Geert Hofstede Cultural Dimensions

1. Geert Hofstede Cultural Dimensions Making Sense of Cross Cultural Communication

2. Geert Hofstede’s Cultural Dimensions • First based on a large research project into national culture differences across subsidiaries of a multinational corporation (IBM) in 64 countries. • Subsequent studies by others covered students in 23 countries, elites in 19 countries, commercial airline pilots in 23 countries, up-market consumers in 15 countries, and civil service managers in 14 countries. • Together these studies identified and validated four independent dimensions of national culture differences, with a fifth dimension added later. • • Power Distance• Individualism• Masculinity• Uncertainty Avoidance• Long-term Orientation

3. Power Distance Index Power distance …….. the extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed unequally • Germany has 35 on the Power Distance Index: no large gap between the wealthy and the poor, strong belief in equality for each citizen, the opportunity to rise in society. • United States has 40 on the Power Distance Index: a more unequal distribution of wealth compared to German society • China has 80 on the Power Distance Index: the distance between the ‘have’ and ‘have-nots’ grows larger and larger.

4. What about Argentina? Argentina has 49 on the Power Distance Index: higher values than characterizes all other Latin American countries (leaving aside Costa Rica) Why? The sources of Argentina´s medium score on this dimension is rooted in the migration waves that reached the Rio de la Plata around the turn of the last century. Around 1900, approximately 6.5 M. European immigrants entered Argentina. About the same time over 30 % of its inhabitants (and every second in Buenos Aires) had been born abroad.In this society status should be underlined: appearance is very important: the (dark) attire or sober tailleur, the valuable watch, an expensive hotel What does this mean to Organizational Culture?

5. Individualism/Collectivism Individualism/Collectivism …… the degree of interdependence a society maintains among its members; is people´s self-image is defined in terms of “I” or “We”? In Individualist societies people look after themselves and their direct family only In Collectivist societies people belong to ‘groups’ that take care of them in exchange for loyalty. • Germany has an individualism score of 67: people stress personal achievements and individual rights; individuals expected to fulfil their own needs; group work is important, but everybody has the right to their own opinion • United States has an individualism score of 91: “American dream” is hope for a better quality of life and a higher standard of living than their parents; regardless of their status anyone can ‘pull up their boot straps’ and raise themselves from poverty. • China has an individualism score of 20: ……?

6. What about Argentina? Individualism/Collectivism score of 46, also in this dimension Argentina sits in the middle rankings. • As a consequence of the migration waves and the early emergence of wide middle classes, Argentina is, by far, the most individualistic of all Latin countries • Many collectivistic traits prevail: the opinions of and obligations towards the (extended) family or in-group, still count • Individualistic traits can also be found, particularly in the large urban conglomerates; the employer-employee link is rather calculative and there is a strict division between private life and work life What does this mean to Organizational Culture?

7. Masculinity/Femininity Masculinity/Femininity …… what motivates people, wanting to be the best (masculine) or liking what you do (feminine) • A high score (masculine) 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 behaviour. • A low score (feminine) indicates 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.. • Germany scores 66 • United States scores 62 • China scores 66 Masculine traits include assertiveness, materialism/material success, self-centeredness, power, strength, and individual achievements.

8. What about Argentina? Masculinity/Femininity scores 56, reflecting the presence of slightly more masculine than feminine elements. Important to note a strong achievement orientation and assertiveness, the masculine behavior of female managers and politicians, and the equally strong ego needs.A former Brazilian chancellor daSilveira admonished his young team members that during negotiations, you have to fear if there is only one Argentine; if there are two, the best practice is to be patient and relax; they are all so brilliant that one will destroy the other. What does this mean to Organizational Culture?

9. Uncertainty Avoidance Uncertainty Avoidance extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these • Germany scores 65: Germans dislike uncertainty, by planning everything carefully; Germany society that relies on rules, laws and regulations: to reduce its risks to the minimum and proceed with changes step by step • China scores 30: very low • United States scores 46: relatively low

10. What about Argentina? Uncertainly Avoidance scores 86 These societies show a strong need for rules and elaborate legal systems in order to structure life. The individual’s need to obey these laws, however, is weak. Corruption is widespread, the black market sizeable and, in general, you´ll see a deep split between the “pays réel” and the “pays légal”.What does this mean to Organizational Culture?

11. Long-Term Orientation Long-Term Orientation the extent to which a society shows a pragmatic future-oriented perspective rather than a conventional historical short-term point of view. (teachings of Confucius) Characteristics of the two opposing sides of this dimension: • Long term orientation-persistence-ordering relationships by status and observing this order-thrift-having a sense of shame • Short term orientation-personal steadiness and stability-protecting your ‘face’-respect or tradition-reciprocation of greetings, favors, and gifts

12. What about Argentina? No score available for Argentina on this dimension. Germany scores 31 (S-T horizon) China scores 118 (L-T horizon) United States scores 29 (S-T horizon) • Long term orientation-persistence-ordering relationships by status and observing this order-thrift-having a sense of shame • Short term orientation-personal steadiness and stability-protecting your ‘face’-respect or tradition-reciprocation of greetings, favors, and gifts