Case Study Analysis: “Analysis of Hofstede Dimensions of Sweden!

"

Under the guidance of: Submitted By:

Dr. Rajesh Tripathi Chirag Bagga
Asst. Professor (Selection Grade) SAP ID:
Subject: Strategic Management I 500108731

MBA Strategy and Consulting (KPMG)

School of Business
University of Petroleum and Energy Studies
P.O- Kandoli, Via - Prem Nagar
Dehradun -248007
Uttarakhand, India
Submission Date: - 18th May 2023
 Contents

A. İntroduction

B. Power Distance Index

C. Individualism versus Collectivism

D. Masculinity versus Feminity

E. Uncertainty avoidance

F. Pragmatic versus Normative

G. Indulgent versus Restaint

H. Conclusion

I. List of References
 A. Introduction

 During the past two centuries, various scientists provided different definitions of culture. It is widely
accepted that culture is a certain lifestyle for a specific society, and it is passing from generation to
generation. According to Hofstede (2001), culture is similar to psychological software which is
settled in people’s minds and it supports to differentiate representatives of one community or group
of individuals from another.
 Also, culture is a way of communicating (Hall & Hall, 1990). It is obvious that, like language, art,
history, rituals, culture also includes different manners, behavioral norms, and various beliefs.
Therefore, culture tells us how to act or how we should respond during the communication process
with other people.
 Sweden is one of the most popular Scandinavian countries and is often described as a progressive,
modern, flourishing, social welfare state. Like any other country, Sweden also has its own specific
culture which was affected by different social groups starting from ancient times.
 Today, we live in the globalization era, where every day tens of international companies are
spreading all over the world and which cause people from different cultures to work together. Even
though some cultures can have similarities, when it comes to business their business cultures can be
completely different and this can be a reason for some problems. One of the most famous
psychoanalysts - Geert Hofstede is also an author of the multidimensional theory which describes the
business behaviors of people from different cultures. According to Hofstede national business
patterns can be categorized by six dimensions and each dimension can be measured and then
compared with other cultures’ results.

B. Power Distance Index

The first of six dimensions – Power Distance dimension shows the degree of acceptance and expectation of
allocation of power, authority, wealth, and status unequally by the people who have low influential power.
The core aspect of this dimension is in which way the society manages the issue of inequality among people
(Hofstede, 1984).

In society people who show a high level of Power Distance recognize a social hierarchy where everyone has
a position and they do not need any additional explanation. In countries with a low level of power distance,
people desire to equalize power allocation and they require justification for inequalities in power variation
(Hofstede Insights, 2018).

For this dimension, Sweden has only 31 points out of 100, which indicates that Sweden has low power
distance and Swedish people are independent and almost everyone has equal rights, if some have problems
with it they demand explanation and equalization. In Swedish companies power is decentralized and for
example, in Azerbaijani companies workers mostly rely on the knowledge of their managers during the
process of decision making, however in Swedish companies managers count on the skills of their colleagues
and on a regular basis empower them to try to make decisions by themselves. Swedish workers accept
hierarchy in the workplace only because of the convenience and it should be not surprising for people with
different cultures to see a Swedish worker talk in an informal way with executive managers. Even in
schools, pupils talk with their teachers in an informal way, calling them only by their first name. Swedish
employees assume to be consulted during the process of making important decisions and executives also
take into account the thoughts of their employees.

Level of cultural dimensions in Sweden

80%
60%
40%
20%
0%

Source: Hofstede Insights 2018

C. Individualism versus Collectivism

This dimension consists of two completely different ways of thinking and shows the degree of integration of
a person in the establishment of community. In individualistic societies, persons have weak social
connections with others, and their personal desires and efforts are regarded to be extremely important not
only in personal life but also in business life. Another feature of this society is that individuals make
decisions based on their aspirations and strivings and it is assumed that such people worry only about
themselves and their immediate family members. In contrast, in societies with a high level of collectivism,
people have strong social bonds, and they integrate into family and community. Individuals in collectivistic
societies mostly identify themselves as “we” and they predict, for example, their relatives support and take
care of them if needed. In such societies people are loyal to their families and communities, even in
business, they consider the point of view of their society more important than personal desires (Hofstede,
2011).
According to Hofstede Insights (2018), Sweden is an individualist society with 71 points. In Swedish
companies, employees have a special connection with employers, and this connection is based on the mutual
advantage, which means that employees do their best for the company while executives do their best for
their employees. For example, in collectivistic societies like Azerbaijan, managers can hire and provide
good positions and future career to their relatives and friends, however in Swedish companies this is
impossible, recruitment and future position development are hugely dependent on the individuals'
achievements in business life.
As an individualistic society, the people of Sweden love privacy both in personal and business life. For
example, Swedish people cannot knock on the door and enter the house of their relatives, they should inform
that they want to visit their relatives or friends at least one or two weeks beforehand.

D. Masculinity versus Feminity

As seen from the name, this dimension indicates the instinctual functions that males and females have
(Hofstede, 1983). People with masculine culture are considered as tough, reward oriented, always striving
for new achievements and brave actions. In contrast, people from feminine societies are usually considered
as tender, very caring after the weak, and who aim to have a better quality of life (Hofstede Insights, 2018).
From this dimension, Sweden has 5 points which means that Swedish society is a Feminine society. For
Swedish society, the balance between professional and personal life is essential, people achieve success in
work but at the same time ensure that they have enough time for themselves and their family. Swedish
people have a lot of national holidays all over the year and they often do not work during these holidays
such as Midsummer, Holy Saturday, crayfish festival, and so on. Additionally, day by day the number of
Swedish companies that provide employees free time, flexible working hours, and the place is increasing.
Also, Swedes have their special very well-known coffee break – “Fika” and most of the Swedish companies
have special days when they provide some sweets and coffee for their employees (Nordstrom, 2010).
In Sweden, both men and women have paid parental leave days when they can enjoy their time with
children, and men also actively participate in the bringing up process and they use these parental leave days.
Besides that, every Swedish worker has at least 25 paid vacation days during the year (Nordstrom, 2010).
In Swedish society, there is the word “lagom” which means that everybody will have enough, and nobody
will go without. In society “lagom” is actualized with the fictional law that almost every Scandinavian has in
mind (Hofstede Insights, 2018). This law aims to keep people in place, and it recommends people not to
boast and position themselves above others. This fictional law and way of thinking decrease competitiveness
and increase empathy for those who failed.

E. Uncertainty avoidance
In an ever-changing world, we as humans are not able to predict what will happen tomorrow, and this
Uncertainty Avoidance dimension shows how people from different cultures accept and feel about situations
uncertain or unknown to them. Societies with a high level of uncertainty avoidance try to avoid ambiguous
situations and they may use the method of controlling and provide new rules to be secure in such situations.
People with such a culture afraid of changes and risks as they do not know what will happen in the future
(Hofstede Insights, 2018).
Swedish culture has 29 points from this dimension which means that Sweden has a low preference for
uncertainty avoidance. Swedes easily admit changes and take risks during the uncertainty and the new
innovations are not threatening. For example, Azerbaijani society as a high level of uncertainty avoidance
society resist uncertainty with the usage of different rituals, however, in Sweden people do not resist
uncertainty and simply accept it.

F. Pragmatic versus Normative

Another name for this dimension is Long-Term versus Short-Term Orientation. Nowadays, every society
faces challenges of the present and each society deals with such difficulties differently. People in societies
with a high level of Long-Term orientation assume that the truth of the matter varies based very much on the
circumstance, moment, and context. Individuals with Long-term orientation culture considered pragmatic,
realistic, and thrifty. However, people from Short-term orientation societies are more religious, they believe
in old traditions and apply these traditions on present issues, and they accept changes in social norms very
suspiciously (Hofstede Insights, 2018).
Sweden scores 53 points on this dimension and is considered as a Long-Term orientated society, but 53
points show that swedes have no clear preference for this dimension and in society there quite enough Short-
Term oriented people. Swedes with a pragmatic point of view see education as the main way of preparation
for future difficulties rather than old traditions. Therefore, in Sweden education in schools and most of the
universities is free of charge. At the same time, swedes with the normative way of thinking respect
traditions, especially during the national holidays, for example, during the Saint Lucy's Day parents dress
their children in a special white dress (Nordstrom, 2010).
The level of globalization is very high in Sweden. For example, in Sweden the main second language is
English, and almost every swede knows English very well, and in business with foreigners, they can
communicate very easily.

G. Indulgent versus Restraint

This the last, sixth of Hofstede’s dimensions, and the main idea of this dimension are that on this dimension
the level of controlling the desires and impulses of people is measured. The societies which score low from
this dimension are considered as Restraint and in such societies, the satisfaction of needs is very much
controlled by the different social norms. However, societies with a high level of Indulgent individuals have
no such social norms and limitations that prevent the satisfaction of basic and natural human needs and
people enjoy life and have fun, they live as they wish (Hofstede Insights, 2018).
Sweden with 78 points on this dimension is a pure Indulgent society. Even though Swedish people love their
privacy, they do not miss the chance to celebrate holidays, festivals, and parties. This is the reason why the
people of Sweden have numerous holidays and festivals.
For example, the society in Azerbaijan is considered Restraint, and people are very obsessed with the
opinions of their relatives, friends, colleagues and before doing something they consider what are the
thoughts of people, if something will affect their reputation they will not do this. However, in Sweden for
people their desires and needs are paramount, if they want to do something they do not consider the opinions
of other members of society, they just do what they want. For example, in most countries, same-sex
marriage is still prohibited, but in Sweden same-sex marriage is almost on the same level as ordinary
marriages.

H. Conclusion
In conclusion, every society has different psychology and national patterns, and these all affect individuals’
both personal and business life. Even though every person is unique, and some people can be completely
different from their society, Hofstede’s six dimensions model is very useful in today’s globalization era.
Despite the fact that in some societies as years pass Hofstede’s theory is changing as their national patterns
change, for Swedish society, Hofstede’s six dimensions are still true. Companies that are international and
want to open an outlet in Sweden or companies which recruit swedes should consider their national
behaviors and patterns according to Hofstede’s model.

References

1. Hall, E. T., & Hall, M. R. (1990). Understanding Cultural Differences. Intercultural Press, INC.
2. Hofstede, G. (2001). Culture's Consequences: Comparing Values, Behaviors, Institutions and
Organizations Across Nations. SAGE
3. Hofstede, G. (2018). National Culture. Hofstede Insights. https://hi.hofstede-insights.com/national-
culture
4. Hofstede, G. (1983). The cultural relativity of organizational practices and theories. Journal of
International Business Studies. 14, 2, 75-89. Retrieved from http://www.jstor.org/stable/222593
5. Hofstede, G. (1984). Cultural dimensions in management and planning. Asia Pacific Journal of
Management. 1, 2, 81-99. doi:10.1007/BF01733682
6. Hofstede, G. (2011). Dimensionalizing cultures: The Hofstede model in context. Online
Reading in Psychology and Culture. 2, 1, 8. doi:10.9707/2307-0919.1014

7. Nordstrom, B.J. (2010). Culture and Customs of Sweden. Greenwood