How to Analyse Culture: Multidimensional
Models
Lecture 4-5
Prof. Hossein Dadfar
Prof. Hossein Dadfar
Objectives of This Lecture
¬ Discuss Multidimensional Models:
–  Hofstede’s Model
–  Trompenaars’ model
–  Layer Model
–  ABC Model
¬ Discuss the application of the models.
Prof. Hossein Dadfar
1
Geert Hofstede (1980, 1991)
–  Studies of 117,000 IBM employees covering 72 national
subsidiaries, 38 occupations, 20 languages.
–  Used employee attitude surveys taken in 1968-69 and
1971-73 within IBM subsidiaries in 66 countries.
–  Statistically analysed answers which revealed four central
and largely independent bi-polar dimensions of a national
culture.
–  Dimensions to explain systematic differences in work values
and practices at the country level:
•  Power distance
•  Uncertainty avoidance
•  Masculinity and femininity
•  Individualism and collectivism
•  [Confucianism and dynamism]
Prof. Hossein Dadfar
Geert Hofstede
Prof. Hossein Dadfar
2
HOFSTEDE’S
CULTURAL DIMENSIONS
Masculinityfemininity
Dominance, independence vs.
compassion, interdependence, &
openness.
Individualismcollectivism
Emphasis on individual goals,
needs, & success vs. group needs,
satisfaction, & performance.
Power
distance
Degree to which people
accept power & status
differences in society.
Understanding Cultural Differences
Hofstede Dimensions
Individualism/Collectivism
High power distance/Low power distance
High uncertainty / Low uncertainty
avoidance avoidance
Masculinity/Femininity
Long-term orientation/ Short-term orientation
June
1 2 3 4 5 6 7
8 9 10 11 12 13
14 15 16 17 18 19
Prof. Hossein Dadfar
Source: Hofstede, G. (1993) Cultural Constraints in Management Theories (Figure), Academy of Management Executive 7.
3
Individualism –
Collectivism
Individualism
Collectivism
¬ Self interests ahead of
¬ Group interests ahead
group interests
¬ Achievement and
power
¬ Self and immediate
family
¬ Leadership is the ideal
of self interests
¬ Extended families and
clans
¬ Protection in exchange
for loyalty
¬ Belief in group
decisions
Way of Life
Individualism - Collectivism
Prof. Hossein Dadfar
4
Individualism vs. Collectivism
Individualism focuses on the degree the
society reinforces individual or collective,
achievement and interpersonal
relationships.
Prof. Hossein Dadfar
Collectivism vs. … Relationship
¬ Individualism: Societies in which the ties
between individuals are loose: everyone is
expected to look after himself or herself.
¬ Collectivism: People are integrated into
strong cohesive in groups which protect
them in exchange for loyalty.
Prof. Hossein Dadfar
5
Individualism vs…. Rights
¬  A High Individualism ranking indicates that
individuality and individual rights are paramount within
the society. Individuals in these societies may tend to
form a larger number of looser relationships.
¬  A Low Individualism ranking typifies societies of a
more collectivist nature with close ties between
individuals. These cultures reinforce extended families
and collectives where everyone takes responsibility for
fellow members of their group.
Prof. Hossein Dadfar
In short
u Individualism: refers to people regarding
themselves as individuals
– U.S., UK, and Sweden
u Collectivism: refers to people regarding
themselves as part of a group
–  Japan, Korea and China
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1/2/2007
6
Individualism Index
The individualism index (IDV) measures the
extent to which people believe that their primary
concern in life is the well-being of themselves and
their immediate families, as opposed to an
orientation to a wider grouping with more
extended responsibilities and a more extended
network of support and loyalty.
Prof. Hossein Dadfar
Manifestation: Individualism
versus Collectivism
•  Individualism
–  People are only supposed to look after
themselves and their immediate family.
–  Organizations emphasize individual decision
making.
•  Collectivism
–  People belong to groups that are supposed to
look after them in exchange for loyalty.
–  Organizations are likely to rely on group
decision making.
Prof. Hossein Dadfar
7
Power Distance
Defined
Examples
¬ Degree to which
¬  Large power distance
culture accepts
unequal distribution of
power
¬ Centralized authority
¬ Physical and
psychological distance
maintained
–  Dominican Republic/Latin
America
–  Most dependent, few
interdependent
–  Superiors and subordinates
consider each other
different
¬  Low power distance
–  Denmark /Sweden
–  Minimize inequality
–  Superiors and subordinates
considered alike
The Boss and Work
Power Distance
Prof. Hossein Dadfar
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Power Distance: Questions asked
¬ 1. How far are employees afraid to express
disagreement with their managers?
¬ 2. Perception of the boss’s decisionmaking style: Autocratic – democratic
¬ 3. Subordinate’s preference for their boss’s
decision-making style.
Prof. Hossein Dadfar
Power Distance: In Organisation
¬ The extent to which the less powerful
members of institutions and organizations
within a country expect and accept that
power is distributed unequally.
Prof. Hossein Dadfar
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Power Distance and Paternalism
¬ Mutual and complementary obligations
–  Employee: respect and obedience
–  Employer: protection and consideration
Prof. Hossein Dadfar
Manifestation: Large versus
Small Power Distance
•  Large Power Distance
–  Employees believe their supervisors are right
even when they are wrong.
–  Employees do not take any initiative in making
nonroutine decisions.
•  Small Power Distance
–  A participative management style of leadership
is likely to be productive for this types of
organization.
Prof. Hossein Dadfar
10
Uncertainty Avoidance
Defined
¬ Ability to deal with
ambiguous environment
¬ High
–  Reduce uncertainty
–  Planning to effect the
future
¬ Low
–  Whatever happens will
happen
Examples
¬  High UA
–  Japan
–  Uncertainty is threatening
–  Conflict and competition lead
to aggression and should be
avoided
¬ Medium - USA
¬  Low UA
–  Denmark, Sweden
–  Uncertainty in life easily
accepted
–  Take each day as it comes
Uncertainty Avoidance
Uncertainty Avoidance Index focuses
on the level of tolerance for
uncertainty and ambiguity within the
society - i.e. unstructured situations.
Prof. Hossein Dadfar
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Strong versus Weak Uncertainty
Avoidance
• 
Strong Uncertainty Avoidance
– 
– 
• 
Employees tend to stay with their organizations
for a long time.
High resistance to organizational change is
expected among these employees.
Weak Uncertainty Avoidance
– 
Employees tend to change jobs more
frequently.
Prof. Hossein Dadfar
Uncertainty Avoidance
¬  A High Uncertainty Avoidance ranking indicates the
country has a low tolerance for uncertainty and
ambiguity. This creates a rule-oriented society that
institutes laws, rules, regulations, and controls in order to
reduce the amount of uncertainty.
¬  A Low Uncertainty Avoidance ranking indicates the
country has less concern about ambiguity and uncertainty
and has more tolerance for a variety of opinions. This is
reflected in a society that is less rule-oriented, more
readily accepts change, and takes more and greater risks.
Prof. Hossein Dadfar
12
Masculinity - Femininity
Masculinity
Femininity
¬ Money and things
¬ Equality between men
are important
¬ Dominance
¬ Japan
and women
¬ Interdependence
¬ People and the
environment are
important
¬ Denmark
Masculinity versus Femininity
•  Masculinity
–  The degree to which dominant values in a society
emphasize assertiveness, acquisition of money and
status, and achievement.
•  Femininity
–  The degree to which dominant values in a society
emphasize people relationships, concern for
others, and the overall quality of life.
Prof. Hossein Dadfar
13
Masculinity vs. Femininity
Masculinity focuses on the degree the
society reinforces, or does not reinforce,
the traditional masculine work role model
of male achievement, control, and power.
Prof. Hossein Dadfar
Masculinity vs. Femininity
A High Masculinity ranking indicates the country
experiences a high degree of gender differentiation.
In these cultures, males dominate a significant
portion of the society and power structure, with
females being controlled by male domination.
A Low Masculinity ranking indicates the country has a
low level of differentiation and discrimination
between genders. In these cultures, females are
treated equally to males in all aspects of the society.
Prof. Hossein Dadfar
14
Long-term vs. Short-term
Orientation
Long-Term Orientation (LTO) focuses
on the degree the society embraces, or
does not embrace, long-term devotion
to traditional, forward thinking values.
Prof. Hossein Dadfar
Long-term vs. Short-term Orientation/
Confucian work Dynamics
High Long-Term Orientation ranking indicates the country
prescribes to the values of long-term commitments and respect
for tradition. This is thought to support a strong work ethic
where long-term rewards are expected as a result of today's
hard work. However, business may take longer to develop in
this society, particularly for an "outsider".
A Low Long-Term Orientation ranking indicates the country
does not reinforce the concept of long-term, traditional
orientation. In this culture, change can occur more rapidly as
long-term traditions and commitments do not become
impediments to change.
Prof. Hossein Dadfar
15
The Fifth Dimension
¬ Confucian Work Dynamic
¬ Based on work done in East Asia by “Chinese
Cultural Connection” group
¬ Focus on:
–  Long-term
–  Order
–  Thrift
–  Persistence
–  Respect for tradition
Fall 2009
Culture (Part 2)
31
Implications
¬ The Five Dragons (Japan, Hong Kong,
South Korea, Singapore, Taiwan) have
seen explosive economic growth
¬ Is it due to the CWD?
–  East Asian governments had better success
with gov’t intervention than did either Europe
or Latin America
–  However, Confucian values 2000 + years old –
so why did it take so long?
Fall 2009
Culture (Part 2)
32
16
Confucian Values (1)
¬ A religion or a philosophical system (is
there a difference?)
¬ Emphasis on education and learning
¬ Also, society should be ordered, to make
the world better
¬ Collectivist – the group is more important
than the individual
Fall 2009
Culture (Part 2)
33
Confucian Values (2)
¬  Virtues:
–  Ren (or jen), “compassion” or “loving others” or “humaneness”
–  Li, “the ritual forms and rules of propriety through which one expresses
respect for superiors”
–  De, “virtue, or a moral power that allows one to win a following without
recourse to physical force”
¬  Hierarchy important
– 
– 
– 
– 
– 
Fall 2009
Emperor / subject
Father / son
Older brother / younger brother
Older friend / younger friend
Husband / wife
Culture (Part 2)
34
17
Dimension
Definition
Examples
Power Distance
The concentration of power (physical and intellectual High power distance: Korea, India, Japan, Mexico
capabilities, power, and wealth) in certain groups and
the acceptance of it.
Low power distance:
Australia, United States, Germany
Individualism vs.
Collectivism
The importance of the individual vs. the group. Or the High individualism:
pursuit of self-interests vs. subordination to group United States, Australia, Great Britain, Canada
interests. I.e. "I" vs. "we" orientation.
Low individualism:
Japan, Venezuela, China, Pakistan, Thailand, Mexico
Masculinity vs.
Femininity
The need for achievement, assertiveness, and material
success vs. the need for relationships and modesty.
Masculine cultures have segregated roles, consider big
beautiful, and need to show off. Feminine cultures
care more for quality of life and environment than
money.
Uncertainty Avoidance
Feminine:
Sweden, France, Netherlands
Masculine:
Japan, Mexico, Britain, Germany
Extent of ability to cope with uncertainty about the High uncertainty avoidance:
future without stress.
Japan, France, Mexico
Low uncertainty avoidance:
United States,, Hong Kong, Great Britain
Long Term Orientation
Values oriented toward the future, saving, and Long term orientation:
perseverance.
Hong Kong, Japan
Short term orientation:
United States, Great Britain, Germany
Prof. Hossein Dadfar
Hofstede’s 4-Factor Model
Country
Austria
Belgium
Denmark
Finland
France
Germany
Ireland
Italy
Japan
Netherlands
Norway
Spain
Sweden
Switzerland
United Kingdom
United States
Yugoslavia
Power
Distance
11
65
18
33
68
35
28
50
54
38
31
57
31
34
35
40
76
Uncertainty
Individualism
Avoidance
Collectivism
70
55
94
75
23
74
59
63
86
71
65
67
35
70
75
76
92
46
53
80
50
69
86
51
29
71
58
68
35
89
46
91
Prof.
88Hossein Dadfar
27
Masculinity
Femininity
79
54
16
26
43
66
68
70
95
14
8
42
5
70
66
62
21
18
Individualism and Power Distance
Small power
distance
Low individualism
12
18
24
30
36
42
48
54
60
66
72
79
85
91
Small power
distance
High individualism
Large power
distance
Low
individualism
GUA
EQA
COL
PAN
PAK
IDO VEN
PER SAL
TAL
SIN
KOR
THA
WAF
CHL
PHL
HOK
YUG
MAL
POR
EAF MEX
PHI
GRE
TUR
URU
BRA ARA
JAM
IRA
ARG JPN
IND
COS
AUT
ISR
SPA
FIN
GER
NOR
SWI
SWE
IRE
DEN
CAN
NZL
SAF
ITA
FRA
BEL
Large power
distance
High individualism
NET
GBR USA
AUL
11
28
44
61
77
94
111
Prof. Hossein Dadfar
Uncertainty Avoidance and
Masculinity
Weak uncertainty
avoidance
Feminine
8
SIN
24
SWE
32
DEN
HOK
MAL
GBR
IRE
IND
USA PHI
IDO CAN
SAF
NET
NZL
EAF
AUL
WAF
IRA
FIN
SWI
ARA
THA
GER
TAI
AUT
PAK
BRA
ITA
VEN
COS CHL
FRA ISRCOL
TUR
SPA
MEX
PAN
ARG
KOR
YUG
PER
SAL
BEL
JPN
URU
GUA
POR
40
NOR
48
56
64
72
80
88
96
Strong uncertainty
avoidance
Feminine
Weak uncertainty
avoidance
Masculine
JAM
16
104
GRE
110
5
23
41
59
Prof. Hossein Dadfar
77
Strong uncertainty
avoidance
Masculine
95
19
Confucianism dynamism
Long-Term Orientation
A future oriented perspective
"sacrifice for the future."
Uncertainty
avoidance
Degree to which people are
comfortable with ambiguity
& uncertainty. (Not Risk
Tolerance)
Masculinityfemininity
Dominance, independence vs.
compassion, interdependence, &
openness. (Competition v. Cooperation)
Individualismcollectivism
Emphasis on individual goals,
needs, & success vs. group needs,
satisfaction, & performance.
Power
distance
Degree to which people
accept power & status
differences in society.
Cultural values manifestations in
organization and management
¬  Large power distance
¬  Authoritative decision-making and leadership
¬  Small power distance
¬  Participative/consultative decision- making and
styles may work best
¬  Collectivism
¬  Individualism
¬  High uncertainty
avoidance
¬  Low uncertainty
avoidance
¬  Masculinity
leadership styles may work best
¬  Heavy reliance on informal controls; team
approach highly applicable
¬  Heavy reliance on formal controls; team
approach not very applicable
¬  Mechanistic organization may work best
¬  Organic organisational structures may work best
¬  Equal employment opportunity programmes may be
resisted by males
¬  Equal employment opportunity programmes
¬  Femininity
may
resisted
relatively less by males
Prof.be
Hossein
Dadfar
20
How Cultures Affect Management
Approaches
¬  Centralized Decision
¬ 
¬ 
¬ 
¬ 
¬ 
¬  Decentralized
Making
Risk Averse
Individual Rewards
Informal Procedures
High Organizational
Loyalty
Co-operation Encouraged
Decision Making
¬  Risk Seeking
¬  Group Rewards
¬  Low Organizational
Loyalty
¬  Competition
Encouraged
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1/2/2007
Question for discussion
What style of
management do you
suggest to MNCs
for Latin America,
North America,
Asia, …
Prof. Hossein Dadfar
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Trompenaars and HampdenTurner’s
Normative Responses to Dilemmas
¬ Universalism vs. particularism
¬ Analysed specifics vs. integrated wholes
¬ Individualism vs. communitarianism
¬ Inner-directed vs. outer-directed orientation
¬ Time as sequence vs. time as synchronization
¬ Achieved vs. ascribed status
¬ Equality vs. hierarchy
Prof. Hossein Dadfar
Culture as an Onion (Layer model)
Behaviour
Attitudes
Norms
Values
assumptions
Prof. Hossein Dadfar
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ABC of Culture
Prof. Hossein Dadfar
Source: Hall (1995)
Key Dimensions of Culture Summarized
Schein
Trompenaars-Parsons
- Relation with people Relation with time
Hman activity
- Relationship with nature
- Human Nature
- Space
- Assumption about reality
and turth
-  Relation with people
- Universal vs. Particularism
- Individualism s.collectivisim
- Diffuse vs. specific
- Achievment vs. aspiration Neutral vs. Emotional
Relation with time
Relationship with nature
Adler
- Relation with people Relation with time
Human activity
-Relationship with nature
-Human nature
-Space
Kluckholm and Strocktbeck
- Relation with people
- Relation with time: past, present
- Future
-  Human activity
- Relationship with nature
- Human Nature
Hall
-Relation with time:
polichoronic vs.monochoronic
-  Space
low context vs. high context
Hofstede
Bond
- Power distance
-Individualism vs. collectivism
- Masculianity vs. feminity
- Uncertainity aviodness
Prof. Hossein Dadfar
- Moral discipline
-Integration
-Human-heartedness
-Confusian dynamism
23
Prof. Hossein Dadfar
24