Hofstede's Value Dimensions

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Hofstede's theory of cultural dimensions refers to the effects of a society's culture on the values of its members. This theory is useful to explain differences between cultures and their impact on values and behaviors of employees (Johann, 2008). In this report, Hofstede's value dimensions tool, the relationship between behaviors of managers and Hofstede's cultural dimensions in three countries: Japan, Germany, America, will be discussed. Along with this, the importance of culture in a society will be discussed.
Hofstede's Value Dimensions tool
Power/distance: This refers to the degree of inequality that is accepted among people with and without power. A high PD score indicates that society accepts an unequal distribution of power and people understand their place in the system (Piepenburg, 2011). At the same time, low PD means that power is shared and well dispersed. It also means that society members view themselves as equals.
Individualism (IDV)/collectivism: It refers to the strength of the ties people have to others within the community. A high IDV score indicates lack of interpersonal connection and little sharing of responsibility beyond family and close friends (Johann, 2008). On the other hand, a low IDV score refers to strong group cohesion and a large amount of loyalty and respect with close friends. For example, Central American countries like Panama and Guatemala where IDV scores are very low11 and 6, a marketing campaign that emphasized benefits to the community would be well received.
Masculinity /femininity: In masculine cultures, the differences between gender roles are more dramatic and less fluid than in feminine cultures. In high MAS score countries, men are expected to be tough, a provider and strong (Manrai & Manrai, 2011). On the other hand, in low MAS score society, women and men work together and across many professions. Japan is highly masculine with 95 points, whereas Sweden has the lowest score at 5 points.
Uncertainty/Avoidance Index (UAI): It relates to the degree of anxiety that the society members feel in uncertain and unknown situations. High UAI-scoring nations try to avoid ambiguous situations through rules, regulations and laws. At the same time, low UAI scoring societies enjoy novel events and value differences (Johann, 2008). There are few rules and people are encouraged to discover their own truth. Belgium has a 94 score on the UAI scale, so for completing a project with people in Belgium, it is important to investigate various options and then present a limited number of choices.
Long Term Orientation (LTO): This is the fifth dimension of Hofstede that is added in the 1990s after finding a link with Confucian philosophy. Long term oriented societies attach more importance to the future (Piepenburg, 2011). In short term oriented societies, values promoted are related to the past and the present. According to Hofstede's analysis, people in the US and UK have low LTO scores. It means this culture focuses on creative expression and novel ideas.
Relationship between behaviors of managers and Hofstede's cultural dimensions
There is a relationship between behaviors of managers and Hofstede's cultural dimension in Japan, Germany and USA. With the help of five dimensions of Hofstede's, the manager's behavior in Japan, Germany and America is compared.
Power distance: Japan is a mildly hierarchical society and having 54 score in power distance index (Geert Hofstede: Japan, 2012). It means, it is not as hierarchical as most of the other Asian cultures. In organizations, all the decisions must be confirmed by each hierarchical layer and finally by the top ...