Hofstede's Cultural Dimensions Theory is a way of measuring different cultures and how they are different from each other. It looks at things like values, beliefs, and how people in different cultures talk and act. To measure this, Hofstede looks at six different indicators: individualism-collectivism, power distance, uncertainty avoidance, long-term orientation, masculinity-femininity, and indulgence-restraint.
Individualism-collectivism looks at how individual people in each culture take care of themselves, and how they think about the larger group of people. For example, some cultures are more individualistic and think that it’s important for each person to take care of themselves, while other cultures are more collective and emphasize the importance of taking care of the group as a whole.
Power distance is how people view the amount of power each person and group has. Some cultures have a lot of unequal power—meaning that some people have a lot of power, while others have none. Other cultures have a more equal distribution of power, meaning each person more or less has the same amount of power.
Uncertainty avoidance looks at how people in each culture handle uncertainty and unfamiliar situations. Some cultures are very open to change and try to find new solutions to problems, while others are more closed and stick to what is already known and accepted.
Long-term orientation looks at how people in each culture think about the future. Some cultures focus very much on the present and short-term goals, while other cultures think more about long-term goals and plans.
Masculinity-femininity looks at how people in different cultures view femininity and masculinity. In some cultures, women are expected to act very feminine and men are expected to act very masculine, while in other cultures, men and women are both encouraged to be more creative and independent.
Indulgence-restraint looks at how people in each culture think about pleasure and living life to the fullest. Some cultures view pleasure as something to be enjoyed and encouraged, while others view it as something to be restrained and avoided.
Hofstede's theory is used to help understand different cultures and how they view the world. It’s also used by companies to help them better understand how to market and sell their products in different countries.