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Hofstede’s cultural dimensions(Comparison between Thailand, Germany, and Iran)

By: MORAD NAZARI8/31/2015

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Culture and national culture: Social scientists and anthropologists

have defined the culture as the complex whole include knowledge, belief, art, moral, law, custom and any other capabilities and habits acquired by man as a member of society. It is a filter that interprets situation and guides behavior. Culture is comprised of tangible and intangible things that pattern behavior andviewed as “the patterns of values, ideas, and other symbolic-meaningful systems as factors in shaping human behavior.” Culturerepresents a “shared meaning,” a context from which perception, meaning, and actionsemerge (Roxas & Stoneback, 1997). ProfessorGreet Hofstede defines culture as “the collective programming of the mind distinguishing the members of one group or category of people from others.”

Professor Greet Hofstede (http://geert-hofstede.com/) conducted one of the most comprehensive studies of how values in the workplace are influenced by culture. The six dimensions of national culture are based on extensive research done by Hofstede, Michael Minkov, and their research team. The model of national culture consists of six dimensions. The cultural dimensions represent independent

http://geert-hofstede.com/

http://geert-hofstede.com/

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preferences for one state of affairs over one another that distinguish countries (rather than individuals) from each other. The model consists of the following dimensions:1) Power Distance Index (PDI)

2) Individualism versus Collectivism(IDV)

3) Masculinity versus Femininity (MAS)

4) Uncertainty Avoidance Index (UAI)

5) Long Term Orientation versus Short Term Normative Orientation (LTO)

6) Indulgence versus Restraint (IND)

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The evolution of the dimensions: Greet Hofstede in studies of how

values in the work place are influenced by the culture, analyzed a large database of employee value scores collected within IBM between 1967 and 1973. The data covered more than 70 countries, from which he firstused the 40 countries with the largest groups of respondents and afterwards extended the analysis to 50 countries and three regions. Subsequent studies about different respondent groups from different countries validated the earlier results.

In 1980, Hofstede proposed four dimensions of culture that were important

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to the work environment: Power distance (PDI), Uncertainty Avoidance (UAI), Individual/Collective (IDV), and Masculine/Feminine role (MAS). He then added a new fifth dimension to his mode in 1991, based on research by Michael Harris Bond supported by Hofstede: Long Term Orientation (LTO) initially called Confucian dynamism. In the 2010 edition of Cultures and organizations, a sixth dimension has been added, based on Michael Minkov’s analysis of the World Values Survey data for 93 countries. This new dimension is called Indulgence versus Restraint (IND).

Culture only exists by comparison:The country scores on the dimensions

are relative, as we are all human and simultaneously we are all unique. In other words, culture can be only used meaningfully by comparison. These relative scores have been proven to be quite stable over time. The forces that cause cultures to shift tend to be global or continent-wide. This means that they affect many countries at the same time, so if their cultures shift, they shift together and their relative positions remain the same. Exceptions to this rule are failed states

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and societies in which the levels of wealthand education increased very rapidly, comparatively speaking. Yet, in such cases,the relative positions will also only change very slowly.

The country culture scores on The Hofstede Dimensions correlate with other data regarding the countries concerned. Power Distance, for example, is correlated with income inequality, and Individualism is correlated with national wealth. In addition, Masculinity is related negativelywith the percentage of national income spent on social security. Furthermore, Uncertainty Avoidance is associated with legal obligation in developed countries forcitizens for carry identity cards, and LongTerm Orientation (LTO) is connected to school mathematics results in internationalcomparisons.Definition of each dimension and related scores for 3 countries:

Power Distance Index (PDI): This dimension deals with the fact that all individuals insocieties are not equal – it expresses the attitude of the culture towards these inequalities amongst us. Power distance is defined as the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed

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unequally. People in societies exhibiting a large degree of Power Distance accept a hierarchical order in which everybody has aplace and which needs no further justification. In societies with low Power distance, people strive to equalize the distribution of power and demand justification for inequalities of power.

Australia, for example, is a low power distance country while Asian countries suchas Hong Kong are the high power distance side of the spectrum. People in high power distance countries tend to believe that power and authority are facts of life. Bothconsciously and unconsciously, these cultures teach their members that people are not equal in this world and that everybody has a rightful place, which is clearly marked by countless vertical arrangements. Leaders are therefore expected to resolve disputes as well as make all the difficult decisions. Subordinates will simply comply with their leader rather than challenge him or her. They seldom challenge their leader power. On the other hand, in lower power distance countries there is a preference for consultation and subordinates will quite readily approach and contradict their bosses. Leaders actually encourage

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independent thought and contributions to problem solving and expect (within reason) to be challenged.

Thailand’s score: Its score 64 on PDI

index, slightly lower than the average Asian countries (71). It is a society in which inequalities are accepted; a strict chain of command and protocol are observed.Each rank has its privileges and employees show loyalty, respect and deference for their superiors in return for protection and guidance. This may lead to paternalistic management. Thus, the attitude towards managers is more formal and the information flow is hierarchical and controlled.

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Germany’s score: Highly decentralized and supported by a strong middle class, Germany is (not surprisingly) among the lower distant countries (score 35). Co-determination rights are comparatively extensive and have to be taken into accountby management. A direct and participative communication and meeting style is common, control is disliked and leadership is challenged to show expertise and best accepted when is based on it.

Iran’s score: Iran receives an intermediate score of 58 on this dimension so it is a hierarchical society. This meansthat people accept a hierarchical order in which everybody has a place and which needsno further justification. Hierarchy in an organization is seen as reflecting inherentinequalities, centralization is popular, subordinates expect to be told what to do and the ideal boss is a benevolent autocrat. Individualism versus Collectivism (IDV): The fundamental issue addressed by this dimension is the degree of interdependence a society maintains among its members. It has to do with whether people´s self-image is defined in terms of “I” or “We”. In Individualist societies people are supposed to look afterthemselves and their direct family only. In

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Collectivistic societies, people belong to “in groups” that take care of them in exchange for loyalty.

To make their difference clearer, let’s start with a question from both groups: “How do you respect your neighbor?”

In individualistic cultures (mainly Western Europe, North America, and Australia &New Zealand) the answer will be something like: “I’ll keep my distance” or “I’ll leave them to themselves”. In more collectivist countries (pretty much the rest of the world!) the answer will be different. Of course people in collectivist cultures will also keep their distance, but the ties that people have and keep as neighbors will be much stronger (also over time) than individualistic cultures. To put it simple (which it never is):

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Characteristics of Individualism: 1) My loyalty lies with me first, nuclear families; yourself, your parents and your children 2) Me, myself & I (as opposed of “We” thinking) 3) Own opinion important (over the general opinion) 4) Direct communication (I aska question and would like a direct answer or vice versa) 5) Loss of self-respect, guilt 6) Task over relationship (This does not mean the relationship are not important, it’s just that the importance lies at the task at hand)

Characteristics of Collectivism: 1) My loyalty lies with my group first. Extended families; brothers, sisters, uncles, aunts, cousins, nephews etc. 2) We versus them (in-group versus out-group: if you are part of one group, you are not part of the “other” group) 3) Group opinion important (versus one’s ownopinion, this does not mean of course thepeople from Collectivistic cultures have no opinion of their own. It is just that the opinion of the group is more important). 4) Indirect communication (one of the most difficult issues to dealwith when working with people from collectivistic cultures: not getting a

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direct answer (in the eyes of the individual from the individualistic culture)) 5) Loss of “face”, shame (if you analyze the literal words in “Loss offace”, you will see that one can only usehis/her face in the presence of others, in other words, in a “Collective” of other people) 6) Relationship over task (the relationship that one has prevail over the task; tasks are not unimportant,the relationship you have with someone else is just more important)Thailand’s score: With the score of 20

Thailand is a highly collectivist country. This is manifest in a close long-term commitment to the member “group” (a family,extended family, or extended relationships). Loyalty to the in-group in a collectivist culture is paramount, and overrides most other societal rules and regulations. The society fosters strong relationships where everyone takes responsibility for fellow members of their group. In order to preserve the in-group, Thai are not confrontational and in there communication a “Yes” may not mean an acceptance or agreement. An offence leads to loss of face and Thai are very sensitivenot to feel shamed in front of their group.Personal relationship is the key to

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conducting business and it takes time to build such relations thus patience is necessary as well as not openly discuss business on first occasions.

Germany’s score: The German society is truly Individualist one (score 67). Small families with a focus on the parent-children relationship rather than aunts anduncles are most common. There is a strong belief in the ideal of self-actualization. Loyalty is based on personal preferences for people as well as a sense of duty and responsibility. This is defined by the contract between the employer and the employee. Communication is among the most direct in the world following the ideal to be “honest, even if it hurts”—and by this giving the counterpart of fair chance to learn from mistakes.

Iran’s score: Iran, with a score of 41 is considered a collectivistic society. This is manifest in a close long-term commitment to the member “group”, be that afamily, or extended relationships. Loyalty in a collectivist culture is paramount, andover-rides most other societal rules and regulations. The society fosters strong relationships where everyone takes responsibility for fellow members of their group. In collectivist societies offence

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leads to shame and loss of face, employer/employee relationships are perceived in moral terms (like a family link), hiring and promotion decisions take account of employee’s in-group, management is the management of groups. Masculinity versus Femininity (MAS): A high score (masculine) on this dimension 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 organizational behavior. A low score (feminine) on the dimension means that the dominant values in society are caring for others and quality of life. A feminine society is one where quality of life is thesign of success and standing out from the crowd is not admirable. The fundamental issue here is what motivates people, wanting to be the best (masculine) or liking what you do (feminine). The masculinity side of this dimension represents a preference in society for achievement, heroism, assertiveness and material rewards for success. Society as large is more competitive. Its opposite, femininity, stands for a preference for cooperation, modesty, caring for the weak

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and quality of life. Society at large is more consensus-oriented.

In the business context Masculinity versus Femininity is sometimes also relatedas “tough versus tender” cultures. Masculinity and Femininity have nothing to do with gender. Instead they discuss (from a cultural perspective) one’s social role in society. For this reason some scholars use the words Tough (for Masculine) and Tender (for Feminine). To put it simple:

Masculinity in some key words: 1) Winning is good, and gets you rewarded:Usually the best indicator for performing or performance is money, because it is a measurable quantity. 2)Standing: or status. This is “Acquired”

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status. In other words, if you work hard enough, you can achieve this form of status (as opposed to “Ascribed” status, which has to do with Hierarchy). 3) Competition: Competing is good and is considered as fair play;or a chance to show how good you are. 4) Admiration for winner: The successful achiever gets the credits.

Femininity in some key words: 1) Sticking your head out is not appreciated (socially, nor materially).In other words, being better than others does not get you more money, andpeople will not like you more. 2) Equal: Don’t think you are anyone, justbecause you think you are. 3) Consensus: Rather than being decisive, people prefer the process of reaching consensus (which is something differentthan reaching a compromise!) 4) Sympathy for the loser: Or sympathy forthe underdog; the less successful in the society deserve a chance and shouldbe helped.Thailand’s score: Its score is 34 on

this dimension and is thus considered a feminine society. Thailand has the lowest Masculinity ranking among the average Asiancountries of 53 and the World average of

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50. This lower level is indicative of a society with less assertiveness and competitiveness, as compared to one where these values are considered more important and significant. This situation also reinforces more traditional male and femaleroles within the population.

Germany’s score: With a score of 66 Germany is considered a masculine society. Performance is highly valued and early required as the school system separates children into different types of schools atthe age of ten. People rather “live in order to work” and draw a lot of self-esteem from their tasks. Managers are expected to be decisive and assertive. Status is often shown, especially by cars, watches and technical devices.

Iran’s score: Iran scores 43 on this dimension and is thus considered a relatively feminine society. In feminine countries the focus is on “working in orderto live”, managers strive for consensus, people value equality and quality in their working lives. Conflicts are resolved by compromise and negotiation. Incentives suchas free time and flexibility are favored. Focus is on well-being, status is not shown.

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Uncertainty Avoidance Index (UAI): The dimension Uncertainty Avoidance has to do with the way that a society deals with the fact that the future can never be known: should we try to control the future or justlet it happen? This dimension expresses thedegree to which the members of a society feel comfortable with uncertainty and ambiguity. This ambiguity brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways. The 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 is reflected in the UAI (uncertainty avoidance index) score.

Countries exhibiting strong UAE maintain rigid codes of belief and behavior

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and are intolerant of unorthodox behavior and idea. Weak UAI societies maintain a more relaxed attitude in which practice count more than principles. Low scoring cultures are generally higher risk takers than high scoring countries. To put it simple:

Characteristics of Low Uncertainty Avoidance: 1) Few rules, Little structure 2) Entrepreneurial: Starting your own business is seen as very normal; the same goes for risk taking (no guts, no glory!) 3) Stress-free: People experience “life” as being relatively stress free. 4) Cool, calm &collected: There is a premium in society to look cool, calm & collected.

Characteristics of High Uncertainty Avoidance: 1) Structure, rules, expertise: But not only formal rules (like the maximum speed on the freeway,but also informal rules like how do youproperly pour a glass of wine and tasteit). 2) Security (avoiding the unfamiliar): Rather than taking risks, people prefer that what they know already. 3) Hectic: Life is being perceived as hectic and stressful. Pretty much from all angles. 4)

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Emotions/passion: Showing your emotionsis seen as a way to blow off steam.Thailand’s score: Its score 64 on this

dimension indicating a preference for avoiding uncertainty. In order to minimize or reduce this level of uncertainty, strictrules, laws, policies, and regulations are adopted and implemented. The ultimate goal of this population is to control everythingin order to eliminate or avoid the unexpected. As a result of this high Uncertainty Avoidance characteristic, the society does not readily accept change and is very risk adverse. Change has to be seenfor the greater good of the in-group.

Germany’s score: Germany is among the uncertainty avoidant countries (score 65); the score is on the high end, so there is aslight preference for Uncertainty Avoidance. In line with the philosophical heritage of Kant, Hegel, and Fichte there is a strong preference for deductive ratherthan inductive approaches, be it in thinking, presenting or planning: the system overview has to be given in order toproceed. This is also reflected by the law system. Details are equally important to create certainty that a certain topic or project is well-thought-out. In combinationwith their low power distance, where the

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certainty for own decisions is not covered by larger responsibility of the boss, Germans prefer to compensate for their higher uncertainty by strongly relying on expertise.Iran’s score: Iran scores 59 on this dimension. And thus has a high preference for avoiding uncertainty. Countries exhibiting high uncertainty avoidance maintain rigid codes of belief and behaviorand are intolerant of unorthodox behavior and ideas. In these cultures there is an emotional need for rules (even if the rulesnever seem to work), time is money, people have an inner urge to be busy and work hard, precision and punctuality are the norm, innovation may be resisted and security is an important element in individual motivation. Long Term Orientation versus Short Term Normative Orientation (LTO): This dimension describes how every society has to maintain some linkswith its own past while dealing with the challenge of the present and future, and societies prioritize these two existential goals differently. Normative societies, which score low on this dimension, for example, prefer to maintain time-honored traditions and norms while viewing societal change with suspicion. Those with a culture which

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scores high, on the other hand, take a morepragmatic approach: they encourage thrift and efforts in modern education as a way toprepare for the future.

The Long Term Orientation dimension is closely related to the teachings of Confucius and can be interpreted as dealingwith society’s search for virtue, the extent to which a society shows a pragmaticfuture-oriented perspective rather than a conventional historical Short Term point ofview. To put it simple:

The characteristics of countries with Long Term Orientation: 1) Persistence (perseverance) 2) Ordering relationships by status 3) The possibility of having many truths (depending on time and context) 4) Thrift 5) Having a sense of shame.

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The characteristics of countries with Short Term Orientation: 1) Personal steadiness and stability 2) Short feedback cycles 3) Respect for tradition 4) Reciprocation of greetings, favors and gifts 5) Absolutetruths (e.g. law of gravity)Thailand’s score: Thailand’s low score

of 32 indicates that Thai culture is more normative than pragmatic. People in such societies have a strong concern with establishing the absolute truth; they are normative in their thinking. They exhibit great respect for traditions, a relatively small propensity to save for the future, and a focus on achieving quick results. Germany’s score: Germany’s high score of 83 indicates that it is a pragmatic country. In societies with a pragmatic orientation, people believe that truth depends very much on situation, context andtime. They show an ability to adapt traditions easily to changed conditions, a strong propensity to save and invest, thriftiness, and perseverance in achieving results.

Iran’s score: Iran’s very low score of 14 indicates that it has a strongly cultural orientation. People in such societies have a strong concern with

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establishing the absolute truth; they are normative in their thinking. They exhibit great respect for traditions, a relatively small propensity to save for the future, and a focus on achieving quick results.

Indulgence versus Restraint (IND): One challenge that confronts humanity, now and in the past, is the degree to which small children are socialized. Without socialization we do no become “human”. Thisdimension is defined as the extent to which people try to control their desires and impulses, based on the way they were raised. Relatively weak control is called “Indulgence” and relatively strong control is called “Restraint”. Indulgence Stands for a society that allows relatively free gratification of basic and natural human derives to enjoying life and having fun. Restrained stands for a society that suppresses gratification of needs and regulates it by means of strict social norms.

This sixth dimension has not yet been widely adopted within the intercultural training and management field and this may simply be because it is still relatively new. There is also less data and fewer countries than the previous dimensions. However, there may well be some interesting

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applications. For example, indulgent cultures place more importance on freedom of speech and personal control while in restrained cultures there is a greater sense of helplessness about personal destiny. In workplace this is likely to have an impact on how willing employees areto voice opinions and give feedback. In cultures that are perceived as placing a greater importance on personal happiness and freedom, employees may be more likely to leave an organization when they are not happy in their role.

Another interesting facet to this dimension is around attitudes to customer service. In indulgent cultures such as in the USA the expectation is that customer service representatives visibly demonstratetheir “happiness” with a smile and friendlydemeanor. However, in more restrained

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cultures such as Russia or eastern Europeancountries this would be considered inappropriate and unnatural. Indulgence versus Restrained would also seem to have an impact on generational differences. Cultures can, therefore, be described as Indulgent or Restrained and the characteristic of each can briefly be as follows:

Characteristics of Indulgence: 1) Freely satisfy basic needs and behavior2) Cannot easily be motivated with material reward 3) Enjoy moment rather than uses time to compare with others 4) Objects need to fulfill purpose rather not status

Characteristics of Restraint: 1) Gratification suppressed and regulated 2) Expects (material) reward for job done well 3) Easily feels treated unfair 4) Status objects important, e.g. phone, laptop, watch, company)Thailand’s score: With an intermediate

score of 45, a preference on this dimensioncannot be determined for Thailand.

Germany’s score: The low score of 40 onthis dimension indicates that the German culture is Restrained in nature. Societies with a low score in this dimension have a tendency to cynicism and pessimism. Also,

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in contrast to Indulgent societies, Restrained societies do not put much emphasis on leisure time and control the gratification of desires. People with this orientation have the perception that their actions are Strained by social norms and feel that indulging themselves is somewhat wrong.

Iran’s score: the low score of 40 in this dimension means that Iran has a culture of Restraint. Societies with a low score in this dimension have a tendency to cynicism and pessimism. Also, in contrast to Indulgent societies, Restrained societies do not put emphasis on leisure time and control the gratification of theirdesires. People with this orientation have the perception that their actions are Restrained by social norms and feel that indulging themselves is somewhat wrong.

CONCLUSIONS

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1)PDI: As you can see from the chart, both Thailand and Iran (scores: 64 and 58 respectively) are around intermediate score and hierarchical societies (especially Thailand) in which everybody has a place, and information flow are controlled. But Germany (score: 35) is a low power distance country in which a direct and participative communication and meeting style is common. Control is also disliked.

2)IDV: As it can be seen Thailand (score: 20) is a highly collectivist country with loyalty to the in-group,while Germany (score: 67) is truly individualist one. Iran (score: 41) is certainly counted as a collectivist country, however, it is

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far from being a highly collectivist as Thailand is.

3)MAS: Thailand (score: 34) has the lowest Masculinity ranking between three countries and considered a feminine society, indicative of a society with less assertiveness and competitiveness, and with more traditional role between male and female within the population. But in Germany (score: 66) as a masculine society, the managers expected to be decisive and assertive. Iran (score: 43) considered a relatively feminine country but its rank is somewhere between the two other countries.

4)UAI: All three countries are considered high Uncertainty avoidance, though, Iran is less compared to the two others . In this dimension both Thailand (score: 64) and Germany (score: 65) are on the high end. The score for Iran is also high (59), and maintains rigid codes of belief and behaviour.

5)LTO: In this dimension Germany’s highscore (83) indicates that it is a pragmatic country. Iran’s very low score (14) indicates that it has a strongly cultural orientation.

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Thailand (score: 32) is also more normative than pragmatic. However, itranked second between three countries.

6)IND: There are no considerable differences between three countries in this dimension as all are near theintermediate. Germany and Iran both with the same score (40), however, considered Restrained cultures, compared to Thailand located in the intermediate (score: 45).

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