT CULTURE
It assumes a high degree of shared
knowledge on behalf of a transaction
partner and thus deals only in tangible
aspects of the deal as facts, figures and
performance.
Dr. Chhavi Jain
HIGH CONTEXT CULTURE
High context cultures place great value on
the intangible aspects of a negotiation or
business deal.
Individuals from such cultures look beyond
the facts and figures and take into
consideration personal relationship,
atmosphere and attitudes towards respect,
religion and trust.
Dr. Chhavi Jain
MONOCHRONIC SOCIETY
In this society, time is used for ordering
one’s life, for setting priorities and for
doing tasks in a sequential order-one thing
at a time.
Dr. Chhavi Jain
POLYCHRONIC SOCIETY
In this society, time is used to accomplish
diverse goals simultaneously and to
interact with as many individuals as
possible.
Dr. Chhavi Jain
NEUTRAL
Emotions are held in
check.
EMOTIONAL
Emotions are openly
and naturally
expressed.
Dr. Chhavi Jain
SPECIFIC
Individuals have a large
public space; they readily
let others enter and
share.
A small private space is
guarded closely and
shared by close friends
and associates.
DIFFUSE
People are not quickly
invited into a person’s
open, public space
because once they
are in, there is easy
entry to private space
Dr. Chhavi Jain
ACHIEVEMENT
This culture gives high
status to high achievers.
ASCRIPTION
It accords status based
on age, gender or
social connections.
Status is attribute based
on who or what a
person is.
Dr. Chhavi Jain
Key Cultural Issues
• Cultural Stereotypes – our beliefs about
others, their attitudes and behavior
– Ethnocentric – looking at the world from a
perspective shaped by our own culture
– Auto-stereotypes – how we see ourselves as
a group distinguished from others
– Hetero-stereotypes – how we are seen by
others.
Dr. Chhavi Jain
Key Cultural Issues
• Cultural Distance
– The extent to which cultures differ from each
other
– Hofstede stated that uncertainty avoidance
was the most important dimension of FDI
Dr. Chhavi Jain
THANK U
Dr. Chhavi Jain

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Hofstede's dimensions

  • 2. Problem Statement • Neeti's boss has asked her to manage a large, global team. In this new role, she'll be working closely with people in several different countries. She's excited about the opportunities that her connectedness will present, but she's also nervous about making cross-cultural faux pas.
  • 3. • She knows that cultural differences can act as a barrier to communication, and that they could affect her ability to build connections and motivate people. So, how can she begin to understand these differences and work effectively with people from different cultures?
  • 4. Hofstede’s Dimensions • Psychologist Dr Geert Hofstede published his cultural dimensions model at the end of the 1970s. Since then, it's become an internationally recognized standard for understanding cultural differences.
  • 5. Hofstede’s Dimensions • Hofstede studied people who worked for IBM in more than 50 countries. Initially, he identified four dimensions that could distinguish one culture from another. • Later, he added fifth and sixth dimensions, in cooperation with Dr. Michael H. Bond and Michael Minkov.
  • 6. Hofstede’s Dimensions 1. Power Distance Index (high versus low). 2. Individualism Versus Collectivism. 3. Masculinity Versus Femininity. 4. Uncertainty Avoidance Index (high versus low). 5. Pragmatic Versus Normative. 6. Indulgence Versus Restraint.
  • 7. • Hofstede, Bond and Minkov scored each country on a scale of 0 to 100 for each dimension. • When Hofstede analyzed his database of culture statistics, he found clear patterns of similarity and difference along the four dimensions. He could attribute those patterns to national differences and minimize the impact of company culture.
  • 9. Power Distance Index (PDI) • The Power Distance Index is designed to measure ‘the extent to which power differs within the society, organization and institutions (like the family) are accepted by the less powerful members’. • As Hofstede stressed, there is no absolute value and PDI is useful only as a method to compare countries.
  • 10. Power Distance Index (PDI) • Power Distance: This dimension explains the extent to which members who are less powerful in a society accept and also expect that the distribution of power takes place unequally.
  • 11. Power Distance Index (PDI) • Power distance stands for inequality that is defined not from above, but from below. It is, in fact, the extent to which organizations and societies accept power differentials.
  • 12. Power Distance Index (PDI) • A high PDI score indicates that a society accepts an unequal, hierarchical distribution of power, and that people understand "their place" in the system. • A low PDI score means that power is shared and is widely dispersed, and that society members do not accept situations where power is distributed unequally.
  • 13. Power Distance Index (PDI) Societies with large power distance are characterized by the following features: • Autocracy in leadership; • Authority that is centralized; • Paternalistic ways of management; • A number of hierarchy levels; • The acceptance of the privileges that come with power; • A lot of supervisory staff; • An expectation of power differences and inequality.
  • 14. • For example. Belgium, France, Malaysia, and the Arab World can be regarded as examples of countries or regions with high PDI cultures.
  • 15. Power Distance Index (PDI) Societies that have small power distance possess the following features: • Participative or consultative style of management; • Decision-making responsibility and authority decentralized; • Flat structure of organizations; • Supervisory staff small in proportion; • Questioning the authority and lack of acceptance; • An inclination toward egalitarianism; • Consciousness of rights.
  • 16. • Examples of countries with low PDI are the Netherlands, the United Kingdom, the United States, Germany, and the Nordic countries.
  • 18. Power Distance Index (PDI) • Implications on Effects on management style • In organisations with high power distance, employees acknowledge their lesser standing, and are respectful and submissive towards their superiors; who in turn, are more likely to give orders rather than consult with their employees while making decisions. • Status symbols are often displayed and flaunted. • Employers or managers would not have meals together with their subordinates, and might have private facilities such as rooms, parking lots, and elevators. • Having a high level of education is important to climb the corporate ladder, and the higher-ranking members of the organization are often paid much more than their employees in comparison with companies with lower power distance.
  • 19. Power Distance Index (PDI) • Implications on Effects on management style • On the other hand, in businesses with low power distance, bosses are not as concerned with status symbols and would be more open to employee discussion and participation. • Employees are less submissive to their superiors, and are more likely to make themselves heard or to challenge the management.
  • 20. Power Distance Index (PDI)   Austria 11 India 77 Malaysia 100
  • 21. Power Distance Index (PDI) • India’s score 77 indicates an appreciation for hierarchy and a top-down structure in society and organizations. • These means: – dependent on the boss or the power holder for direction, – acceptance of un-equal rights between the power-privileged and those who are lesser down in the pecking order, – immediate superiors accessible but one layer above less, – paternalistic leader, – management directs, gives reason / meaning to ones work life and rewards in exchange for loyalty from employees.
  • 22. Power Distance Index (PDI) in India • Real Power is centralized even though it may not appear to be and managers count on the obedience of their team members. • Employees expect to be directed clearly as to their functions and what is expected of them. • Communication is top down and directive in its style and often feedback which is negative is never offered up the ladder.
  • 23. Power Distance Index (PDI) • Malaysia has one of the highest levels of power distance, with a score of 100 on Hofstede’s Power Distance Index (PDI). • This signifies that Malaysians would generally consent to, and not question, hierarchies in which everyone has a place. • They would perceive hierarchy in organisations as mirroring intrinsic inequalities. • Leaders are expected to be autocratic, and to instruct their subordinates on what to do. • Malaysian society is often centralised, and opposition to authority is generally not welcomed.
  • 24. Power Distance Index (PDI) • According to the model, in a high PDI country, such as Malaysia (100), team members will not initiate any action, and they like to be guided and directed to complete a task. If a manager doesn't take charge, they may think that the task isn't important.
  • 25. Power Distance Index (PDI) • With a PDI score of 11, Austria is one of the countries with the lowest levels of power distance. • Austrians believe in independence, equal rights, approachable leaders, that chain of command should only be for convenience, and that supervision should facilitate and empower. • Power is typically decentralised, with leaders often consulting or relying on their subordinates. • First names are usually used even with superiors, and communication is direct and two-way.
  • 27. Uncertainty Avoidance • The Uncertainty Avoidance dimension expresses the degree to which the members of a society feel uncomfortable with uncertainty and ambiguity.
  • 28. Uncertainty Avoidance • Countries exhibiting strong UAI maintain rigid codes of belief and behaviour and are intolerant of unorthodox behaviour and ideas. They opt for stiff codes of behavior, guidelines, laws, and generally rely on absolute Truth, or the belief that one lone Truth dictates everything and people know what it is.
  • 29. Uncertainty Avoidance • Strong uncertainty avoidance is represented by the following aspects: – Tendency to avoid risk; – Organizations that have a number of standardized procedures, written rules, and clearly delineated structures; – Strong requirement for consensus; – Respect for authority; – Requirement for predictability highlighting the significance of planning; – Minimal or no tolerance for deviants; – Promotions depending upon age or seniority.
  • 30. Uncertainty Avoidance • In societies that score highly for Uncertainty Avoidance, people attempt to make life as predictable and controllable as possible. If they find that they can't control their own lives, they may be tempted to stop trying. These people may refer to "mañana," or put their fate "in the hands of God."
  • 31. Uncertainty Avoidance • Weak UAI societies maintain a more relaxed attitude in which practice counts more than principles. They show more acceptance of differing thoughts/ideas. Society tends to impose fewer regulations, ambiguity is more accustomed to, and the environment is more free-flowing
  • 32. Uncertainty Avoidance • Weak uncertainty avoidance comes with the following features: – Undertaking risk; – Flexibility; – Tolerance toward differing opinions and behaviors.
  • 33. Uncertainty Avoidance • People in low UAI-scoring countries are more relaxed, open or inclusive. • Bear in mind that avoiding uncertainty is not necessarily the same as avoiding risk. Hofstede argues that you may find people in high-scoring countries who are prepared to engage in risky behavior, precisely because it reduces ambiguities, or in order to avoid failure.
  • 34. • Examples of countries with low uncertainty avoidance scores include the United States, England, India, China, and Singapore. • Examples of countries with high uncertainty avoidance scores include Italy, Korea, Mexico, Belgium, and Russia.
  • 36. Uncertainty Avoidance Index   Singapore 08 India 40 Greece 100
  • 37. Uncertainty Avoidance in India • India’s scores 40 on this dimension and has a medium low preference for avoiding uncertainty. • In India, there is acceptance of imperfection; nothing has to be perfect nor has to go exactly as planned. • India is traditionally a patient country where tolerance for the unexpected is high ; even welcomed as a break from monotony.
  • 38. Uncertainty Avoidance in India • People generally do not feel driven and compelled to take action-initiatives and comfortably settle into established rolls and routines without questioning. • Rules are often in place just to be circumvented and one relies on innovative methods to “bypass the system”. • It is this attitude that is both the cause of misery as well as the most empowering aspect of the country. There is a saying that “nothing is impossible” in India, so long as one knows how to “adjust”.
  • 39. Uncertainty Avoidance • Application: In Hofstede's model, Greece tops the UAI scale with 100, while Singapore scores the lowest with eight. • Therefore, during a meeting in Greece, you might be keen to generate discussion, because you recognize that there's a cultural tendency for team members to make the safest, most conservative decisions, despite any emotional outbursts. Your aim is to encourage them to become more open to different ideas and approaches, but it may be helpful to provide a relatively limited, structured set of options or solutions.
  • 40. Uncertainty Avoidance Application: Singapore scores 8 on this dimension and thus scores very low on this dimension. In Singapore people abide to many rules not because they have need for structure but because of high PDI. Singaporeans call their society a “Fine country. You’ll get a fine for everything”.
  • 42. Individualism vs. Collectivism • The focus of this dimension is on the question regarding whether people have a preference for being left alone to look after themselves or want to remain in a closely knitted network.
  • 43. Individualism vs. Collectivism • A high IDV score indicates weak interpersonal connection among those who are not part of a core "family." Here, people take less responsibility for others' actions and outcomes. • In a collectivist society, people are supposed to be loyal to the group to which they belong and, in exchange, the group will defend their interests. The group itself is normally larger, and people take responsibility for one another's wellbeing.
  • 44. Individualism vs. Collectivism • The high side of this dimension, called individualism, can be defined as a preference for a loosely-knit social framework in which individuals are expected to take care of only themselves and their immediate families. • Its opposite, collectivism, represents a preference for a tightly-knit framework in society in which individuals can expect their relatives or members of a particular in-group to look after them in exchange for unquestioning loyalty. • A society's position on this dimension is reflected in whether people’s self-image is defined in terms of “I” or “we.”
  • 45. Individualism vs. Collectivism • Individualist cultures, such as those of the United States and Western Europe, emphasize personal achievement regardless of the expense of group goals, resulting in a strong sense of competition. • Collectivist cultures, such as those of China, Korea, and Japan, emphasize family and work group goals above individual needs or desires.
  • 46. Individualism vs. Collectivism • Individualistic cultures are characterized by: • Fostering contractual relationships that revolve around the fundamentals of exchange. These cultures engage in the calculation of profit and loss prior to engagement in a behavior. • Concentration on self or at the most very near and dear ones, and concern with behavioral relationships as well as own goals, interests, and needs. • Emphasis on personal enjoyment, fun, and pleasure, over duties and social norms. • Self-sufficiency and value independence and placement of self-interest over collective interest. Confrontation is accepted as an attribute. • Stress on horizontal relationships (such as the relationship between spouse and spouse) rather than vertical relationships (such as the relationship between parent and child). • The notion that they hold unique beliefs.
  • 47. Individualism vs. Collectivism • Collectivistic cultures are characterized by: • Behavior as per social norms that are established for maintenance of social harmony among in-group members; • Considering the wider collective with regards to implications of their actions; • Sharing of resources and readiness to give up personal interest keeping in mind the collective interest; • Favoring some in-groups (such as friends and family); • Being a part of a few in-groups that have an influence on their lives. Rather than being individualistic, they have an increased inclination towards conformity; • Increased concern regarding in-group members. They show hostility or indifference toward out-group members; • Emphasis on harmony and hierarchy within group; • Regulation of behavior with the help of group norms.
  • 49. Individualism vs. Collectivism   Guatamala 06 India 48 Germany 67 US 91 Collectivism Individualism
  • 50. Individualism vs. Collectivism • Application: Central American countries Panama and Guatemala have very low IDV scores (11 and six, respectively i.e. More of collectivism). In these countries, as an example, a marketing campaign that emphasizes benefits to the community would likely be understood and well received, as long as the people addressed feel part of the same group.
  • 51. Individualism vs. Collectivism • In Germany people stress on personal achievements and individual rights. • Germans expect from each other to fulfil their own needs. • Group work is important, but everybody has the right of his own opinion an is expected to reflect those. • In an individual country like Germany people tend to have more loose relationships than countries where there is a collectivism where people have large extended families.
  • 52. Individualism vs. Collectivism • India scored 48; a society with both collectivistic and Individualist traits. • The collectivist side means that there is a high preference for belonging to a larger social framework in which individuals are expected to act in accordance to the greater good of one’s defined in-group(s). • The actions of the individual are influenced by various concepts such as the opinion of one’s family, extended family, neighbours, work group and other such wider social networks that one has some affiliation toward. • For a collectivist, to be rejected by one’s peers or to be thought lowly of by one’s extended and immediate in-groups, leaves him or her rudderless and with a sense of intense emptiness.
  • 53. Individualism vs. Collectivism • India: The Individualist aspect of Indian society is seen as a result of its dominant religion/philosophy - Hinduism. • The Hindus believe in a cycle of death and rebirth, with the manner of each rebirth being dependent upon how the individual lived the preceding life. • People are, therefore, individually responsible for the way they lead their lives and the impact it will have upon their rebirth. • This focus on individualism interacts with the otherwise collectivist tendencies of the Indian society which leads to its intermediate score on this dimension.
  • 54. Individualism vs. Collectivism • India: The employer/employee relationship is one of expectations based on expectations – Loyalty by the employee and almost familial protection by the Employer. Hiring and promotion decisions are often made based on relationships which are the key to everything in a Collectivist society.
  • 56. Masculinity vs. Femininity • It refers to the distribution of roles between men and women. In masculine societies, the roles of men and women overlap less, and men are expected to behave assertively. Demonstrating your success, and being strong and fast, are seen as positive characteristics. • In feminine societies, however, there is a great deal of overlap between male and female roles, and modesty is perceived as a virtue. Greater importance is placed on good relationships with your direct supervisors, or working with people who cooperate well with one another.
  • 57. Masculinity vs. Femininity • A high score (Masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the winner / best in field – a value system that starts in school and continues throughout organisational life. • A low score (Feminine) on the dimension means that the dominant values in society are caring for others and quality of life. A Feminine society is one where quality of life is the sign of success and standing out from the crowd is not admirable. • The fundamental issue here is what motivates people, wanting to be the best (Masculine) or liking what you do (Feminine).
  • 58. Masculinity vs. Femininity • The Masculinity side of this dimension represents a preference in society for achievement, heroism, assertiveness and material rewards for success. Society at large is more competitive. • Femininity, stands for a preference for cooperation, modesty, caring for the weak and quality of life. Society at large is more consensus- oriented. • In the business context Masculinity versus Femininity is sometimes also related to as "tough versus tender" cultures.
  • 59. Masculinity vs. Femininity • In a masculine society, men are supposed to be tough. Men are supposed to be from Mars, women from Venus. Winning is important for both genders. Quantity is important and big is beautiful. In a feminine society, the genders are emotionally closer. Competing is not so openly endorsed, and there is sympathy for the underdog. • This is NOT about individuals, but about expected emotional gender roles. Masculine societies are much more openly gendered than feminine societies.
  • 61. Masculinity vs. Femininity • Masculine cultures possess the following characteristics: • Clearly distinct gender roles; • Benevolence has little or no significance; • Men are expected to be tough and assertive with a concentration on material achievements; • Much value is associated with mastery of people, nature, job, and the like; • Sense of humor, intelligence, affection, personality are considered preferred characteristic traits of a boyfriend by the women; • Understanding, wealth, and health are considered desirable characteristic traits of a husband by the women.
  • 62. Masculinity vs. Femininity • Feminine cultures possess the following characteristics: • Overlapping of social gender roles; • Men, as well as women, are expected to be tender, modest, with focus on the quality of life; • Emphasis on the non-materialistic angles of success; • The preferred traits in boyfriends and husbands are the same.
  • 63. Masculinity vs. Femininity   Sweden 05 India 56 Japan 95 Feminism Masculinity
  • 64. Masculinity vs. Femininity: India • India scores 56 on this dimension and is thus considered a Masculine society. • India is very Masculine in terms of visual display of success and power. • The designer brand label, the flash and ostentation that goes with advertising one’s success, is widely practiced.
  • 65. Masculinity vs. Femininity: India • However, India is also a spiritual country with millions of deities and various religious philosophies. It is also an ancient country with one of the longest surviving cultures which gives it ample lessons in the value of humility and abstinence. • This often reigns in people from indulging in Masculine displays to the extent that they might be naturally inclined to. • In more Masculine countries the focus is on success and achievements, validated by material gains. Work is the center of one’s life and visible symbols of success in the work place are very important.
  • 66. Masculinity vs. Femininity • Application: As we've highlighted, Japan has the highest MAS score of 95, whereas Sweden has the lowest measured value of five. Therefore, if you open an office in Japan, you should recognize you are operating in a hierarchical, deferential and traditionally patriarchal society. Long hours are the norm, and this, in turn, can make it harder for female team members to gain advancement, due to family commitments. • At the same time, Japan is a culture where all children (male and female) learn the value of competition and winning as part of a team from a young age. Therefore, female team members are just as likely to display these notionally masculine traits as their male colleagues.
  • 67. Masculinity vs. Femininity • Application: • Sweden scores 5 on this dimension and is therefore a Feminine society. In Feminine countries it is important to keep the life/work balance and you make sure that all are included. • An effective manager is supportive to his/her people, and decision making is achieved through involvement. • Managers strive for consensus and people value equality, solidarity and quality in their working lives. • Conflicts are resolved by compromise and negotiation and Swedes are known for their long discussions until consensus has been reached. • Incentives such as free time and flexible work hours and place are favoured. • Jante Law” is a fictional law and a Scandinavian concept which counsels people not to boast or try to lift themselves above others.
  • 69. Long-Term (Pragmatic) vs. Short- Term (Normative) Orientation • This dimension describes how every society has to maintain some links with its own past while dealing with the challenges of the present and future and societies prioritise these two existential goals differently. • Normative societies. which score low on this dimension, for example, prefer to maintain time-honoured traditions and norms while viewing societal change with suspicion. • Those with a culture which scores high, take a more pragmatic approach: they encourage thrift and efforts in modern education as a way to prepare for the future.
  • 70. Long-Term vs. Short-Term Orientation • Every society has to maintain some links with its own past while dealing with the challenges of the present and the future. Societies prioritize these two existential goals differently. • Societies who score low on this dimension, for example, prefer to maintain time-honoured traditions and norms while viewing societal change with suspicion. Those with a culture which scores high, on the other hand, take a more pragmatic approach: they encourage thrift and efforts in modern education as a way to prepare for the future. • In the business context this dimension is related to as "(short term) normative versus (long term) pragmatic" (PRA).
  • 71. Long-Term vs. Short-Term Orientation • Societies with a high degree in this index (long- term) views adaptation and circumstantial, pragmatic problem-solving as a necessity. • A poor country that is short-term oriented usually has little to no economic development, while long-term oriented countries continue to develop to a point.
  • 72. Long-Term vs. Short-Term Orientation Long-term orientation reflects the following: • A futuristic, dynamic mentality; • Emphasis on a relationship order depending on status, and observance of this order; • Emphasis on persistence and perseverance; • Stress on possessing a sense of shame; • Stress on thrift; • Positive association with economic growth; • Inclination toward interrelatedness represented in sensitivity toward social contacts.
  • 73. Long-Term vs. Short-Term Orientation Short-term orientation is characterized by the following: • Orientation toward past and present; • Focus on respect for tradition; • A comparatively static, more conventional mentality; • Emphasis on saving face; • Emphasis on personal steadiness; • Focus on stability; • Emphasis on reciprocation of gifts, favors, and greetings; • Negative association with economic growth.
  • 74. Long-Term vs. Short-Term Orientation • This dimension associates the connection of the past with the current and future actions/challenges. • A lower degree of this index (short-term) indicates that traditions are honored and kept, while steadfastness is valued. • Societies with a high degree in this index (long-term) views adaptation and circumstantial, pragmatic problem- solving as a necessity.
  • 75. Long-Term vs. Short-Term Orientation Long Term Oriented societies • Large savings quote, funds available for investment • Companies seek market share, long-term profits • Investors prefer family business and real estate • In poor countries, faster economic growth Short Term Oriented societies • Small savings quote, little money for investment • Companies report quarterly results, stress bottom line • Investors prefer shares and mutual funds • In poor countries, slower economic growth
  • 76. Long-Term vs. Short-Term Orientation Long-Term Oriented societies • Good and evil are relative • Which norms apply depends on the situation • Traditions can be changed • Opposing truths can be integrated • Common sense and choosing the middle way Short-Term Oriented societies • Good and evil are absolute • Fixed norms apply always, whatever the circumstances • Traditions are sacrosanct • Truth A always excludes its opposite B • Religious and ideological fundamentalisms
  • 77. Long-Term vs. Short-Term Orientation Long-Term Orientation refers to the degree to which people need to explain the inexplicable, and is strongly related to religiosity and nationalism. • Countries that score high for long term orientation tend to be pragmatic, modest, long-term oriented, and more thrifty. • In low-scoring countries, people tend to be religious and nationalistic. Self-enhancement is also important here, along with a person's desire to please their parents.
  • 79. Long-Term vs. Short-Term Orientation   Egypt 07 India 51 Japan 88 Normative Pragmatic Short Term Long Term
  • 80. Long-Term vs. Short-Term Orientation: India • Application: India scores 51 in this dimension • In India the concept of “karma” dominates religious and philosophical thought. • Time is not linear, and thus is not as important as to western societies. • Countries like India have a great tolerance for religious views from all over the world. • Hinduism is often considered a philosophy, a religion; an amalgamation of ideas, views, practices and esoteric beliefs. • In India there is an acceptance that there are many truths and often depends on the seeker. • Societies that have a high score on pragmatism typically forgive a lack of punctuality, a changing game-plan based on changing reality and a general comfort with discovering the fated path as one goes along rather than playing to an exact plan.
  • 81. Long-Term vs. Short-Term Orientation • Application: • At 88 Japan scores as one of the most Long Term Orientation oriented societies. • Japanese see their life as a very short moment in a long history of mankind. From this perspective, some kind of fatalism is not strange to the Japanese. You do your best in your life time and that is all what you can do. • Notion of the one and only almighty God is not familiar to Japanese. People live their lives guided by virtues and practical good examples. • In corporate Japan, you see long term orientation in the constantly high rate of investment in R&D even in economically difficult times, higher own capital rate, priority to steady growth of market share rather than to a quarterly profit, and so on. They all serve the durability of the companies. The idea behind it is that the companies are not here to make money every quarter for the share holders, but to serve the stake holders and society at large for many generations to come.
  • 82. Long-Term vs. Short-Term Orientation • Application: • Egypt's very low score of 7 indicated that its culture is very normative. People in such societies have a strong concern with establishing the absolute Truth; they are normative in their thinking. They exhibit great respect for traditions, a relatively small propensity to save for the future, and a focus on achieving quick results
  • 84. Indulgence vs. Restraint • This revolves around the degree to which societies can exercise control over their impulses and desires.
  • 85. Indulgence vs. 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.
  • 86. Indulgence vs. Restraint • One challenge that confronts humanity, now and in the past, is the degree to which small children are socialized. Without socialization we do not become “human”. This dimension is defined as the extent to which people try to control their desires and impulses, based on the way they were raised. • Relatively weak control is called “Indulgence” and relatively strong control is called “Restraint”.
  • 87. Indulgence vs. Restraint Indulgent societies • People feel healthier and happier • A perception of personal life control • Optimism, positive attitude • More extraverted personalities • Having friends very important • Active participation in sports • Less moral discipline Restrained societies • People feel less happy and less healthy • What happens to me is not my doing • Pessimism, cynicism • More introverted personalities • Having friends less important • Less sports participation • Stricter moral discipline
  • 88. Indulgence vs. Restraint Indulgent societies • Freedom of speech for all is rated as very important • Higher crime rates, smaller police force • In countries with educated population, higher birthrates • In wealthy countries, more obesitas • Higher approval of foreign music and films Restrained societies • Maintaining order in the nation is rated as very important • Lower crime rates, larger police force • In countries with educated population, lower birthrates • In wealthy countries, less obesitas • Lower approval of foreign music and films
  • 90. Indulgence vs. Restraint   Egypt 04 India 26 Mexico 97 Restraint Indulgence
  • 91. Indulgence vs. Restraint: India Application: • India receives a low score of 26 in this dimension, meaning that it is a culture of Restraint. • 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.
  • 92. Indulgence vs. Restraint • Application: • With a very high score of 97, Mexican culture has a definite tendency toward Indulgence. • People in societies classified by a high score in Indulgence generally exhibit a willingness to realise their impulses and desires with regard to enjoying life and having fun. • They possess a positive attitude and have a tendency towards optimism. In addition, they place a higher degree of importance on leisure time, act as they please and spend money as they wish.
  • 93. Indulgence vs. Restraint • Application: • With a very low score of 4, Egypt is shown to be a very Restrained country. • Societies with a low score in this dimension have a tendency to cynicism and pessimism. • 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.
  • 96. • “A father and son were involved in a car accident and both were taken to hospital. The father died immediately on arrival, but the son survived, so he was taken to the operating theatre for an emergency operation. The surgeon said: “I can’t operate on this boy because he’s my son”. ”
  • 98. • “A man and his young son were apprehended in a robbery. The father was shot during the struggle and the son, in handcuffs was rushed to the police station. As the police pulled the struggling boy into the station, the mayor, who had been called to the scene, looked up and said “My God, it’s my son!” ”
  • 99. Cultural Transmission • The elements of culture are transmitted among the members of the culture from one generation to the next and to the new members admitted into the culture. Dr. Chhavi Jain
  • 100. Cultural Accumulation • It enables man to build upon the achievements of the past. Cultural DIFFUSION is the spread of cultural elements from one place to another. Dr. Chhavi Jain
  • 101. Cultural Conformity • Individuals in a culture tend either to conform to the cultural norms or to deviate from them. Dr. Chhavi Jain
  • 102. Cultural Conformity • If a society is characterised by blind conformity, it would be very difficult to market new revolutionary ideas in such a society. • Special efforts may be required in such society to change the attitudes of the people in favour of unconventional ideas. • Coffee drinking children defy their tea drinking parents in Japan. Dr. Chhavi Jain
  • 103. Cultural Lag • It means that the various parts of modern culture do not change at the same rate, and that since there is a co-relation and interdependence of parts, a rapid change in one part of a culture requires re- adjustments through other changes in various co-related parts of that culture. Dr. Chhavi Jain
  • 104. Cultural Lag • Cultural lag places constraints on the scope of social change through technological development. • Factors that contribute to cultural lag include ignorance, wrong notions, sentimental factors, political factors, etc. Dr. Chhavi Jain
  • 105. Cultural Traits 1. Low Context and High Context Culture 2. Monochronic and Polychronic Societies 3. Universalism V/S Particularism 4. Neutral V/S Emotional 5. Specific V/S Diffuse 6. Achievement V/S Ascription 7. Cultural Streotypes Dr. Chhavi Jain
  • 106. LOW CONTEXT CULTURE It assumes a high degree of shared knowledge on behalf of a transaction partner and thus deals only in tangible aspects of the deal as facts, figures and performance. Dr. Chhavi Jain
  • 107. HIGH CONTEXT CULTURE High context cultures place great value on the intangible aspects of a negotiation or business deal. Individuals from such cultures look beyond the facts and figures and take into consideration personal relationship, atmosphere and attitudes towards respect, religion and trust. Dr. Chhavi Jain
  • 108. MONOCHRONIC SOCIETY In this society, time is used for ordering one’s life, for setting priorities and for doing tasks in a sequential order-one thing at a time. Dr. Chhavi Jain
  • 109. POLYCHRONIC SOCIETY In this society, time is used to accomplish diverse goals simultaneously and to interact with as many individuals as possible. Dr. Chhavi Jain
  • 110. NEUTRAL Emotions are held in check. EMOTIONAL Emotions are openly and naturally expressed. Dr. Chhavi Jain
  • 111. SPECIFIC Individuals have a large public space; they readily let others enter and share. A small private space is guarded closely and shared by close friends and associates. DIFFUSE People are not quickly invited into a person’s open, public space because once they are in, there is easy entry to private space Dr. Chhavi Jain
  • 112. ACHIEVEMENT This culture gives high status to high achievers. ASCRIPTION It accords status based on age, gender or social connections. Status is attribute based on who or what a person is. Dr. Chhavi Jain
  • 113. Key Cultural Issues • Cultural Stereotypes – our beliefs about others, their attitudes and behavior – Ethnocentric – looking at the world from a perspective shaped by our own culture – Auto-stereotypes – how we see ourselves as a group distinguished from others – Hetero-stereotypes – how we are seen by others. Dr. Chhavi Jain
  • 114. Key Cultural Issues • Cultural Distance – The extent to which cultures differ from each other – Hofstede stated that uncertainty avoidance was the most important dimension of FDI Dr. Chhavi Jain