THE CROSS-CULTURAL ORGANIZATION: THE MULTICULTURAL MODEL
Main problem = lack of transferability of American techniques to the rest of the world (Hofstede, 1980b), mainly to European countries in this case
Differences in power distance
Different levels of achievement-based incentives
Differences in work-related attitudes
Objective focus on the management of differentiation across cultures in an international operation and to consider the issue of transferability of people management styles and techniques across cultures, using IKEA as a mediator
SWEDISH CULTURE AND PEOPLE MANAGEMENT
Swedish organizational and management culture is:
Low in power distance
High in individualism
Very high on femininity
Low in uncertainty avoidance
Six fundamental values are stressed in economic/political democracy:
Equality
Freedom
Democracy
Solidarity
Security
Efficiency
There is close collaboration between business, government and labour
“Lagom” = ‘middle road’ + ‘reasonable’, unemotionally practical
There are 3 main facets of Swedish culture:
Love of nature
Low power distance reflects the traditions of village life
A low uncertainty avoidance may reflect an outlook which is not threatened by the ambiguity of living with nature
Strong practicality/rationality reflects the closeness to the farming community
Individualism through self-development
Individualism is connected to a person’s own self-development and time to him/herself
Work centrality is not high, unwillingness to do overtime
Five weeks holiday is the norm, absenteeism/excessive sick leave is an issue
Quality of life is important
Decentralized decision making may be part of this quality which encourages interest in the job and independence
Equality
Complex systems of welfare and other state mechanisms designed to provide the same service to everybody: health service, child benefits, maternity/paternity leave, pensions, and so on
Taxation is