Back in the 1970s and 1980s, Geert Hofstede surveyed more than 116,000 IBM employees in 40 countries about their work-related values. He identified five cultural dimensions on a continuum in which employees differ (countries in parentheses are very high or low compared to other countries on the dimension).

Power distance inequality versus power equality. Power distance being distributed between levels of management down to employees can be more accepted (Russia and China) or rejected as employees want to participate in decisions that affect them (Denmark and Sweden). Individual versus collectivism. Individualist cultures believe individuals should be self-sufficient with loyalty to themselves first and the group and company second (United States and Netherlands), whereas collectivism places the group and company first (Indonesia and China).

Assertiveness versus nurturing. Assertive cultures are more aggressive and competitive, with a focus on achievement and material possessions (Japan and Germany), whereas nurturing cultures emphasize the importance of relationships, modesty, caring, and quality of life (Netherlands and France). Uncertainty avoidance or acceptance. Uncertainty-avoidance cultures like structure and security and are less likely to take risks (Japan and West Africa), whereas uncertainty-acceptance cultures are more comfortable dealing with change and taking more risk (Hong Kong).

Long-term versus short-term orientation. Long-term cultures look to the future and value thrift (China and Hong Kong), whereas short-term cultures focus on the past and present and immediate gratification (United States and Germany). As Hofstede’s research became dated, GLOBE confirmed his dimensions are still valid today. His five dimensions were extended and expanded into nine, including hundreds of companies and more countries.