The cultural dimensions theory was developed in 1980 by Geert Hofstede, a Dutch management expert (Hofstede, 1980) who was asked by IBM to analyze the differences in the way their plants were functioning in different countries.
Geert Hofstede’s cultural dimensions theory (1980) examined people’s values in the workplace and created differentiation along three dimensions: small/large power distance, strong/weak uncertainty avoidance, masculinity/femininity, and individualism/collectivism. After some additional research, he added the dimension of time orientation. His research aided in comprehending how people think and act differently across cultures. Hofstede describes culture as “the collective programming of the mind which distinguishes the members of the human group from one another”.
Power distance The power distance index describes the extent to which the less powerful members or an organization or institution accept and expect that power is distributed unequally. Employers and managers are more likely to ask employees for input in low power distance index workplaces; in fact, those at the bottom of the hierarchy expect to be asked for input (Hofstede, 1980). Meanwhile, in countries with a high power distance, superiors and subordinates are unlikely to see each other as equals at work, and employees expect managers to make decisions without consulting them.
Uncertainty avoidance denotes the extent to which a society perceives as threatening ambiguous situations and makes an effort to avoid them by providing rules or other security measures. A high uncertainty avoidance index is reflected by strict rules and regulations, while a low uncertainty avoidance index cultures accept and feel at ease in unstructured situations or changing environments, and follow as few rules as possible.
Individualism/Collectivism Individualistic societies emphasize individual achievements with a focus on one's own and one's immediate family's needs. In contrast, collectivist societies place a greater emphasis on the group's goals and well-being, with a person's self-image in this category more akin to a "We."
Femininity/Masculinity This dimension examines how much traditional masculine and feminine roles are valued in a society. In a masculine society, assertiveness, courage, strength, and competition are valued; in a feminine society, cooperation, nurturing, and quality of life are valued (Hofstede, 1980).
Time Orientation refers to whether societies base their decisions on traditions and past, or present and short term, or the future.
Hofstede's model has been praised for its empirical foundation; few other studies or theories of culture can provide comparable quantitative support. However, the model does not explain why there are only five fundamental dimensions to culture. Furthermore, the model assumes culture to be static rather than dynamic, so the model cannot explain why or how cultures develop.