Hofstede’s Five Dimension
comparison of Germany and China
Hofstede’s Five Dimensions
Hofstede’s five dimensions are a useful tool to give someone an insight of different
cultures. These elements give a country’s behaviour tendencies rather than an
exact prescription.
There are weaknesses to Hofstede’s Five Dimension theory as it may too easily
encourage stereotyping. Even in countries as small as the UK, not all citizens are
alike – e.g. it is argued that the culture in the North of England is quite different to the
South. Hofstede has also been criticized for being too simplistic; however
Hofstede’s theory does give us a general base to work from.
74 countries are listed on Hofstede’s website from which information can be drawn to
make comparisons not only between countries but against the world average to give
a broader picture. The following graph gives a comparison between Germany and
China. It also allows for assessment against the Asian average and World average
and our own British culture as benchmarks.
Hofstede Comparison: UK, Germany, China
Asian Average and World Average
Comparison of Germany and China
Power Distance Index
Germany 35 LOW China 80 HIGH
Individualism
Germany 67 HIGH China 66 LOW
Masculinity
Germany 66 HIGH China 66 HIGH
Uncertainty Avoidance
Germany 65 HIGH China 30 LOW
Long Term Orientation
Germany 31LOW
China 118 HIGH
Power Distance Index – PDI
Power Distance measures equality of power in society and how much people are
willing to allow or give in to superiority. Countries with high scores tend to operate
with power being given to the top few, with little room for lower rank intervention. Low
scoring countries either spread power through delegation or encourage input from
more levels of society.
Germany 35
China 80
World Average 55
LOW POWER DISTANCE CULTURES
HIGH POWER DISTANCE CULTURES
Democratic management
Autocratic management
Management and subordinates treat one
another as equals. Mutual respect is
given.
Managers expect subordinates to obey
them. Subordinates automatic respect
with expecting it to be earned.
Power is de-centralised
Power is centralised
Subordinates expect to offer their ideas
and take initiative
Managers take the initiative and
subordinates obey given instructions.
Subordinates expect to be consulted
Subordinates expect to be told what to
do.
Status is disapproved
Status and privileges for managers is
expected and respected
Social interactions are informal
Social interactions are formal
Narrow range of salaries
Wider range of salaries
Despite a large difference in PDI scores, Germany and China share some similarities
with how workers accept authority and power. The above table shows typical
examples of low power distance cultures however, Germany does not necessarily
follow these traits despite having a low PDI score. Germans like order and
regulations and in a both business and society people tend to know what is allowed
and what is forbidden.
Power Distance is a low 35 in Germany. It is the same as in the UK yet significantly
below the World average of 55. This score suggests German society, work and
families treat people with equality, encouraging collaboration and a fair cultural
environment. German managers and employees are often close, (reflected in the
medium to low power distance (PD) in German culture) because they believe that
they are working together to create a good product.
Germany has a democratic political system and is de-centralised. Business
organisations tend to have flat structures with relatively small numbers of
supervisors, however it also is known to be departmentalised and centralised
(Dereksy, 2011).
In business, Germans are known to be assertive, though not aggressive. Decisions
are centralised although on occasion consensus is sometimes sought if the situation
warrants it. Employees do not question the authority of their managers and are very
loyal to their companies. Before most business deals are done, there has been
considerable detailed analysis before commitment. Once a project or deal is
committed to, staff have high trust in the order and
China has a high ranking of 80 than both Germany and the World Average which
means that the power distance remains high in business and in society in general.
This means that people are less willing to challenge authority which is likely due to
old communism beliefs which still have a strong influence on people’s behaviour.
China continues to receive criticism for not taking human rights seriously.
When doing business in China one must be aware of this large hierarchy gap. It is
often hard to move up on their corporate ladder compared to other cultures.
PDI Suggestions for manager coming from Germany to China

In China, greetings are always done in age order, so ensure the eldest in the
room is greeted first.

Status is very important in China so do not call someone by their Christian
name until they invite you to do so. Instead, always address them by using
their full title, eg Dr or Professor.

Ensure your business cards have your full qualifications on.

If any large announcements to general staff are needed, request a senior
member of management do it.

Do not expect senior management to accept your ideas. Whilst they most
likely will have no intention of accepting any ideas you may offer, they may
politely say they will consider them to save “face”. “Let us think about it” is the
Chinese way of saying “no”

Use power to exercise authority

Tell subordinates what to do – do not expect them to work it out themselves.
Individualism
Individualism refers to how independent people are. Countries with high scores
indicate people are self- motivated, more self-reliant and self-concerned whereas
countries with lower scores suggest citizens conform to society’s norms and consider
group needs as more important than their own.
Germany 67
China 20
World Average 43
Germany scored 67 points on individualism, the tendency of people to look after
themselves and their immediate family only. That score is 56% higher than the world
average score for individualism. Therefore, Germany has a highly individualistic
society. In such cultures individuality, independence, and self-determination are
valued. Trompenaar agrees that Germans place high priority on looking after
themselves and their immediate family. At work, however, Germans jointly assume
responsibilities and achieve goals in groups. Negotiating decisions is often referred
to committees.
Hofstede found that wealthier countries tended to have higher scores in
Individualism (Hodgetts et al, 2006) however, given that China is now the second
largest economy in the World and their IND score is only 20 Hofstede’s theory can
be disputed. The Chinese rank lower than any other Asian country in the
Individualism (IDV) ranking, at 20 compared to an average of 25. This may be
attributed, in part, to the high level of emphasis on a Collectivist society by the
Communist rule, as compared to one of Individualism. Confucianism also plays a
large part as Chinese place value on long term satisfaction than short-term greed.
Harmony is achieved by giving “face” to others and avoiding losing your own “face.”
In collectivist cultures such as China, people work together in groups and often put
the needs of that group ahead of their own personal wants. They embrace shared
responsibility.
Chinese business habits tend to stay with the same partners or suppliers to keep
loyalty and not deteriorate relationships. So when doing business with others it is a
good idea to select a good strong partnership that has potential to last a long time. It
is looked down upon if you frequently change business partners.
IDV Suggestions for manager coming from Germany to China

Focus on how change is good for the group (appeal to the common interest).

Allow the group to formulate and ask questions.

Allow the group to consult with each other and spend time working out their
responses, questions, and concerns

Aim to build lasting relationships

Try working through an individual or an organization who introduces you
formally–Chinese like to work with people they know

Avoid asking pointed questions

Do not expect decisions made at meetings as meetings are merely forums for
exchange of information

Allow time in meetings for team members to consent and consult

Standing out from the crowd can be viewed as very negative and result in
personal difficulties, therefore try to blend in with the group and put their
needs first.
Masculinity
Masculinity looks at how people react to one another. Countries with high masculine
scores tend to have a society which respects stereotypical male behaviour:
hedonistic, materialistic, dominant, aggressive and competitive, viewing feminine
behaviour as weak. Countries with low masculinity scores tend to have strong
welfare support and more equality between the sexes.
Germany 66
China 66
World Average 50
Germany scored 66 points on masculinity, a cultural characteristic in which success,
money and material possessions form the dominant values in society. That score is
32% higher than the world average score for masculinity yet equal to that of the UK
and China.
According to Hofstede’s model, Germans place greater importance on earnings,
recognition, advancement and challenge.
Germany is a male-dominated society; few married women work outside the home
However, this is slowly changing in the younger generations of Germany. Women
are becoming more accepted in higher positions.
Officially, women in China have the same rights as men in the workplace and the
party has promoted this sense of equality over the past thirty years or so. However,
traditional Confucian thinking does not sit easily with this notion of gender equality
and it is somewhat ironic that the liberalisation policies of the last decade might have
reversed many of the advances made by women in Chinese society under the
previous hard-line regimes.
In China, the strong preference of boys is due to the traditional values. Men hold
most of the responsibility and power positions although there is a high level of
consensus between genders in China. However, the responsibility for finding
childcare still tends to fall with women which may be a contributor to the low
numbers of women in senior management positions.
The value placed on work is similar in Germany and China, according to Hofstede,
yet both countries have few women in senior management.
MAS Suggestions for manager coming from Germany to China

Foreign businesswomen will be treated with great respect and courtesy.

They may find that, within a delegation, the Chinese defer to male colleagues
regardless of the actual seniority of the western party - the Chinese
assumption being that the male will naturally be the decision-maker.
Therefore a German woman manager must anticipate this and not be
offended by this reaction so she “saves face”

Gradually over time, this apparent sexism will fade if she takes the time and
gentle grace to build relationships slowly.
Uncertainty Avoidance Index
Uncertainty avoidance, as the name suggests, focuses on how and by whom risk is
managed. Countries with low levels of uncertainty indicate strong governmental
control to maintain as much stability and order as possible for risk elimination.
Countries with lower scores tend to allow individuals to manage their own risks,
which provide environments with more innovation.
Germany 65
China 30
World average 64
Germany scored 65 points on Hofstede’s uncertainty avoidance index. That score is
only 1% above the world average score for uncertainty avoidance. Thanks to their
need for security, Germans insist on written rules and detailed codes of conduct.
Germans are not keen on uncertainty, by planning everything carefully they try to
avoid the uncertainty. In Germany there is a society that relies on rules, laws and
regulations. Germany wants to reduce its risks to the minimum and proceed with
changes step by step.
China presents a high degree of acceptance of uncertainty, which is a characteristic
of a society that does not try to take control of the future, and that is not afraid of
unforeseen situations.
Contrary to Germany, Chinese society does not feel such an urge to establish strict
rules to overcome uncertainty or ambiguity. It is also characteristic of a society that is
more tolerant towards opinions, behaviours that are different from its own, and
changes. And it is a more meditative society which does not feel the need of
controlling its environment.
UAI Suggestions for manager coming from Germany to China

Present a bottom line and an objective, then build your case around questions

Expect frequent rescheduling of meetings. It is a good idea to set up
appointments a few weeks in advance and reconfirm 1-2 days before the
scheduled meeting
Long-term Orientation
Long-term Orientation concerns how cultures view time and perseverance, whether
business and relationships are nurtured over a period of time or if more emphasis is
placed on short-term reward. Long-Term Orientation is the fifth dimension of
Hofstede which was added after the original four to try to distinguish the difference in
thinking between the East and West. From the original IBM studies, this difference
was something that could not be deduced. Therefore, Hofstede created a Chinese
value survey which was distributed across 23 countries
Germany 31
.
China 118
World Average 45
Short-term Orientation
Long-term Orientation
Immediate gratification required
Deferred gratification
Traditions are sacred and upheld
Traditions adapt to change
Consumption values are taught
Frugality and perseverance is taught
Spend
Save or invest
Quick profits
Building a lasting business income
Analytical thinking
Synthetic thinking
Germany is typical of Westernised cultures with regards to having short-term
orientation. Germany is renowned for its appreciation of efficiency. People from
cultures where managers are expected to develop a closer, more intimate ambience
can see the German manager-subordinate relationship as distant and cold. Germans
put truth and directness before diplomacy, believing that the fact is the important
issue and that personal emotions should not deflect the truth from being spoken.
This directness can be interpreted by certain cultures such as China, as rude.
China slow and steady wins the race for business deals. Building strong, reliable,
lasting relationships is key for the Chinese. A certain amount of trust must be gained
before any decision is met. It may take three to four times the length of time to finish
the business deal compared to your cultural standards. So if you do not come to a
fast agreement, don't be discouraged, make the client feel comfortable and show
your patience. The Chinese never like to rush into things.
Geert Hofstede analysis for China has Long-term Orientation (LTO) the highestranking factor of all countries. China has such a high LTO score, it is even 30%
higher than the Asian average score which is already nearly twice the World
average. This shows how much emphasis China places on this dimension,
indicating a society's time perspective and an attitude of persevering; that is,
overcoming obstacles with time, if not with will and strength.
This means that perseverance and economy are the basic values in China, these
values being taught by Confucianism, which is widely established in China. Also,
Chinese culture is neutral, contrary to the French culture which is affective. Which
means that in China feelings are not readily expressed and physical contact avoided,
while in France like in all other Mediterranean cultures the behaviour is expressive
and gestured, and people like to express their feelings and physical contact.
Chinese culture is marked by respect and loyalty, which makes them reliable
partners. They favour the interest of the group and in particular are extremely
perseverant and formidable business people.
LTO Suggestions for manager coming from Germany to China

This is arguably the area requiring the most attention from a German
manager.

Meetings are about building relationships and exchanging information - it is
rare for a decision to be made within the meeting. Therefore a German
manager must not show impatience.

Use less direct language

Hold back on the truth, to help others save “face”

Build relationships slowly.

Try “gift giving”, as a thank you is often not considered enough, and at worst
rude.

Allow the group to consult with each other and spend time working out their
responses, questions, and concerns
Bing., J.,W., 2011. Hofstede’s consequences: The impact of his work on consulting
and business practices, An Executive Summary. ITAP International Inc .
Available from:
http://www.itapintl.com/facultyandresources/articlelibrarymain/hofstedesconsequences-the-impact-of-his-work-on-consulting-and-business-practices.html
[Accessed 17 March 2011].
Burke, R., J., Cultural Values and Women’s Work and Career Experiences.
Deresky, H., 2011. International Management Managing Across Borders and
Cultures. 7th ed. New Jersey: Prentice Hall
Hodgetts, R., M., and Luthans, F., and Doh, J. P., 2006. International Management.
6th ed. New York: McGraw-Hill
WorldBusinessCulture.com, 2011. For both China and
Germanyhttp://www.worldbusinessculture.com/Women-in-Business-in-China.html