Hofstede’s National Cultures

• Hofstede's National Cultures


  Model/theory that examines cultural differences between countries
• Cultural dimensions in Hofstede's model


  • Power distance index (PDI)
  • Uncertainty avoidance index (UAI)
  • Masculinity (MAS)
  • Long-term orientation (LTO)
  • Individualism vs collectivism (IDV)
• Individualism vs collectivism (IDV)

  Extent to which individuals believe they should look after themselves rather than be team players
• Power distance index (PDI)


  Extent to which a society accepts that power is distributed unequally in organisations
• Countries with low PDI


  • Usually have decentralised organisations
• Countries with high PDI


  • Usually accept more centralised hierarchical structures
• Uncertainty avoidance index (UAI)


  Extent to which employees feel threatened by ambiguity and the extent to which they like rules and a well-defined career structure
• Masculinity (MAS)


  Dominant values in the organisation, whether they are mainly masculine (assertiveness, money) or more feminine (concern for others, quality of relationships)
• Long-term orientation (LTO)


  How long-term employees are in their thinking, which will affect their planning and attitude to investment
• Hofstede's work was specifically in relation to national cultures, but the framework can be adapted to discuss differences in the cultures of different organisations
• Hofstede's model can be useful when considering global businesses, problems of mergers and takeovers, and difficulties entering overseas markets