Hofstede's cultural dimensions

Ever wondered what is the easiest way to differentiate between different nations of the world? If you go by the way companies segment their market, you get four ways in which you can differentiate different nations:

• Demographics

• Psychographics

• Geographic

• Behavioral

You can find more details here. But this way does not appeal to me as a human.

As humans, we are surrounded by things much more fundamental and subjective. We're not just our looks, our identities are not based on just our relationship with money or the way we behave in times of crisis. The way most people understand and differentiate themselves from people from other countries is by using this age-old moniker: Culture.

Yesterday I was talking to a UX researcher from ADPlist (a popular mentorship platform) and we were having an interesting conversation about removing bias from the research data that is collected from participants across the world. The highlight of the conversation was a concept he introduced called Hofstede's Cultural Compass.

Basically, there is this dude called Geert Hofstede who was a famous psychologist as well as an IBM employee. Since IBM was an established company even in the 1970s, he was interested in figuring out if there was a way to compare IBM employees from these different countries based on their cultures. After a decade of research, Hofstede created a model of value dimensions that speak to the ways in which different cultures tend to operate. These dimensions were power, identity, gender, uncertainty, and time.

Let's break them down.

Power

This is the first and perhaps the most critical piece in which nations can be distinguished according to me. This represents the degree of inequality that exists between people with and without power. In statistical terms, this inequality is measured using a Power Distance Index (PDI). A high PDI indicates a culture that is comfortable with an extreme division of power and the people accept that there is a hierarchy to things; whereas a low PDI indicates a culture that is critical in the way power is divided in their nation.

High PDI countries: Malaysia (100), Philippines (94), China (80)

Low PDI countries: Austria (11), Israel (13), Denmark (18)

India scores a fairly high 77 on this index indicating the significance of power in our culture.

Identity

Another important parameter to measure one's cultural strength is how connected is everyone to the rest of the community. This is measured using a metric called IDV score. A high IDV score would mean a culture where more emphasis is put on privacy and freedom whereas a low IDV score represents a collectivist society that demands loyalty and the group defends its interests in exchange.

High IDV countries: United States (91), Australia (90), United Kingdom (89)

Low IDV countries: Guatemala (6), Ecuador (8), Panama (11)

India scores a balanced 48 on this score indicating a good mix of individualism and collectivism.

Gender

This refers to the distribution of roles between men and women in society. Masculine societies tend to strongly demarcate the roles of a man versus a woman and hence there tends to be less overlap between the functional roles of a man and a woman. Feminine societies, on the other hand, disregard any such role differences between the two genders and exhibits a higher inclination towards inclusivity. The metric used to define this situation is called a MAS (Masculinity Versus Femininity) score. A high MAS score means a society that puts a higher focus on pride and achievements over feelings of compassion and negotiation.

High MAS countries: Japan (95), Hungary (88), Austria (79)

Low MAS countries: Sweden (5), Norway (8), Netherlands (14)

Here again, India scores a balanced 56, although a bit higher side on masculinity.

Uncertainty

This dimension measures the extent to which people handle uncertainty and ambiguity in their lives. Basically, this indicates society's role in creating situations that might lead to predictable or unpredictable outcomes for its people. The metric used is called the Uncertainty Avoidance Index (UAI). A high UAI indicates a society built on strict laws and rules making most of the situations predictable, whereas a low UAI would generally mean a more open and relaxed society.

High UAI countries: Greece (112), Portugal (104), Guatemala(101)

Low UAI countries: Singapore (8), Jamaica (13), Denmark (23)

India scores a relatively low 40 indicating a society grounded in rules and regulations and a low propensity for openness and inclusivity.

Time

It refers to the time horizon people in a society display. Countries with a long-term orientation exhibit persistence, pragmatism, and thriftiness. Countries with short-term orientation exhibit traditions, religion, and nationalism. This behavior is measured using the metric Long Term Orientation (LTO) score.

High LTO countries: China (118), Hong Kong (96), Taiwan (87)

Low LTO countries: Sierra Leone (16), Nigeria (16), Ghana (16)

India scores a fairly high LTO score of 61 here.

You can find more info and country-wise cultural dimension scores here.