91) Explain the Hofstede framework briefly.
Answer: The Hofstede framework compares cultures along five dimensions: (1) individualism vs. collectivism; (2) power distance; (3) uncertainty avoidance; (4) masculinity vs. femininity; and (5) long-term orientation.
The individualism vs. collectivism dimension identifies the extent to which a culture emphasizes the individual versus the group. Individualist cultures value hard work and promote entrepreneurial risk taking, thereby fostering invention and innovation. Although people are given freedom to focus on personal goals, they are held responsible for their actions. People in collectivist cultures, however, tend to work toward collective rather than personal goals and are responsible to the group for their actions. In turn, the group shares responsibility for the well-being of each of its members.
Power distance conveys the degree to which a culture accepts social inequality among its people. A culture with large power distance tends to be characterized by much inequality between superiors and subordinates. On the other hand, cultures with small power distance display a greater degree of equality, with prestige and rewards more equally shared between superiors and subordinates.
Uncertainty avoidance identifies the extent to which a culture avoids uncertainty and ambiguity. A culture with large uncertainty avoidance values security and places its faith in strong systems of rules and procedures in society. Cultures scoring low on uncertainty avoidance tend to be more open to change and new ideas.
Cultures scoring high on masculinity tend to be characterized more by personal assertiveness and the accumulation of wealth, typically translating into an entrepreneurial drive. Cultures scoring low on this dimension (greater tendency toward femininity) generally have more relaxed lifestyles, wherein people are more concerned about caring for others as opposed to material gain.
The dimension of long-term orientation indicates a society's time perspective and an attitude of overcoming obstacles with time, if not with will and strength. A high-scoring culture values respect for tradition, thrift, perseverance, and a sense of personal shame. A low-scoring culture is characterized by individual stability and reputation, fulfilling social obligations, and reciprocation of greetings and gifts. These cultures can change more rapidly because tradition and commitment are not impediments to change.