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CULTURES AND ORGANIZATIONS
                                            SOFTWARE OF THE MIND
Management summary by Eva van Wijngaarden




                                             Management summary
                                             of ‘Cultures and Orga-
                                             nizations, Software of
                                             the Mind‘ by Geert
                                             Hofstede, Gert Jan
                                             Hofstede and Michael
                                             Minkov


                                                                                                                  People are being born into a existing culture. The first values a
                                            Differences in national culture                                       child are taught are the family values. The teaching of cultural
                                                                                                                  values is continued in the classrooms, and later at work and in
                                            Countries have different cultures. As much as products all over       society. The six cultural dimensions described by Hofstede are:
                                            the world, look alike, this does not mean that cultures are start-    power distance, individualism versus collectivism, masculinity
                                            ing to look alike. Topics in the Chinese version of Cosmopolitan      versus femininity, uncertainty avoidance, long-term orientation
                                            magazine are fundamentally different than the topics in the           versus short-term orientation and indulgence versus restraint.
                                            Dutch edition. This management summary will discus the influ-          These cultural dimensions influence organizations and thinking
                                            ence of cultural differences on management of organizations.          about organizations. This is the subject of the next paragraphs.
                                            You can find information on the six cultural dimensions exten-
                                            sively discussed by Hofstede in the appendix at the end of this
                                            summary. Three charts which show how different countries
                                                                                                                  Pyramids, machines, markets
                                            score on the different dimensions are also included. The reader
                                            of this summary is advised to start with the appendix before
                                                                                                                  and families: types of organi-
                                            continuing reading. The rest of the summary will focus on the         zations in different countries
                                            influence of culture on organizations.
                                                                                                                  Organizational culture is called culture but mainly consists out of
                                                                                                                  practices, the outer three layers of the onions. The cultural val-
                                            The concept culture                                                   ues of the employees are mostly formed before they enter the
                                                                                                                  workplace in their early twenties. The cultural values of an
                                                                           Culture is defined as: ‘The collec-     organization can look in a small or large sense be similar to the
                                                                           tive programming of the mind           national cultural values. Recruitment of personnel can make that
                                                                           that distinguishes the members         certain national cultural values are in a more or less degree
                                                                           of a group or category of people       represented in the organization. The employee enters the
                                                                           from others.’ Culture is taught en     organization with an already existing set of values. The practices
                                                                           has different levels. The levels       of the organizations are a result of the values of the employees.
                                                                           can be compared to the layers of       These practices are relatively easy to change since they are
                                                                           an onion. The level of values is       more superficial. The practices are shaped when entering the
                                                                           the core of culture. It is the deep-   organization, in contrast to the values which are shaped since
                                                                           est, subconscious level. Higher        early childhood. Two cultural dimensions are particularly impor-
                                                                           levels consist out of practices        tant for organizations. The organizational structure always has
                                                                           that express the cultural values.      two questions to answer. First, who has the power to to do
                                                                           These practices are more super-        what? Second, what rules or procedures will be followed to
                                                                           ficial and more subject to change.      attain the desired ends? The answer to the first question is
                                                                                                                                                                                 1
influenced by cultural norms of power distance. The answer to            rity, a person seeks safety in an organized group, 3 belonging-
the second question is influenced by cultural norms about un-            ness, need for friendship, love and positive social relationships,
certainty avoidance. The combination of these two dimensions            4 esteem, a need for recognition, appreciation and respect,
results in four different organizational typologies matching the        5 self-actualization. At the top of the hierarchy are individual
cultural norms. The typologies are: pyramids, machines, markets         needs, corresponding with the American culture but not corre-
and families.                                                           sponding with the culture of collectivistic countries. In collectivis-
Pyramid: the pyramid-organization suits a culture with large            tic cultures satisfaction of group needs would be more important
power distance and a strong need for uncertainty avoidance.             than satisfaction of individual needs. Another simple illustration is
France and Russia are examples. When you give students of               the fact that the Chinese language does not have a word for the
such countries a case of an organization in trouble because of          individualistic word ‘personality’. The Chinese equivalent would
two managers who have a conflict, their diagnosis would be to            be the collectivistic word ‘ren’ which is always connected to
let the manager at the level above the two battling managers,           someone's social heritage. When a manager is wondering about
resolve the conflict. Solutions are to be found at the top of the        how to manage and reward his team, he needs to be aware of
organization.                                                           the impact of cultural norms and choose an instrument com-
Machine: the machine-organization suits a culture with small            plementary to those norms. This would enhance the chance of
power distance and a strong need for uncertainty avoidance.             success tremendously.
Germany and Israel are such examples. A good organization
functions like a well oiled machine. In the same case as pre-           Cultural norms can differ fundamentally. Such cultural gaps are
sented earlier, the diagnosis would be that the responsibilities of     hard to overcome, even if on recognizes the differences. They
the conflicting managers aren’t properly described. Better pro-          are impossible to overcome if on doesn’t recognize them. Inter-
cedures would be the solution.                                          national adventures such as acquisitions and mergers are
Market: the market-organization suits a culture with small              helped with a cultural analysis before take off. This can reduce
power distance and a weak need for uncertainty avoidance.               unnecessary losses and increase the chance of success.
England and Denmark are such examples. In the same case the
diagnosis would be that there is a human relations problem. The
two conflicting managers would have to take a class to learn             The elephant and the stork
how et resolve such conflicts in a constructive manner. Prefera-
bly they take the class together. Better relations is the solution to   A study by Hofstede shows that there are six categories of cul-
the problem. Hierarchy or procedures aren’t the answer.                 tural practices which can be defined when studying organiza-
Family: the family-organization suits a culture of great power          tional culture. These practices are not correlated with the cultural
distance and weak uncertainty avoidance. China and India suit           dimensions. The six categories of practices are:
the profile. In the same case the owner-boss would be asked to
solve the problem. Tradition replaces procedures and authority is       1. Process oriented versus results oriented
found at the top.                                                       2. Employee oriented versus job oriented
                                                                        3. Parochial versus professional
A well known set of typologies are the five configurations of             4. Open system versus closed system
Mintzberg. In his description he didn’t take cultural norms into        5. Loose versus tight control
account. When you place the typologies on the axes of power             6. Normative versus pragmatic
distance and uncertainty avoidance, you find that the configura-
tions translate well to the cultural setting of the organization.       Process oriented versus results oriented: in a process ori-
                                                                        ented culture focus is on the use of resources, in a results ori-
                                                                        ented culture focus is on achieving the goal. In process oriented
                                                                        cultures people perceive themselves are risk avoiding, experi-
                                                                        encing every day as being the same as the previous day, and
                                                                        putting limited effort into their work. In result oriented cultures
                                                                        people feel comfortable in unknown situations, give maximum
                                                                        effort, and every day is a new change for a new challenge.
                                                                        These practices are strongly correlated with the ratio labour
                                                                        costs versus material costs. Labour intensive organizations are
                                                                        more results oriented and material intensive organizations are
                                                                        more process oriented.
                                                                        Employee oriented versus job oriented: in an employee ori-
                                                                        ented culture people feel that there is consideration for personal
                                                                        problems, that the organizations feels responsible for job satisfac-
                                                                        tion and that important decisions are being made by groups or
                                                                        committees. In job oriented cultures people experience a heavy
                                                                        workload and that there employer is only interested in the job and
                                                                        not in the employees. Scores on this dimensions are         often the
                                                                        result of inheritance of the founding fathers of the organization and
                                                                        of the way management has dealt with previous crisis. The di-
                                                                        mension is correlated with how management is evaluated. When
                                                                        management is evaluated based on an external norm, such as
                                                                        profitability in a certain market segment, the organization tends to
                                                                        score more job oriented. When management is evaluated based
                                                                        on an internal norm, such as budget realization, the organization
As preferred organizational configurations fit the cultural setting       tends to score more employee oriented.
of a country, so do management theories and psychological               Parochial versus professional: in a parochial culture people
insights. A good example is the hierarchy of needs of Maslow. In        identify strongly with the organization. In a professional culture
the theory of Abraham Maslow, a born and raised American, the           people identify with their profession. In parochial cultures work
hierarchy of needs is: 1 physiological needs, 2 safety and secu-        values correspond with personal values outside of the

                                                                                                                                          2
workplace. When hiring new personnel, attention is paid to a cul-                  Managing (with) Organizational Culture according to
 tural fit with the organization and if one is competent for the job at             Hofstede
 hand. Employees don’t look far ahead, they expect the organiza-                    • Is a task for top-management that cannot be delegated
 tion to do that for them. In the professional culture private life is              • Demands both power and expertise
 strictly separated from professional life. People are hired only                   • Should start with cultural diagnosis
 based on professional competence. People look far into the fu-                     • Demands strategic choices
 ture. The higher the level of education, the more likely it is that                    - Is present culture matched with strategy?
 there is a professional culture.                                                       - If not, can strategy be adapted?
 Open system versus closed system: in an open system peo-                               - If not, what change of culture is needed?
 ple experience the organization and its members to be open for                         - Is this change feasible - do we have the people?
 new members and outsiders. Almost anyone would fit into the                            - What will be the costs in management attention and money?
 organization, people feel right at home. In a closed system people                     - Do the expected benefits outweigh the costs?
 find the organization and its embers closed, also towards her own                      - What is a realistic time span for the changes?
 members. Only a specific type of person would fit into the organi-                     - If in doubt, better change strategy anyway
 zation. It takes a long time to feel at home.                                          - Different subcultures may demand different approaches
 Loose versus tight control: in a loose culture people don’t                        • Create a network of change agents in the organizations
 worry about costs, meetings run late and people make jokes                             - Some key people at all levels
 about work and the organization. In a tight culture people are cost                    - If key people start others will follow
 aware, people are punctual, and little jokes are made about work                       - Can resisters be circumvented?
 or the organization. Sarcasm is unusual and there is a strict dress                • Design necessary structural changes
 code. The looseness of the organization is often reflected in the                      - Opening or closing departments
 internal communication. Do or don’t they address controversial                         - Merging or splitting departments or tasks
 topics, are there taboos? Is or isn’t there room for open debate?                      - Should groups or individuals be moved?
 Normative versus pragmatic: this dimensions concerns the                               - Are tasks matched with talents?
 attitude towards customers. In a normative culture people see it                   • Design necessary process changes
 as the responsibility of the organization to apply rules strictly, pro-                - Eliminating or establishing controls
 cedures are more important then results, people view themselves                        - Automating or eliminating automation
 as highly ethical and honest. In a pragmatic culture focus is on                       - Establishing or cutting communication links
 satisfying the customers needs. Results are important and in ethi-                     - Replace control of inputs by control of outputs?
 cal situations people aren't dogmatic, they are pragmatic.                         • Revise personnel policies
                                                                                        - Reconsider criteria for hiring
 Organizational cultures can be characterized by describing how                         - Reconsider criteria for promotion
 an organization ‘scores’ on different dimensions. This culture must                    - Is human resource management up to its new task?
 be seen however as a unified whole, as a so called ‘Gestallt’. It is                   - Design timely job rotation
 therefor useful to compare organizations as, for instance, animals.                    - Be suspicious of plans to train others
 Is the organization an elephant or a stork? By visualizing the                         - The need for training has to be felt by the trainees them-
 gestallt it becomes clear which transformations are within reach                       selves
 and which are not. Every intervention must gradually reshape the                   • Continue monitoring development of organizational culture
 gestallt. Through gradual evolution the culture can change. A                          - Persistence, sustained attention
 cultural revolution is only possible by destroying existing cultural                   - Periodically repeat culture diagnosis
 capital. This is rarely to be desired.




                               Eva van Wijngaarden
                               Allround Management Consultant. Specialiseer in and passionate about culture.

                               The message of Geert Hofstede is as simple as it is powerful. When in search of suitable management theories always keep in
                               mind the cultural background and check if the theory is applicable in ones own cultural setting. Applying a management theory
                               without cultural awareness can lead to unexpected problems. Suitable culture interventions can only be designed with respect for
                               the current cultural values and with full understanding of the new appropriate culture. They must fit within the Gestalt of the
                               organization and reshape the gestalt where necessary. Hofstedes cultural dimensions enable you to look beyond your own
                               cultural paradigm and see and appreciate other points of view.




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CC L L T T R R             ||              CC u u l l t t u u r r e e                            i i nn                     C C o o n n t t r r o o l3 l
POWER DISTANCE
     The extend to which the less powerful members of institutions and organizations within a country except and accept that power is distributed unequally
Small power distance                                                                   Large power distance
General qualifications
Inequality among people should be minimized                                            Inequality among people is expected and desired
Less powerful people and more powerful people should be interdependent                 Less powerful people are emotionally polarized between dependence and counterde-
                                                                                       pendence
Families and relationships
Parents treat children as equals                                                       Parents teach children obedience
Children treat parents and older people as equals                                      Respect for parents and older people is a basic lifelong virtue
Education
Teachers expect initiatives from students in class                                     Teachers should take all initiatives in class
Teachers are experts who transfer impersonal truths                                    Teachers are gurus who transfer personal wisdom
Students treat teachers as equals                                                      Students treat teachers with respect
Educational policy is focused on secondary schools                                     Educational policy is focused on universities
Organizations
Less educated persons hold more authoritarian values than more educated persons        More and less educated persons show equally authoritarian authoritarian values
Hierarchy in organizations means an inequality of roles, established for convenience   Hierarchy in organizations reflects existential inequality between higher and lower levels
Decentralization is popular                                                            Centralization is popular
There is a narrow salary range between the top and the bottom of the organization      There is a wide salary range between the top and the bottom of the organization
There are fewer supervisory personnel                                                  There are more supervisory personnel
Managers rely on their own experience and on subordinates                              Managers rely on their superiors and on formal rules
Subordinates expect to be consulted                                                    Subordinates expect to be told what to do
The ideal boss is a resourceful democrat                                               The ideal boss is a benevolent autocrat, or a ‘good’ father
Subordinate-superior relations are pragmatic                                            Subordinate-superior relations are emotional
Privileges and status symbols are frowned upon                                         Privileges and status symbols are normal and popular
The state and the society
The use of power should be legitimate and follow criteria of good and evil             Might prevails over right: whoever holds the power is right and good
Skills, wealth, power and status need not go together                                  Skills, wealth, power and status should go together
Large middle class                                                                     Small middle class
All should have equal rights                                                           The powerful should have privileges
Powerful people try to look less powerful                                              Powerful people try to look as powerful as possible
Scandals mean the end of a political career                                            Scandals are covered up
Power is based on formal position, expertise and ability to give rewards               Power is based on tradition or family, charisma and the ability to use force
The way to change the political system is by changing the rules (evolution)            The way to change the political system is by changing the people at the top (revolution)
There is more dialogue and less violence in domestic politics                          There is less dialogue and more violence in domestic politics
Pluralist governments based on the outcome of majority votes                           Autocratic or oligarchic governments based on co-optation
The political spectrum shows a strong center and weak left and right wing              The political spectrum, if allowed to exist, shows a weak centre and a strong left and right
                                                                                       wing
Ideas
Religion and philosophy express equality                                               Religion and philosophy express hierarchy
Political theories focus on how to divide the power                                    Political theories focus on the struggle for power
Management theories are focused on the role of the employee                            Management theories are focused on the role of the manager




                                                                                                                                                                                 4
INDIVIDUALISM VERSUS COLLECTIVISM
   Individualism pertains to societies in which the ties between individuals are loose: everyone is expected to look after him- or herself and his or her family.
  Collectivism as its opposite pertains to societies in which people from birth onward are integrated into strong, cohesive in-groups, which throughout people’s
                                               lifetime continue to protect them in exchange for unquestioning loyalty.
Collectivistic                                                                             Individualistic
General qualifications
People are being born into extended families or other in-groups that continue protecting   Everyone grows up to look after him- or herself and his or her immediate (nuclear) family
them in exchange for loyalty
Harmony should always be maintained and direct confrontations avoided                      Speaking one’s mind is a characteristic of an honest person
Value standards differ for in-groups and out-groups: exclusionism                          The same value standards are supposed to apply to everyone: universalism
High-context communication prevails (few words are necessary because people share a        Low-context communication prevails (much words are necessary because people don’t
similar group context and know what isn’t said)                                            share a similar group context and don’t know what isn’t said)
Trespasses lead to shame and loss of face for self and group                               Trespasses lead to guilt and loss of self-respect
Opinions are predetermined by the group                                                    Everyone is expected to have a private opinion
Collectivist interests prevail over individual interests                                   Individual interests prevail over collectivist interests
Identity is derived from the identity of the group                                         You create your own identity
Family and relationships
Children learn to think in terms of ‘we’                                                   Children learn to think in terms of ‘I’
Adult children live with parents                                                           Adult children leave the parental home
Resources should be shared with the family                                                 Individual ownership of resources, even for children
Education
The purpose of education is learning how to do                                             The purpose of education is learning how to learn
Students speak up in class only when sanctioned by the group                               Students are expected to individually speak up in class
Occupational mobility is lower                                                             Occupational mobility is higher
Diplomas provide entry to higher-status groups                                             Diplomas increase economic worth and/or self-respect
Organizations
The employer-employee relationship is basically moral, like a family link                  The employer-employee relationship is a contract between parties in the labour market
Hiring and promotion take employee’s in-group into account                                 Hiring and promotion decisions are supposed to be based on skills and rules only
Employees are members of in-groups who will pursue the interest of the in-group            Employees are ‘economic persons’ who will pursue the employer’s interest if it coincides
                                                                                           with their self-interest
Management is management of groups                                                         Management is management of individuals
Direct appraisal of subordinates spoils harmony                                            Management training teaches the honest sharing of feelings
In-group customers get better treatment (particularism)                                    Each customer should get the same treatment (universalism)
Relationships prevail over tasks                                                           Tasks prevail over relationships
Society and politics
State has dominant role in the economic system                                             State has a restrained role in the economic system
Low per capita GNI                                                                         High per capita GNI
Private life is invaded by group(s)                                                        Everyone has a right to privacy
Lower human rights rating                                                                  Higher human rights rating
Laws and rights differ per group                                                           Laws and rights are supposed to be the same for all
Ideas
Patriotism is the ideal                                                                    Autonomy is the ideal
Harmony and consensus in society are ultimate goals                                        Self-actualization by every individual is an ultimate goal
Ideologies of equality prevail over ideologies of individual freedom                       Ideologies of individual freedom prevail over ideologies of equality




                                                                                                                                                                                  5
MASCULINITY VERSUS FEMININITY
  A society is masculine when emotional gender roles are clearly distinct: men are supposed to be assertive, tough, and focused on material success, whereas
 women are supposed to be more modest, tender and concerned with the quality of life. A society is called feminine when emotional gender roles overlap: both
                                men and women are supposed to be modest, tender and concerned with the quality of life.
Femininity                                                                       Masculinity
General qualifications
Relationships and equality of life are important                                 Challenge, earnings, recognition and advancement are important
Both men and women are supposed to be modest                                     Women are supposed to be modest
Both men and women can be tender and focus on relationships                      Women can be tender and focus on relationships
Keep it small and simple, easy does it                                           Big is beautiful, more is better, the faster the better
Sympathy for the weak and the losers                                             Sympathy for the strong and the winners
People and relationships are important                                           Money and matter are important
Family and relationships
Fathers and mothers deal with facts and feelings                                 Fathers deal with facts, mothers with feelings
Parents share earning and caring roles                                           Father earns, mother cares
Boys and girls play for the same reason                                          Boys play to compete, girls play to be together
Boys and girls are allowed to cry, but neither should fight                       Girls cry, boys don’t, boys fight, girls don’t
Education
The average student sets the norm                                                The best student sets the norm
Bad study performance isn’t a disaster                                           Bad study performance is a disaster
Students underestimate themselves (modest)                                       Students overestimate themselves (ego)
Friendly teachers are most appreciated                                           Brilliant teachers are most appreciated
Study and work are chosen based on interest                                      Study and work are chosen based on career perspective
Boys and girls choose the same studies                                           Boys and girls choose different studies
Organizations
Work to live                                                                     Live to work
Management as ménage, intuition and consensus                                    Management as manège, decisive and aggressive
Emphasis on equality, solidarity and quality of life                             Emphasis on pay by performance, competition between colleagues and achievements
Resolution of conflicts by compromise and negotiation                             Resolution of conflicts by letting the strongest win
Rewards are based on equality                                                    Rewards are based on equity
Careers are optional for both sexes                                              Careers are compulsory of men, optional for women
Humanization of work by contact and cooperation                                  Humanization of work by job content enrichment
Society and politics
Welfare society ideal; help for the needy                                        Performance society ideal; support for the strong
The needy must be helped                                                         The strong must have opportunities
Permissive society                                                               Corrective society
The environment must be preserved; small is beautiful                            The economy should continue growing; big is beautiful
Government spend relatively large amount on developmental aid                    Government spend relatively small amount on developmental aid
Government spend relatively small amount on military arms                        Government spend relatively large amount on military arms
International conflicts must be resolved by negotiation and compromise            International conflicts must be resolved by power display or force
Relative large number of women in politics                                       Relative small number of women in politics
Immigrants should integrate                                                      Immigrants should assimilate
More voters view themselves in the left wing                                     More voters view themselves in the political center
Ideas
Dominant religions give equal roles to both sexes                                Dominant religions stress the male prerogative
Women's movement focused on equal division of tasks                              Women's movement focused on access for women in territories previously preserved for
                                                                                 men




                                                                                                                                                                   6
AVOIDANCE OF UNCERTAINTY
                                     The extend to which the members of a culture feel threatened by ambiguous or unknown situations
Weak avoidance of uncertainty                                                          Strong avoidance of uncertainty
General qualifications
Uncertainty is a normal feature of life, and each day is accepted as it comes          The uncertainty inherent in life is a continuos threat that must be fought
Aggression and emotions should not be shown                                            Aggression and emotions may at proper times and places be vented
Low stress low anxiety                                                                 High stress high anxiety
Comfortable in ambiguous situations and with unfamiliar risks                          Acceptance of familiar risks; fear of ambiguous situations and fear of unfamiliar risks
What is different is curious                                                           What is different is dangerous
Family and relationships
Lenient rules for children on what is dirty and taboo                                  Strict rules for children on what is dirty and taboo
Family life is relaxed                                                                 Family life is stressful
Education
Students are comfortable with open-ended learning situations and concerned with good   Students are comfortable in structured learning situations and concerned with the right
discussion                                                                             answers
Teachers may say ‘I don’t know’                                                        Teachers are supposed to have all the answers
Results are attributed to a person’s own ability                                       Results are attributed to luck or circumstances
Teachers involve parents                                                               Teachers inform parents
Organizations
Work hard only when needed                                                             There is an emotional need to be busy and an inner urge to work hard
There should be no more rules then necessary                                           There is an emotional need for rules, even if they will not work
Time is a framework for orientation                                                    Time is money
Low stress , feeling of well being                                                     Much stress, feeling of anxiety
Precision and punctuality must be taught                                               Precision and punctuality come natural
Better at innovation, worse at implementation                                          Worse at innovation, better at implementation
Motivation by achievement and esteem or belonging                                      Motivation by security and esteem or belonging
Entrepreneurs are relatively free from rules                                           Entrepreneurs are constrained by existing rules
More job hopping, better work-life balance                                             Less job hopping, worse work-life balance
Tolerance for ambiguity and chaos                                                      Need for precision and formalization
Focus on decision process                                                              Focus on decision content
Top managers are concerned with strategy                                               Top managers are concerned with daily operations
Society and politics
Few and general laws or unwritten rules                                                Many and precise laws and unwritten rules
If laws cannot be respected, they should be changed                                    Laws are necessary even if they can’t be respected
Citizens are competent towards authorities                                             Citizens are incompetent towards authorities
Citizen protest is acceptable                                                          Citizen protest is unacceptable
Citizens trust politicians, civil servants and the legal system                        Citizens are negative towards politicians, civil servants and the legal system
Fast result in case of appeal to justice                                               Slow result in case of appeal to justice
Positive attitude towards young people                                                 Negative attitude towards young people
People are interested in politics                                                      People aren’t interested in politics
Fewer civil servants have law degrees                                                  More civil servants have law degrees
Belief in generalists and common sense                                                 Belief in experts and technical solutions
Human rights: nobody should be persecuted for his or her beliefs                       More religious, political and ideological intolerance and fundamentalism
Ideas
One’s religions truths cannot be imposed on others                                     In religion there is only one Truth and we have it
In philosophy and science there is a tendency toward relativism and empiricism         In philosophy and science there is a tendency toward grand theories
Scientific opponents can be personal friends                                            Scientific opponents cannot be friends




                                                                                                                                                                                 7
SHORT-TERM ORIENTATION VERSUS LONG-TERM ORIENTATION
Long term orientation stands for fostering of virtues oriented toward future rewards - in particular, perseverance and thrift. Short term orientation stands for the
           fostering of virtues related to the past and present - in particular, respect for tradition, preservation of ‘face’ and fulfilling social obligations
Short-term orientation                                                                    Long-term orientation
General qualifications
Social pressure toward spending                                                           Thrift, being sparing with resources
Concern with social and status obligations                                                Willingness to subordinate oneself for a purpose
Concern with ‘face’                                                                       Having a sense of shame
Respect for tradition                                                                     Respect for circumstances
Efforts should produce quick results                                                      Perseverance, sustained efforts toward slow results
Family and relationships
Living with in-laws is a source of trouble                                                Living with in-laws is normal
Old age is an unhappy period but starts late                                              Old age is a happy period and starts early
Preschool children can be cared for by others                                             Mothers should have time for their preschool children
Children get gifts for fun and love                                                       Children get gifts for eduction and development
Dissatisfaction with one’s own contributions to daily human relations and to correcting   Satisfaction with one’s own contributions to daily human relations and to correcting injustice
injustice
Humility is for women only                                                                Humility is for men as well as women
Education
Talent for theoretical, abstract sciences                                                 Talent for applied, concrete sciences
Students attribute success and failure to luck                                            Students attribute success to effort and failure to lack of it
Weaker mathematic and science results for fourteen-year-olds due to less efforts          Stronger mathematic and science results for fourteen-year-olds due to harder work
Organizations
Main work values include freedom, rights, achievement and thinking for oneself            Main work values include learning, honesty, adaptiveness, accountability and self-discipline
Leisure time is important                                                                 Leisure time is unimportant
Focus on the ‘bottom line’                                                                Focus on market position
This years profits are important                                                           Profits in ten years are important
Managers and workers are psychologically two camps                                        Owner-managers and workers share the same aspirations
Meritocracy, reward by abilities                                                          Wide social and economic differences are undesirable
Personal loyalties vary with business needs                                               Investment in lifelong personal networks
Society and politics
Proud of my country                                                                       Learn from other countries
Small savings quote, little money for investment                                          Large savings quote, funds available for investment
Appeal of fundamentalism                                                                  Appeal of pragmatism
Appeal of folk wisdom and witchcraft                                                      Appeal of knowledge and education
Ideas
There are universal guidelines about what is good and what is evil                        What is good and what is evil depends on circumstances
Concern with possessing the Truth                                                         Concern with respecting demands of Virtue
Matter and spirit are separated                                                           Matter and spirit are integrated
If A is true, then its opposite B must be false                                           If A is true, its opposite B can also be true
Priority is given to abstract rationality                                                 Priority is given to common sense
There is a need for cognitive consistency                                                 Disagreement does not hurt
Analytical thinking                                                                       Synthetic thinking




                                                                                                                                                                                     8
INDULGENCE VERSUS RESTRAINT
Indulgence stands for a tendency to allow relatively free gratification of basic and natural human desires related to enjoying life and having fun. Restraint reflects a
                                   conviction that such gratification needs to be curbed and regulated by strict social norms.
Indulgence                                                                          Restraint
General qualifications
Higher percentage of happy people                                                   Lower percentage of happy people
Higher appreciation of free time                                                    Lower appreciation of free time
Thrift is not very important                                                        Thrift is important
Less moral discipline                                                               More moral discipline
Positive attitude                                                                   Cynicism
A perception of personal life control                                               A perception of helplessness: what happens to me is not my own doing
Family and relationships
In countries with well educated people, higher birthrates                           In countries with well educated people, lower birthrates
Family life is satisfying                                                           Family life is less satisfying
Loose gender roles                                                                  Strict gender roles
Smiling as a norm                                                                   Smiling is suspicious
Friends are important                                                               Friends are less important
Society and politics
Loose society                                                                       Strict society
Freedom of expression is important                                                  Freedom of expression is not a primary concern
Maintaining order in the nation is not given a high priority                        Maintaining order in the nation is considered high priority




                                                                                                                                                                  9
Nederland

Small power distance: to address someone on an informal title such
as ‘jij’ and ‘jou’ is expected and desired. Politicians are easily accessible.
Bosses are like anyone else. Celebrities are admired for staying ‘so ordinary’.


Individualistic: to have your own opinion is important. ‘And what do
you think?’ is a very common question. Group pressure is for high school
students, after high school time has come to find out what suits you as an
individual.


Feminine: men and women are equal. Men can cry but should not fight.
Women can have careers and can be politicly active. Children are taken to
daycare when they are three months old.



Weak uncertainty avoidance: immigrants have been welcome for a
long time and could expect a curious, positive attitude from the dutch.
Parents are being involved by teachers, job hopping is the standard for the
younger generation and precise and accurate employees are scares.


Long term orientation: this is shown in politics. Long term relation-
ships are being developed through developmental aid and military peace
missions. Budgeting is another strong suit of dutch politics. Debts are in
control.

Indulgence: in spite of a restrictive budget policy in politics, the average
consumer has no problem buying a flat screen television on credit.




                                                                            10

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English cultures and organizations software of the mind

  • 1. CULTURES AND ORGANIZATIONS SOFTWARE OF THE MIND Management summary by Eva van Wijngaarden Management summary of ‘Cultures and Orga- nizations, Software of the Mind‘ by Geert Hofstede, Gert Jan Hofstede and Michael Minkov People are being born into a existing culture. The first values a Differences in national culture child are taught are the family values. The teaching of cultural values is continued in the classrooms, and later at work and in Countries have different cultures. As much as products all over society. The six cultural dimensions described by Hofstede are: the world, look alike, this does not mean that cultures are start- power distance, individualism versus collectivism, masculinity ing to look alike. Topics in the Chinese version of Cosmopolitan versus femininity, uncertainty avoidance, long-term orientation magazine are fundamentally different than the topics in the versus short-term orientation and indulgence versus restraint. Dutch edition. This management summary will discus the influ- These cultural dimensions influence organizations and thinking ence of cultural differences on management of organizations. about organizations. This is the subject of the next paragraphs. You can find information on the six cultural dimensions exten- sively discussed by Hofstede in the appendix at the end of this summary. Three charts which show how different countries Pyramids, machines, markets score on the different dimensions are also included. The reader of this summary is advised to start with the appendix before and families: types of organi- continuing reading. The rest of the summary will focus on the zations in different countries influence of culture on organizations. Organizational culture is called culture but mainly consists out of practices, the outer three layers of the onions. The cultural val- The concept culture ues of the employees are mostly formed before they enter the workplace in their early twenties. The cultural values of an Culture is defined as: ‘The collec- organization can look in a small or large sense be similar to the tive programming of the mind national cultural values. Recruitment of personnel can make that that distinguishes the members certain national cultural values are in a more or less degree of a group or category of people represented in the organization. The employee enters the from others.’ Culture is taught en organization with an already existing set of values. The practices has different levels. The levels of the organizations are a result of the values of the employees. can be compared to the layers of These practices are relatively easy to change since they are an onion. The level of values is more superficial. The practices are shaped when entering the the core of culture. It is the deep- organization, in contrast to the values which are shaped since est, subconscious level. Higher early childhood. Two cultural dimensions are particularly impor- levels consist out of practices tant for organizations. The organizational structure always has that express the cultural values. two questions to answer. First, who has the power to to do These practices are more super- what? Second, what rules or procedures will be followed to ficial and more subject to change. attain the desired ends? The answer to the first question is 1
  • 2. influenced by cultural norms of power distance. The answer to rity, a person seeks safety in an organized group, 3 belonging- the second question is influenced by cultural norms about un- ness, need for friendship, love and positive social relationships, certainty avoidance. The combination of these two dimensions 4 esteem, a need for recognition, appreciation and respect, results in four different organizational typologies matching the 5 self-actualization. At the top of the hierarchy are individual cultural norms. The typologies are: pyramids, machines, markets needs, corresponding with the American culture but not corre- and families. sponding with the culture of collectivistic countries. In collectivis- Pyramid: the pyramid-organization suits a culture with large tic cultures satisfaction of group needs would be more important power distance and a strong need for uncertainty avoidance. than satisfaction of individual needs. Another simple illustration is France and Russia are examples. When you give students of the fact that the Chinese language does not have a word for the such countries a case of an organization in trouble because of individualistic word ‘personality’. The Chinese equivalent would two managers who have a conflict, their diagnosis would be to be the collectivistic word ‘ren’ which is always connected to let the manager at the level above the two battling managers, someone's social heritage. When a manager is wondering about resolve the conflict. Solutions are to be found at the top of the how to manage and reward his team, he needs to be aware of organization. the impact of cultural norms and choose an instrument com- Machine: the machine-organization suits a culture with small plementary to those norms. This would enhance the chance of power distance and a strong need for uncertainty avoidance. success tremendously. Germany and Israel are such examples. A good organization functions like a well oiled machine. In the same case as pre- Cultural norms can differ fundamentally. Such cultural gaps are sented earlier, the diagnosis would be that the responsibilities of hard to overcome, even if on recognizes the differences. They the conflicting managers aren’t properly described. Better pro- are impossible to overcome if on doesn’t recognize them. Inter- cedures would be the solution. national adventures such as acquisitions and mergers are Market: the market-organization suits a culture with small helped with a cultural analysis before take off. This can reduce power distance and a weak need for uncertainty avoidance. unnecessary losses and increase the chance of success. England and Denmark are such examples. In the same case the diagnosis would be that there is a human relations problem. The two conflicting managers would have to take a class to learn The elephant and the stork how et resolve such conflicts in a constructive manner. Prefera- bly they take the class together. Better relations is the solution to A study by Hofstede shows that there are six categories of cul- the problem. Hierarchy or procedures aren’t the answer. tural practices which can be defined when studying organiza- Family: the family-organization suits a culture of great power tional culture. These practices are not correlated with the cultural distance and weak uncertainty avoidance. China and India suit dimensions. The six categories of practices are: the profile. In the same case the owner-boss would be asked to solve the problem. Tradition replaces procedures and authority is 1. Process oriented versus results oriented found at the top. 2. Employee oriented versus job oriented 3. Parochial versus professional A well known set of typologies are the five configurations of 4. Open system versus closed system Mintzberg. In his description he didn’t take cultural norms into 5. Loose versus tight control account. When you place the typologies on the axes of power 6. Normative versus pragmatic distance and uncertainty avoidance, you find that the configura- tions translate well to the cultural setting of the organization. Process oriented versus results oriented: in a process ori- ented culture focus is on the use of resources, in a results ori- ented culture focus is on achieving the goal. In process oriented cultures people perceive themselves are risk avoiding, experi- encing every day as being the same as the previous day, and putting limited effort into their work. In result oriented cultures people feel comfortable in unknown situations, give maximum effort, and every day is a new change for a new challenge. These practices are strongly correlated with the ratio labour costs versus material costs. Labour intensive organizations are more results oriented and material intensive organizations are more process oriented. Employee oriented versus job oriented: in an employee ori- ented culture people feel that there is consideration for personal problems, that the organizations feels responsible for job satisfac- tion and that important decisions are being made by groups or committees. In job oriented cultures people experience a heavy workload and that there employer is only interested in the job and not in the employees. Scores on this dimensions are often the result of inheritance of the founding fathers of the organization and of the way management has dealt with previous crisis. The di- mension is correlated with how management is evaluated. When management is evaluated based on an external norm, such as profitability in a certain market segment, the organization tends to score more job oriented. When management is evaluated based on an internal norm, such as budget realization, the organization As preferred organizational configurations fit the cultural setting tends to score more employee oriented. of a country, so do management theories and psychological Parochial versus professional: in a parochial culture people insights. A good example is the hierarchy of needs of Maslow. In identify strongly with the organization. In a professional culture the theory of Abraham Maslow, a born and raised American, the people identify with their profession. In parochial cultures work hierarchy of needs is: 1 physiological needs, 2 safety and secu- values correspond with personal values outside of the 2
  • 3. workplace. When hiring new personnel, attention is paid to a cul- Managing (with) Organizational Culture according to tural fit with the organization and if one is competent for the job at Hofstede hand. Employees don’t look far ahead, they expect the organiza- • Is a task for top-management that cannot be delegated tion to do that for them. In the professional culture private life is • Demands both power and expertise strictly separated from professional life. People are hired only • Should start with cultural diagnosis based on professional competence. People look far into the fu- • Demands strategic choices ture. The higher the level of education, the more likely it is that - Is present culture matched with strategy? there is a professional culture. - If not, can strategy be adapted? Open system versus closed system: in an open system peo- - If not, what change of culture is needed? ple experience the organization and its members to be open for - Is this change feasible - do we have the people? new members and outsiders. Almost anyone would fit into the - What will be the costs in management attention and money? organization, people feel right at home. In a closed system people - Do the expected benefits outweigh the costs? find the organization and its embers closed, also towards her own - What is a realistic time span for the changes? members. Only a specific type of person would fit into the organi- - If in doubt, better change strategy anyway zation. It takes a long time to feel at home. - Different subcultures may demand different approaches Loose versus tight control: in a loose culture people don’t • Create a network of change agents in the organizations worry about costs, meetings run late and people make jokes - Some key people at all levels about work and the organization. In a tight culture people are cost - If key people start others will follow aware, people are punctual, and little jokes are made about work - Can resisters be circumvented? or the organization. Sarcasm is unusual and there is a strict dress • Design necessary structural changes code. The looseness of the organization is often reflected in the - Opening or closing departments internal communication. Do or don’t they address controversial - Merging or splitting departments or tasks topics, are there taboos? Is or isn’t there room for open debate? - Should groups or individuals be moved? Normative versus pragmatic: this dimensions concerns the - Are tasks matched with talents? attitude towards customers. In a normative culture people see it • Design necessary process changes as the responsibility of the organization to apply rules strictly, pro- - Eliminating or establishing controls cedures are more important then results, people view themselves - Automating or eliminating automation as highly ethical and honest. In a pragmatic culture focus is on - Establishing or cutting communication links satisfying the customers needs. Results are important and in ethi- - Replace control of inputs by control of outputs? cal situations people aren't dogmatic, they are pragmatic. • Revise personnel policies - Reconsider criteria for hiring Organizational cultures can be characterized by describing how - Reconsider criteria for promotion an organization ‘scores’ on different dimensions. This culture must - Is human resource management up to its new task? be seen however as a unified whole, as a so called ‘Gestallt’. It is - Design timely job rotation therefor useful to compare organizations as, for instance, animals. - Be suspicious of plans to train others Is the organization an elephant or a stork? By visualizing the - The need for training has to be felt by the trainees them- gestallt it becomes clear which transformations are within reach selves and which are not. Every intervention must gradually reshape the • Continue monitoring development of organizational culture gestallt. Through gradual evolution the culture can change. A - Persistence, sustained attention cultural revolution is only possible by destroying existing cultural - Periodically repeat culture diagnosis capital. This is rarely to be desired. Eva van Wijngaarden Allround Management Consultant. Specialiseer in and passionate about culture. The message of Geert Hofstede is as simple as it is powerful. When in search of suitable management theories always keep in mind the cultural background and check if the theory is applicable in ones own cultural setting. Applying a management theory without cultural awareness can lead to unexpected problems. Suitable culture interventions can only be designed with respect for the current cultural values and with full understanding of the new appropriate culture. They must fit within the Gestalt of the organization and reshape the gestalt where necessary. Hofstedes cultural dimensions enable you to look beyond your own cultural paradigm and see and appreciate other points of view. 0 0 3 1 6 5 3 5 3 1 2 8 4 | w w w . c l t r . n l | i n f o @ c l t r . n l CC L L T T R R || CC u u l l t t u u r r e e i i nn C C o o n n t t r r o o l3 l
  • 4. POWER DISTANCE The extend to which the less powerful members of institutions and organizations within a country except and accept that power is distributed unequally Small power distance Large power distance General qualifications Inequality among people should be minimized Inequality among people is expected and desired Less powerful people and more powerful people should be interdependent Less powerful people are emotionally polarized between dependence and counterde- pendence Families and relationships Parents treat children as equals Parents teach children obedience Children treat parents and older people as equals Respect for parents and older people is a basic lifelong virtue Education Teachers expect initiatives from students in class Teachers should take all initiatives in class Teachers are experts who transfer impersonal truths Teachers are gurus who transfer personal wisdom Students treat teachers as equals Students treat teachers with respect Educational policy is focused on secondary schools Educational policy is focused on universities Organizations Less educated persons hold more authoritarian values than more educated persons More and less educated persons show equally authoritarian authoritarian values Hierarchy in organizations means an inequality of roles, established for convenience Hierarchy in organizations reflects existential inequality between higher and lower levels Decentralization is popular Centralization is popular There is a narrow salary range between the top and the bottom of the organization There is a wide salary range between the top and the bottom of the organization There are fewer supervisory personnel There are more supervisory personnel Managers rely on their own experience and on subordinates Managers rely on their superiors and on formal rules Subordinates expect to be consulted Subordinates expect to be told what to do The ideal boss is a resourceful democrat The ideal boss is a benevolent autocrat, or a ‘good’ father Subordinate-superior relations are pragmatic Subordinate-superior relations are emotional Privileges and status symbols are frowned upon Privileges and status symbols are normal and popular The state and the society The use of power should be legitimate and follow criteria of good and evil Might prevails over right: whoever holds the power is right and good Skills, wealth, power and status need not go together Skills, wealth, power and status should go together Large middle class Small middle class All should have equal rights The powerful should have privileges Powerful people try to look less powerful Powerful people try to look as powerful as possible Scandals mean the end of a political career Scandals are covered up Power is based on formal position, expertise and ability to give rewards Power is based on tradition or family, charisma and the ability to use force The way to change the political system is by changing the rules (evolution) The way to change the political system is by changing the people at the top (revolution) There is more dialogue and less violence in domestic politics There is less dialogue and more violence in domestic politics Pluralist governments based on the outcome of majority votes Autocratic or oligarchic governments based on co-optation The political spectrum shows a strong center and weak left and right wing The political spectrum, if allowed to exist, shows a weak centre and a strong left and right wing Ideas Religion and philosophy express equality Religion and philosophy express hierarchy Political theories focus on how to divide the power Political theories focus on the struggle for power Management theories are focused on the role of the employee Management theories are focused on the role of the manager 4
  • 5. INDIVIDUALISM VERSUS COLLECTIVISM Individualism pertains to societies in which the ties between individuals are loose: everyone is expected to look after him- or herself and his or her family. Collectivism as its opposite pertains to societies in which people from birth onward are integrated into strong, cohesive in-groups, which throughout people’s lifetime continue to protect them in exchange for unquestioning loyalty. Collectivistic Individualistic General qualifications People are being born into extended families or other in-groups that continue protecting Everyone grows up to look after him- or herself and his or her immediate (nuclear) family them in exchange for loyalty Harmony should always be maintained and direct confrontations avoided Speaking one’s mind is a characteristic of an honest person Value standards differ for in-groups and out-groups: exclusionism The same value standards are supposed to apply to everyone: universalism High-context communication prevails (few words are necessary because people share a Low-context communication prevails (much words are necessary because people don’t similar group context and know what isn’t said) share a similar group context and don’t know what isn’t said) Trespasses lead to shame and loss of face for self and group Trespasses lead to guilt and loss of self-respect Opinions are predetermined by the group Everyone is expected to have a private opinion Collectivist interests prevail over individual interests Individual interests prevail over collectivist interests Identity is derived from the identity of the group You create your own identity Family and relationships Children learn to think in terms of ‘we’ Children learn to think in terms of ‘I’ Adult children live with parents Adult children leave the parental home Resources should be shared with the family Individual ownership of resources, even for children Education The purpose of education is learning how to do The purpose of education is learning how to learn Students speak up in class only when sanctioned by the group Students are expected to individually speak up in class Occupational mobility is lower Occupational mobility is higher Diplomas provide entry to higher-status groups Diplomas increase economic worth and/or self-respect Organizations The employer-employee relationship is basically moral, like a family link The employer-employee relationship is a contract between parties in the labour market Hiring and promotion take employee’s in-group into account Hiring and promotion decisions are supposed to be based on skills and rules only Employees are members of in-groups who will pursue the interest of the in-group Employees are ‘economic persons’ who will pursue the employer’s interest if it coincides with their self-interest Management is management of groups Management is management of individuals Direct appraisal of subordinates spoils harmony Management training teaches the honest sharing of feelings In-group customers get better treatment (particularism) Each customer should get the same treatment (universalism) Relationships prevail over tasks Tasks prevail over relationships Society and politics State has dominant role in the economic system State has a restrained role in the economic system Low per capita GNI High per capita GNI Private life is invaded by group(s) Everyone has a right to privacy Lower human rights rating Higher human rights rating Laws and rights differ per group Laws and rights are supposed to be the same for all Ideas Patriotism is the ideal Autonomy is the ideal Harmony and consensus in society are ultimate goals Self-actualization by every individual is an ultimate goal Ideologies of equality prevail over ideologies of individual freedom Ideologies of individual freedom prevail over ideologies of equality 5
  • 6. MASCULINITY VERSUS FEMININITY A society is masculine when emotional gender roles are clearly distinct: men are supposed to be assertive, tough, and focused on material success, whereas women are supposed to be more modest, tender and concerned with the quality of life. A society is called feminine when emotional gender roles overlap: both men and women are supposed to be modest, tender and concerned with the quality of life. Femininity Masculinity General qualifications Relationships and equality of life are important Challenge, earnings, recognition and advancement are important Both men and women are supposed to be modest Women are supposed to be modest Both men and women can be tender and focus on relationships Women can be tender and focus on relationships Keep it small and simple, easy does it Big is beautiful, more is better, the faster the better Sympathy for the weak and the losers Sympathy for the strong and the winners People and relationships are important Money and matter are important Family and relationships Fathers and mothers deal with facts and feelings Fathers deal with facts, mothers with feelings Parents share earning and caring roles Father earns, mother cares Boys and girls play for the same reason Boys play to compete, girls play to be together Boys and girls are allowed to cry, but neither should fight Girls cry, boys don’t, boys fight, girls don’t Education The average student sets the norm The best student sets the norm Bad study performance isn’t a disaster Bad study performance is a disaster Students underestimate themselves (modest) Students overestimate themselves (ego) Friendly teachers are most appreciated Brilliant teachers are most appreciated Study and work are chosen based on interest Study and work are chosen based on career perspective Boys and girls choose the same studies Boys and girls choose different studies Organizations Work to live Live to work Management as ménage, intuition and consensus Management as manège, decisive and aggressive Emphasis on equality, solidarity and quality of life Emphasis on pay by performance, competition between colleagues and achievements Resolution of conflicts by compromise and negotiation Resolution of conflicts by letting the strongest win Rewards are based on equality Rewards are based on equity Careers are optional for both sexes Careers are compulsory of men, optional for women Humanization of work by contact and cooperation Humanization of work by job content enrichment Society and politics Welfare society ideal; help for the needy Performance society ideal; support for the strong The needy must be helped The strong must have opportunities Permissive society Corrective society The environment must be preserved; small is beautiful The economy should continue growing; big is beautiful Government spend relatively large amount on developmental aid Government spend relatively small amount on developmental aid Government spend relatively small amount on military arms Government spend relatively large amount on military arms International conflicts must be resolved by negotiation and compromise International conflicts must be resolved by power display or force Relative large number of women in politics Relative small number of women in politics Immigrants should integrate Immigrants should assimilate More voters view themselves in the left wing More voters view themselves in the political center Ideas Dominant religions give equal roles to both sexes Dominant religions stress the male prerogative Women's movement focused on equal division of tasks Women's movement focused on access for women in territories previously preserved for men 6
  • 7. AVOIDANCE OF UNCERTAINTY The extend to which the members of a culture feel threatened by ambiguous or unknown situations Weak avoidance of uncertainty Strong avoidance of uncertainty General qualifications Uncertainty is a normal feature of life, and each day is accepted as it comes The uncertainty inherent in life is a continuos threat that must be fought Aggression and emotions should not be shown Aggression and emotions may at proper times and places be vented Low stress low anxiety High stress high anxiety Comfortable in ambiguous situations and with unfamiliar risks Acceptance of familiar risks; fear of ambiguous situations and fear of unfamiliar risks What is different is curious What is different is dangerous Family and relationships Lenient rules for children on what is dirty and taboo Strict rules for children on what is dirty and taboo Family life is relaxed Family life is stressful Education Students are comfortable with open-ended learning situations and concerned with good Students are comfortable in structured learning situations and concerned with the right discussion answers Teachers may say ‘I don’t know’ Teachers are supposed to have all the answers Results are attributed to a person’s own ability Results are attributed to luck or circumstances Teachers involve parents Teachers inform parents Organizations Work hard only when needed There is an emotional need to be busy and an inner urge to work hard There should be no more rules then necessary There is an emotional need for rules, even if they will not work Time is a framework for orientation Time is money Low stress , feeling of well being Much stress, feeling of anxiety Precision and punctuality must be taught Precision and punctuality come natural Better at innovation, worse at implementation Worse at innovation, better at implementation Motivation by achievement and esteem or belonging Motivation by security and esteem or belonging Entrepreneurs are relatively free from rules Entrepreneurs are constrained by existing rules More job hopping, better work-life balance Less job hopping, worse work-life balance Tolerance for ambiguity and chaos Need for precision and formalization Focus on decision process Focus on decision content Top managers are concerned with strategy Top managers are concerned with daily operations Society and politics Few and general laws or unwritten rules Many and precise laws and unwritten rules If laws cannot be respected, they should be changed Laws are necessary even if they can’t be respected Citizens are competent towards authorities Citizens are incompetent towards authorities Citizen protest is acceptable Citizen protest is unacceptable Citizens trust politicians, civil servants and the legal system Citizens are negative towards politicians, civil servants and the legal system Fast result in case of appeal to justice Slow result in case of appeal to justice Positive attitude towards young people Negative attitude towards young people People are interested in politics People aren’t interested in politics Fewer civil servants have law degrees More civil servants have law degrees Belief in generalists and common sense Belief in experts and technical solutions Human rights: nobody should be persecuted for his or her beliefs More religious, political and ideological intolerance and fundamentalism Ideas One’s religions truths cannot be imposed on others In religion there is only one Truth and we have it In philosophy and science there is a tendency toward relativism and empiricism In philosophy and science there is a tendency toward grand theories Scientific opponents can be personal friends Scientific opponents cannot be friends 7
  • 8. SHORT-TERM ORIENTATION VERSUS LONG-TERM ORIENTATION Long term orientation stands for fostering of virtues oriented toward future rewards - in particular, perseverance and thrift. Short term orientation stands for the fostering of virtues related to the past and present - in particular, respect for tradition, preservation of ‘face’ and fulfilling social obligations Short-term orientation Long-term orientation General qualifications Social pressure toward spending Thrift, being sparing with resources Concern with social and status obligations Willingness to subordinate oneself for a purpose Concern with ‘face’ Having a sense of shame Respect for tradition Respect for circumstances Efforts should produce quick results Perseverance, sustained efforts toward slow results Family and relationships Living with in-laws is a source of trouble Living with in-laws is normal Old age is an unhappy period but starts late Old age is a happy period and starts early Preschool children can be cared for by others Mothers should have time for their preschool children Children get gifts for fun and love Children get gifts for eduction and development Dissatisfaction with one’s own contributions to daily human relations and to correcting Satisfaction with one’s own contributions to daily human relations and to correcting injustice injustice Humility is for women only Humility is for men as well as women Education Talent for theoretical, abstract sciences Talent for applied, concrete sciences Students attribute success and failure to luck Students attribute success to effort and failure to lack of it Weaker mathematic and science results for fourteen-year-olds due to less efforts Stronger mathematic and science results for fourteen-year-olds due to harder work Organizations Main work values include freedom, rights, achievement and thinking for oneself Main work values include learning, honesty, adaptiveness, accountability and self-discipline Leisure time is important Leisure time is unimportant Focus on the ‘bottom line’ Focus on market position This years profits are important Profits in ten years are important Managers and workers are psychologically two camps Owner-managers and workers share the same aspirations Meritocracy, reward by abilities Wide social and economic differences are undesirable Personal loyalties vary with business needs Investment in lifelong personal networks Society and politics Proud of my country Learn from other countries Small savings quote, little money for investment Large savings quote, funds available for investment Appeal of fundamentalism Appeal of pragmatism Appeal of folk wisdom and witchcraft Appeal of knowledge and education Ideas There are universal guidelines about what is good and what is evil What is good and what is evil depends on circumstances Concern with possessing the Truth Concern with respecting demands of Virtue Matter and spirit are separated Matter and spirit are integrated If A is true, then its opposite B must be false If A is true, its opposite B can also be true Priority is given to abstract rationality Priority is given to common sense There is a need for cognitive consistency Disagreement does not hurt Analytical thinking Synthetic thinking 8
  • 9. INDULGENCE VERSUS RESTRAINT Indulgence stands for a tendency to allow relatively free gratification of basic and natural human desires related to enjoying life and having fun. Restraint reflects a conviction that such gratification needs to be curbed and regulated by strict social norms. Indulgence Restraint General qualifications Higher percentage of happy people Lower percentage of happy people Higher appreciation of free time Lower appreciation of free time Thrift is not very important Thrift is important Less moral discipline More moral discipline Positive attitude Cynicism A perception of personal life control A perception of helplessness: what happens to me is not my own doing Family and relationships In countries with well educated people, higher birthrates In countries with well educated people, lower birthrates Family life is satisfying Family life is less satisfying Loose gender roles Strict gender roles Smiling as a norm Smiling is suspicious Friends are important Friends are less important Society and politics Loose society Strict society Freedom of expression is important Freedom of expression is not a primary concern Maintaining order in the nation is not given a high priority Maintaining order in the nation is considered high priority 9
  • 10. Nederland Small power distance: to address someone on an informal title such as ‘jij’ and ‘jou’ is expected and desired. Politicians are easily accessible. Bosses are like anyone else. Celebrities are admired for staying ‘so ordinary’. Individualistic: to have your own opinion is important. ‘And what do you think?’ is a very common question. Group pressure is for high school students, after high school time has come to find out what suits you as an individual. Feminine: men and women are equal. Men can cry but should not fight. Women can have careers and can be politicly active. Children are taken to daycare when they are three months old. Weak uncertainty avoidance: immigrants have been welcome for a long time and could expect a curious, positive attitude from the dutch. Parents are being involved by teachers, job hopping is the standard for the younger generation and precise and accurate employees are scares. Long term orientation: this is shown in politics. Long term relation- ships are being developed through developmental aid and military peace missions. Budgeting is another strong suit of dutch politics. Debts are in control. Indulgence: in spite of a restrictive budget policy in politics, the average consumer has no problem buying a flat screen television on credit. 10