<HOFSTEDE'S CULTURAL DIMENSIONS>

HOFSTEDE'S CULTURAL DIMENSIONS THEORY was developed by Geert Hofstede. It is a model that can be used to UNDERSTAND THE DIFFERENCES IN CULTURE BETWEEN COUNTRIES and to COMPARE AND CONTRAST THE WAY BUSINESS IS CONDUCTED IN DIFFERENT CULTURES. Hofstede’s framework can therefore be used to distinguish between different national cultures and assess the impact these differences might have on business activities such as EMPLOYEE MOTIVATION and forms of MARKETING PROMOTION.
Hofstede identified and analysed SIX DIMENSIONS in which cultures vary.

--POWER DISTANCE INDEX (PDI)--

THE POWER DISTANCE INDEX (PDI) refers to "the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally" (Wiki)
A HIGH PDI indicates that a society accepts an unequal, hierarchical distribution of power, and that people understand "their place" in the system.
A LOW PDI indicates that power is shared and is widely dispersed, and that society members do not accept situations where power is distributed unequally.

--INDIVIDUALISM vs COLLECTIVISM (IDV)--

INDIVIDUALISM vs COLLECTIVISM (IDV) assesses the "degree to which people in a society are integrated into groups" (Wiki)
A HIGH IDV indicates a society with a HIGH DEGREE OF INDIVIDUALISM in which a greater importance is placed on attaining personal goals.
A LOW IDV indicates a society with a HIGH DEGREE OF COLLECTIVISM in which a greater importance is placed on the goals and well-being of the group.

--UNCERTAINTY AVOIDANCE INDEX (UAI)--

UNCERTAINTY AVOIDANCE INDEX (UAI) is defined as "a society's tolerance for ambiguity", in which people embrace or avert an event of something unexpected, unknown, or away from the status quo.
A HIGH UAI indicates that people attempt to make life as predictable and controllable as possible. If they find that they can't control their own lives, they may be tempted to stop trying. These people may refer to "mañana," or put their fate "in the hands of God."
A LOW UAI indicates people are more relaxed, open or inclusive.

--MASCULINITY vs FEMININITY (MAS)--

MASCULINITY vs FEMININITY (MAS) attempts to assess the preference of society for achievement, and attitudes towards sexuality equality. Masculinity is defined as "a preference in society for achievement, heroism, assertiveness, and material rewards for success.", whereas femininity represents "a preference for cooperation, modesty, caring for the weak, and quality of life."
A HIGH MAS In masculine societies, the roles of men and women overlap less, and men are expected to behave assertively. Demonstrating your success, and being strong and fast, are seen as positive characteristics.
A LOW MAS In feminine societies, however, there is a great deal of overlap between male and female roles, and modesty is perceived as a virtue. Greater importance is placed on good relationships with your direct supervisors, or working with people who cooperate well with one another.

--SHORT-TERM ORIENTATION vs LONG-TERM ORIENTATION (LTO)--

SHORT-TERM ORIENTATION vs LONG-TERM ORIENTATION (LTO) analyses the connection of the past with the current and future actions/challenges.
SHORT-TERM ORIENTATION indicates that traditions are honoured and kept, while steadfastness is valued and society prefers short-term success and gratification. A poor country that is short-term oriented usually has little to no economic development and is often highly religious.
LONG-TERM ORIENTATION suggests a focus on the future. This is associated with delaying short-term success or gratification in order to achieve long-term success. Long-term orientation emphasises persistence, perseverance and long-term growth. Societies with a high degree in this index (long-term) view adaptation and circumstantial, pragmatic problem-solving as a necessity.

--INDULGENCE vs RESTRAINT (IND)--

INDULGENCE vs RESTRAINT (IND) dimension assesses the inclination of a society to fulfil its desires. This dimension analyses how societies can control their impulses and desires.
HIGH INDULGENCE refers to "a society that allows relatively free gratification of basic and natural human desires related to enjoying life and having fun".
HIGH RESTRAINT refers to "a society that controls gratification of needs and regulates it by means of strict social norms."
According to Hofstede, most East Asian countries have low scores on the ‘indulgence’ cultural dimension. For example,with a low score of 29, the South Korean society is shown to be one of the most ‘restrained countries’.

--BIG TASK!!!!--

Now apply each of these dimensions to your family rather than a country, answer each of these questions in turn and in your answer explain why your value is either 'HIGH' or 'LOW' and in each case you MUST include a DEFINITION of what the index actually shows. Here is an example for my family "In my family the power distance index, which indicates the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally, is relatively LOW as I can speak freely to my parents and even grandparents any time I want about most issues..."

1) Power Distance:
- - Question: "Do kids in the family feel they can talk to the parents freely, or do they just listen and obey?"
  - Example: Some families have strict rules where parents make all the decisions (high power distance), while others let kids share their opinions and decide together (low power distance).
2) Individualism vs. Collectivism:
- - Question: Does the family focus more on "me" or "we"?
  - Example: Some families think everyone should take care of themselves (individualism), while others believe they should always stick together as a team (collectivism).

3) Masculinity vs. Femininity:
- - - Question: What does the family think is most important—winning and being the best, or sharing and taking care of everyone?
    - Example: In some families, being tough and competitive is a big deal (masculine), but in others, being kind and helping others matters more (feminine).

4) Uncertainty Avoidance:
- - - Question: Does the family like to have everything planned out, or are they okay with surprises?
    - Example: Some families make lots of rules to feel safe (high uncertainty avoidance), while others are chill and go with the flow (low uncertainty avoidance).

5) Long-term vs. Short-term Orientation:
- - - Question: Does the family focus on the future or enjoy things right now?
    - Example: Some families save money and think about what’s best for years to come (long-term), while others like to live in the moment (short-term).

6) Indulgence vs. Restraint:
- - - Question: Does the family believe in having fun whenever they can, or do they think life should be serious and controlled?
    - Example: Some families love to celebrate and enjoy life (indulgence), while others think you should work hard and not overdo the fun (restraint).

--SIX D'S & HRM--

Is it appropriate to use the same reward systems in divisions of a business that operate in different countries around the world? Do employees everywhere respond in the same way to changes in financial and non-financial reward systems? Do people from every culture respond in the same way to a particular style of leadership?

Here are some examples of how HRM may need to adapt to different cultures:

In a more MASCULINE orientated society leaders will often use results/performance-related pay, bonus payments and share purchase schemes as a means to MOTIVATE employees as well as a more harsh 'hire and fire' approach.
However in a more FEMININIE orientation society MOTIVATION can be better achieved using supportive appraisal techniques to help mentor subordinates.
In societies with a LONG-TERM orientation, the use of individual incentive schemes based on future business performance such as share ownership schemes of management might be effective methods of REWARD.
Whereas, societies with a SHORT-TERM orientation, may be more inclined to accept one-off bonuses for immediate gratificaton.

In societies with SHORT-TERM orientation, RECRUITMENT is often based on merit, and new employees, if deemed qualified, can enter at higher levels.
Whilst in LONG-TERM orientation societies RECRUITMENT and PROMOTIONS might be based more on loyalty of long-serving employees.
In COLLECTIVIST cultures, the use of team-based incentives and employee profit-sharing schemes has been found to be particularly significant.
In INDIVIDUALISTIC cultures, teamworking may be less effective than ways of working which focus on individual performance.
In societies with HIGH UNCERTAINTY AVOIDANCE, the use of temporary employment contracts would be demotivating and a financial reward system relying heavily on irregular bonus payments might be unpopular.
In societies with LOW POWER DISTANCE, it is common for a manager to operate an 'OPEN-DOOR POLICY', showing willingness to accept and work with subordinates.

--SIX D'S & MARKETING--

--CASE-STUDY: KFC SINGAPORE--

So what do we see? We see a family preparing to eat together with the oldest, probably the grandmother sitting at the head of the table. As per tradition, everyone is inviting the grandmother to start eating. Although polite, what their invites do is repeatedly interrupt the hungry woman who doesn’t need convincing in front of a delicious bowl of KFC chicken. Because she doesn’t want to tell them off and ruin everyone’s good mood, she puts on a pair of headphones and starts eating with great pleasure.
Now, If we check Singapore's Hofstede rankings for PDI, IDV and MAS, found HERE and apply it to how KFC SINGAPORE markets its products based on the above advert, we can see a clear influence.
- - - PDI: 74 (Considered HIGH)
      - Singapore’s high score on this dimension indicates that it is a society that values hierarchy. This can be seen in the Singaporeans’ family meals customs which say that no one eats until the oldest member of the family lifts the spoon. In Singapore, older people are respected and listened to.
    - IDV: 43 (Relatively LOW)
      - As you can see, Singapore ranks low in individualism which makes the society a collectivist one. In the collectivist culture, family is at the heart of everything. A person views himself as a member of the family rather than an individual.
    - MAS: 48 (Slightly FEMININE)
      - Singapore’s rank tips the scale a little bit more to the feminine side. This means that conflicts are avoided and reaching a consensus is more important than being right.

--TASK--

You will need to research your own advert

--SIX D'S & LOCATION--

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