Hofstede Cultural Dimension

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Geert Hofstede’s five cultural dimensions are individualistic vs. collectivism, power distance, quality of life vs. quantity of life, uncertainty avoidance and time orientation.

Power Distance
The term of power distance in the Hofstede’s framework means measurement of power in an institution and organization being distributed where the society able to accept (Bergman et al. 2006, 141). Both Australia and Sweden has a low power distance in their society. Low power distance countries tend to work in a decentralization environment and have greater power in decision-making (Lere and Portz, 2005). With decentralization, managers are more independent in the development of a company with leadership quality instead of just position and status (Lere and Portz, 2005). Australia and Sweden organization tend to be flatter and team-oriented structure to have better communication between subordinates and their bosses (Business Culture, n.d). Therefore opinions and decision-making are encouraged to voice out and information are easier to be pass around in the company. Therefore in Sweden matrix organization is common when there are any projects coming up (Business Culture, n.d).

Uncertainty Avoidance
Uncertainty avoidance means a measurement of tolerance risk and behaviour where the society’s culture able to accept (Bergman et al. 2006, 141). Both Australia and Sweden has low uncertainty avoidance. Countries with low uncertainty avoidance will have less concern on uncertainty and ambiguity and focus more on tolerance with each other (Lere and Portz, 2005). There will be more risk taking and less unwanted arguments. In this society, there will be less rule-oriented and would be able to adapt to changes of environment (Lere and Portz, 2005).

Swedish are more willing to take risk than any other countries (Business culture, n.d). When judging a person, their performance is the greater importance in a working place (Business culture, n.d). Therefore equal...
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