AbstractThe purpose of this paper is to recap Hofstede’s theory about culture. It does not point out only the weakness point of this hypothesis but also show how it is applied into a real business world.IntroductionTogether with globalization, the world is getting smaller and boundaries are fading away. As some scholars say, we are now living in a “global village”. We are now living in multicultural societies, living close to people who have different cultural backgrounds, working with people who have culturally difference from us, communicating with people who may speak different languages.As business executives and managers, we have to deal with employees, customers, suppliers and business partners from other cultures these days. Most of us, though, have difficulty in understanding the behavior of others from different cultural backgrounds. Until then we have started thinking of culture intelligence. We realize that it is vital to define culture and understand the basic elements of cy versus femininity dimension describes the value placed on traditionally male or female values. Power distance refers to the distribution of power within a culture. Uncertainty avoidance reflects a culture’s tolerance of ambiguity and acceptance of risk. Long-term orientation versus short-term orientation includes such values as thrift, persistence, having a sense of shame, and ordering relationship. (Jandt, 2007)INDIVIDUALISM VERSUS COLLECTIVISMThis dimension refers to how people define themselves and their relationships with others. In an individualist culture, the interest of the individual prevails over the interests of the group. Ties between individuals are loose. (Jandt, 2007)In a collectivist culture, the interest of the group prevails over the interest of the individual. People are integrated into strong, cohesive in-groups that continue throughout a lifetime to protect in exchange for unquestioning loyalty (Hofstede, 1997).Individualist cultures are loosely integrated; collealue assertiveness, competition, ambition, and material success. Whereas feminine cultures permit more overlapping social roles for the sexes, and stress quality of life, interpersonal relationships, and concern for the weak. (Jandt, 2007)In the workplace, in masculine cultures, managers are expected to be decisive and assertive; in feminine cultures, managers use intuition and strive for consensus.Japan is considered by Hofstede to be the most masculine culture, Sweden the most feminine. Anglo cultures are moderately masculine.POWER DISTANCEThe third dimension is power distance, or the way the culture deals with inequalities in distributing power. Hofstede (1997) defines power distance as “the extent to which less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally” (p. 28). Hofstede believes that power distance is learned early in families.In high power distance cultures, children are expected to be obedient towardonal, compulsive, security seeking, and intolerant; cultures weak in uncertainty avoidance are contemplative, less aggressive, unemotional, relaxed, accepting of personal risks, and relatively tolerantStudents from high uncertainty avoidance cultures expect their teachers to be experts who have all the answers. And in the workplace, there is an inner need to work hard, and there is a need for rules, precision, and punctuality; employees tend to remain longer with their present employer. Meanwhile, students from low uncertainty avoidance cultures accept teachers who admit to not knowing all the answers. And in the workplace, employees work hard only when needed, there are no more rules than are necessary, and precision and punctuality have to be learned. (Jandt, 2007)Mediterranean cultures and Japan rank the highest in this category.LONG-TERM VERSUS SHORT-TERM ORIENTATIONIn 1987, the “Chinese Culture Connection,” composed of Michael H. Bond and others, extended Hofstede’s work to includthem with a framework to understand other cultures, they do not deal fully with the complexity of cultures. Some managers may find it confusing when they encounter individuals from other cultures who do not fit the model.CountryPDIPower Distance IndexIDVIndividualismMASMasculinityUAIUncertainty Avoidance IndexChina *80206630Greece603557112South Korea60183985United States40916246Vietnam *70204030* EstimatedMoreover, culture is not a constant. It changes as time goes by, although this may be a slightly change and take lifetime. Within effects of globalization, a nation’ culture may not disappear but it is moving to integration.On the other hand, we can choose an appropriate leadership style, based on Hofstede’s framework. For collectivist and feminine cultures, affiliative leaders and coaching leaders may be suitable. Whereas, in masculine and high power distance cultures, leaders should be coercive, pacesetting, authoritative. Democratic leadership style should be used in countries with >
