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7 Individualist culture – collectivist culture

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The dimension of individualism vs. collectivism was popularised in the cultural research into organisations conducted by G. Hofstede, and is also used as an axis for the analysis of organisational cultures. This typology is most often used to indicate the relationships between a type of culture and a type of manager’s personality105, but it is also linked with the level of entrepreneurship106, ←57 | 58→involvement107, the level of confidence and social capital108, as well as many other variables.

Individualism means putting the value of an individual before the interests of a social group. This is related to a striving for the freedom of individuals and a ←58 | 59→belief that individual interests are the most important. According to this belief, organisations should focus on the motives and competences of individuals, rather than teams. Fulfilling individual interests can lead to success at the level of the whole organisation, as it favours rivalries and competitive attitudes, as well as nonconformist behaviour. An organisation is perceived as a group of individuals who have conflicting interests. The community approach (or in other words, collectivism) is the belief that the interest of a social group is more important than individual interests, and in an organisation this is manifested by an orientation towards group goals, even against individuals, while the preferred attitudes are conformism and collaboration.

Tab. 11: Individualist vs. collectivist cultures. Source: Own work.

Features Individualist culture Collectivist culture
Priority of interests in an organisation Individuals’ interests are more important than the organisation’s interests. An organisation’s interests are more important than individual interests.
An organisation’s essence An organisation is a group of individuals who have different interests. An organisation is a group of collaborating people.
Work relationships Rivalry between employees is necessary. Cooperation between people is necessary for the organisation.
Perspective on the significance of individuals An organisation is based on eminent individuals. An organisation is based on teams.
Coincidence of the interests of an organisation and of its employees Interests of the organisation and individuals are divergent. The interests of the organisation and individuals coincide.
Approach to the freedom of individuals An organisation functions thanks to the freedom of individuals. An organisation functions thanks to group solidarity.
Degree of conformity People in an organisation should have their own opinions and express them (non-conformism). In an organisation, one should adjust to the opinion of the community (conformism).
Approach to conflict Conflicts can contribute to the organisation’s development. In an organisation, one has to strive for harmony and avoid conflicts.
Approach to familism Ideal interpersonal relationships in an organisation are different from the relationships in a family, as they are based on a contract guaranteeing mutual benefits. Ideal interpersonal relationships in an organisation should remind of a family.
Significance of private life in an organisation Professional and private lives of employees should be strictly separated in an organisation. Professional and private lives of employees merge in an organisation.

The dichotomous typologies of organisational cultures described here are only the examples which most often appear in literature. In reality, there are many more typologies, based on more dichotomies than just these. Other examples include a culture of risk vs. avoiding uncertainty109, flexible vs. inflexible cultures, changes vs. status quo. However, it seems that many of these dichotomies share common elements, which is why the analysis included seven classifications of organisational culture that are quite often used in one-dimensional research.

Cultural Reflection in Management

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