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Hofstede Model

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Dustin Hamilton

on 27 September 2013

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Transcript of Hofstede Model

By Doug, Brent, Dustin, Jordan, Derek, Oliver and Jared
-Geert Hofstede

-Research done in the 1960’s and 1970’s

-Based off surveys by over 100,000 employees of IBM located in over 60 countries

-Cultural differences influenced the answers on the survey

-The degree of inequality that exists..and is accepted..among people with and without power.

-High "PD" score = society accepts unequal distribution of power.

-Low "PD" score = power is well dispersed.
-The strength of the ties people have to others within the community.

-High "IDV" score = lack of interpersonal connection, little sharing of responsibility beyond family.

-Low "IDV" score = strong group cohesion, loyalty and respect shared throughout group.
-Masculinity and femininity refer to the distribution of roles between the genders.

Hofstede Model
High "PD" score
-centralized companies
-strong hierarchies
-large gaps in compensation, authority, and respect

Low "PD" score
-supervisors and employees considered equals

..where does U.S. stand?
High "IDV" score
-time and privacy highly valued
-enjoyment of challenges, expectation of reward(s)

Low "IDV" score
-emphasis on skill building in groups
-work for intrinsic rewards
How it came to be
-Based off of the research and findings, the Hofstede Model was created
-Four original dimensions, a fifth dimension was added later
-Power Distance Index
-Uncertainty Avoidance
-Long-Term Orientation

Uncertainty Avoidance
Long-Term Orientation
Thank you!
Any questions?
-This relates to the degree of anxiety that society
members feel when they feel uncertain.

-High UAI

-Low UAI

-High UAI nations try to avoid uncertain situations
-Formal business conduct with rules and policies.
-Differences are avoided.
-Sense of nervousness spurns high levels of emotion and expression.

High UAI/Characteristics
Low UAI/Characteristics
-Low UAI scores indicate that the society values differences and few rules.
-Informal business attitude.
-Accepting of change and risk.
-Describes societies' time horizon.
-Long term oriented societies attach more importance to the future.
-Short term oriented societies values promoted are related to the past and the present.
-Attach values oriented towards rewards:
Persistence, saving and capacity for
Long Term Orientation
Short Term Orientation
-Attach values to steadiness, respect for
tradition and fulfilling social obligations.
-Masculinity: Assertiveness, power, strength and individual achievements.

Two Highest Countries:
Japan (95)
Hungary (88)

Two Lowest Countries:
Norway (8)
Sweden (5)

Masculinity Rankings
-High long term orientation in
China, Hong Kong and Japan.
-Moderate in Eastern and Western
-Low in Anglo countries, the Muslim
world, Africa and Latin America.
The World Today
Full transcript