The Cultural Dimensions Theory

What it does:
The Cultural Dimensions Theory helps in understanding cultural variations in the way people think and behave. It also helps managers supervise people from other countries and cultures.

Where it comes from:
The 2004 book Cultures and Organizations: Software of the Mind by Geert Hofstede and Gert Jan Hofstede (McGraw-Hill) explains the Cultural Dimensions Theory. This book was based on a lengthy study of cultural differences in 70 countries.

Summary:
People from different cultures think in different ways, especially with respect to their relationship to authority. Attitudes toward authority are shaped by a country's schools, family, government, and other variable factors.
In their landmark study Cultures and Organizations, Dutch sociologists Geert Hofstede and Gert Jan Hofstede (his son) created a practical framework to help understand people from other cultures. In their view, it is critical to understand these five factors:
- Individualism vs. Collectivism. Do people believe they should take care of other people? Or are they more concerned with their own needs? This is often reflected in the level of support for government programs and private organizations.
- Long-term vs. Short-term Values. Do people in the culture value long-term attitudes, such as planning ahead and saving money for the future? Or do they favor short-term attitudes such as wanting security and respecting tradition?
- Masculinity vs. Femininity. Are people assertive and dominant? (The Hofstedes define those traits as masculine), or are they open to emotions and feelings (defined as feminine)?
- Power and Differentiation. Do people accept inequality as a normal part of society, or do they believe it is unjust?
- Uncertainty vs. Certainty. How much uncertainty are people willing to accept in life?

What else you need to know:
It is normal for people to believe that the operative beliefs in their own society are "right" and that those of other cultures are "wrong." In the new international marketplace, leaders need to set aside such partisan thinking and cultivate their understanding of other cultures.