The exploration of Hofstede’s cultural dimensions during the interview provided a comprehensive understanding of the company’s organizational culture. The good balance of individualism versus Collectivism, lower power distance, and efforts to address aspects of masculinity versus femininity showcased the company’s nuanced approach to cultural dynamics.

The interview outcome revealed valuable insights applicable to organizational success. The company’s proactive stance in addressing gender imbalances demonstrated the benefits of fostering diversity and inclusion, focusing globally with decentralized decisions. The adoptions of English as the common language as the common language highlighted the importance of bringing communication together, reducing power distance, and ensuring equal opportunities for all employees. The structured approach to employee welfare, including a comprehensive reporting mechanism and a code of conduct, highlighted the importance of clear regulations and procedures for a healthy work environment.

Examining possible solutions, the company’s commitment to gender diversity was evident in its transformation, moving towards a gender inclusive environment. The shift from a male dominated board to a balanced composition reflected an individualistic approach challenging gender stereotypes. The organization’s decentralized structure, emphasizing freedom within a framework, aligned with a lower power distance, emphasizing autonomy and individual decision making.

The company’s global adaptability was facilitated by empowering local teams, acknowledging the importance of fairness in decision-making. The organization’s thorough procedure for handling employee issues demonstrated a preference for well-defined regulations and procedures, emphasizing the avoidance of uncertainty.

In essence, the company’s cultural dynamics, as explained in the interview, portrayed a commitment to inclusivity, adaptability, and continuous improvement, offering valuable lessons for organizations aspiring to build employee-focused and inclusive workplaces in a dynamic global landscape.

Hofstede Dimensions

The theory of the 5 dimensions of Hofstede is a theoretical model developed by the Dutch sociologist Geert Hofstede. This model is intended to understand and measure cultural difference between countries. The five dimensions are:

1. Power Distance: This dimension measures the extent to which the distribution of power in a society is considered normal. Countries with a high-power distance have a large gap between those in power and ordinary people, while countries with a low power distance promote more equality and participation (Sridharan 2024).

2. Individualism vs. Collectivism: This dimension measures the extent to which individuals prioritize their own interests over those of the group. Individualistic societies value personal freedom and autonomy, while collectivist societies emphasize social cohesion and harmony (Sridharan 2024).

3. Masculinity vs. Femininity: This dimension measures the extent to which a society values traditionally masculine or feminine values. Masculine societies emphasize achievement, success, and competition, while feminine societies value quality of life, care for others, and cooperation (Sridharan 2024).

4. Uncertainty Avoidance: This dimension measures the extent to which people feel threatened by uncertain situations and try to avoid them. Societies with high uncertainty avoidance have a strong need for rules, structure, and predictability, while societies with low uncertainty avoidance are more open to change and risks (Sridharan 2024).

5. Long-Term vs. Short-Term Orientation: This dimension measures the extent to which a society is focused on preserving traditional norms and values versus striving for future rewards. Countries with a long-term orientation value thrift, persistence, and respecting social obligations, while countries with a short-term orientation place more emphasis on achieving quick results and enjoying life in the present (Sridharan 2024).

Understanding these dimensions can help explain cultural differences and navigate intercultural situations. However, it is important to remember that these dimensions are generalizations and individuals within a society can still have unique values and beliefs.

During the interview, it shed light on several aspects of the company’s organizational culture, revealing a nuanced approach that aligns with various dimensions of Hofstede’s cultural framework. One dimension that stands out prominently is Individualism versus Collectivism.

The discussion highlighted the company’s commitment to valuing both individual contributions and team collaboration, with a role-dependent emphasis on either individual or collective goals. For instance, sales roles were described as having individual targets and variable pay tied to individual performance, underscoring an individualistic orientation. Conversely, finance and HR roles were portrayed as focusing more on group objectives, showcasing a collective ethos within those functions.

Moreover, the organization’s inclination towards a decentralized structure and the philosophy of “freedom within a framework” exemplify characteristics associated with lower Power Distance. This approach empowers local country teams to make decisions tailored to their respective markets, suggesting a preference for more egalitarian power dynamics.

Additionally, the interview touched upon initiatives aimed at improving gender diversity and increasing the representation of women in senior management. This effort aligns with the dimension of Masculinity versus Femininity, as it reflects a conscious move towards balancing traditionally masculine values of achievement with feminine values emphasizing relationships and quality of life.

In essence, the organization’s cultural dynamics, as elucidated in the interview, highlight a delicate interplay of Individualism versus Collectivism, lower Power Distance, and a conscious effort to address aspects of Masculinity versus Femininity within its operational framework.

Outcome

The company’s interview outcome provides valuable insights applicable to organizational success. The proactive approach in addressing gender imbalances within leadership demonstrates the benefits of fostering diversity and inclusion deliberately. Embracing cultural shifts for global adaptability, as seen in decentralized decision-making, highlights the importance of inclusivity for effective decision-making in a diverse workforce.

The adoption of a common language, English, showcases the significance of unifying communication in a global organization, reducing power distance, and providing equal opportunities for all employees. The company’s structured approach to employee welfare, including a comprehensive reporting mechanism and code of conduct, emphasizes the importance of clear regulations and procedures for promoting a healthy work environment.

Ultimately, the company’s commitment to ongoing improvement underscores the necessity for organizations to adapt continuously and learn from challenges, ensuring sustained success in a dynamic global landscape. In summary, the interview outcome offers key lessons for organizations aspiring to build inclusive, adaptable, and employee-centric workplaces.

Positive solutions

The company interviewed operates across all continents except Africa, emphasizing diversity and inclusion as core values. This section explores a notable example of a company implementing best practices and creating positive solutions through the application of ethnographic procedures. Focusing on issues like gender diversity, global adaptability, and employee welfare, we examine how the organization strategically addressed challenges and fostered cultural shifts. This example highlights how the company effectively applies ethnographic methods to handle challenges and attain favorable results, demonstrating a comprehensive method for addressing problems and cultural changes.

To start off, the initial challenge faced by the organization was the historical lack of diversity on the board and in senior management positions. Five years ago, the board comprised only males, highlighting a need for a more inclusive approach. As a positive solution, the organization has undergone significant changes. The board, once solely comprised of males, will soon have six members, with three men and three women. Notably, the upcoming CEO will be a woman and they now give preference to women if there is equal work quality, reflecting a commitment to swift and substantial shifts towards gender diversity. The recent shift in board composition to achieve gender balance, with three men and three women, and a female CEO, clearly shows an individualistic approach to challenge long-standing gender stereotypes and encourage diversity in top positions. From a cultural perspective, the transformation can be viewed through the lens of Hofstede’s dimensions. Going from having only men on the board to having a mix shows a move away from a culture that’s likely quite masculine. Instead, it’s becoming more feminist and gender-inclusive environment. This change shows a shift in how the organization operates, moving away from old ideas about gender roles and moving towards a more team-oriented approach that appreciates having different kinds of people in top roles (Tidwell, n.d.-a). 

Furthermore, the company does not experience challenges in adapting its services and strategies to different global markets as the organization recognizes the importance of fairness in decision-making, acknowledging that impartial processes result in better results. A notable characteristic of the company is the considerable amount of freedom provided within its structure. Teams globally are empowered, allowing them to decide on the most suitable frameworks for their respective markets. By empowering global teams, the company recognizes that these teams, being near their specific markets, hold valuable knowledge to make choices that suit their individual situations. This highlights the organization’s decentralized approach to decision-making. Teams have freedom; however, they must follow guidelines to align with the organization’s ground rules, striking a balance between autonomy and adherence to the overall framework. The Hofstede dimension that could be relevant in this context is “Individualism vs. Collectivism.”. The organization places a premium on autonomy and acknowledges the significance of decentralized decision-making, reflecting a culture that leans towards individualism. Within a more individualistic cultural framework, there is heightened emphasis on personal freedom, autonomy, and individual decision-making (Wale, 2023).

Additionally, to avoid miscommunication there is a corporate language stablished, namely English. Employees are required to communicate within the company with an English business level, to avoid all kinds of conflicts. Because it is a worldwide company, there is a balance between native English speakers and non-native English speakers.

Non-native speakers are given the same opportunities as the native ones to communicate with each other. The adoption of English as the official language in the workplace signifies a commitment to maintaining a low power distance. This decision is rooted in the goal of providing equal communication opportunities to all employees, regardless of their mother tongue. The objective is to reduce hierarchical disparities in communication and foster a more egalitarian atmosphere within the organization (De Bruin, 2020).

Lastly, the lack of awareness or understanding among employees about the available reporting mechanisms could have been a problem. The company places a high value on the welfare of its staff by implementing a thorough procedure to deal with discomfort and safety issues. This process addresses various concerns, such as business relationships, internal workplace dynamics, bullying, and both formal and physical harassment. They use a code of conduct, a written document outlining expected employee behavior. If someone within the company fails to adhere to the code of conduct, the company provides three options for employees to address concerns. Firstly, they can choose to communicate with their manager if they feel comfortable. If not, or if the manager is the issue, they can contact a compliance person within the company. If they do not feel secure within the company, they can utilize a speak-up channel, where an external entity unaffiliated with the company connects with the employee. The company’s adoption of a thorough and organized approach to handle employee issues, incorporating a set of rules and various reporting channels, demonstrates a strong inclination towards avoiding uncertainty. This suggests a preference for well-defined regulations and procedures to reduce confusion and unpredictability within the company (Agodzo, 2015).

Authors

Saskia Janse (LinkedIn)
Student: Business studies Hogeschool van Amsterdam
Block 2, Semester 1, 2024

Mariane Dourado Saraiva Pessoa
Student: International Business Hogeschool van Amsterdam
Block 2, Semester 1, 2024

Giovana Braghetto Otero
Student: International Business Hogeschool van Amsterdam
Block 2, Semester 1, 2024

Ryan Joelfan
Student: Business studies Hogeschool van Amsterdam
Block 2, Semester 1, 2024

References

• Agodzo, D. (2015). Six Approaches to understanding National Cultures: Hofstede’s Cultural Dimensions. ResearchGate.https://doi.org/10.13140/RG.2.1.5041.8009
• Sridharan, M. (2024). Hofstede’s Cultural Dimensions. Think Insights. https://thinkinsights.net/leadership/hofstede-cultural-dimensions/#:~:text=Power%20distance%2C%20uncertainty%20avoidance%2C%20individualism,and%20indulgence%20to%20this%20list
• Tidwell, C. (n.d.-a). Hofstede LongTerm / Short Term Traits. https://www.andrews.edu/~tidwell/HofstedeLongTerm.html
• Tidwell, C. (n.d.-b). Hofstede Masculinity / Femininity Traits. https://www.andrews.edu/~tidwell/bsad560/HofstedeMasculinity.html
• Wale, H. (2023). Hofstede’s Cultural Dimensions Theory. Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/management/hofstedes-cultural-dimensions-theory/#:~:text=Individualism%20vs.%20Collectivism&text=In%20individualistic%20societies%2C%20the%20emphasis,well%2Dbeing%20of%20the%20group.
• Weaver, G. (n.d.). INTERCULTURAL RELATIONS Communication, Identity, and Conflict. Pearson.

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

For the anonymous case model, a council member at a big bank that also operates worldwide was interviewed. The ethnicity and the culture he grew up in is the Netherlands. This source was used to find the cultural differences that arise from the bank and how these cultural differences are managed when dealing with cultural diversity.

During the interview, we asked the interviewee questions when it comes to cultural differences inside of the bank, prohibitive/inhibitive issues, and regarding the Hofstede dimensions. Some of these questions include: What could be perceived as either prohibitive or inhibitive issues that the organization addresses and How is the masculinity vs. femininity rate at the organization? The answers will be analyzed in this case and we will go over the Hofstede dimensions of the Netherlands and the bank, and continue on to the outcome, and possible solutions.

Hofstede Dimensions

Geert Hofstede created the theoretical framework known as Hofstede’s cultural dimensions theory. The Power Distance Index, Individualism vs. Collectivism, Masculinity vs. Femininity, Uncertainty Avoidance Index and Long Term vs. Short Term Orientation dimensions are the model’s five main aspects. Based on Hofstede’s research on the attitudes and conduct of IBM employees between 1967 and 1973, the initial model was developed (Dewiyanti, 2021). The model, therefore, illustrates how a society’s culture affects its citizens’ values and how these values connect to behavior.

Power Distance Index

Hofstede’s power distance dimension deals with the fact that all individuals are not equal, both in society and in companies. The precise definition of power distance reads “the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally” (Hofstede-insights, n.d.). This may translate into leaders having a lot more authority than the typical person in a social situation. This corresponds to a hierarchical, centralized structure within a firm that places the power of decision-making in the hands of a select few people. Rarely is this authority shared with or assigned to subordinate personnel.

The Netherlands has a rather low rating on this dimension (38 out of 100) as a nation. This indicates that favoring equality for everyone is the goal. Low power distance is primarily characterized by independence, accessibility of leaders, coaching, and hierarchy established for personal convenience. High levels of monitoring and control are despised, whereas direct, honest, and participatory communication is preferred. The power distance varies depending on the firm branch and industry at the company we interviewed. When it comes to the council of the bank, collaboration is encouraged, and the individual and their supervisor have a tight, unhurried connection. This clearly explains the link between the bank and the power distance in the Netherlands.

Individualism Vs. Collectivism

Individualism is the practice of being self-sufficient and independent; it holds that rather than teamwork and shared responsibility, each person’s freedom of thought and action is the most significant aspect of a community (Hofstede-insights, n.d.). On the other hand, collectivism is the practice or concept of prioritizing a group over each member within it. If an individual builds their self-image on “I” or “We,” then this dimension concerns “the level of dependence a society maintains among its members” (Hofstede-insights, n.d.).

The Netherlands has a very high score of 80 on this dimension, making it a nation that values individualism over all else. This results in a stretchy social structure where the individual is given priority and is solely required to look out for themselves and their close family members. In the business environment, this indicates that the person is urged to realize their full potential and try to advance themselves. The basis of the relationship between the employer and the employee is likewise one of prosperity and mutual benefit.

While reflecting upon his experience at the bank, the interviewee surprisingly reports a high level of collaboration, collectivism, and collectivistic behaviors being exhibited which is understandable since a council usually promotes teamwork. The council members commonly “work together” to accomplish shared objectives. With specific areas and duties that allow for individual work, there are also possibilities to be individualistic. Even if this does not totally support the characteristics that a business operating in The Netherlands ought to have, this may be explained by the corporation’s nature. the bank may feel the need to promote collectivism as a business in a cutthroat industry in order to foster innovation and sustainability and provide it with a competitive edge. It’s also possible that specialists or higher-ups who are thought to be better competent at working alone and making important judgments without guidance or assistance from others are given more responsibility for making tasks and decisions.

Uncertainty Avoidance Index

Uncertainty avoidance represents the way that society deals with the fact that the future is unknown according to Hofstede-insights. In a business setting, this can contribute to the amount of risk taken or being deemed acceptable. With The Netherlands having a score of 53, there is a slight preference for avoiding uncertainty. This corresponds to what the interviewee has reported.

With that being said, looking at this specific dimension, there is a clear level of bidirectional ambiguity involved which the interviewee also mentioned; it is unclear whether the low risk is due to the cultural dimensions, or due to the nature of the industry itself. The banking and finance industry is generally strictly regulated and has a number of measures in place to calculate and assess risk. The structure of a banking company itself is very centralized – decision-making power, which includes planning and risk management, typically lies within a few chosen individuals, which minimizes the amount of risk that each individual employee can take.

Furthermore, the external environment plays a substantial role within this specific dimension; following the events of 2008, where banks took on a significant amount of risk with subprime mortgages, people who are employed at banks may be naturally resistant or weary of risk. This may thus cause the uncertainty avoidance index to be even higher within the banking industry, especially at the lower levels of management, among inexperienced or entry-level employees.

Masculinity Vs. Femininity

In the following Hofstede dimension, masculinity is the trait that emphasizes ambition, acquisition of wealth, and differentiated gender roles. Femininity is a dimension that prioritizes caring and nurturing behaviors, equality, environmental awareness, and gender-fluid roles. The Netherlands scores very low on masculinity (14/100), which makes it a Feminine society. In the work environment, high masculinity usually translates into a larger gender wage gap, fewer women in management, and a preference for higher pay and rewards. Low masculinity, or femininity, results in the opposite effects.

The bank has a quite diverse workforce, particularly with regard to gender representation on its council. The bank also actively promotes gender equality and has implemented policies to ensure that women are well-represented at all levels of the organization. Overall, the dimension at the bank corresponds with the level in the Netherlands. This is verified through the interview where the employee mentioned a myriad of characteristics associated with a feminine society: long-term vision, specifically concerning the environment and sustainability, equal wages, and equal rights and treatment of the genders.

Long-Term Orientation Vs. Short-Term Orientation

Long-term orientation is defined within this dimension as “the cultivation of virtues directed towards future benefits, particularly persistence and thrift” (Hofstede-insights, n.d.). In other words, societies that are long-term oriented place a strong focus on the future, especially on perseverance. Contrarily, short-term orientation places a strong premium on immediate results.

Within the business environment, this translates into the importance of relationships and market positioning, and the bottom line respectively. The Netherlands is categorized as a culture focused on the long term. This means that it has a pragmatic nature and individuals are likely to easily adapt to traditions and show a strong propensity to save and invest. During the interview, it has been revealed that, due to the sheer size of the company, there are multiple operations and projects occurring simultaneously. There are “a lot of short-term projects” at the bank however, in general, due to the nature of the banking industry, most operations are focused on the long term. Currently, there are also projects in place related to the environment and sustainability which falls under long-term orientation.

Outcome

The company implements a comprehensive diversity policy that encompasses both the composition of teams and the cultivation of an inclusive corporate culture. Specifically, the bank strives to achieve diversity among its employees regarding factors such as gender, cultural background, and age, alt- hough it mostly leans more on Dutch norms and values. Additionally, it creates an environment in which all employees are encouraged to embrace and respect the backgrounds of their colleagues, thereby ensuring that no one is excluded.

According to the interview, the bank is indeed quite diverse, with a mix of different cultures present. However, everyone speaks the same language. This may be an issue for potential new employees, as they will need to be fluent in this language in order to effectively function within the company.

No significant prohibitive or inhibitory factors were reported in the interview, which would make it easy for many other cultures to work with the bank. Additionally, the power distance within the council is relatively low, with the director and secretary having the most power, but the overall power difference is not significant.

The bank also stated that they are working towards achieving a balance between men and women, with some departments having more women than men. This indicates that the company is making progress in terms of the masculinity rate.

Possible solutions

As we were able to observe through the interview carried out and a bit of research, we observed that the bank is a company with a very good culture, since the interviewee tells us that the company pro- motes a lot of equality and respect among employees, in addition to fighting for so many men and women have the same opportunities, which caught our attention.

One of the few problems we found is that most of its council members only speak one language (Dutch) in the Dutch offices, since being a multinational company this could be a communication barrier between employees, council members, and even when closing deals or agreements. The possible solution that we propose is that employees must at least know basic English, which is a language used throughout the world so that the language does not be more of a communication barrier.

Another problem identified is that in the interview it is mentioned that most of their projects are short- term, for which one might believe that they are small projects, something that could be implemented is to create SMART objectives and thus be able to define large long-term projects.

Authors

Jasper Singh (LinkedIn)
Student: International Business, Amsterdam University of Applied Sciences Block 2, Semester 1, 2022

Tim Heus
Student: International Business, Amsterdam University of Applied Sciences Block 2, Semester 1, 2022

Joanna Szadkowska (LinkedIn)
Student: Financial Management, Kozminski University Block 2, Semester 1, 2022

Fransisco Javier Valdez Perez
Student: Marketing Tecnológico de Monterrey Block 2, Semester 1, 2022

For the given assignment, we interviewed a  female Hungarian with a Law degree, who is currently a Team Leader for the US lease abstraction team.  The company is a US based real estate firm that is offshoring its lease abstraction to Hungary, Budapest. We as team figured it would be very interesting to compare the two countries and their cultures. Therefore, we have arranged an interview in order to understand the differences and the intercultural communication between the two entities.

Our interviewee has been working for the company since 2017. The company is offering portfolio administration services to clients in order to manage their office, storage, warehouse leases. To earn more profit, the company is offshoring its back-office services to a cost benefit country. In this case to Budapest, Hungary. The clients are from all around the world; however, our interviewee is only responsible for the US client base. In the past 4 years she has been working with colleagues and clients from the US. Her job description requires her to understand the American culture for her team to provide quality lease abstraction within the given time frame. She believes that it took her time to understand the Americans and the way they deal with business in general. Various sorts of prohibitive and inhibitive conduct associated were explored throughout the interview. The Hungarian and the American culture were the focus of our study, and the conduct described is based on our interviewee’s personal experiences with this culture.

Hofstede Dimensions

Given the company has its origins in the United States and offshore its services in Hungary, the comparisons regarding the Hofstede Dimensions will be done between these two countries. Our interviewee and her business partner both have a great understanding of the Hungarian culture regarding to the theories of Hofstede. Besides that, they are both working for a multinational that has great American influences within the company as a result of its origins.

Values and Behaviors

Our interviewee introduced us to the Hungarian values and behaviors. When individuals in US inquire, “How are you?” the response is usually, “I’m fine.” “How are you doing?” This question frequently produces a ranting response of complaints in Hungary. Whether you call it pessimism or realism, Hungarians are outspoken and direct. Someone will let you know if they have even the tiniest issue with something. They could come out as unpleasant or abrupt, but that’s just who they are. She explained that it is inhibitive to talk with Hungarians about their history or challenge it. The Hungarian people have had a difficult history, with constant invasions and occupations attempting to suppress Hungarian culture. Mongols, Turks, Habsburgs, Germans, and Russians have all left lasting scars on the country. Suspicion, over-vigilance, and critical thinking are some of the cultural qualities that arise.

If you are invited to a Hungarian’s house, it is inhibitive not to bring a present; guests should offer a box of chocolates, liquor, or flowers for the host and their children. Moreover, it is inhibitive for guests not to remove their shoes before entering the home of a Hungarian host. The visitors are expected to maintain the hosts’ house clean and thus show their respect.

People in Hungary respect the elders and are family oriented. It is rather inhibitive and rude to not give your seat on the public transportation, to not offer them your help and to not address them politely.

Please find below common values that are shared between the people of Hungary:

• Pessimism (history)
• Weaver suggests that political actions could also be a result from cultural factors (Weaver, 2014)
• Respecting elderly

Power distance

“The extent to which the less powerful members of institutions and organizations within a society assume and accept that power is allocated unequally” is how power distance is defined (Hofstede G. & Hofstede G.I., 2002).

According to our interviewee, in Hungary there is somewhat of a power distance as they maintain a certain hierarchy that is accepted throughout the country. In the country, everyone listens to Viktor Orbán who is mainly in charge of the bigger decisions within Hungary. This has somewhat to do with Hungary’s past in which they were part of the Soviet Union. According to Hofstede’s index Hungary scores 46 on a scale of 100. If we compare this to the country the company originates from, the United States, we see that there’s little to no difference as they score a 40. 

This underlines the conversation we had about this dimension with our interviewee. She told us that she’s had a lot of interaction with her American colleagues from which she didn’t really experience somewhat of a discomfort regarding this dimension. She told us for example that during meetings there were the same manners to people who have seniority within the company, just like they do in Hungary. 

Individualism vs. Collectivism

“Individualism can be defined as a preference for a loosely-knit social framework in which individuals are expected to take care of only themselves and their immediate families. Collectivism represents a preference for a tightly-knit framework in society in which individuals can expect their relatives or members of a particular ingroup to look after them in exchange for unquestioning loyalty” is how individualism versus collectivism is defined (Hofstede Insights, 2021).

With a score of 80 out of 100 on Hofstede’s index for individualism versus collectivism, it can be said that Hungary is familiar with the concept of individualism. What such a high score on this scale shows us is that Hungarian people are expected to take care of themselves and their immediate families only.

When we compare the Hungarian score for individualism with the United States, we see the States score even higher, with a score of 91 out of 100. This means that a company the one we interviewed expects even more individualism from its Hungarian staff members then these members are used to.

Masculinity vs. Femininity

“The Masculinity side of the Masculinity versus Feminity dimension represents a preference in society for achievement, heroism, assertiveness, and material rewards for success. Its opposite, Feminity, stands for a preference for cooperation, modesty, caring for weak and quality of life” is how Masculinity versus Feminity is defined (Hofstede Insights, 2021).

Hungary scores 88 on a scale of 100 on Hofstede’s index when it comes to Masculinity. What this tells us is that the people in Hungary ‘live in order to work’. Managers are expected to be decisive and assertive. The emphasis is on equity, competition and performance and conflicts are resolved by fighting them out. The United States, the country the company originates from, also scores somewhat high on the Masculinity scale, with a score of 62. From this we can conclude that the United States is accustomed to the same work mentality as Hungary. This being the “Strive to be the best” and “winner takes all” mentality.

In the interview  it was confirmed that both Hungary and the United States share the same Masculine vision when it comes to work, but she also explained that Masculinity goes much further in Hungary, as the statistics show. The United States has a system that somewhat helps people getting back on their feet whenever they’re in trouble. In Hungary this is not the case. The focus is on being independent and being able to make it on your own.

Uncertainty avoidance

“The uncertainty avoidance dimension expresses the degree to which the members of a society feel uncomfortable with uncertainty and ambiguity” is how uncertainty avoidance is defined (Hofstede Insights, 2021).

Hungary scores 82 on a scale of 100 on Hofstede’s index when it comes to Uncertainty avoidance. What this says is that Hungary prefers avoiding uncertainty. This amplifies that the country is intolerant for unorthodox behaviour and ideas. There is a emotional need for rules (even if those rules never seem to work).

Please refer to the table below for the country comparison of Hungary and United States and their scores.

Outcome

The Hungarian offshore sites work with American colleagues on a day-to-day basis. The US Account Managers are providing the Hungarian Data Analyst with the leases and if something is not clear or the leases have discrepancies, they have to resolve the issue in a team. The level of employee skills at the offshored locations are essential when moving business services and operations. Given skills and knowledge are required of the employees to perform the goals set by the company.  In Hungary there is an adept talent pool with university and college degree graduates. However, miscommunication can be easily seen as Hungarians’ learnt English, and it is not their native language. Our interviewee told us that there have been delays in the SLAs because the Hungarian and the US team was going back and forth emailing and not resolving the problem. Moreover, the time difference made it difficult for them to keep track of the time. She also mentioned that the leases state the American way of putting the date mm/dd/yyyy while Hungarians are putting it yyyy/mm/dd. This resulted in using wrong lease agreement dates and commencement & expiration dates. Hungarians are way more straightforward as well and the Americans may have perceived it to be harsh or even offensive. Even though both the countries are western there are cultural differences that lead to miscommunication and less effective running of a company.

Possible solutions

To avoid miscommunication, the company is providing trainings for the Hungarian and also the US staff in order to understand the two countries cultures. Our interviewee informed us on the difficulties and how these norms, values and traditions may be bridged between the two nations. Moreover, there are English proficiency checkups as well to keep the quality abstraction of the leases and also to prevent miscommunication between the US and Hungary. Our interviewee said it is a long way to understand the two cultures as the employees come and go. Misunderstanding may occur but the leaders must communicate and resolve them internally.

Student Authors

Nikoletta Plantak (LinkedIn)
Student: Amsterdam School of International Business, Amsterdam University of Applied Sciences
Block 4, Semester 2, 2021

Stijn Koster (LinkedIn)
Student: Faculty of Business and Economics, Amsterdam University of Applied Sciences
Block 4, Semester 2, 2021

Daan Puijpe (LinkedIn)
Student: Faculty of Business and Economics, Amsterdam University of Applied Sciences
Block 4, Semester 2, 2021

The company we interviewed does asset management for real estate in several countries in Europe. The countries where they deploy their activities concerning asset management for real estate are Belgium, Germany, United Kingdom, Czech and of course the Netherlands. Within This company there are also four languages which are spoken: English, Dutch, German and Czech. The top of the hierarchy is obligated to master at least three languages. In general, they communicate in English. These languages function for internal communication and also for external communication since we have international clients.

For our office in Czech, we speak the local language mainly to adapt to their work culture, since most of their employees prefer to speak in their own language. This company have multiple different backgrounds, practically from every continent of the world, so without going into a certain background, they have plenty of employees that makes This company dynamic. The main cultures are European with the focus on Czech, Germany and Belgium.

The questions asked during the interview with the supervisor were aimed at how their employees in several countries deal with differences in some dimensions of the Hofstede theory such as power distance, hierarchy and uncertainty. Although his French name, at the beginning of the interview it was clear that the supervisor had grown up in the Dutch-western culture.

The supervisor indicated that the most recognizable cultural differences within this company are with their Czech colleagues. He points out that the cultural differences between Belgium, Germany and The United Kingdom are very little because they all are part of the well-known western culture of which the Netherlands is also a part. During the interview he explained a situation with a female Czech colleague; the Czech office had brought in a major customer who had a large real estate portfolio for over 40 million. For customers who have a real estate portfolio larger than 20 million the office needs to involve the main office and the CFO (Chief Finance Officer) which is placed in the Netherlands. The Czech employee followed this procedure and informed the CFO, but he had a very busy week with a lot of meetings, so he said to his Czech colleague that it was ok to handle on his own. However, the Czech colleague had never dealt with customers with a real estate portfolio larger than 10 million, the Czech tried to serve this major customer by listening to her boss/supervisor in the Netherlands, but the deal went wrong. At this stage of the interview the supervisor points out that this was a situation where the cultural differences in scores of power distance, hierarchy and masculinity were clearly visible.

Outcome

Power distance

When asked if the supervisor could describe any cultural limitation, he immediately makes a connection between Dutch and Czech power distance. He describes that power distance on the Dutch work floor in his words could be seen as flat. Communication between co-workers in different levels of hierarchy are mostly informal. Whereas the Czech’s were very formal towards people higher in hierarchy. Because the companies in different countries are so intertwined the hierarchy became intertwined too. This caused informal behaviour of the Dutch employees towards the Czech’s higher in hierarchy and very formal behaviour from Czechs towards Dutch colleagues of high hierarchy. When we asked what could be perceived as either prohibitive or inhibitive issues that the organisation addresses, the supervisor came back to the informal and formal case between Czech’s and the Dutch. He told us that the Czech very much perceived informal communication from a person lower in hierarchy to be inhibitive. This is a good reason why the Czech employee accepted the answer from the Dutch CFO which is higher in hierarchy.

Masculine vs Feminine

When we asked the supervisor to identify the value dimension gender (masculine vs feminine). He tells us that The Netherlands is by far the most feminine out of the 5 (Belgium, Germany, Czech & UK). We asked for an example, and he told us about the ‘recruiters. These people’s job is to get clients for the company and persuade them to choose This company. He said that the masculine countries try to persuade clients by promising them the best quality (achievement). Whereas the Dutch market their services as we make your life as a real estate owner easier (quality of life). He also gave us an internal example he told us the Czech’s are always available to contact even during their holidays. Whereas the Dutch don’t open their mailbox until they are back from holiday. It’s also seen as very inhibitive to call someone for work related questions when they are on holiday in The Netherlands. Whereas the Czechs always have their phones open and ready to help colleagues when they call during a holiday. According to the supervisor it’s because from a cultural standpoint the Czech strive to be the best at their work. While the Dutch just want to do his job accordingly and nothing extra. This also translates to why the Czech employee tried to do the job on her own after the CFO refused to help her like the protocol prescribed. This was her chance to show how good she is in her job and gaining a client in a real estate portfolio over 40 million is of course a very big achievement.

Individualism

The last interesting example of the value dimensions for our case was about individualism. The supervisor told us the Czech work way more together and finish tasks in groups, compared to the Dutch which all take a task for themselves. It’s a world of difference. According to Hofstede individualism is about in which magnitude a country thinks about itself. The Netherlands scores 80 out of 100 on this value, this means that most of the Dutch only look after their family, maybe their friends but not necessarily their co-workers. This also explains why the Dutch CFO didn’t seem to care if the Czech was ready for the job. A good example of the way of working is explained by the supervisor. He told us about an internal IT problem which the Dutch had problems with. They let one after the other IT members have a look at the problem, but they couldn’t solve it. Then when some Czech IT members came over for some meetings, they also let them have a look at the problem but instead of the Dutch they looked at it together and discussed what they saw together. It took the Czech only 1 hour to trace the origin of the problem. This difference in individualism can also explain the behaviour of the Dutch CFO who told the Czech to do it herself. If the CFO was a Czech, he or she would probably have reacted otherwise.

Possible Solutions/ Best Practice

The actions which were taken after the incident with the female Czech colleague and the Dutch CFO were drawing up procedures as a purpose to prevent such situations in the future. Furthermore, This company started to educate Czech employees to make sure they could handle major real estate portfolios. This company organized a weekly training program for over 4 months. This has led to a major improvement for Czech employees as individuals and as an office as well. It might sound funny, but they also got intercultural communication courses as well during this 4-month period of training. The super told us that they got in touch with the Hofstede dimensions, this was very pleasurable because we didn’t have to explain to the supervisor what the Hofstede theory means.

By now the Czech office is doing a great job, this is one of their offices with the least problem compared to other offices. This situation has contributed to improving the way we serve our potential customers, the supervisor said. The Czech office and employees are no longer dependent on the Dutch main office by handling major customers. This company want to implement this improvement to all their offices around Europe, aiming for strong and sustainable business operations. This development and situation also gave This company a purpose and a vision to grow globally.

Student Authors

Tom Tempessy (LinkedIn)
Student Faculty of Business and Economics, Amsterdam University of Applied Sciences, Amsterdam The Netherlands
Block 4, Semester 2, 2021

Thomas Schroeder (LinkedIn)
Student Faculty of Business and Economics, Amsterdam University of Applied Sciences, Amsterdam The Netherlands
Block 4, Semester 2, 2021

Kim Kraaij (LinkedIn)
Student Amsterdam School of International Business, Amsterdam University of Applied Sciences, Amsterdam The Netherlands
Block 4, Semester 2, 2021

Kamil Klijer (LinkedIn)
Student Faculty of Business and Economics,Amsterdam University of Applied Sciences, The Netherlands
Block 4, Semester 2, 2021

Forensic accounting is a procedure performed by auditors, where they conduct an examination on accounting practices, that investigate fraudulent actions. Through this examination, fraud and embezzlement are addressed. The auditor then must determine where the questionable financing has been allocated, by asking the entity to explain the nature of a financial transaction in court. This research is conducted as a small group assignment written by two students studying at the Amsterdam University of Applied Sciences, enrolled in the course International Business and Languages, and Business Administration. 

For this case study, we choose to conduct an interview from a big accounting firm in the Netherlands. This source was used to find the cultural difference that arise in a big four company and how these cultural differences are managed when dealing with fraud or embezzlement is found, which is discovered in the examination of forensic accounting. This case model examines embezzlement within the banking sector that was substantiated.

Power Distance Index

The company we interviewed has a hierarchical structure with growth opportunities. The partners are very accessible, and this is very normal within Dutch culture. We observed that there is a low power distance within the organization, which is partly due to high Dutch femininity in low power distance. Whereas British and German culture, there would be a greater power distance and higher masculinity.

Individualism vs collectivism

The person we interviewed is more collectivist. However, the employees are more individualistic. It is a big company with large departments, and it is therefore hard to get to know everyone. The direction tries to change that trough organizing events. Although everyone on the department is available for questions, employees of the Netherlands and Great Britain score relatively high on individualism, and people from Germany have a relatively low level of collectivism. These cultures could therefore clash with each other. People from Germany are used to collectivism, and it would therefore feel inhibitive for them to be motivated by personal rewards.

Uncertainty avoidance index (UAI)

According to the person we interviewed, the company investigated is a very safe place. If there is an issue, everyone knows where to go. Great Britain has a very low UAI, whereas the Netherlands has a higher UAI index, and Germany the highest level of UAI. We observed that the company investigated has a low UAI level, which means that the relaxed attitude would feel inhibitive for the German employees.

Masculinity vs femininity

There are more men working at the investigated company than women, although the proportion of women is increasing. In the HR department the majority are woman. This is very normal for the Dutch culture because of the lower level of masculinity. This would feel inhibitive for the German employees, since they have a higher level of masculinity.

Long-term orientation vs short term orientation

According to the person we interviewed, the company investigated is like a teaching school. Most people are growing in the curve, and some people do not become partners and go somewhere else. The company does have a long-term view, as an employee, you can gain a lot of experience and learn a great deal. In addition, the company offers a good basis for your carrier. The employees from Germany are also long term oriented, therefore they would feel very comfortable with this type of behaviours. Dutch and British people are less long term oriented, this would, however; not be an issue for them, because they can leave the investigated company whenever they want.

Outcome

The current situation is that the company being investigated embezzled two milliard euros. The British forensic accountant did not notice this when making the balance sheet for the company being investigated. An employer of a German accounting firm took the time to further examine this case and found the mistake that British accountant had missed, namely the fact that senior executives had secret interests in an offshore investment vehicle. 

Employees of the company being investigated started to become suspicious on the fact that individuals were suddenly investing a great deal of money into the investigated company and then winning a lot of money back. Therefore, 40 forensic accountants of the German accounting firm were hired to dig through the company’s books. The British forensic accountant reported that there was no need for extra attention on this issue because the British accounting organization was “evaluating the matters sufficiently”. This categorizes the uncertainty avoidance of Great Britain as their cultures tends to have more tolerance for ambiguity orientation than Germany. The forensic accountant of the Germany accounting firm noticed that the British accounting organization was indolent when asking for documentations on accounts in Asia. As Germany scores highly on the uncertainty avoidance scale of Hofstede, meaning that they have a need for certainty orientation, it did not come as a surprise when the German accounting firm said that the documentation was not enough, and they insisted on seeing original documents. It was noticeable that the individual who was interviewed, was surprised by the reaction from the British accountant. This categorizes her for her Dutch culture, as the Dutch and German culture do not differ much on the uncertainty avoidance index.

Furthermore, the person we interviewed told us that the investigated company lost a lot of money on the stock market, due to this scandal. Germany is categorized as a company that scores lower on the individualism index, compared to the Netherlands and Great Britain. As mentioned before, the person we interviewed does not categorize herself as being an individualistic, but does feel that the employees of the German accounting firm do have this culture. When asking her why, she said that she thinks it is because she works in the HR department, where being collectivistic is a requirement. The company being investigated reacted to the scandal by defending itself and aggressively hitting back at critics, which was a weird action as this company was categorized as a company with a low individual index, where the focus lies on the degree to which the society reinforces individual achievement or failure.

The power distance, masculinity, and femininity long-term and short-term orientation were not explicitly used by the German accounting firm for handling the investigated company’s scandal. Therefore, only the applicable dimensions of Hofstede were presented in the outcome.

Possible solutions/ best practice

The company we interviewed saw that there were more cultural clashes than they thought. They also saw that this was an important factor to work easily together. That is why they gave their employees a special gift. For Christmas, they gave their employees a book with information about cultural differences. This opened the employees’ eyes and made them understand why people from other countries handled the situation in that way. According to the person we interviewed, the impact of the book was immediate, and that the number of clashes decreased.

Student Authors

Kimberly Buitenhuis (LinkedIn)
Student, International business and Languages, Amsterdam University of Applied Sciences, The Netherlands
Block 4, Semester 2, 2021

Bilal Lazaar (LinkedIn)
Faculty Business and Economics Amsterdam, University of Applied Sciences, The Netherlands
Block 4, Semester 2, 2021

Transnational companies have a responsibility to adapt their corporate culture as well as their services to countries they operate within. To function worldwide a strategic approach has to be taken to expand the geographical presence of the business while maintaining the trust of the clients and providing high quality services. In some cases, having offices in various markets is necessary because it provides more trust from potential customers towards the company.

An individual approach is applied by a company that provides financial services to handle communication with people, depending on their culture. They choose frequency of calls and letters depending on the country and the way that has been the most efficient in the region based on their previous practice. One such organisation services has recently expanded to the United Arab Emirates in order to enhance the communication flow between the company and its clients. As the United Arab Emirates has a collectivistic culture, loyalty is crucial when sustaining the relationship. 

However, there are many differences when it comes to culture diversity between countries. The United Arab Emirates is a great example. Since the country is a Muslim country, they also include their sharia law along with their regular laws. This has a great influence in the business industry. In the United Arab Emirates, it is prohibited for woman to wear clothes that would expose too much flesh. While the country where the company is located, it is inhibitive for woman to wear whatever they want, as long as it aligns with their formal dress code. When a woman bares too much flesh it can result in imprisonment followed by deportation, in worst case scenario. In United Arab Emirates business industry, sa hierarchical order is being accepted, with no further justification. All employees usually follow what their manager or director tells them to do, since the country high on power distance. The company on the other hand is low on power distance. They are more decentralized, and the manager count on the experience of their team members. There is mostly an informal attitude towards employer and employee.

Hofestede Dimsions:

https://tcps.institute/cultural_bridges_tool.html

Outcome

This case was about the diversity between cultures in the Netherlands and the United Arab Emirates, a country that is more focused on religion than regular laws. From the interview taken from the Dutch company, the diversity in cultures in the Netherlands aren’t that diverse. However, when it comes to a country that is more focused on religion, there is huge difference. The Netherlands is a country that isn’t big on power distance or masculinity. While the United Arab Emirates strive for power distance and are low on individualism.

Authors

Anastasiia Loniushkina: Block 2, Semester 1, 2020/2021
(LinkedIn)

Simran Singh: Block 2, Semester 1, 2020/2021
(LinkedIn)

Klaudio Liro: Block 2, Semester 1, 2020/2021
(LinkedIn)

Mikita Salmanovich: Block 2, Semester 1, 2020/2021
(LinkedIn)

Four international students are interviewing the father of one of the students, who is the CEO of the Central and Eastern European division of one of the biggest international accounting companies in the world, in order to gain insight on potential corporate cultural issues for a project. Two of the students study in Poland and the other two in The Netherlands. The CEO comes from Poland – a country with a very high level of uncertainty avoidance and a large power distance. 

The questions focused on the type of customers the company receives, their corporate culture and how the company deals with potential issues that might occur. However, during the interview an issue occurred – he refused to give detailed answers about the company and did not share any situation or negative incident where a cultural issue occurred, despite being asked several leading questions. All responses painted the company in a positive light. The interviewee said they hired the proper employees for the job which they do through an extensive selection process. When employees do get hired, they work in a very risk aversive environment where it’s prohibitive to make mistakes illustrated by their zero-tolerance policy for fraud and unacceptable social, racial or sexual behaviors. The result of this is an uninhibited independent structure for reporting abusive or inappropriate behavior. An example of this, would be the careful selection of qualified translators to assist in cross-border collaboration, depending on the region of operation. Through the inclusion and diversity programs employees are able to adapt to the company culture where all issues are dealt with. The CEO highlighted this by expressing that the company’s culture is rooted in their values, integrity, and open and honest communication where they focus on building trust and collaborating in a flexible and diverse environment, to bring out the best in each other.

The student team got together to discuss the interview and noticed a clash in perspectives. The students from The Netherlands viewed the answers as short and insufficient while the students from Poland found the information provided adequate. The Polish students argued that one of the issues that might have led to short, direct and repetitive answers is the fact that the purpose of the interview was not clearly stated before the interview. This meant that the interviewee was not aware how his answers would be used later on in the project. On the other hand, the students from The Netherlands viewed his responses as incomplete and concealed due to being from a highly masculine society where admitting to mistakes is inhibitive, as it is likely to reflect incompetence. Another factor that could have influenced the answers which received is the power distance. It could be that the interviewee felt it was prohibitive to disclose information about problems within the company because of the large power distance and role as CEO. 

Hofestede Dimensions

https://tcps.institute/cultural_bridges_tool.html

OUTCOME

Hierarchy: The CEO doesn’t want to answer the leading questions because he comes from a very large power distance society (68). A man of his stature in Poland is probably not used to disclosing such intimate details about his place of work as a high-ranking professional. It could also relate to the fact that his own son was the main interviewer and revealing issues within a company that he is in charge of can be inhibitive from his perspective. The students from The Netherlands made this assumption on the basis that Poland had a much higher power distance than The Netherlands and ruled it reasonable.

Identity: Although the Polish society scores lower (60) than the Dutch in individualism (80), it remains relatively high. Even though Polish society is an individualistic society, the employees within the company adjust to the internal company culture that is present within the workplace and behave as one collective group identity with the abovementioned shared values. 

Gender: There was a clear pattern in the CEO’s responses to suggestive questions by giving the short and repetitive answer of ‘no’. This pattern can be explained through the high masculinity score of Poland (64). The masculine society puts social pressure onto the CEO which makes it prohibitive for the CEO to admit problems that occurred within the company. Within the Polish society accounting firms are generally competitive and using emotive language such as “fraud” instead of more cognitive language could result in more defensive answers. This is done to maintain high standards and not “lose” in the public’s eye.

Truth: The company seems to have adopted a high uncertainty avoidance mindset according to multiple answers provided by the interviewee. All answers illustrated high precaution and high-risk aversion such as their extensive hiring process and their zero-tolerance policy for fraud and unacceptable social behaviors. In addition, the Polish students defended the interviewee’s answers by saying that he might have been uncertain about the usage of his information. They suggested this is what resulted in the interviewee giving short answers to avoid both cultural and brand image issues. Once again, this highlights the very high level of uncertainty avoidance (93) in the Polish culture that the students from the Netherlands may not have perceived as inhibitive, due to having more uncertainty tolerance.  

Best Practice (within the team): In an ideal situation, it would be of great importance to pay more attention to the verbal and non-verbal communication in context. Just by looking at the words used in response to the questions, the verbal element of the interview was perceived as inadequate by some of the students. However, it was pointed out by the other students that the interviewee was very straight-forward in his non-verbal expression and did not hesitate when answering, deeming his contribution as adequate. The value of direct communication (bottom of the iceberg model) is shared by both Polish and Dutch culture, however, the expression (tip of the iceberg model) of responding in a short manner was perceived differently by the team – the students from Poland (more high context) did not see an issue in comparison with the students from the Netherlands (more low context).

Best Practice (within the organization): Ideally a company wants to not have any cultural problems when working with translators and interpreters. According to the CEO his firm does this by recruiting suitable and qualified translators and interpreters. The company does this through having a very extensive and strict selection process which properly identifies whether the potential employees are suitable for the company. This comprehensive selection process can be linked back to the high uncertainty mindset that the firm has. Other companies could minimize their risk of cultural problems by seeing if the potential employees are able to adjust to company culture.

Authors

Arcadi Abas: Block 2, Semester 1, 2020/2021
(LinkedIn)

Sara Miqdadi: Block 2, Semester 1, 2020/2021
(LinkedIn)

Accounting is not only based on methodologies, numbers and financial statements. It is far more than this because it holds to basic rules and standards to preserve the professions purpose. But it also shaped by a variety of internal and external factors. The practice in accounting actually signifies and symbolized the culture in which it is performed. One of a significant practice in accounting is auditing. Auditors are responsible to attest to the fairness of a company’s financial statements by expressing their opinion on the statements. The auditor’s opinion reflects whether the financial statements are in accordance with the GAAP and the audit must be reliable and express fair opinion. He or she must resist and take every precaution from being subject to a conflict of interest from any internal or external pressure.

Therefore, it is very important for high power distance society in this case Poland can feel pressure to issue a certain opinion by a powerful or wealthy client. The polish culture may feel more obligated to please the authority and “save face” to avoid public embarrassment than to keep the rules of the profession. Aside of this polish people also score very high on masculinity well as for the Dutch is very low. Dutch people can easily communicate and are very direct compared to the polish. As for the Dutch, they need to have 50/50 to be able to have a negotiation. Meaning the Netherlands tend to have Polder model, so meaning during a negotiation an agreement should be fair for everyone, in Poland it is not the same. When negotiating in Poland if the other party feel that you win on something, they think they failed. Also, Polish people avoid directness and explicated communication but when situation develop their disadvantage, they may be very confrontational in an emotional manner. As for a Dutch person It is prohibitive to interrupt a conversation in Poland and inhibitive not to speak out what they think. In Poland business setting are very formal because of the higher and lower classes. Also, they do not interrupt a higher authority when talking or giving feedback, this is seeming to be very disrespectful but in Spain and the Netherlands they are more the opposite. In Poland they are more short term oriented due to that they are really competitive. Lastly, the polish accountant also mentioned about a situation that he encountered difficulties. When a new employee joined his team, the person did say much, and he does not know the reason why. He or she also did not perform good during the project. After a while the polish accountant from Spain started to wonder why the new employee did not reply and say much and started to ask the new employee. The reason behind this was that the new employee from Poland was afraid to ask (Power distance) and kept silent. Therefore, the Polish accountant from Spain recognized this and started to get a more often meetings and let the employee feel at home. He showed openness and trust to the new employee whereas the new employee started to be more open and asked for feedback.

Outcome

This case model investigated Polish accounting practices, in particular Audit. It was noted in the interview that international Polish accountancy are slowly adapting to the new cultural settings. However, the old generations and not international oriented are less adaptive. Also, due to the background of the Spanish accountant he could luckily recognize the problem in the office why the employee was performing bad.

Authors

Mengyi Wu: Semester 1, Block 2, 2020/21
AMSIB Student (LinkedIn)