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Work Force Diversity & Cross-Culture Organisational Behaviour
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Unit II: Organizational Behaviour

🌐 Hofstede’s Cultural Dimensions Theory

Developed in 1980 by Dutch management researcher Geert Hofstede, this theory emerged from a massive study of IBM employees across 50 countries. It provides a framework to understand how cultural values influence behavior in business and workplace settings globally.


🧭 What Are Cultural Dimensions?

Cultural dimensions are the distinct aspects that define and shape a culture. These help us understand how different societies function, communicate, and interact — especially in business environments.


🏛️ 1. Power Distance Index (PDI)

Definition: The extent to which the less powerful members of society accept unequal power distribution.

  • High PDI: Strong hierarchies, concentrated power (e.g., India, Mexico).

  • Low PDI: Preference for equality and open dialogue (e.g., Denmark, Sweden).


🧍‍♂️🧑‍🤝‍🧑 2. Individualism vs. Collectivism (IDV)

Definition: The degree of individual versus group orientation in a culture.

  • Individualism: Personal freedom and self-interest prioritized (e.g., USA, Australia).

  • Collectivism: Group loyalty and interdependence emphasized (e.g., Japan, China).


⚔️❤️ 3. Masculinity vs. Femininity (MAS)

Definition: The distribution of emotional roles and value emphasis in society.

  • Masculinity: Competitive, achievement-driven (e.g., Japan, Italy).

  • Femininity: Caring, cooperative, focused on well-being (e.g., Sweden, Norway).


⚠️🔍 4. Uncertainty Avoidance Index (UAI)

Definition: The extent to which people feel uncomfortable with ambiguity or uncertainty.

  • High UAI: Prefer structure and clear rules (e.g., Greece, Portugal).

  • Low UAI: Comfortable with ambiguity and flexible norms (e.g., Singapore, Jamaica).


📅⏳ 5. Long-Term vs. Short-Term Orientation (LTO)

Definition: The focus on future rewards versus immediate results and traditions.

  • Long-Term: Values perseverance and future planning (e.g., China, South Korea).

  • Short-Term: Emphasizes quick results and traditions (e.g., USA, Canada).


🎉🚫 6. Indulgence vs. Restraint (IVR)

Definition: The degree to which a society allows free gratification of human desires.

  • Indulgence: Enjoyment and freedom encouraged (e.g., Mexico, Australia).

  • Restraint: Controlled behavior and strict norms (e.g., Russia, Egypt).


🧠 Why These Dimensions Matter

Understanding these dimensions is crucial for:

  • 🤝 Cross-cultural communication

  • 🌍 Global business strategy

  • 🗣️ International negotiations

📌 Example:
A high PDI employee might wait for manager direction, while a low PDI team member may initiate discussions freely.


Conclusion

Hofstede’s theory equips businesses and individuals with insights to navigate cultural differences, improve communication, and foster inclusive global relationships. It’s a foundational tool in international management and intercultural understanding.