Hofstede's Cultural Dimensions Theory

The Organizational Culture

The organizational culture is strongly influenced by the national culture of the country in which the organization is born, differing from others in terms of values and managerial style. National culture can be defined as "that collective programming of the human mind that distinguishes one group of people from another". Each context is made unique by the set of values and principles that characterize the relationships and way of thinking and feeling of individuals in each country, and is the result of a combination of historical, political, climatic, and geographical factors. National culture assumes a relevance and depth within society such as to become imperceptible and taken for granted in the eyes of the people who possess it, expressing their identity. Cultural metaphors and stereotypes, that is, generalizations and simplifications of characteristics of a community that also contribute to cultural maintenance, are widely used to quickly grasp the essential traits of a culture. The national culture and the way in which it influences organizational operations are analyzed by Hofstede's model, thanks to the study of cultural differences linked to managerial activities, cross-cultural management. It allows for the comparison of organizational behavior across different countries and is aimed at increasing interaction between colleagues, customers, suppliers, and alliance partners from different cultures. Cross-cultural management, therefore, expands the scope of domestic management to embrace the international and multicultural sphere.

The Model

Hofstede initially outlined culture through five dimensions, reflecting cultural influences such as power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance, and short-term/long-term orientation. More recently, a sixth dimension has been added, represented by indulgence. Through statistical research in one hundred countries, Hofstede has provided an interpretative model of national cultures, which serves as a compass for navigating a global and multicultural context.

The Six Dimensions

Power Distance

It refers to the extent to which less powerful individuals within an organization accept that power is distributed unequally within it. This concept implies that the level of inequality exists based on the level of acceptance of the followers rather than the ability of the leaders to impose it. In managerial terms, a culture with a high distance from power (such as those in Latin America, Spain, France, and much of Asia) prefers hierarchical bureaucracies, strong leaders, and has a high respect for authority. Leaders are feared and respected and tend to have a paternalistic or authoritarian style, and subordinates tend not to question requests made of them. Conversely, a culture with a low distance from power (such as those in the US, UK, and the rest of Europe) tends to favor personal responsibility and autonomy. Even leaders tend to use more consultative and participative styles with their collaborators. Hofstede coined a now well-known expression, namely that a manager who operates in international contexts knows that "all societies are unequal, but some are more unequal than others".

Individualism-Collectivism

The second dimension is individualism, opposed to collectivism (here intended not in a political sense). In some societies, there is a stronger sense of collectivity and interpersonal ties (examples include Korea, Greece, Mexico, Japan, etc.), while in others, it is expected that an individual is able to take care of themselves and their own organization or family (France, Germany, Canada, South Africa, etc.). Where the collective logic prevails, the individual grows within cohesive, numerous, and protective groups, mainly in exchange for loyalty. In managerial terms, in societies with a low level of individualism, group needs and mechanisms prevail over individual ones; where the level of individualism is high, the free will and initiative of the individual are accepted and become drivers of development or change.