Culture is a set of dominant beliefs, attitudes, values, and norms that is shared by a number of people. It is the collective programming of the mind that distinguishes the members of one group from members of another group. Likewise, the culture of a business organisation in one country will differ from the culture of organisations in a different country. Multinational companies face the challenge of trying to create a common original culture for an organisation that operates across national boundaries.
Hofstede developed a cultural dimension theory used to understand differences in culture across countries and the ways that business is done across different cultures.
Required:
According to Hofstede, explain FOUR dimensions to differences in organisational culture arising from differences in national culture.

Hofstede suggested that there are five dimensions to differences in organisational culture arising from differences in national culture:

  1. Power-distance dimension: This refers to how power is distributed within the organisation. A low power distance means equality, and a high power distance indicates a hierarchy where power inequalities are accepted.
  2. Individualism vs Collectivism: This dimension looks at whether a culture is individualistic, where personal goals take precedence, or collectivist, where group interests come first.
  3. Uncertainty avoidance: A high level of uncertainty avoidance means the culture feels threatened by ambiguity and prefers structured conditions, while a low level indicates comfort with ambiguity.
  4. Masculinity vs Femininity: In masculine cultures, competitiveness, assertiveness, and achievement are valued, while in feminine cultures, relationships, modesty, and quality of life are prioritized.
  5. Long-term vs Short-term orientation: Some cultures focus on long-term goals and sustainability, while others are more focused on immediate results.