Overview

For the anonymous case model an employee at a global financial service provider was interviewed. The company’s headquarters are located in France, but the company has offices worldwide including the Netherlands were the sources works. The source provided valuable insights in cultural differences that arise when working in a global financial institution.

During the interview the interviewee was asked questions regarding cultural differences in the company, prohibitive and inhibitive issues and about Hofstede dimensions. The answers will be analyzed in this case with the help of Hofstede’s dimensions, following are the outcome and possible solutions.

Hofstede Dimensions

According to the interview, the company is one of the biggest bank companies in Europe with multiple employees across the world, and its headquarters are in France. The author will use France as the element of comparison in six Hofstede dimensions for the analysis of the effect of these indexes in the company’s decision-making process.

Power Distance Index

Hofstede (2011) defined the Power Distance Index as “the extent to which the less powerful members of organizations and institutions accept and expect that power is distributed unequally”. This definition could rely on the management style used in an organization or a company and the authority that is passed down from the top management or the leaders to its lower management. Furthermore, the decision-making will be made depending on the approach used in a firm, whether a centralized structure where its decision is solely made by one party or a decentralized structure where the decision will be made and discussed among every party.

The Netherlands has a lower Power Distance Index of 38 compared to France which has 48. Thus, it logically affects the orientation of the majority of organizations in the Netherlands to be participative rather than hierarchical. The interviewee gave one of the examples that represented the company as one of the companies that has a low Power Distance Index from its management style. The management style that they have leans towards democracy where the top management implements a voting method when it comes to the decision-making process. For instance, if there is a change that needs to be made in the company, the decision will be made based on the majority of the vote gathered from the top to the lowest management.

Individualism vs Collectivism

Individualism versus collectivism is defined as the relation of the integration of individuals into primary groups (Hofstede, 2011). These two practices are differentiated within the concept of priority and beliefs. Individualism is when people who tend to perceive independence and being self-sufficient are considered as individualistic. On the other hand, people who are concerned and integrated with the group lean towards collectivism.

The voting method represents the company’s collectivism which considerably has a high respect for group orientation rather than individualist approach. However, the Individualism index of the Netherlands is 80, and every individual in the country prefers working by themselves and minding their own business, which is different from France where they have a bit lower index of 71 for Individualism. Therefore, it affects the decision-making process in how every employee vote for the company’s innovation and also for the benefit that they will get if the decision is made.

Uncertainty Avoidance

Uncertainty Avoidance is the relation of the level of stress in a society in the face of an unknown future and “deals with a society’s tolerance for ambiguity” (Hofstede, 2011). Companies and firms may have a low level of uncertainty avoidance because it is common ground to have a strategic plan for the sake of the business’s existence. Also, they tend to have a backup plan whenever a big or influential decision is made.

The interviewee mentioned that the company has a thorough requirement for the hiring process to prevent problems arise among the employees, such as setting a minimum standard or level of English proficiency to prevent miscommunication in the international working environment. This act represents that the company has a moderate level of Uncertainty Avoidance Index. Nonetheless, the Netherlands has a lower Uncertainty Avoidance Index than France of 53 and 86. Hence, it could be compatible with the regulations made by the headquarters about the hiring requirements to avoid uncertainties and problems that may arise regarding delivering messages.

Masculinity vs Femininity

Masculinity versus femininity are the two approaches that initially referred to gender roles (men and women), where masculinity represents the assertive, ambitious, and differentiated gender roles, and femininity prioritizes caring and nurturing behaviors, and equality in an environment that they lived in (Hofstede, 2011).

The motivation that the employees have based on what the interviewee described leans towards the quality of life or so-called femininity. He interpreted one of the examples of how the working environment is reliable for the workers, especially the internationals, such as the top manager and the IT (Information Technology) department always tracked down the meeting and make sure the benefits are not just for the company but also to fulfill the employees’ rights and needs. Therefore, it is often common in the Netherlands that have a low index of Masculinity or “Motivation Towards Achievements and Success” (14/100). This index has a piece of supported evidence that the people and the government in the Netherlands were familiar with the “work-life balance” term that could benefit the well-being of its citizens or workers.

Long-Term Orientation vs Short Term Orientation

The fifth dimension of Hofstede was linked to perseverance and economic growth at the time Hofstede wrote the research paper (Hofstede, 2011). Long-term orientation is the approach where the firms or companies are prepared to be adaptable and resistant to the changes that will happen in the future. In business practices, this dimension is shown in the financial budgeting or “expected outcome” where this act is made to prevent risk and problems that will occur.

Although the index of Uncertainty Avoidance is moderate, the Long-Term Orientation Index for both the Netherlands and the company is relatively high compared to France (67:60). The company has its strategic plans for a few years ahead. For instance, they made their 2025 strategic plan in 2022 about GTS which stands for Growth-Technology-Sustainability (2025 Strategic Plan: Discover It Now! | BNP Paribas, n.d.). This strategic plan impacts the workforce of the company’s productivity and optimizes its decisions to be aligned with its strategic plan and goals.

Outcome

The interview made it clear that this company is multicultural and actively striving towards diversity. The office based in the Netherlands often must communicate with different departments across the world and have standards and policies to do so. The bank encourages to create a safe workspace for everyone to make sure communication flows well.

To work at the company, a high level of the English language is a required. This makes sure everyone is able to communicate with each other and to prevent any miscommunication. When dealing with departments or other offices who do not speak English, there is a translation software available which is solely used by the bank to ensure the safety of the information.

The people who work there have different backgrounds and ethnicities which is respected. During the interview, the interviewee shared that due to the office in Amsterdam being smaller, most of the employees know each other and can be formal as well as informal at the workplace.

There were no prohibitive factors found during the interview. The interviewee mentioned there are not any specific, apart from the company wanting a safe space for all the employees. This makes the company approachable for people coming from different backgrounds.

Possible solutions

Due to the translation software and the policies regarding language, the company experiences little to no miscommunication and when this does occur, they have very solution focused approach to this. Often, they just call the other party or email them to inform about the miscommunication, and the situation is handled.

The company strives for an equal workplace with a percentage on how many men and women there should be working there to fight against discrimination. They are open about this towards their employees and share their values with them.

The interviewee shared that they have not experienced any difficult situations and says that due to respect towards each other most conflicts are handled without any trouble.

Authors

Annerina Tuijnman (LinkedIn)
Student: Business Administration, Amsterdam University of Applied Sciences
Block 2, Semester 1, 2024

Angelica Setiono
Student: International Business, Amsterdam University of Applied Sciences
Block 2, Semester 1, 2024

Isa van Delft (LinkedIn)
Student: Business Administration, Amsterdam University of Applied Sciences
Block 4, Semester 1, 2024

Jean Harder
Student: Business Administration, Amsterdam University of Applied Sciences
Block 3, Semester 1, 2024