An interview was conducted with a council member from a globally operating consultancy firm for the purpose of the anonymous case model. The interviewee, originally from France, has a diverse cultural background due to extensive travel and living experiences around the world. The objective of this interview was to explore the cultural differences that arise within the consultancy bureau and how they are effectively managed in the context of cultural diversity.
During the interview, the interviewee was asked about various aspects related to cultural differences within the organisation, including issues that could be perceived as either prohibitive or inhibitive and the extent of masculinity vs. femininity within the organisation. The responses to these questions will be analyzed in this case study, along with an examination of the Hofstede dimensions applicable to both the Netherlands and the selected consultancy firm. The findings will be discussed further in the subsequent sections.
Hofstede Dimensions
The Hofstede dimensions are a framework developed by Geert Hofstede to measure and compare cultural differences between countries (Hofstede Insights, n.d.). They include six dimensions: Power Distance Index (PDI), Individualism vs. Collectivism (IDV), Masculinity vs. Femininity (MAS), Uncertainty Avoidance Index (UAI), Long-Term Orientation vs. Short-Term Orientation (LTO), and Indulgence vs. Restraint (IND). PDI reflects the acceptance of unequal power distribution, IDV examines the balance between individual and collective interests, MAS focuses on gender roles and values, UAI measures tolerance for uncertainty, LTO reflects future-oriented thinking, and IND explores the gratification of desires. These dimensions help understand cultural values and behaviours in different societies, aiding in cross-cultural analysis and interactions (SimplyPsychology, 2023).
Power Distance
Hofstede’s power distance dimension focuses on the recognition that individuals are not treated as equals, both in society and within organizations. Power distance refers to the extent to which less powerful members of institutions and organizations in a country anticipate and accept unequal distribution of power (Hofstede-insights, n.d.). This can manifest in situations where leaders hold significantly more authority than the average person, leading to a hierarchical structure where decision-making power is concentrated in the hands of a select few individuals. Subordinates rarely have the opportunity to share or be assigned such authority within this centralized framework.
As a country, the Netherlands exhibits a relatively low rating (38 out of 100) on the power distance dimension. This suggests that promoting equality for all is a central goal. In a low power distance society, independence, accessibility of leaders, coaching, and hierarchy based on personal convenience are commonly observed. High levels of monitoring and control are generally disliked, while direct, honest, and participatory communication is preferred. Within the context of a consultancy bureau, collaboration is encouraged, and there exists a close and unhurried connection between the individual and their supervisor. The supervisor continuously monitors the employee’s performance and provides encouragement to improve. This demonstrates a clear connection between the consultancy bureau and the low power distance culture in the Netherlands.
Masculinity versus femininity
Feminism seeks to promote gender equality in all spheres of life. It also includes the workplace, where the roles of gender often limit women’s opportunities for advancement. Masculinity can reinforce harmful stereotypes and create barriers for men who don’t conform to those norms, leading to a lack of diversity and inclusion in the workplace. Embracing feminist principles can create a more inclusive and equitable work environment for every person, regardless of their gender. On the other hand, Masculinity can reinforce harmful stereotypes and create barriers for men who don’t conform to those norms, leading to a lack of diversity and inclusion in the workplace (Hofstede, B. & Meulenbelt, A. 2019).
As it delved into the topic of masculinity and feminism, it came forward that although most of the men interacted with, were male. There was not a belief in pushing for more females on teams. There is a belief in fair performance evaluations, regardless of gender, weight, or culture; everyone in the case is male driven.
Although there are many women in a building, it didn’t change the fact that the majority of the colleagues were male. However, it was not noted that it tended to work better with women on teams, as it was an individual preference, not gender based. These played a role in showcasing the values and suitability for a company.
So, if someone walks into the building, there are a bunch of females. It was not the case to push more females for teams; it is what it is, so be it. It could be that in other parts of the company there is a form of positive discrimination, but not in all cases.Performance tends to be nicer with ladies, but it is not based on gender in the company. It has no point to get a different evaluation because it is about how you perform.
Individualism Vs. Collectivism
Individualism refers to the practice of self-sufficiency and independence, where the freedom of thought and action of each individual takes precedence over teamwork and shared responsibility (SimplyPsychology, 2023). In contrast, collectivism emphasizes prioritizing the group over the individual.
In the Netherlands, there is a high score of 80 for individualism, indicating a strong preference for a loosely-knit social structure where individuals are expected to primarily take care of themselves and their immediate families. In individualistic societies, causing offense leads to guilt and a decrease in self-esteem. The employer-employee relationship is viewed as a contractual arrangement based on mutual benefit, with hiring and promotion decisions being merit-based. Management focuses on the needs and development of individuals.
Within the business environment, this cultural orientation encourages individuals to strive for personal growth and advancement. The relationship between employers and employees is also characterized by mutual prosperity and beneficial outcomes.
During the interview, the interviewee expresses a notable observation regarding the consultancy bureau, highlighting a substantial level of collaboration and the presence of collectivist behaviours. This finding is understandable considering that consultancy bureaus typically engage in collaborative work with multiple parties simultaneously. Employees frequently work together to achieve shared goals. While there are specific areas and tasks that allow for individual work, there are also opportunities for individualism. It appears that the bureau recognizes the importance of promoting collectivism as a strategic approach within the competitive industry, aiming to foster innovation, and sustainability, and gain a competitive edge.
Outcome
In this organisation, as mentioned earlier, people from a wide variety of cultures communicate daily in order to resolve problems, meet deadlines and make sure that a high-quality product is being delivered. During these meetings many cultural miscommunications can occur, which can be severely damaging to the company. Within the organisation several strategies are implemented to mitigate the risk of cultural miscommunications, one of which is selective hiring. At this level in the organisation’s hierarchy, there is an implicit expectation that employees have the necessary competence and skills to deal with people from diverse cultures. Given that the company is in its essence meritocratic, and hires people based on their competence shown in other (usually international) organisations, a certain level of autonomy is granted to the employees to handle cultural differences. There is an expectation that employees are able to pick up on social cues and understand unspoken social norms. Additionally, the organisation offers a range of training sessions to increase cultural awareness and build on the skills that employees already possess.
Possible solutions
One potential problem for the consultancy bureau is cultural adaptation. Operating as a multinational company, the bureau may encounter difficulties in adapting to the diverse cultural backgrounds of its clients. Each culture possesses distinct business practices, communication styles, and expectations. Failing to understand and adapt to these cultural differences can hinder effective collaboration, diminish client satisfaction, and impact the success of projects. To address this challenge, the bureau would benefit from investing in cross-cultural training initiatives and developing strategies to navigate cultural nuances. By actively acknowledging and accommodating cultural diversity, the company can foster stronger client relationships and ensure successful project outcomes.
Authors
Aryan Zaheer (LinkedIn)
International Business, Amsterdam University of Applied Sciences
Block 4, Semester 2, 2023
Kenza Marroun (LinkedIn)
Bedrijfskunde, Amsterdam University of Applied Sciences.
Block 4, Semester 2, 2023
Daniël Borissevitch (LinkedIn)
Business Administration, Amsterdam University of Applied Sciences
Block 4, Semester 2, 2023
Clément Lobjoie (LinkedIn)
Human resource Management, Amsterdam University of Applied Sciences
Semester 2, 2023