Hofstede's Cultural Framework

Geert Hofstede, a Dutch social psychologist, developed a widely used platform that established the dimensions of culture. Read this chapter to better understand these dimensions and see how they can be applied to different countries and cultures.

Cultural Dimension 1: Power Distance

Hofstede's original survey of the more than 88,000 employees of the 72 countries revealed four major cultural dimensions. The first cultural dimension is power distance, the degree to which members of a society accept differences in power and authority. In societies with high power distance, people are more likely to accept that power inequality is good and acceptable. People in high power distance societies are more likely to accept that there are some powerful people who are in charge and that these people are entitled to special benefits. In contrast, societies with low power distance tend to consider that all members are equal. (Table 2) shows the levels of power distance (and the other cultural dimensions discussed later) in 15 selected societies. Hofstede's scores range from 100 (the highest power distance) to 0 (the lowest). In the table, we break Hofstede's scores into high (70–100), medium (40–69), and low (0–39).

Table 2: Implications of Power Distance
Type of Work Activity	High Power Distance	Low Power Distance
Organizational structures	Very centralized Tall hierarchies with clear levels of managers and subordinates	Flat organizational hierarchies Decentralized structures
Managerial authority	Concentration of authority at the top Managers rely on formal rules to manage Authoritative managerial style and decision making	Dispersed authority Managers rely on personal experience More consultative or collaborative forms of decision making
Relationship with supervisors	Subordinates expect to be told what to do Perfect boss is seen as one who is an autocrat Information sharing constrained by hierarchy	Subordinates often expected to be consulted Ideal manager is seen as a democratic leader Openness to sharing information
Other issues	Wide salary gap between top and bottom of organization Managers often feel underpaid and dissatisfied with careers	Low salary gap between top and bottom of company Managers feel paid adequately and are satisfied

As (Table 1) shows, many of the emerging markets in regions such as Asia and Latin America, such as India, Brazil, and Mexico, all have high power distance scores. In such countries, the concern for hierarchy and inequality in organizations is rooted in early socialization in the family and school. In these countries, children are expected to obey their parents and elders. When these children enter school, teachers assume the dominant role. Children must show respect, and they seldom challenge a teacher's authority. As these individuals take on work roles, the allegiance to teachers is transferred to bosses. Thus, people in high power distance societies will seldom question their supervisors. In contrast, Anglo countries such as the United States, Canada, and the United Kingdom have low power distance. In these countries, people do not expect power differences, and everyone is seen as an equal.