1

Differences in national cultureCountries have different cultures. As much as products all over the world, look alike, this does not mean that cultures are start-ing to look alike. Topics in the Chinese version of Cosmopolitan magazine are fundamentally different than the topics in the Dutch edition. This management summary will discus the influ-ence of cultural differences on management of organizations. 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 score on the different dimensions are also included. The reader of this summary is advised to start with the appendix before continuing reading. The rest of the summary will focus on the influence of culture on organizations.

The concept cultureCulture is defined as: ‘The collec-tive programming of the mind that distinguishes the members of a group or category of people from others.’ Culture is taught en has different levels. The levels can be compared to the layers of an onion. The level of values is the core of culture. It is the deep-est, subconscious level. Higher levels consist out of practices that express the cultural values. These practices are more super-ficial and more subject to change.

People are being born into a existing culture. The first values a child are taught are the family values. The teaching of cultural values is continued in the classrooms, and later at work and in society. The six cultural dimensions described by Hofstede are: power distance, individualism versus collectivism, masculinity versus femininity, uncertainty avoidance, long-term orientation versus short-term orientation and indulgence versus restraint. These cultural dimensions influence organizations and thinking about organizations. This is the subject of the next paragraphs.

Pyramids, machines, markets and families: types of organi-zations in different countriesOrganizational culture is called culture but mainly consists out of practices, the outer three layers of the onions. The cultural val-ues of the employees are mostly formed before they enter the workplace in their early twenties. The cultural values of an organization can look in a small or large sense be similar to the national cultural values. Recruitment of personnel can make that certain national cultural values are in a more or less degree represented in the organization. The employee enters the organization with an already existing set of values. The practices of the organizations are a result of the values of the employees. These practices are relatively easy to change since they are more superficial. The practices are shaped when entering the organization, in contrast to the values which are shaped since early childhood. Two cultural dimensions are particularly impor-tant for organizations. The organizational structure always has two questions to answer. First, who has the power to to do what? Second, what rules or procedures will be followed to attain the desired ends? The answer to the first question is

CULTURES AND ORGANIZATIONS SOFTWARE OF THE MIND

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

gement s

ummary b

y Eva va

n Wijnga

arden

2

influenced by cultural norms of power distance. The answer to the second question is influenced by cultural norms about un-certainty avoidance. The combination of these two dimensions results in four different organizational typologies matching the cultural norms. The typologies are: pyramids, machines, markets and families.Pyramid: the pyramid-organization suits a culture with large power distance and a strong need for uncertainty avoidance. France and Russia are examples. When you give students of such countries a case of an organization in trouble because of two managers who have a conflict, their diagnosis would be to let the manager at the level above the two battling managers, resolve the conflict. Solutions are to be found at the top of the organization.Machine: the machine-organization suits a culture with small power distance and a strong need for uncertainty avoidance. Germany and Israel are such examples. A good organization functions like a well oiled machine. In the same case as pre-sented earlier, the diagnosis would be that the responsibilities of the conflicting managers aren’t properly described. Better pro-cedures would be the solution.Market: the market-organization suits a culture with small power distance and a weak need for uncertainty avoidance. England and Denmark are such examples. In the same case thediagnosis would be that there is a human relations problem. Thetwo conflicting managers would have to take a class to learn how et resolve such conflicts in a constructive manner. Prefera-bly they take the class together. Better relations is the solution tothe problem. Hierarchy or procedures aren’t the answer.Family: the family-organization suits a culture of great power distance and weak uncertainty avoidance. China and India suit the profile. In the same case the owner-boss would be asked to solve the problem. Tradition replaces procedures and authority isfound at the top.

A well known set of typologies are the five configurations of Mintzberg. In his description he didn’t take cultural norms into account. When you place the typologies on the axes of power distance and uncertainty avoidance, you find that the configura-tions translate well to the cultural setting of the organization.

As preferred organizational configurations fit the cultural setting of a country, so do management theories and psychological insights. A good example is the hierarchy of needs of Maslow. In the theory of Abraham Maslow, a born and raised American, the hierarchy of needs is: 1 physiological needs, 2 safety and secu-

rity, a person seeks safety in an organized group, 3 belonging-ness, need for friendship, love and positive social relationships, 4 esteem, a need for recognition, appreciation and respect, 5 self-actualization. At the top of the hierarchy are individual needs, corresponding with the American culture but not corre-sponding with the culture of collectivistic countries. In collectivis-tic cultures satisfaction of group needs would be more importantthan satisfaction of individual needs. Another simple illustration is the fact that the Chinese language does not have a word for the individualistic word ‘personality’. The Chinese equivalent would be the collectivistic word ‘ren’ which is always connected to someone's social heritage. When a manager is wondering about how to manage and reward his team, he needs to be aware of the impact of cultural norms and choose an instrument com-plementary to those norms. This would enhance the chance of success tremendously.

Cultural norms can differ fundamentally. Such cultural gaps are hard to overcome, even if on recognizes the differences. They are impossible to overcome if on doesn’t recognize them. Inter-national adventures such as acquisitions and mergers are helped with a cultural analysis before take off. This can reduce unnecessary losses and increase the chance of success.

The elephant and the storkA study by Hofstede shows that there are six categories of cul-tural practices which can be defined when studying organiza-tional culture. These practices are not correlated with the culturaldimensions. The six categories of practices are:

1. Process oriented versus results oriented2. Employee oriented versus job oriented3. Parochial versus professional4. Open system versus closed system5. Loose versus tight control6. Normative versus pragmatic

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 tends to score more employee oriented.Parochial versus professional: in a parochial culture people identify strongly with the organization. In a professional culture people identify with their profession. In parochial cultures work values correspond with personal values outside of the

3

workplace. When hiring new personnel, attention is paid to a cul-tural fit with the organization and if one is competent for the job athand. Employees don’t look far ahead, they expect the organiza-tion to do that for them. In the professional culture private life is strictly separated from professional life. People are hired only based on professional competence. People look far into the fu-ture. The higher the level of education, the more likely it is that there is a professional culture.Open system versus closed system: in an open system peo-ple experience the organization and its members to be open for new members and outsiders. Almost anyone would fit into the organization, people feel right at home. In a closed system people find the organization and its embers closed, also towards her own members. Only a specific type of person would fit into the organi-zation. It takes a long time to feel at home.Loose versus tight control: in a loose culture people don’t worry about costs, meetings run late and people make jokes about work and the organization. In a tight culture people are cost aware, people are punctual, and little jokes are made about work or the organization. Sarcasm is unusual and there is a strict dress code. The looseness of the organization is often reflected in the internal communication. Do or don’t they address controversial topics, are there taboos? Is or isn’t there room for open debate?Normative versus pragmatic: this dimensions concerns the attitude towards customers. In a normative culture people see it as the responsibility of the organization to apply rules strictly, pro-cedures are more important then results, people view themselves as highly ethical and honest. In a pragmatic culture focus is on satisfying the customers needs. Results are important and in ethi-cal situations people aren't dogmatic, they are pragmatic.

Organizational cultures can be characterized by describing how an organization ‘scores’ on different dimensions. This culture must be seen however as a unified whole, as a so called ‘Gestallt’. It is therefor useful to compare organizations as, for instance, animals. Is the organization an elephant or a stork? By visualizing the gestallt it becomes clear which transformations are within reach and which are not. Every intervention must gradually reshape the gestallt. Through gradual evolution the culture can change. A cultural revolution is only possible by destroying existing cultural capital. This is rarely to be desired.

Managing (with) Organizational Culture according to Hofstede• Is a task for top-management that cannot be delegated• Demands both power and expertise• Should start with cultural diagnosis• Demands strategic choices

- Is present culture matched with strategy?- If not, can strategy be adapted?- If not, what change of culture is needed?- Is this change feasible - do we have the people?- What will be the costs in management attention and money?- Do the expected benefits outweigh the costs?- What is a realistic time span for the changes?- If in doubt, better change strategy anyway- Different subcultures may demand different approaches

• Create a network of change agents in the organizations- Some key people at all levels- If key people start others will follow- Can resisters be circumvented?

• Design necessary structural changes- Opening or closing departments- Merging or splitting departments or tasks- Should groups or individuals be moved?- Are tasks matched with talents?

• Design necessary process changes- Eliminating or establishing controls- Automating or eliminating automation- Establishing or cutting communication links- Replace control of inputs by control of outputs?

• Revise personnel policies- Reconsider criteria for hiring- Reconsider criteria for promotion- Is human resource management up to its new task?- Design timely job rotation- Be suspicious of plans to train others- The need for training has to be felt by the trainees them-selves

• Continue monitoring development of organizational culture- Persistence, sustained attention- Periodically repeat culture diagnosis

C L T R | C u l t u r e i n C o n t r o lC L T R | C u l t u r e i n C o n t r o l

Eva van WijngaardenAllround 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

4

POWER DISTANCEPOWER DISTANCE

The extend to which the less powerful members of institutions and organizations within a country except and accept that power is distributed unequallyThe 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 qualificationsGeneral 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 relationshipsFamilies 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

5

INDIVIDUALISM VERSUS COLLECTIVISMINDIVIDUALISM 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.

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 qualificationsGeneral qualifications

People are being born into extended families or other in-groups that continue protecting them in exchange for loyalty

Everyone grows up to look after him- or herself and his or her immediate (nuclear) family

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 similar group context and know what isn’t said)

Low-context communication prevails (much words are necessary because people don’t 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 relationshipsFamily 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

6

MASCULINITY VERSUS FEMININITYMASCULINITY 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, whereaswomen 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.

A society is masculine when emotional gender roles are clearly distinct: men are supposed to be assertive, tough, and focused on material success, whereaswomen 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 qualificationsGeneral 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 relationshipsFamily 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

7

AVOIDANCE OF UNCERTAINTYAVOIDANCE OF UNCERTAINTY

The extend to which the members of a culture feel threatened by ambiguous or unknown situationsThe extend to which the members of a culture feel threatened by ambiguous or unknown situations

Weak avoidance of uncertainty Strong avoidance of uncertainty

General qualificationsGeneral 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 relationshipsFamily 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 discussion

Students are comfortable in structured learning situations and concerned with the right 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

8

SHORT-TERM ORIENTATION VERSUS LONG-TERM ORIENTATIONSHORT-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 thefostering of virtues related to the past and present - in particular, respect for tradition, preservation of ‘face’ and fulfilling social obligations

Long term orientation stands for fostering of virtues oriented toward future rewards - in particular, perseverance and thrift. Short term orientation stands for thefostering 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 qualificationsGeneral 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 relationshipsFamily 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 injustice

Satisfaction with one’s own contributions to daily human relations and to correcting 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

9

INDULGENCE VERSUS RESTRAINTINDULGENCE 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 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 qualificationsGeneral 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 relationshipsFamily 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

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.