Tal AvivFeb 2011

How do we measure Culture?

Hofstede ResearchResearch to find a basis to compare cultural

traits between countriesProf. Geert Hofstede conducted perhaps the

most comprehensive study of how values in the workplace are influenced by culture.

5 Basic indices that are used for cultural comparison.

The indices are generalization for a country.

Hofstede IndicesPower DistanceIndividualismMasculinityUncertainty AvoidanceLong Term Orientation

The following slides provide brief explanation of each index. If you like detailed explanation, click on each of the links above.

Power Distance Index (PDI) the extent to which the less powerful members of

organizations and institutions (like the family) accept and expect that power is distributed unequally.

Inequality defined from below, not from above. Suggests that a society's level of inequality is

endorsed by the followers as much as by the leaders. Power and inequality are fundamental facts of any

society and anybody with some international experience will be aware that 'all societies are unequal, but some are more unequal than others'.

Large Power distance situation Subordinates and superiors- existentially

unequal Organizations centralized Subordinates takes no initiative Wide gap between salary systems Manual work has lower status than office work

Power Distance at Workplace

Small Power Distance Situations Subordinates and superiors- existentially equal Organizations fairly decentralized Subordinates expects to be consulted Relatively small gap between salary systems Manual work has equal status compared to

office work

Power Distance at Workplace

Individualism (IDV) vs. Collectavism the degree to which individuals are integrated

into groups. Individualist - societies in which the ties between

individuals are loose: everyone is expected to look after him/herself and his/her immediate family.

Collectivist - societies in which people from birth onwards are integrated into strong, cohesive in-groups, often extended families (with uncles, aunts and grandparents) which continue protecting them in exchange for unquestioning loyalty.

Individualism and Collectivism at Workplace (Summary)

Collectivist society Sons follow their fathers’

occupations. Employee acts according to

the interest of the group. Earnings are often shared

with relatives. In-group hiring. Poor performance is not

the reason for termination. Management of groups.

Personal relationship prevails over the task.

Individualist society Sons of fathers choose

personally preferred occupation.

Employed persons act as “economic man.”

Hiring a family member is undesirable.

Poor performance is unacceptable.

It is normal to leave the company for the better pay.

Management of individuals. The task prevails any

personal relationship.

Masculinity (MAS) vs. femininity the distribution of roles between the genders Women's values differ less among societies than

men's values; Men's values from one country to another

contain a dimension from very assertive and competitive and maximally different from women's values on the one side, to modest and caring and similar to women's values on the other.

The assertive pole has been called 'masculine' the modest, caring pole 'feminine'.

Masculine Culture Feminine Culture

Resolution of conflicts: by the strongest

Rewards are based on equity

Live in order to work More money preferred

over more time Careers are

compulsory for men, optional for women

Resolution: by compromise and negotiation

Rewards are based on equality

Work in order to live More time preferred

over more money Careers are optional

for both

Uncertainty Avoidance Index (UAI) deals with a society's tolerance for uncertainty and ambiguity It indicates to what extent a culture programs its members to feel

either uncomfortable or comfortable in unstructured situations. Unstructured situations are novel, unknown, surprising, different

from usual. Uncertainty avoiding cultures try to minimize the possibility of

such situations by strict laws and rules, safety and security measures, and on the philosophical and religious level by a belief in absolute Truth; 'there can only be one Truth and we have it'.

People in uncertainty avoiding countries are also more emotional, and motivated by inner nervous energy.

The opposite type, uncertainty accepting cultures, are more tolerant of opinions different from what they are used to; they try to have as few rules as possible, and on the philosophical and religious level they are relativist and allow many currents to flow side by side.

People within these cultures are more phlegmatic and contemplative, and not expected by their environment to express emotions.

Uncertainty Avoidance in The Workplace

Laws, rules, and regulations are supposed to prevent uncertain events

In high UAI societies, there are more formal law and internal regulations in order to control work process and duties of employers and employees

People are programmed since their early childhood to work in structured environments, belief in expertise on the work floor

Emotional need for rules can lead to a rule-oriented behavior that sometimes is ritual, inconsistent, and maybe dysfunctional

Uncertainty Avoidance in The Workplace (cont’d.)Low UAI countries have less formal laws.

They establish formal laws if necessaryIn low UAI cultures many problems can

be solved without formal rulesGermans: Very disciplinary

Equally dispersed expertise as workforceIn Britain top managers occupied

themselves with more strategic problems and less with daily operations (unlike France and Germany)

Uncertainty Avoidance in The Workplace (cont’d.)

In high UAI countries, less trademarks were granted due to many regulations, the result can lead to less creativity and innovation

However, low UAI countries may be stronger in the basic steps of innovation, but they do not have the detailed structure in order to implement those innovations into real products or serviceBritain has produced more Nobel prize winners

than Japan, but Japan has produced more new products on the world market

Long-Term Orientation (LTO) Values associated with Long Term Orientation are thrift ,perseverance,

persistence , ordering relationships by status and observing this order, having a sense of shame

Values associated with Short Term Orientation are respect for tradition, fulfilling social obligations, and protecting one's 'face‘, reciprocation of greetings, favors, and gifts

The short-term orientation is also identified with Truth, while the long-term orientation is identified with Virtue. Our interpretation of the Truth is how we in the West view religion, science, and management.

When information is manipulated or held to obtain a certain result, then one is simply going after the short-term orientation. There may be truth to the results, but the virtue of it has been removed.

When we take the long-term view, we can practice Virtue without seeking the Truth, we can mix religion with Confucian, we can mix Eastern management styles with Western management styles.

A short-term view of results occurs when we know what result we want, thus we are willing to play with the truth to get it.

A long-term view of results mean that we will get it when we get it — it is more important to find the greatness in our results than to find the result that we want.

IsraelIsrael is very low on the power distance, High

on the individuality index scaleIsrael is in the middle as far as masculinity

index but high on the uncertainty avoidance index.

Potential conflicts between Israelis and other cultures.Due to the low power distance, people from Israel

might have conflicts with managers that come from Asian cultures (high power distance).

An Israeli should remember that in many cultures (India, China, Japan, Germany) managers are not used to being approached by lower level employees.

When asking questions, lower level employees will not contradict their management even when they are wrong.

Potential conflicts between Israelis and other cultures.

Israel is more of an individualistic society which is in conflict with the collectivist culture of Asia.

Collectivists will not trust outsiders and trust need to be earned.Collectivists will work for the benefit of the collective (company,

culture group, country) before they will look for personal gain.Collectivist are more prone to use different (“less clean”) towards

outsiders.Poor performance is not the reason for termination, even when

theyPersonal relationship prevails over the task. Many organizations

in Asia have close family ties in upper management. Do not bad mouth competitors or people who resist your proposal.

Potential conflicts between Israelis and other cultures.Israel is in the middle on the masculinity index

and especially in high tech and finance there is equality between male and female managers. In high masculine societies, women are not seen as equals in skills and intellect.

In masculine societies (Middle Eastern) argument solving by shouting is common, in feminine societies (European) it is highly unaccepted.

Asian Societies are high on Long Term Orientation index. Building a long term relation is more important then the short term gain (Israel, US)

Arab World Large Power Distance (PDI) (80) and Uncertainty Avoidance (UAI) (68) are

predominant characteristics for the countries in this region. These societies are more likely to follow a caste system that does not allow significant upward mobility of its citizens. They are also highly rule-oriented with laws, rules, regulations, and controls in order to reduce the amount of uncertainty, while inequalities of power and wealth have been allowed to grow within the society. 

Leaders have virtually ultimate power and authority, and the rules, laws and regulations developed by those in power reinforce their own leadership and control. It is not unusual for new leadership to arise from armed insurrection – the ultimate power, rather than from diplomatic or democratic change.

High Power Distance (PDI) ranking is indicative of a high level of inequality of power and wealth within the society. These populations have an expectation and acceptance that leaders will separate themselves from the group and this condition is not necessarily subverted upon the population, but rather accepted by the society as their cultural heritage.

High Uncertainty Avoidance Index (UAI) ranking of 68, indicates the society’s low level of tolerance for uncertainty. In an effort to minimize or reduce this level of uncertainty, strict rules, laws, policies, and regulations are adopted and implemented. The ultimate goal of these populations is to control everything in 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.

Arab World The Masculinity index (MAS), the third highest Hofstede Dimension is 52,

only slightly higher than the 50.2 average for all the countries included in the Hofstede MAS Dimension. This would indicate that while women in the Arab World are limited in their rights, it may be due more to Muslim religion rather than a cultural paradigm.

The lowest Hofstede Dimension for the Arab World is the Individualism (IDV) ranking at 38, compared to a world average ranking of 64. This translates into a Collectivist society as compared to Individualist culture and is manifested in a close long-term commitment to the member 'group', that being a family, extended family, or extended relationships. Loyalty in a collectivist culture is paramount, and over-rides most other societal rules.

The predominant religion for these countries is Islam, the practice of the Muslim faith.  

The combination of these two high scores (UAI) and (PDI) create societies that are highly rule-oriented with laws, rules, regulations, and controls in order to reduce the amount of uncertainty, while inequalities of power and wealth have been allowed to grow within the society. These cultures are more likely to follow a caste system that does not allow significant upward mobility of its citizens 

When these two Dimensions are combined, it creates a situation where leaders have virtually ultimate power and authority, and the rules, laws and regulations developed by those in power, reinforce their own leadership and control. It is not unusual for new leadership to arise from armed insurrection – the ultimate power, rather than from diplomatic or democratic change.

China China has Long-term Orientation (LTO) the highest-ranking factor

(118), which is true for all Asian cultures. This Dimension indicates a society's time perspective and an attitude of persevering; that is, overcoming obstacles with time, if not with will and strength

The Chinese rank lower than any other Asian country in the Individualism (IDV) ranking, at 20 compared to an average of 24. This may be attributed, in part, to the high level of emphasis on a Collectivist society by the Communist rule, as compared to one of Individualism.

  The low Individualism ranking is manifest in a close and committed

member 'group', be that a family, extended family, or extended relationships. Loyalty in a collectivist culture is paramount. The society fosters strong relationships where everyone takes responsibility for fellow members of their group.

Of note is China's significantly higher Power Distance ranking of 80 compared to the other Far East Asian countries' average of 60, and the world average of 55. This is indicative of a high level of inequality of power and wealth within the society. This condition is not necessarily forced upon the population, but rather accepted by the society as their cultural heritage.

India India has Power Distance (PDI) as the highest Hofstede Dimension for

the culture, with a ranking of 77 compared to a world average of 56.5. This Power Distance score for India indicates a high level of inequality of power and wealth within the society. This condition is not necessarily subverted upon the population, but rather accepted by the population as a cultural norm.

India's Long Term Orientation (LTO) Dimension rank is 61, with the world average at 48. A higher LTO score can be indicative of a culture that is perseverant and parsimonious.

India has Masculinity as the third highest ranking Hofstede Dimension at 56, with the world average just slightly lower at 51. The higher the country ranks in this Dimension, the greater the gap between values of men and women. It may also generate a more competitive and assertive female population, although still less than the male population.

India's lowest ranking Dimension is Uncertainty Avoidance (UAI) at 40, compared to the world average of 65. On the lower end of this ranking, the culture may be more open to unstructured ideas and situations. The population may have fewer rules and regulations with which to attempt control of every unknown and unexpected event or situation, as is the case in high Uncertainty Avoidance countries.

United States The high Individualism (IDV) ranking for the United States indicates a society with

a more individualistic attitude and relatively loose bonds with others. The populace is more self-reliant and looks out for themselves and their close family members.

The next highest Hofstede Dimension is Masculinity (MAS) with a ranking of 62, compared with a world average of 50. This indicates the country experiences a higher degree of gender differentiation of roles. The male dominates a significant portion of the society and power structure. This situation generates a female population that becomes more assertive and competitive, with women shifting toward the male role model and away from their female role.

The United States was included in the group of countries that had the Long Term Orientation (LTO) Dimension added. The LTO is the lowest Dimension for the US at 29, compared to the world average of 45. This low LTO ranking is indicative of the societies' belief in meeting its obligations and tends to reflect an appreciation for cultural traditions.

The next lowest ranking Dimension for the United States is Power Distance (PDI) at 40, compared to the world Average of 55. This is indicative of a greater equality between societal levels, including government, organizations, and even within families. This orientation reinforces a cooperative interaction across power levels and creates a more stable cultural environment.

  Uncertainty Avoidance (UAI), with a ranking of 46, compared to the world average

of 64. A low ranking in the Uncertainty Avoidance Dimension is indicative of a society that has fewer rules and does not attempt to control all outcomes and results. It also has a greater level of tolerance for a variety of ideas, thoughts, and beliefs.