Monday, September 15, 2014

Understanding One Another

Have you ever wondered why that foreign kid in your class is always late? Or why your co-worker has such strong family bonds? Or why your friend only thinks about short-term rewards?

While everyone's different, culture plays a major role in how we live our lives. There are societies that are known for being late, while others for always being on time. Some have strong family values, while others don't. Some love to indulge, while others are more conservative. Some are very individualistic, while others prize collectivism. Globalization has brought us together, but there are still some noticeable differences in how people from different countries interact and live their lives.

Understanding these cultural dimensions is not only interesting, but could be the difference between success and failure. As a marketer, understanding the culture of the country is crucial for the success of your brands. As a manager, it is crucial to know how to coach your employees and get the best out of each of them. As business person, to know how to negotiate. As a friend or companion, to understand and relate in a more meaningful way.

A few weeks ago, I came across Hofstede’s Cultural Dimensions Theory. It defines the effects of a society's culture on the values of its members and how these values relate to behavior. Hofstede analyzed a large database of employee value scores between 1967 and 1973. The data covered more than 70 countries.

Hofstede outlines five principle dimensions, as listed below. To become acquainted with these cultural dimensions is fun, but it's also a great learning experience. Even though I was born and raised in Brazil, only after checking the scores did I learn that Brazil believes that hierarchy should be respected and it has a strong need for rules & elaborate legal systems in order to structure life. This theory will allow you to learn more about yourself and those around you. Enjoy :-)



Go to his website, and choose a country. It might be yours or of someone you know. You can also compare two countries to get a better picture: http://geert-hofstede.com/countries.html

Definitions from Hofstede's website:

"Power Distance Index (PDI): This dimension expresses the degree to which the less powerful members of a society accept and expect that power is distributed unequally. The fundamental issue here is how a society handles inequalities among people. People in societies exhibiting a large degree of power distance accept a hierarchical order in which everybody has a place and which needs no further justification. In societies with low power distance, people strive to equalize the distribution of power and demand justification for inequalities of power.

Individualism versus Collectivism (IDV): The high side of this dimension, called individualism, can be defined as a preference for a loosely-knit social framework in which individuals are expected to take care of only themselves and their immediate families. Its opposite, collectivism, represents a preference for a tightly-knit framework in society in which individuals can expect their relatives or members of a particular in-group to look after them in exchange for unquestioning loyalty. A society's position on this dimension is reflected in whether people’s self-image is defined in terms of “I” or “we.”

Masculinity versus Femininity (MAS): The masculinity side of this dimension represents a preference in society for achievement, heroism, assertiveness and material rewards for success. Society at large is more competitive. Its opposite, femininity, stands for a preference for cooperation, modesty, caring for the weak and quality of life. Society at large is more consensus-oriented. In the business context Masculinity versus Feminity is sometimes also related to as "tough versus gender" cultures.

Uncertainty Avoidance Index (UAI): The uncertainty avoidance dimension expresses the degree to which the members of a society feel uncomfortable with uncertainty and ambiguity. The fundamental issue here is how 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? Countries exhibiting strong UAI maintain rigid codes of belief and behavior and are intolerant of unorthodox behavior and ideas. Weak UAI societies maintain a more relaxed attitude in which practice counts more than principles.

Long Term Orientation versus Short Term Normative Orientation: Every society has to maintain some links with its own past while dealing with the challenges of the present and the future. Societies prioritize these two existential goals differently.
Societies who score low on this dimension, for example, prefer to maintain time-honored traditions and norms while viewing societal change with suspicion. Those with a culture which scores high, on the other hand, take a more pragmatic approach: they encourage thrift and efforts in modern education as a way to prepare for the future.

In the business context and in our country comparison tool this dimension is related to as "(short term) normative versus (long term) pragmatic" (PRA). In the academic environment the terminology Monumentalism versus Flexhumility is sometimes also used.

Indulgence versus Restraint (IND): Indulgence stands for a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun. Restraint stands for a society that suppresses gratification of needs and regulates it by means of strict social norms."

Thanks for reading!

Best,
Pedro

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