Geert HofstedeOrganisational Culture

The research of Geert Hofstede has shown that cultural differences between nations are especially found on the deepest level; i.e. on the level of values. In comparison, cultural differences among organisations are especially identified on the level of practices. Practices are more tangible than values.Organisational Culture can be defined as "the collective programming of the mind that distinguishes the members of one organisation from others"The Organisational Cultural model (further developed by Bob Waisfisz in collaboration with Geert Hofstede) consists of six autonomous dimensions (variables) and two semi-autonomous dimensions

ORGANISATIONAL CULTUREDIMENSIONSDimensions of National CultureThe values that distinguished countries from each other could be grouped statistically into four clusters. These four groups became the Hofstede dimensions of national culture:

Power Distance (PDI) Individualism versus Collectivism (IDV) Masculinity versus Femininity (MAS) Uncertainty Avoidance (UAI) Long-Term Orientation (LTO)

A fifth Dimension was added in 1991 based on research by Michael Bond who conducted an additional international study among students with a survey instrument that was developed together with Chinese employees and managers.That Dimension, based on Confucian dynamism, is Long-Term Orientation (LTO) and was applied to 23 countries.In 2010, research by Michael Minkov allowed to extend the number of country scores for this dimension to 93, using recent World Values Survey data from representative samples of national populations.

In the 2010 edition of Cultures and organizations, a sixth dimension has been added, based on Michael Minkov's analysis of the World Values Survey data for 93 countries. This new dimension is called Indulgence versus Restraint.On 17 Jan 2011, Geert delivered a webinar for SIETAR Europe called 'New Software of the mind' to introduce Cultures & Organizations 3rd ed.

Hofstede classified a county's cultural attitudes as five dimensions:

 1. POWER DISTANCE

The extent to which power is distributed equally within a society and the degree that society accepts this distribution. A high power distance culture prefers hierarchical bureaucracies, strong leaders and a high regard for authority. A low power distance culture tends to favour personal responsibility and autonomy.

PDI refers to the degree of inequality that exists - and is accepted - especially by the less powerful members of a group, organization, institution or the society.

High PDI - society accepts an unequal distribution of power and people understand "their place" in the system; concern is more for hierarchy and a reluctance or fear to speak up.In a high PDI workplace, employees perceive managers as less approachable, communication flows downward and respect upward.

Low PDI - power is shared and well dispersed and people view themselves as equals.In a low PDI workplace, employees perceive managers as peers and are more willing to share ideas.

 2. UNCERTAINTY AVOIDANCE

The degree to which individuals require set boundaries and clear structures: a high uncertainty culture allows individuals to cope better with risk and innovation; a low uncertainty culture emphasizes a higher level of standardization and greater job security.

 UAI refers to the culture's tolerance for ambiguity, unstructured situations & unplanned events.

High UAI - people with high UAI work well within a structured environment, under strict laws, rules and guidelines.In a high UAI workplace, employees perform at their best with clear directives and follow standards & procedures.

Low UAI - people with low UAI can tolerate uncertainty and welcome freedom of opinions, try to have as few rules as possible.In a low UAI workplace, employees tend to "go with the flow," are more flexible and do not require instructions and rules to perform well.

3. INDIVIDUALISM versus COLLECTIVISM

The degree to which individuals base their actions on self-interest versus the interests of the group. In an individual culture, free will is highly valued. In a collective culture, personal needs are less important than the group's needs. This dimension influences the role government is expected to play in markets.

IDV refers to the strength of the ties people have to others within the community.

High IDV - lose connection with people, little sharing or responsibility. Tendency to use the "I" form more frequently, sometimes perceived as arrogant, self-centered.In a high IDV workplace, employees feel empowered to make their own decisions.

Low IDV - strong group cohesion, harmony is "key." Tendency to use the "WE" form more frequently, sometimes perceived as indecisive, weak will, not assertive, not aggressive, hierarchical.In a low IDV workplace, employees tend to refer decisions back to their managers.

4. MASCULINITY versus FEMININITY

A measure of a society's goal orientation: a masculine culture emphasises status derived from wages and position; a feminine culture emphasises human relations and quality of life.

MAS refer to an indication of the esteem in which the traditional masculine work role model of achievement, control and power is held.

High MAS - In a MAS workplace, there is a high level of male dominance and less gender equality.

Low MAS - In a low MAS workplace, there is greater equality between males and females and an appreciation of feminine values such as compromise, etc.

5. TIME ORIENTATION

The degree to which a society does or does not value long-term commitments and respect for tradition. Long-term traditions and commitments hamper institutional change. LTO refers to the degree to which the society upholds traditional values. High or low dimensions predispose countries to resist or accept change.

High LTO - In a high LTO workplace, the society is entrenched in traditions of yore, which often means that long term commitments and hard work as a plan for future rewards outweigh the need for rapid change.

Low LTO - In a low LTO workplace, a society change can occur faster since long term traditions do not impede them.

Pros:Hofstede provided a definition of culture and how culture can be measured. His research showed that cultural differences matter. Managers in international organisations operate according to their country's values, rather than to the organisation's culture. Employees from related national cultures work in similar fashions, thereby reducing the chance of conflicts. Hofstede's model provides managers of cross-cultural relations a tool to help them understand differences in value sets and behaviour. The model negates that one set of principles is universally applicable by confirming that there are multiple ways of structuring organisations and institutions. An organisation's wider social and cultural environment plus its technology determines the level of bureaucracy and centralisation (Scott, Hofstede).

 Cons:When Hofstede's first results were criticised by Asian scholars, he added time orientation as a fifth dimension thereby raising doubts about whether the typology itself was exhaustive.

Culture is a far too complex and multifaceted to be used as a straightforward organisational change control. "You do not control culture, at best you shape it"

Applications of Organisational Culture

Some examples of cases where the Hofstede Model on Organisational Culture can be applied.

Achieving success in mergers and aquisitionsmergers and acquisitions will be more difficult to realise when cultures will hinder

acceptance of those who are or who behave differently. Scanning an organisation’s culture based on the dimension of the Hofstede Model can give insight if synergy will be created based on actual differences and requirements to be met.

Creating an engaging culturean engaging culture will support both managers and non-managers to realize an organisation’s objectives in the most efficient and effective way possible. Using the Hofstede Model combined with a scan will show level of engagement in different levels of the organisation.

Using culture as a tool of organisational changeculture hinders and/or enables change in several ways, which are crucial to understand if you want to create tangible and lasting change

What about India

If we explore the Indian culture through the lens of the 5-D Model, we can get a good overview of thedeep drivers of Indian culture relative to other world cultures.

Power distance

This dimension dealswith the fact that all individuals in societies are not equal – it expresses the attitude of the culture towards these inequalities amongst us.

Power distance is defined as the extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed inequally.

India scores high on this dimension, 77, indicating an appreciation for hierarchy and a Top – Down Structure in society and Organizations. If one were to encapsulate the Indian attitude, one could use the following words and phrases : dependent on the boss or the powerholder for direction, acceptance of un-equal rights between the power-priviledged and those who are lesser down in the pecking order,immediate superiors accessible but one layer above less so, paternalistic leader, management directs, gives reason / meaning to ones work life and rewards in exchange for loyalty from employees. Real Power is centralized even though it may not appear to be and managers count on the obedience of their team members.Employees expect to be directed clearly as to their functions and what is expected of them. Control is

familiar, even a psychological security,  and attitude towards managers are formal even if one is on first name basis.Communication is top down and directive in its style and often feedback which is negative is never offered up the ladder.

Individualism

The fundamental issue addressed by this dimension is the degree of interdependence a society maintains among its members. It has to do with whether people´s self-image is defined in terms of “I” or “We”.

In Individualist societies people are supposed to look after themselves and their direct family only. In Collectivist societies people belong to ‘in groups’ that take care of them in exchange for loyalty.

India, with a score of 48 is a society with clear collectivistic traits. This means that there is a high preference for belonging to a larger social framework in which individuals are expected to act in accordance to the greater good of one’s defined in-group(s).In such situations, the actions of the individual are influenced by various concepts such as the opinion of one’s family, extended family, neighbours, work group and other such wider social networks that one has some affiliation toward.For a collectivist,to be rejected by one’s peers or to be thought lowly of by one’s extended and immediate in-groups, leaves him or her rudderless and with a sense of intense emptyness.The employer/employee relationship is one of expectations based on expectations – Loyalty by the employee and almost familial protection by the Employer. Hiring and promotion decisions are often made based on relationships which are the key to everything in a Collectivist society.

Masculinity / Feminity

A high score (masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the winner / best in field – a value system that starts in school and continues throughout organisationalbehaviour.

A low score (feminine) on the dimension means that the

dominant values in society are caring for others and quality of life. A feminine society is one where quality of life is the sign of success and standing out from the crowd is not admirable. The fundamental issue here is what motivates people, wanting to be the best (masculine) or liking what you do (feminine).

India scores 56 on this dimension and is thus considered a masculine society.Even though it is mildy above the mid range in score, India is actually very masculine in terms of visual display of success and power.The designer brand lable, the flash and bling that goes with advertising one’s success, is widely practiced.However,India is also a spritual country with millions of deities and various religious philosophies.It is also an ancient country with one of the longest surviving cultures which gives it ample lessons in the value of humility and abstinence.This often reigns in people from indulging in Masculine displays to the extent that they might be naturally inclined to.In more Masculine countries the focus is on success and achievements, validated by material gains . Work is the center of one’s life and visible symbols of success in the work place is very important.

Uncertainty avoidance

The dimension Uncertainty Avoidance has to do with the way that a society deals with the fact that the future can never be known: should we try to control the future or just let it happen? This ambiguity brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways.The extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these is reflected in the UAI score.

India scores 40 on this dimension and thus has a medium low preference for avoiding uncertainty. In Indiathere is acceptance of imperfection;nothing has to be perfect nor has to go exactly as planned.India is traditionally a patient country where tolerance for the unexpected is high ; even welcomed as a break from monotony.People generally do not feel driven and compelled to take action-initiatives and comfortably settle into established rolls and routines without questioning.Rules are often in place just to be circumvented and one relies on innovative methods to “bypass the system”.A word used oftenis “adjust” and means a wide range of things, from turning a blind eye torules being flouted to finding a unique

and inventive solution to a seemingly unsurmoutable problem.It is this attitude that is both the cause of misery as well as the most empowering aspect of the country.There is a saying that “nothing is impossible” in India,so long as one knows how to “adjust”.

Long term orientation

The long term orientation dimension is closely related to the teachings of Confucius and can be interpreted as dealing with society’s search for virtue, the extent to which a society shows a pragmatic future-oriented perspective rather than a conventional historical short-term point of view.

The Indians score 61, making it a long term, pragmatic culture. In India the concept of“karma” dominates religious and philosophical thought.Time is not linear, and thus not as important as to western societies which typically score low on this dimension.Countries like India have a great tolerance for religious views from all over the world – Hinduism is often considered a philosophy more than even a religion; an amalgamation ofideas, views, practices and esoteric beliefs.In India there is an acceptance that there are many truths and often depends on theseeker.Societies that have a high score on Long Term Orientation, typically forgive lack of punctuality,a changing game-plan based on changing reality and a general comfort with discovering the fated path as one goes along rather than playing to an exact plan.