The influence of culture upon

organizations and working approach

Today’s business world is increasingly characterized by international

and multinational groups, cross border business and project
management. Managers are faced with having to adapt to a whole
range of different working approaches and organizational cultures.
With this perspective in mind, it is essential to identify the way
national culture influences how organizations and individuals work.

A framework of understanding
There are two essential dimensions to produce a framework of understanding, both having an impact on behavior
and organizations and the way in which different cultures approach work.

Uncertainty avoidance
• Strong uncertainty avoidance cultures - avoidance of risk
-- will tend to rely on systems, rules, processes and procedures to reduce the risk of unexpected events
impacting on work and business.
• Weak uncertainty avoidance cultures - acceptance of risk
-- will tend to structure themselves in order to encourage reactivity.
-- will rely on ad hoc solutions to problems as they arise and minimize systems of procedures.
Broadly speaking, Anglo - Saxon cultures will tend to be weak uncertainty avoidance in nature, while
Mediterranean and Germanic cultures tend to prefer strong uncertainty avoidance.

Power distance
• High power distance cultures - greater control on autonomy and initiative
-- tend to rely heavily on hierarchy, clear command structure and clear orders from superiors.
-- a concentration of authority: individuals will tend to expect to be told what to do and the ideal boss is seen
as a “good father”.
-- subordinates see hierarchical superiors as different from themselves and they expect them to take full
responsibility for decisions in return for their special privileges.
• Low power distance cultures - greater flexibility on autonomy and initiative
-- tend to flatten the hierarchical pyramid and streamline procedures and bureaucracy.
-- individuals are empowered, responsible for their acts, free to take initiative and expected to make decisions.
-- the boss is seen rather as “someone like me” who should consult with subordinates and not enjoy overt
status symbols.
-- there is an emphasis on people solutions, as it is considered that most problems find their root in
relationship difficulties.
Broadly speaking, Mediterranean and Asian cultures will tend to be characterized by high power distance, while
Anglo - Saxon and Germanic cultures will tend to be characterized by low power distance.

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Bringing together the two dimensions
The uncertainty avoidance and power distance dimensions can be brought together to determine 4 specific
profiles grouping nationalities and cultures.

The pyramid of people

Countries emphasizing high power distance and strong uncertainty avoidance tend to have forms of organization
and behavior that rely heavily on hierarchy and clear orders from superiors. In this instance, people probably
wouldn’t feel at ease with taking on an empowered role. Countries belonging to the pyramid of people profile
broadly include Arab - speaking countries, South American and European Latin cultures and specific cultures such
as Japan and Korea, Belgium and Pakistan.

The well - oiled machine

In countries with low power distance and strong uncertainty avoidance, there is a reliance on rules, procedures and
clear structure. Countries falling into this category will include Germany, Austria, Finland, Israel and Switzerland.

The village market

In countries with low power distance and weak uncertainty avoidance, there is a reliance on empowerment and
ad hoc solutions to problems as they arise, for many problems can be explained by relationship difficulties. Anglo-
Saxon cultures are characteristic of this profile: the UK, the USA, Canada, Norway, Denmark, Sweden and Australia
to name but a few.

The family
The fourth group of countries is those having high power distance and weak uncertainty avoidance. Here,
problems are resolved by constantly referring to the boss who is like a father to an extended family. In
organizations in these countries there tends to be a concentration of authority with loose structuring of activities.
Countries relevant to this profile broadly include those in East and West Africa, India and South East Asia.

If we can understand the organizational characteristics and the resulting individual attitudes and behaviors to
work - related tasks in the four profiles, then we have important clues on how to cope with other cultures in a
work - related context. The four profiles enable you to identify organizational and working approaches for the
nationalities you will be working with, and prepare you in your exchanges with these cultures.

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