Reading Guide Successful Multicultural Company Menestyvä Monikulttuurinen Yritys
INTRODUCTION Culture is a loaded word. In our world of professional services we refer to Culture as defined by our co-founder and one of the world s foremost European management gurus Prof. Dr. Geert Hofstede. He has defined culture as: The collective mind of a group of people which distinguishes one group from another group. All nations face six basic dilemmas in life, and how we deal with them separates one group from another. You can read more on our website: https://geert-hofstede.com/countries.html. These differences are a source of wealth. By ensuring you create an organizational culture that attracts people who think differently, you enable your organization to prosper in a world that offers opportunities which go beyond your village, your city, your region, or your country. These opportunities will enable you to deal with changes forced upon you the broader the mindset you employ, the smaller the risk you get caught off-guard. Attracting foreign talent to your organization brings some risk along with it. Certain risks are the same as when employing native employees; other risks are specific to the culture from where the foreign talent originates. As a business owner, you will most likely be too busy to pay very much attention to each individual employee. Therefore, it is easier to build a way of working (which we call organizational culture) which ensures that people follow the group pressure and adapt their way of working to a way which supports your organization and feel motivated by this. ATTRACTING PEOPLE IS RELATIVELY EASY. MAKING SURE THEY STAY IS THE HARDER PART.
ABOUT THE MODEL Find our more about this approach after the link below. https://geert-hofstede.com/culture-and-strategy.html. The model we use as the scientific basis for providing you with the Successful Multicultural Company" is based on the work of Prof. Hofstede in the area of organizational culture. In the report that you receive you are presented with six dimensions of the Hofstede Multi-Focus Model. These six dimensions and their immediate relevance for impacting the acceptance of those from different cultures are presented in the table below. Dimensions of organisational culture and their impact on multiculturalism: Dimensions of organisational culture Relevance Direction D1: Organizational effectiveness Means-Oriented vs. goal-oriented D2: Customer orientation Internally driven vs. externally driven D3: Control Easy-going vs. strict D4: Focus Local vs. professional D5: Approachability Open vs. closed D6: Management philosophy Employee oriented vs. work oriented High Low Middle High Middle Middle Towards goal oriented No immediate relevance for diversity acceptance Towards easy going Towards professional Towards open Towards employee oriented The Play and Learn application on the hofstede centre website, is an easy way to learn how to use the model.
D1 ORGANIZATIONAL EFFECTIVENESS Means-oriented vs. goal-oriented Example of a goal-oriented culture In a means oriented culture people focus on how they do their job, in a goal oriented culture people focus on what they are doing. Organizations leaning towards a more means oriented culture tend to focus more on efficiency (doing things right). Organizations leaning towards a more goal oriented culture tend to focus more on effectiveness (doing the right things). In which direction on D1 a diversity accepting Goal-oriented In the case above the organization scores more towards the area of creativity and/or effectiveness. Example of a means-oriented culture In the case above the organization scores more towards the area of safety hence how you do your work becomes a more important aspect for those organizations where safety in procedures is very important (e.g. factories, energy plants).
D2 CUSTOMER ORIENTATION Internally driven vs. externally driven Example of an externally driven culture Of all of the six dimensions of the Hofstede Multi-focus Model, this dimension is most closely connected with the way your colleagues relate to all of the organization s stakeholders, especially customers (internal and external). It does not say anything about the level of friendliness deployed. In an internally driven culture, employees take for granted that business ethics and honesty matter most when it comes to dealing with outsiders. Because of this belief, they perceive that they know best what is good for the customer and the world. In a very externally driven culture the only emphasis is on meeting the customer s requirements. Results and a pragmatic approach to achieving results matter most in this culture, sometimes at the expense of ethical practices. In which direction on D2 a diversity accepting This dimension does not have immediate relevance for impacting the acceptance of foreigners. Example of an internally driven culture The difference between National and Organizational Culture. Ethics are a point of attention as ethics are culturally sensitive with regards to national background. In certain countries (those where you have clear in and out groups) it is considered ethical to provide favors to family members (as they can be trusted), whereas in other countries it is considered corruption. Make sure that all staff are informed of why certain behavior is not acceptable. Do not leave room for misinterpretation. Furthermore, for some organizations it is absolutely critical that they treat everyone in a similar way (e.g. the tax office) whereas for others this is less of an issue. Yet, even when treating everybody similarly, you can still take into account how you can use national cultural knowledge to minimize work effort while still granting a similar level of service. Ask your itim international consultant for more advice on how to do this.
D3 CONTROL Easy-going vs. strict Example of strict culture This dimension refers to the amount of internal structures, control, and discipline. A very easy-going culture has loose internal structure, little control and discipline, and lacks predictability; people improvise and there are a lot of surprises. In a very strict work culture, there is a great deal of internal control. People tend to be very cost conscious, punctual, and serious. In which direction on D3 a diversity accepting Easy-going Example of easy-going culture The difference between National and Organizational Culture. Discipline and control are also concepts influenced by national culture. In the Finnish culture it is normally expected that when people are told to follow rules, they will (even without being told they most likely will). However, in some cultures the rule goes that what goes uninspected is not important.
D4 FOCUS Local vs. professional Example of a professional culture This dimension refers to what people focus on with regards to group behavior. In a local company, employees identify with the boss and/or the unit in which they work. In a professional organization, employees identify with the profession and/or the content of the job. In a very local culture employees are very short-term oriented and internally focused. There is strong social control and pressure to be like everybody else. A very professional culture encourages people to be long-term oriented and to go out into the world to learn about the latest developments, and creates a diverse workplace. Such a culture also enables positive cooperation between different departments and function groups. In which direction on D4 a diversity accepting Example of local culture Professional This dimension is of great relevance for enabling a culture where those that look, act and think differently are accepted. The more professional an organization scores, the more likely it is that acceptance takes place.
D5 APPROACHABILITY Open vs. close Example of an open culture This dimension refers to the openness of an organization. In an open culture, newcomers feel immediately welcomed; people are open to both insiders and outsiders. There is a shared belief that almost anyone fits in the organization. In a closed culture, secrecy prevails. As a result, information travels slowly. This type of culture could be considered functional in service of protecting intellectual property or other information that should not leak out to the street. In a closed culture, a person must earn his or her stripes before being accepted. In which direction on D5 a diversity accepting Example of a closed culture Open For the purpose of accepting those that look, act and think differently, a more open culture will support an inclusive mindset more.
D6 MANAGEMENT PHILOSOPHY Employee-oriented vs. work-oriented Example of an employee-oriented culture This dimension is about how the organizational management is observed by respondents. Employee orientation opposes a concern for people with a concern for completing the job, whatever the price may be. In a very employee-oriented culture people feel that personal problems are taken into account by management and that the organization takes co-responsibility for the welfare of its employees, sometimes at the expense of the work. In a very work-oriented culture there is intense pressure to perform the task, even at the expense of employees well-being. In which direction on D6 a diversity accepting Example of a work-oriented culture Employee oriented The difference between national and organizational culture: Especially for those employees that come from a more collectivistic culture (see https://geert-hofstede.com/countries.html) having a more employee-oriented culture will help in making people feel more at home (and stay at work). In these cultures a more relationship oriented feeling at work helps to create more of an inclusive atmosphere and this is a bit of challenge for the more task oriented Finnish culture.
SUMMARY Thank you for participating in the measurement. Please remember that the acceptance and usefulness of diversity has different consequences depending on the industry you work in. Should your results indicate that the mindset in your organization is not one which will naturally support those who look, act and think differently, and should you find it important to change this, then contact us at: itim International Arabiankatu 12, 00560 Helsinki Egbert Schram egbert@itim.org Toimitusjohtaja +358 451 375 007 Merita Vilen merita.vilen@itim.org Organisaatiokulttuurikonsultti +358 405 913 140