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#TheCultureFactor

GLOBAL REPORT
2024

A CULTURAL GUIDE TO MANAGEMENT


UNDERSTANDING EMPLOYEE NEEDS
AND EXPECTATIONS
CO N T E N TS
03 About us

04 Executive Summary

05 Key Recommendations

06 Introduction

07 About this Report

08 About the 6-D Model

09 Flexibility

10 Decision-Making

11 Work-Life Balance

12 Clarity

13 Motivation

14 Leadership Style

16 Next Steps
WELCOME TO THE GLOBAL REPORT 2024

This report offers essential insights for leaders navigating the complexities of a globalised
workplace. By understanding and respecting cultural variations, organisations can optimise
team performance, increase employee satisfaction, and achieve greater business success.

ABOUT US
We are a cultural analytics and strategy advisory with over 35 years of experience.

Our data-driven analysis pinpoints the role and scope of culture in your organisation’s
success. Our global network of expert Associated Practitioners blend this knowledge with
a deep human insight. This unique combination delivers unrivalled results, time and again,
powerful interventions that unleash transformative change.

More information on www.theculturefactor.com/about-us

UNLOCKING CULTURE WITH DATA

©The Culture Factor Group 2024 / Hofstede Insights Oy 3


Exe c u t i v e S u m m a r y
This report explores the influence of national culture on workplace dynamics, examining
key areas such as decision-making, leadership styles, work-life balance, clarity, and
motivational drivers.

DECISION-MAKING
Employees worldwide show a strong preference for being involved in decisions that
affect them. The less hierarchical the culture, the stronger (generally) the preference
for this becomes.
The world is surprisingly clearly divided between those who prefer a consultative
leadership style, and those who prefer a more paternalistic approach.

WORK-LIFE BALANCE
There is a growing global expectation for employers to support a balance between
personal and professional life, particularly pronounced in cultures with strong work
ethics or hierarchical setups.

CLARITY
Clear communication on the ‘what,’ ‘how,’ and ‘why’ of tasks is essential to drive
engagement. Regular check-ins and tailored guidance are vital.

MOTIVATION
Motivational factors vary significantly across cultures, ranging from individual achieve-
ments to collaborative success and promotion opportunities.

MANAGEMENT EXPECTATIONS
Clear definitions of roles and responsibilities are crucial across global teams. Open
communication and culturally tailored guidelines are key to avoiding the pitfalls of
mismatched expectations, which can be more harmful than differences in expecta-
tions themselves.

©The Culture Factor Group 2024 / Hofstede Insights Oy 4


K e y Re co m m e n d at i o n s

©The Culture Factor Group 2024 / Hofstede Insights Oy


ADAPT LEADERSHIP STYLES
Effective leadership requires adaptability to cultural contexts. Tailor your leadership
approach to align with the cultural norms of your team.

EMPHASISE WORK-LIFE BALANCE


Actively foster work-life balance, even in regions where legislation does not enforce
it, to create a supportive and motivating workplace environment.

PROVIDE GUIDANCE
Ensure clarity through regular strategic check-ins, particularly for younger team
members or those working remotely, to maintain alignment and satisfaction.

CLARIFY EXPECTATIONS
Explicitly define and communicate roles and responsibilities to prevent misunders-
tandings and enhance team performance.

5
I N T R O D U CT I O N
HAVE YOU EVER WONDERED HOW CULTURE INFLUENCES
THE WAY PEOPLE WORK?

Our comprehensive study reveals fascinating global differences in workplace expec-


tations, management styles, and decision-making, derived from an extensive analysis
of our global organisational culture survey data. We’ve explored how these patterns
align with different national cultures and have analysed the underlying reasons for
these cultural trends using the 6-D Model of National Culture.

This exploration helps us understand the complex interplay between National and
Organisational Cultures and will equip you with the knowledge needed to enhance
both employee satisfaction and leadership efficacy within your varied teams.

150 000 600 180


Respondents Organisations Countries

©The Culture Factor Group 2024 / Hofstede Insights Oy 6


ABOUT THIS REPORT
The Organisational Culture Scan is a survey
designed to measure a company’s unique culture.
The survey gathers data directly from the emplo-
yees of the company by asking about common
practices in the organisation.

For this comprehensive study, we analysed the


Organisational Culture Scan responses from
150,000 individuals across approximately 600 Cultural comparison: This graph builds upon the
organisations all over the world. first by adding relevant national culture scores. This
allows you to see how the highlighted countries
This robust dataset provides valuable insights compare to one another in terms of their cultural
into the diverse range of workplace cultures, and values and norms.
allowed us to uncover intriguing patterns across
countries. To interpret these findings, we used the Highest respondent countries: This graph shows
6-D Model of National Culture (more details on results from the countries in our database that
page 8) to shed light on the trends we observed. have the largest number of respondents. This gives
you an insight into the countries where we have
In each section of this report, you’ll find four the most comprehensive data.
graphs that present the data in different ways,
allowing you to explore the findings at various More countries: This final graph displays results
levels of detail. from 90 additional countries included in our
database, providing a complete overview of the
Highlighted countries: This graph focuses on findings across more nations.
countries where we have at least a thousand
respondents. We’ve specifically chosen countries To discover all the graphs simply select the hand
that provided particularly interesting answers or icon in each of the sections.
that serve as excellent examples of how national
culture can influence responses.

HOW TO READ THIS REPORT

Interactive element, Key information if Definitions of the


click on it for more you only read one terms used in the
data. thing read this. report.

©The Culture Factor Group 2024 / Hofstede Insights Oy 7


ABOUT THE 6-D MODEL
OF NATIONAL CULTURE

The 6-D Model of National Culture, offers a way to understand a country’s culture through its distinctive
values. This framework has been instrumental in helping organisations enhance communication and collabora-
tion among individuals from different cultural backgrounds. It serves as a valuable tool for grasping how cultural
differences can impact business interactions.
It comprised of 6 Dimensions:

PDI - POWER DISTANCE UAI - UNCERTAINTY AVOIDANCE


The extent to which the less powerful members of The extent to which people feel threatened by
society accept that power is distributed unequally. uncertainty and ambiguity, and try to avoid such
situations.

LOW POWER DISTANCE HIGH POWER DISTANCE LOW UAI HIGH UAI

0 New Zealand 22 Malawi 70 100 0 China 30 Peru 87 100

IDV - INDIVIDUALISM LTO - LONG TERM ORIENTATION


Individualism: People only look after themselves and Short Term Orientation vs Long Term Orientation
their immediate family. Collectivism: People belong The extent to which people show a future-oriented
to in-groups (e.g. families, organisations, etc.) who or pragmatic perspective rather than a normative or
look after them in exchange for loyalty. short-term point of view.

COLLECTIVISM INDIVIDUALISM SHORT TERM ORIENTATION LONG TERM ORIENTATION

0 Qatar 18 USA 60 100 0 UAE 22 South Korea 86 100

MAS - MOTIVATION TOWARDS ACHIEVEMENT AND SUCCESS IVR - INDULGENCE


Decisiveness: The dominant values in society are The extent to which people express their desires
achievement and success. Consensus: The dominant and impulses. Relatively weak control is called
values in society are caring for others and quality “Indulgence” and relatively strong control is called
of life. “Restraint”.

CONSENSUS DECISIVENESS RESTRAINT INDULGENCE

0 Iceland 10 Hungary 88 100 0 India 26 Nigeria 84 100

©The Culture Factor Group 2024 / Hofstede Insights Oy 8


Percent of employees that think one can be a good manager without having precise answers to most questions that
subordinates may raise about their work.

FLEXIBILITY
PERCENT OF EMPLOYEES THAT THINK ONE KEY TAKEAWAYS!
CAN BE A GOOD MANAGER WITHOUT HAVING
For optimal teamwork and clarity, explicitly
PRECISE ANSWERS TO MOST QUESTIONS THAT
define the roles and expectations for both
SUBORDINATES MAY RAISE ABOUT THEIR WORK. managers and employees within your

©The Culture Factor Group 2024 / Hofstede Insights Oy


organisation.
In cultures with lower Power Distance (PDI*),
and a strong Long-Term Orientation (LTO**), The challenge isn’t differing expectations but
managers are not expected to be omniscient rather unvoiced assumptions about what
experts. Instead, their role is seen as facilitating each party should do or provide.
collaboration, fostering knowledge-sharing, and
guiding strategic thinking. Open communication and clear guidelines
can bridge these gaps in understanding,
leading to a more productive and harmonious
Conversely, in cultures with higher Power Distance
work environment.
(high PDI) and Shorter-Term Orientation (low
LTO), such as Mexico, Poland, and Nigeria, or a
potent combination of high Achievement focus
(high MAS) and high Uncertainty Avoidance (UAI)
such as Japan, there’s a stronger expectation for
managers to possess expert knowledge and provide
precise solutions.
*POWER DISTANCE
How much less powerful members of society
accept unequal power distribution.

**LONG TERM ORIENTATION


whether a society values tradition and norms
(low score) or takes a pragmatic, future-
oriented approach (high score).

9
Percent of employees that want the most important decisions to be taken by individuals.

DECISION-MAKING
KEY TAKEAWAYS!
PERCENT OF EMPLOYEES THAT WANT THE
MOST IMPORTANT DECISIONS TO BE TAKEN BY Globally, employees prefer to have a voice
INDIVIDUALS. in decisions that affect them. This desire
for involvement is even stronger in more
The Dimensions of National Culture appear to
hierarchical cultures (high PDI).
significantly influence the preferences for individual
or consensus-based managerial decision-making. Conversely, in low PDI societies, a call for
more individual decision-making often signals
In countries like the Netherlands and Finland (low dissatisfaction with existing leadership or
MAS*), there is a strong emphasis on collaboration decision-making processes.
and minimising power imbalances. Thus, individual
decision-making is often discouraged in favour of Understanding the cultural nuances of
group-based consensus. decision-making expectations is key for
managers seeking to build trust and
Nations like Poland, India, and Nigeria (high engagement across global teams.
PDI**), might prefer group decision-making, but
still demonstrate a greater acceptance of individual The same behaviour can have very different
decisions due to the inherent respect for hierarchy. reasons behind them. Understanding the
reasons is key to addressing potential issues.
In cultures like the USA, UK, and Canada, managers
are expected to set clear targets. Strong IDV and
MAS promote independent decision-making, espe-
cially when managers have a proven track record.
However, lower LTO and UAI suggest an emphasis
on results rather than a rigid focus on how to
obtain those results. *MOTIVATION TOWARDS
ACHIEVEMENT AND SUCCESS
Mexico and Japan exhibit a preference for consensus. Whether a society is driven by competition
and success (Decisive) or by caring for others
This can be attributed to the high scores in Achie-
and quality of life (Consensus-oriented).
vement Focus (MAS) and Uncertainty Avoidance
(UAI). The desire for achievement is tempered by
the need to minimise risk, encouraging a collabo- **POWER DISTANCE
How much less powerful members of
rative approach, even in a hierarchical setting (high
society accept unequal power distribution.
PDI, especially in Mexico).

©The Culture Factor Group 2024 / Hofstede Insights Oy 10


Percent of employees that want their personal problems to be taken into account at work.

WORK-LIFE BALANCE
PERCENT OF EMPLOYEES THAT WANT THEIR
PERSONAL PROBLEMS TO BE TAKEN INTO ACCOUNT KEY TAKEAWAYS!
AT WORK.
The ongoing focus on talent retention
and evolving work arrangements, such as
The extent to which managers consider employees’ remote work, has led to a global increase
personal problems is shaped by cultural expectations in expectations for employers to respect
regarding empathy, loyalty, and the role of work in employees’ private lives.
individuals’ lives. The main Cultural Dimensions we In some countries, such as France and
see in play are IDV* and MAS**. Germany, legislation now protects personal
time with measures like limiting after-hours
In Collectivist cultures like Indonesia and Singapore work communication.
(low IDV), work assumes a more prominent place This highlights the growing need for
in individuals’ lives. This, combined with expec- organisations to understand and adapt to
tations of strong leadership, fosters acceptance these changing expectations.
of work-related demands that may intrude one’s
personal time.

Countries like Canada, Australia, and Japan (high


MAS) exhibit a nuanced perspective. Work is viewed
as a significant aspect of self-identity, yet somewhat
higher Individualism (IDV) emphasises the impor- *INDIVIDUALISM
Whether a society values independence
tance of personal time. This leads to an approach,
(“I”) or group loyalty (“We”).
where expectations towards addressing personal
problems depend on individual circumstances.
**MOTIVATION TOWARDS
Countries like the Netherlands (high IDV, low
ACHIEVEMENT AND SUCCESS
Whether a society is driven by
MAS) place less importance on work-life overall.
competition and success (Decisive) or
Employees expect organisations to accommodate by caring for others and quality of life
personal needs. (Consensus-oriented).

©The Culture Factor Group 2024 / Hofstede Insights Oy 11


Percent of employees that have a well-defined job, in which it is clear what is expected from you.

CLARITY
PERCENT OF EMPLOYEES THAT HAVE A WELL-
DEFINED JOB, IN WHICH IT IS CLEAR WHAT IS
EXPECTED FROM YOU. KEY TAKEAWAYS!

Cultural Dimensions shape employee expectations Certainty fosters action, while uncertainty
regarding clarity, and ownership. Thus it’s impor- breeds inaction.
tant to understand the rationale behind tasks.
Across cultures, employees expect clarity
Generally speaking, in Long-Term Oriented (high from leaders on the “what” (goals), “how”
LTO*) cultures, understanding the ‘why’ behind (methods), and “why” (purpose) of their
work is crucial. In contrast, cultures with lower work. Failure to provide this clarity leads to
LTO focus more on the ‘what’ – the immediate hesitation and delays.
actions and outcomes required. Those with high
This presents a paradox for managers: younger
Uncertainty Avoidance (UAI**) prioritise the
generations (Gen Z and Millennials) typically
‘how’, valuing detailed instructions and established want more guidance, yet managers face
processes for stability and predictability. increasing time constraints due to larger teams
and virtual work settings. To address this,
Both Mexico and France (high UAI) strongly prefer managers should proactively schedule regular
well-defined work expectations. They need clarity check-ins, focusing on strategic alignment
on the ‘how’ aspect of their tasks. on the “why” at the outset of projects and
ongoing support on the “what” and “how”.
Germany and Japan, while both demonstrating high
Individualism (IDV) and Achievement focus (high
MAS), differ in their need for detailed information.
This divergence can be attributed to their Power
Distance (PDI) scores. Germany’s lower PDI
fosters a more collaborative environment with *LONG TERM ORIENTATION
freer information exchange. This reduces the need Whether a society values tradition and
for employees to seek detailed instructions for norms (low score) or takes a pragmatic,
every aspect of their tasks. future-oriented approach (high score).

Despite opposing scores on several dimensions, **UNCERTAINTY AVOIDANCE


Finland and Singapore show a similar lack of How much a society feels threatened by
emphasis on detailed instructions. For Finland, low unknown situations and seeks to avoid them
PDI and low MAS reduce hierarchy and the impor- through rules and institutions.
tance placed on work. Singapore’s low MAS and
UAI foster a more adaptable, less process-driven
work environment.
©The Culture Factor Group 2024 / Hofstede Insights Oy 12
Percent of employees that have challenging tasks to do, from which they can get personal sense of accomplishment.

MOTIVATION
PERCENT OF EMPLOYEES THAT HAVE CHALLENGING
TASKS TO DO, FROM WHICH THEY CAN GET
PERSONAL SENSE OF ACCOMPLISHMENT.
KEY TAKEAWAYS!
What motivates individuals to excel in the workplace?
This section explores how Cultural Dimensions shape In a globalised world, recognising the
the pursuit of personal achievement. We can again cultural roots of motivation is essential for
see most of the cultural dimensions playing significant organisations seeking to maximise employee
potential and drive success.
roles.
In cultures where individual achievement
In some cultures (high MAS* and high UAI**), indi- and expertise are less emphasised (low
viduals are motivated by becoming experts in their achievement focus, low Uncertainty
field, gaining recognition for their knowledge and skill. Avoidance), fostering collaboration and
supportive management can be powerful
In others (high IDV and high MAS) a focus on building motivators.
a personal track record of success is key, and moti-
vates people to excel.

Finland, Indonesia, and Singapore exhibit a lower


focus on finding personal achievement through work
itself. This can be partially explained by being consen-
sus-oriented (low MAS), suggesting that factors like
work-life balance and social connections might be *MOTIVATION TOWARDS
greater motivators in these cultures. ACHIEVEMENT AND SUCCESS
Whether a society is driven by
In other countries highlighted in the graph, higher competition and success (Decisive) or
achievement focus (high MAS) and/or Uncertainty by caring for others and quality of life
Avoidance (high UAI) correlate with a stronger desire (Consensus-oriented).
to excel at work. This drive can manifest as a pursuit
of expertise, individual success, problem-solving, or **UNCERTAINTY AVOIDANCE
advancement. How much a society feels threatened by
unknown situations and seeks to avoid them
The Netherlands presents an interesting exception. through rules and institutions.
Despite shorter average work hours, the Dutch
demonstrate a desire to be efficient and effective,
maximising their productivity within their work time,
in order to spend as much time as possible outside
of work.
©The Culture Factor Group 2024 / Hofstede Insights Oy 13
Percent of employees that want to be consulted by their superior in their decisions.

LEADERSHIP STYLE
PERCENT OF EMPLOYEES THAT WANT TO BE KEY TAKEAWAYS!
CONSULTED BY THEIR SUPERIOR IN THEIR
DECISIONS. Globally, most people expect to be involved
in decisions that directly impact them. This
The Consultative leadership style (see next page makes consultative leadership, where leaders
for a detailed definition and maps), characterised seek team input before making final calls, a
by seeking input from subordinates while retaining broadly advisable approach.
decision-making authority, is the most widely
preferred approach globally. This preference is However, some cultures, like Japan, where
particularly strong in cultures where there is less work pressure is high, may see benefits from
need for hierarchy (low PDI) and higher need for a clearer, more directive style (paternalistic).
individual expression (high IDV), such as the USA, This reduces decision-making burdens for
Australia, and Canada. employees, giving them breathing space to
focus on tasks and potentially decreasing
stress.
In cultures with high Uncertainty Avoidance (UAI),
leaders are expected to possess expertise. This Interestingly, there are exceptions like
might lessen the perceived importance of involving Nigeria and Mexico. Due to what we call
subordinates, explaining Finland’s average score the “pendulum effect,” people in these
despite its egalitarian nature. hierarchical, collectivist cultures often desire
a more democratic leadership style – the
Singapore’s preference for less involvement aligns opposite of the autocratic leadership they’re
with its Cultural Dimensions: higher Power accustomed to. This increased involvement
Distance (PDI), lower Individualism (IDV), and very in decision-making can initially help alleviate
low Uncertainty Avoidance (UAI). This combina- stress, by feeling empowered.
tion can foster a sense of trust in authority figures
and a focus on executing instructions efficiently.

©The Culture Factor Group 2024 / Hofstede Insights Oy 14


Leadership Styles Desired and Actual for selected countries

PATERNALISTIC LEADER
Usually makes decisions promptly, but before
implementing them tries to explain them fully
to his/her subordinates. Provides the reasons
behind the decisions and answers whatever
questions they may have.

CONSULTATIVE LEADER
Usually consults with subordinates before
reaching a decision. Listens to their advice,
considers it and then announces their
decisions. In return, the leader expects all to
Desired Leadership Style work to implement the decision, regardless
of whether or not they are in accordance
with their opinions.

DEMOCRATIC LEADER
Usually calls a meeting with subordinates
when there is an important decision to be
made, and puts the problem before the
group and invites discussion. Leader accepts
the majority viewpoint as the decision.

AUTOCRATIC LEADER
Usually makes decisions promptly and
communicates them to subordinates clearly
and firmly. Expects them to carry out the
decisions loyally and without challenge.
Actual Leadership Style

©The Culture Factor Group 2024 / Hofstede Insights Oy 15


TAKE THE NEXT STEPS
After gaining insights into how culture shapes workplace dynamics, your next step is to dive deeper
into understanding your organisation’s unique challenges and opportunities.
Here’s how you can continue your journey.

GO FURTHER WITH THE WEBINAR

Cultural Guide to Management:


Insights from the Global Report
JULY 16 2024
16:00 EEST / 09:00 EDT/ 14:00 BST

This interactive webinar will walk you through the key findings of this report. We’ll explore how
cultural values influence workplace dynamics across the globe, focusing on areas like decision-making,
leadership styles, work-life balance, and employee motivation.

We will also address real-time queries from the audience, offering personalised advice and strategies
to overcome cultural challenges in your specific context.

REGISTER

MEASURE AND CHANGE THE CULTURE OF TAKE YOUR LEADERSHIP


YOUR ORGANISATION TO THE NEXT LEVEL
Design a culture that supports your strategy. It is designed just for you and organised around
Our Organisational Culture Transformation your timetable, KPIs and goals.
package helps you uncover the culture you This fully tailored exclusive coaching programme
currently have and change it to give you the best will equip you with the necessary competencies
opportunity for long-term success. to effectively respond to the challenges that
Read more global leaders are faced with today.
More information send us a message at
[email protected]

©The Culture Factor Group 2024 / Hofstede Insights Oy 16


#TheCultureFactor

QUESTIONS?
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