Understanding Cultural Differences - Part II

Understanding of culture differences is incomplete without understanding the Hofstede’s five cultural dimensions, particularly for people who work in international business. This blog attempts to summarize those five cultural dimensions in context of eastern and western part of the world, focusing primarily on countries such as China, India, Japan, Canada, USA, Germany and France.

Let’s talk about leadership styles in brief before we discuss about cultural dimensions.

The most basic leadership styles are:
a) Autocratic (dictatorship) – I want you to …
b) Democratic (Consultive/participative) – Let’s work together to solve this …
c) Laissez-faire (Hands-off or consensus) – You take care of the problem while I go …
d) Bureaucratic – I want you to follow x, y, z while solving this problem …

Following sections uses leadership styles while describing the cultural dimension.

Dimension 1 - Power Distance Index (PDI)
This dimension measures how much the less powerful members of institutions and organizations expect and accept that power is distributed unequally. In culture with low PDI, people relate to one another more as equals regardless of formal positions. The leadership style is inclined towards democratic. Whereas in culture with high PDI, people with low power accept the fact and follow the orders blindly of their superiors. The leadership style is inclined towards autocratic. The Austria has the lowest PDI whereas the Malaysia has the highest PDI as described below.
• Austria – 11 (Lowest) – Less power difference between rich (have) and poor (have not)
• Germany – 35
• UK - 35
• Canada – 40
• USA – 45
• Japan - 55
• Pakistan – 57
• France – 69
• India – 78
• China – 80
• Middle East countries such as UAE, Saudi Arabia, Indonesia, Iraq, Egypt – Approx 80
• Malaysia – 104 (Highest) – More power difference between rich (have ) and poor (have not)

Dimension 2 – Individualism/Collectivism (IDV)
This dimension measures how much people are individualistic as oppose to collectivist. The individualists are more self-centered whereas collectivists are more focused on their family, extended family including people at work. The Guatemala has the lowest IDV whereas the USA has the highest IDV as described below.
• Guatemala – 6 (Lowest) – More collectivists, less individualists
• Pakistan – 14
• China – 20
• Malaysia – 26
• Middle East countries – Approx 38
• Japan – 46
• India – 48
• Germany – 67
• France – 71
• UK - 89
• USA – 91 (Highest) – More individualists, less collectivists

Dimension 3 – Masculinity/Femininity (MAS)
This dimension measures the distribution of roles between male and female. In the “masculine” culture, the differences between gender roles are more dramatic and less fluid than in “feminine” culture. The Sweden has the lowest MAS whereas the Japan has the highest MAS as described below.
• Sweden – 5 (Lowest) – Less masculine, more feminine
• France – 43
• Pakistan – 50
• Middle East countries – Approx 52
• India – 56
• USA – 62
• UK – 66
• Germany – 66
• China – 66
• Japan – 95 (Highest) – More masculine, less feminine

Dimension 4 – Uncertainty Avoidance (UAI)
This dimension measures how much members of a society attempt to cope with anxiety by minimizing/avoiding uncertainty. In cultures with high UAI, people prefer explicit rules and formally structured activities, and employees tend to remain longer with their present employer. In cultures with low UAI, people prefer implicit or flexible rules or guidelines and informal activities. Employees tend to change employers more frequently. The Singapore has the lowest UAI whereas the Greece has the highest UAI as described below.
• Singapore – 8 (Lowest) – People prefer implicit/flexible rules
• UK – 35
• India – 40
• China – 40
• USA - 46
• Middle East countries – Approx 52
• Germany - 65
• Pakistan - 70
• France - 86
• Japan - 92
• Greece - 112 (Highest) – People prefer strict rules

Dimension 5 – Long-Term Orientation (LTO)
This dimension measures society’s importance to the future v/s the past and present. In cultures with high LTO, people value actions and attitudes that affect the future, whereas in cultures with low LTO, people value actions and attitudes that are affected by the past or the present. The Ghana has the lowest LTO whereas the China has the highest LTO as described below.
• Ghana – 16 (Lowest) – People give importance to past and present
• UK – 25
• US – 29
• Germany – 31
• India – 61
• Japan – 80
• China – 118 (Highest) – People give importance to future

References:
http://www.clearlycultural.com/geert-hofstede-cultural-dimensions/power-distance-index/