Hofstede's findings
As result of his multi-nation study Hofstede devised four dimensions to characterise cross cultural differences, these are discussed below.
Power Distance (PD)
PD has to do with the degree to which unequal distribution of power and wealth is tolerated. This can be determined by the level of hierarchy in workplaces and distance between social strata. Malaysia ranks low on Hofstede's scale showing that they hold large distances between ranks in an organisation; communications are likely to be through the command chain rather than direct. Israel is at the other end of Hofstede's scale, meaning that Israeli's are very egalitarian, a worker can generally approach her boss and vice versa.
Individualism (IC)
This is a measure of whether people prefer to work alone or in groups. It indicates the degree of social/community integration. Indigenous nations tend to be collective where the original culture has not become fractured. USA measures the lowest on this scale, that is, they prefer singular achievement. This comes from a cultural upbringing which expects people to be independent at a very early age. On the other hand is Guatemala, they rank the highest meaning that they work in groups and ascribe performance as a cooperative achievement. The lifestyle of a Guatemalan is likely to be based around close family ties with strong community support.
Masculinity (MF)
This scale does not refer, absolutely, to the dominance of gender. It depicts the degree to which masculine traits like authority, assertiveness, performance and success are preferred to female characteristics like personal relationships, quality of life, service and welfare. Japan ranks the lowest on Hofstede's scale showing that they are highly male oriented. Workplaces are likely to be autocratic. At the other extreme Hofstede found Sweden and Norway. People in these two countries are likely to show more empathy for their fellow workers, they are likely to spend time on relationships and personal ties.
Uncertainty Avoidance (UA)
UA is the extent to which people are threatened by a lack of structure or by uncertain events. It refers to the way in which people will deal with the future, whether they have inherent control, or whether events are beyond their control (fatalism). People with low UA will require structure and order with clear rules and guidelines. Hofstede found Greece to have the lowest UA score. Therefore, people in Greece will be reluctant to make decisions and they will require very structured work routines. Swedes on the other hand can work well without structure and will have a high tolerance for ambiguity.