This is a short piece on Geert Hofstede and cross-cultural in
If you:
sell a product or service outside your domestic market,
outsource to Asia or Eastern Europe,
going on a holiday,
serving in the armed forces
it makes sense to 1
One often reads that Australia and USA have similar cultures.
But do they?
Geert Hofstede developed a set of “dimensions” along which national cultures can be scored and compared:
ways of coping with inequality,
ways of coping with uncertainty,
the relationship of the individual with her or his primary group, and
the emotional implications of having been born as a girl or boy
Lets see how Australia and the USA compare.
Australia and USA
BAR CHART
Australia and the US are similar.
On this scale, the US is more similar to Australia than to any other country. And vice-versa.
Hofstede dimensions of national culture
Background
In 1965, Geert Hofstede founded the personnel research department of IBM Europe.
Between 1967 and 1973, he carried out a large survey study regarding national values differences across IBM subsidiaries worldwide.
Additonal dimensions were added in 1991 (Long-term orientation) and 2010 (Indulgence).
The relative scores have been proven to be quite stable over decades.
The scores cannot be applied to all individuals or subcultures within a country - there are always exceptions.
Power Distance Index
The Power Distance Index is a measure of the attitude people take towards inequalities in power.
In low power distance countries, power relations are more consultative or democratic. Subordinates are more likely to contribute to and critique the decisions of those in power.
In high power distance countries, people accept power relations that are more autocratic and paternalistic. Subordinates acknowledge the power of others simply based on where they are situated in hierarchy.
The index does not reflect an objective difference in power distribution, but the way people perceive power differences.
Individualism vs Collectivism
This score measures the degree of interdependence amongst the members of a society - whether people´s self-image is defined in terms of “I” or “We”.
A high score indicates a society that is more Individualist - where people are supposed to look after themselves and their direct family only.
A low score indicates a more collectivist society - where people belong to ‘in groups’ that take care of them in exchange for loyalty.
Masculinity / Femininity
This dimension scores individual motivation: wanting to be the best (masculine) or liking what you do (feminine).
A high score (masculine) on this dimension indicates that the society will be driven by competition, achievement and success.
A low score (feminine) on the dimension means that the dominant values in society are caring for others and quality of life.
Uncertainty avoidance
Uncertainty avoidance deals with a society’s tolerance for uncertainty and ambiguity.
A culture with a high score responds to the anxiety associated with uncertainty by means of planning, laws, beliefs, institutions and so on.
Low uncertainty avoidance cultures feel comfortable in changeable environments and have as few rules as possible. People in these cultures tend to be more pragmatic and tolerant of change.
Long-term orientation
This dimension measures the extent to which a society has a future-oriented perspective vs a short-term point of view.
Societies with a high score attach more importance to the future. Values are more oriented toward persistence, saving and ordering relationships by status.
A low score indicates a society with a short term orientation. Values include steadiness, respect for tradition and reciprocation.
Indulgence / Restraint
The dimension scores the extent to which people try to control their desires and impulses.
High-scoring indulgent societies have a tendency to allow gratification of desires related to enjoying life and having fun.
Low-scoring restrained societies have a conviction that gratification needs to be curbed and regulated by norms.
This dimension was added in 2010 - I was unable to find data for it.
Australia, Canada, NZ, UK and US.
Here are the nations that are parties to the “five eyes” security agreement:
BAR CHART
If you’re into this kind of thing, the detailed reports on Australia and USA make for interesting reading.
Other Uses
Given any pair of countries, the hofstede web site auto-generates a report on cultural differences between the countries.
In 2012, 99designs.com acquired XXXX, the blah in Germany and in xxx, 2013 acquired xxxx, the largest xxx in Brazil.
Here are samples of the Australia vs German and Australia vs Brazil reports.
In an increasingly globalized world, cross-cultural understanding grows in importance. END