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Hofstedes Five Dimension

comparison of Germany and China


Hofstedes Five Dimensions
Hofstedes five dimensions are a useful tool to give someone an insight of different
cultures. These elements give a countrys behaviour tendencies rather than an exact
prescription.
There are weaknesses to Hofstedes Five Dimension theory as it may too easily
encourage stereotyping. Even in countries as small as the UK, not all citizens are
alike e.g. it is argued that the culture in the North of England is quite different to the
South. Hofstede has also been criticized for being too simplistic; however
Hofstedes theory does give us a general base to work from.
74 countries are listed on Hofstedes website from which information can be drawn to
make comparisons not only between countries but against the world average to give
a broader picture. The following graph gives a comparison between Germany and
China. It also allows for assessment against the Asian average and World average
and our own British culture as benchmarks.

Hofstede Comparison: UK, Germany, China


Asian Average and World Average

Comparison of Germany and China

Power Distance Index

Germany 35 LOW China 80 HIGH

Individualism

Germany 67 HIGH China 66 LOW

Masculinity

Germany 66 HIGH China 66 HIGH

Uncertainty Avoidance

Germany 65 HIGH China 30 LOW

Long Term Orientation

Germany 31LOW

China 118 HIGH

Power Distance Index PDI


Power Distance measures equality of power in society and how much people are
willing to allow or give in to superiority. Countries with high scores tend to operate
with power being given to the top few, with little room for lower rank intervention. Low
scoring countries either spread power through delegation or encourage input from
more levels of society.

Germany 35

China 80

World Average 55

LOW POWER DISTANCE CULTURES

HIGH POWER DISTANCE CULTURES

Democratic management

Autocratic management

Management and subordinates treat one


another as equals. Mutual respect is
given.

Managers expect subordinates to obey


them. Subordinates automatic respect
with expecting it to be earned.

Power is de-centralised

Power is centralised

Subordinates expect to offer their ideas


and take initiative

Managers take the initiative and


subordinates obey given instructions.

Subordinates expect to be consulted

Subordinates expect to be told what to


do.

Status is disapproved

Status and privileges for managers is


expected and respected

Social interactions are informal

Social interactions are formal

Narrow range of salaries

Wider range of salaries

Despite a large difference in PDI scores, Germany and China share some similarities
with how workers accept authority and power. The above table shows typical
examples of low power distance cultures however, Germany does not necessarily
follow these traits despite having a low PDI score. Germans like order and
regulations and in a both business and society people tend to know what is allowed
and what is forbidden.

Power Distance is a low 35 in Germany. It is the same as in the UK yet significantly


below the World average of 55. This score suggests German society, work and
families treat people with equality, encouraging collaboration and a fair cultural
environment. German managers and employees are often close, (reflected in the
medium to low power distance (PD) in German culture) because they believe that
they are working together to create a good product.
Germany has a democratic political system and is de-centralised. Business
organisations tend to have flat structures with relatively small numbers of
supervisors, however it also is known to be departmentalised and centralised
(Dereksy, 2011).
In business, Germans are known to be assertive, though not aggressive. Decisions
are centralised although on occasion consensus is sometimes sought if the situation
warrants it. Employees do not question the authority of their managers and are very
loyal to their companies. Before most business deals are done, there has been
considerable detailed analysis before commitment. Once a project or deal is
committed to, staff have high trust in the order and
China has a high ranking of 80 than both Germany and the World Average which
means that the power distance remains high in business and in society in general.
This means that people are less willing to challenge authority which is likely due to
old communism beliefs which still have a strong influence on peoples behaviour.
China continues to receive criticism for not taking human rights seriously.
When doing business in China one must be aware of this large hierarchy gap. It is
often hard to move up on their corporate ladder compared to other cultures.

PDI Suggestions for manager coming from


Germany to China

In China, greetings are always done in age order, so ensure the eldest in the
room is greeted first.

Status is very important in China so do not call someone by their Christian


name until they invite you to do so. Instead, always address them by using
their full title, eg Dr or Professor.

Ensure your business cards have your full qualifications on.

If any large announcements to general staff are needed, request a senior


member of management do it.

Do not expect senior management to accept your ideas. Whilst they most
likely will have no intention of accepting any ideas you may offer, they may

politely say they will consider them to save face. Let us think about it is the
Chinese way of saying no

Use power to exercise authority

Tell subordinates what to do do not expect them to work it out themselves.

Individualism
Individualism refers to how independent people are. Countries with high scores
indicate people are self- motivated, more self-reliant and self-concerned whereas
countries with lower scores suggest citizens conform to societys norms and consider
group needs as more important than their own.
Germany 67

China 20

World Average 43

Germany scored 67 points on individualism, the tendency of people to look after


themselves and their immediate family only. That score is 56% higher than the world
average score for individualism. Therefore, Germany has a highly individualistic
society. In such cultures individuality, independence, and self-determination are
valued. Trompenaar agrees that Germans place high priority on looking after
themselves and their immediate family. At work, however, Germans jointly assume
responsibilities and achieve goals in groups. Negotiating decisions is often referred
to committees.
Hofstede found that wealthier countries tended to have higher scores in
Individualism (Hodgetts et al, 2006) however, given that China is now the second
largest economy in the World and their IND score is only 20 Hofstedes theory can
be disputed. The Chinese rank lower than any other Asian country in the
Individualism (IDV) ranking, at 20 compared to an average of 25. This may be
attributed, in part, to the high level of emphasis on a Collectivist society by the
Communist rule, as compared to one of Individualism. Confucianism also plays a
large part as Chinese place value on long term satisfaction than short-term greed.
Harmony is achieved by giving face to others and avoiding losing your own face.
In collectivist cultures such as China, people work together in groups and often put
the needs of that group ahead of their own personal wants. They embrace shared
responsibility.
Chinese business habits tend to stay with the same partners or suppliers to keep
loyalty and not deteriorate relationships. So when doing business with others it is a
good idea to select a good strong partnership that has potential to last a long time. It
is looked down upon if you frequently change business partners.

IDV Suggestions for manager coming from


Germany to China

Focus on how change is good for the group (appeal to the common interest).

Allow the group to formulate and ask questions.

Allow the group to consult with each other and spend time working out their
responses, questions, and concerns

Aim to build lasting relationships

Try working through an individual or an organization who introduces you


formallyChinese like to work with people they know

Avoid asking pointed questions

Do not expect decisions made at meetings as meetings are merely forums for
exchange of information

Allow time in meetings for team members to consent and consult

Standing out from the crowd can be viewed as very negative and result in
personal difficulties, therefore try to blend in with the group and put their
needs first.

Masculinity
Masculinity looks at how people react to one another. Countries with high masculine
scores tend to have a society which respects stereotypical male behaviour:
hedonistic, materialistic, dominant, aggressive and competitive, viewing feminine
behaviour as weak. Countries with low masculinity scores tend to have strong
welfare support and more equality between the sexes.
Germany 66

China 66

World Average 50

Germany scored 66 points on masculinity, a cultural characteristic in which success,


money and material possessions form the dominant values in society. That score is
32% higher than the world average score for masculinity yet equal to that of the UK
and China.

According to Hofstedes model, Germans place greater importance on earnings,


recognition, advancement and challenge.
Germany is a male-dominated society; few married women work outside the home
However, this is slowly changing in the younger generations of Germany. Women are
becoming more accepted in higher positions.
Officially, women in China have the same rights as men in the workplace and the
party has promoted this sense of equality over the past thirty years or so. However,
traditional Confucian thinking does not sit easily with this notion of gender equality
and it is somewhat ironic that the liberalisation policies of the last decade might have
reversed many of the advances made by women in Chinese society under the
previous hard-line regimes.
In China, the strong preference of boys is due to the traditional values. Men hold
most of the responsibility and power positions although there is a high level of
consensus between genders in China. However, the responsibility for finding
childcare still tends to fall with women which may be a contributor to the low
numbers of women in senior management positions.
The value placed on work is similar in Germany and China, according to Hofstede,
yet both countries have few women in senior management.

MAS Suggestions for manager coming from


Germany to China

Foreign businesswomen will be treated with great respect and courtesy.

They may find that, within a delegation, the Chinese defer to male colleagues
regardless of the actual seniority of the western party - the Chinese
assumption being that the male will naturally be the decision-maker.
Therefore a German woman manager must anticipate this and not be
offended by this reaction so she saves face

Gradually over time, this apparent sexism will fade if she takes the time and
gentle grace to build relationships slowly.

Uncertainty Avoidance Index


Uncertainty avoidance, as the name suggests, focuses on how and by whom risk is
managed. Countries with low levels of uncertainty indicate strong governmental
control to maintain as much stability and order as possible for risk elimination.

Countries with lower scores tend to allow individuals to manage their own risks,
which provide environments with more innovation.
Germany 65

China 30

World average 64

Germany scored 65 points on Hofstedes uncertainty avoidance index. That score is


only 1% above the world average score for uncertainty avoidance. Thanks to their
need for security, Germans insist on written rules and detailed codes of conduct.
Germans are not keen on uncertainty, by planning everything carefully they try to
avoid the uncertainty. In Germany there is a society that relies on rules, laws and
regulations. Germany wants to reduce its risks to the minimum and proceed with
changes step by step.
China presents a high degree of acceptance of uncertainty, which is a characteristic
of a society that does not try to take control of the future, and that is not afraid of
unforeseen situations.
Contrary to Germany, Chinese society does not feel such an urge to establish strict
rules to overcome uncertainty or ambiguity. It is also characteristic of a society that is
more tolerant towards opinions, behaviours that are different from its own, and
changes. And it is a more meditative society which does not feel the need of
controlling its environment.

UAI Suggestions for manager coming from


Germany to China

Present a bottom line and an objective, then build your case around questions

Expect frequent rescheduling of meetings. It is a good idea to set up


appointments a few weeks in advance and reconfirm 1-2 days before the
scheduled meeting

Long-term Orientation
Long-term Orientation concerns how cultures view time and perseverance, whether
business and relationships are nurtured over a period of time or if more emphasis is
placed on short-term reward. Long-Term Orientation is the fifth dimension of
Hofstede which was added after the original four to try to distinguish the difference in
thinking between the East and West. From the original IBM studies, this difference
was something that could not be deduced. Therefore, Hofstede created a Chinese
value survey which was distributed across 23 countries

Germany 31

China 118

World Average 45

.
Short-term Orientation

Long-term Orientation

Immediate gratification required

Deferred gratification

Traditions are sacred and upheld

Traditions adapt to change

Consumption values are taught

Frugality and perseverance is taught

Spend

Save or invest

Quick profits

Building a lasting business income

Analytical thinking

Synthetic thinking

Germany is typical of Westernised cultures with regards to having short-term


orientation. Germany is renowned for its appreciation of efficiency. People from
cultures where managers are expected to develop a closer, more intimate ambience
can see the German manager-subordinate relationship as distant and cold. Germans
put truth and directness before diplomacy, believing that the fact is the important
issue and that personal emotions should not deflect the truth from being spoken.
This directness can be interpreted by certain cultures such as China, as rude.
China slow and steady wins the race for business deals. Building strong, reliable,
lasting relationships is key for the Chinese. A certain amount of trust must be gained
before any decision is met. It may take three to four times the length of time to finish
the business deal compared to your cultural standards. So if you do not come to a
fast agreement, don't be discouraged, make the client feel comfortable and show
your patience. The Chinese never like to rush into things.
Geert Hofstede analysis for China has Long-term Orientation (LTO) the highestranking factor of all countries. China has such a high LTO score, it is even 30%
higher than the Asian average score which is already nearly twice the World
average. This shows how much emphasis China places on this dimension,
indicating a society's time perspective and an attitude of persevering; that is,
overcoming obstacles with time, if not with will and strength.
This means that perseverance and economy are the basic values in China, these
values being taught by Confucianism, which is widely established in China. Also,
Chinese culture is neutral, contrary to the French culture which is affective. Which
means that in China feelings are not readily expressed and physical contact avoided,

while in France like in all other Mediterranean cultures the behaviour is expressive
and gestured, and people like to express their feelings and physical contact.
Chinese culture is marked by respect and loyalty, which makes them reliable
partners. They favour the interest of the group and in particular are extremely
perseverant and formidable business people.

LTO Suggestions for manager coming from


Germany to China

This is arguably the area requiring the most attention from a German
manager.

Meetings are about building relationships and exchanging information - it is


rare for a decision to be made within the meeting. Therefore a German
manager must not show impatience.

Use less direct language

Hold back on the truth, to help others save face

Build relationships slowly.

Try gift giving, as a thank you is often not considered enough, and at worst
rude.

Allow the group to consult with each other and spend time working out their
responses, questions, and concerns

Bing., J.,W., 2011. Hofstedes consequences: The impact of his work on consulting
and business practices, An Executive Summary. ITAP International Inc .
Available from:
http://www.itapintl.com/facultyandresources/articlelibrarymain/hofstedesconsequences-the-impact-of-his-work-on-consulting-and-business-practices.html
[Accessed 17 March 2011].
Burke, R., J., Cultural Values and Womens Work and Career Experiences.
Deresky, H., 2011. International Management Managing Across Borders and
Cultures. 7th ed. New Jersey: Prentice Hall

Hodgetts, R., M., and Luthans, F., and Doh, J. P., 2006. International Management.
6th ed. New York: McGraw-Hill
WorldBusinessCulture.com, 2011. For both China and
Germanyhttp://www.worldbusinessculture.com/Women-in-Business-in-China.html

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