HA - engelsk / BSc(IM) Student: Jekaterina Oborina Student: Anastasija Cibesova Bachelor thesis Supervisor: Valerie Smeets
Organizational culture versus National culture in
Mediterranean Shipping Company
Aarhus University
Business and Social Sciences
1 May 2012 2Organizational culture versus National culture in MSC BScB(IM) 2012
Table of Contents 3Organizational culture versus National culture in MSC BScB(IM) 2012
Introduction The business world today has become extremely globalized. Companies are forced to operate internationally in order to compete successfully on the market, regardless of the sphere or nature of business. Even the smaller enterprises, which might not be global within it, are still in the network of international customers, partners, suppliers. The modern world has enabled faster information flow and exchange, as well as easier access to it thorough the World Wide Web. The information on the internet is coming from the various sources, which provides the users with a complete overview of the current situation in the business, economical and political world.
The job market today has become very international. This is provided by simplified migration legislations, opened borders of EU, Shengen zone and others. Society has become more mobile; this relates to both social and geographical mobility. People are free to travel and move their businesses- a person from China can go for job in USA, have business partners in Australia and go for vacation in Europe; and modern jobseekers are sending out CVs globally. Expatriation and impatriation has become a common practice for all multinational corporations.
In the globalization, pushed to the limits, the managers in the multinational corporations have to be educated in international-business to understand, estimate and foresee the challenges that multinational environment might cause.
We see one of the main challenges for multinational company a transfer of corporate culture and values to each individual local national office or subsidiary. Corporate culture is a significant aspect of company`s development, differentiating the organization in the international context. 4Organizational culture versus National culture in MSC BScB(IM) 2012
Our paper is conducting a research in the shipping field. The nature of activity of the shipping companies is pushing the freight carriers to maximize their geographical area of service coverage- meaning to be able to operate in every corner of the world.
We have chosen to base our research on the second largest container operator in the world- Mediterranean Shipping Company (MSC). We see a challenge for this company to include a large variety of different nationalities and cultures, which have to operate in the same manner, following the common corporate values, strategy in order to achieve a common goal.
Problem statement
Our paper will be within the scope of international business and organizational behavior. We will analyze the chosen company- MSC from these two perspectives. Our goal is to give an individual characteristic to every country within MSC, according to Geert`s Hofstede study of the cultural dimensions differentiating national features. We will describe the company culture of Mediterranean Shipping Company - the core values, ethics, mission and strategy, which unify all the national offices of MSC. Our research and analysis will look at the interaction of organizational culture and national culture through the angle of selection, recruitment, hiring and promotion of employees. We will look at how much employees differ across basis criteria as age, gender, education in each of the studied MSC offices, thus evaluating if the preference of MSC for employee selection and recruiting is the same all over.
However, the biggest challenge for our research is to characterize the countries within MSC, which were not studied by Hofstede. We will try to describe them relating to some of the dimensions, with accordance to the features, which Hofstede determined for each of these dimensions. 5Organizational culture versus National culture in MSC BScB(IM) 2012
Delimitations Our study is spread only within the particular entity of MSC- MSC Scandinavia Holding (we will describe it in more detail further on in our paper), which includes only 16 countries mentioned below, as we were allowed to access its employees personal data and company figures. Another limitation is that we base our analysis only on Hofstede`s work, although in our paper we mention all the most famous and recognized researches in this field. The conclusions from analysis of the interaction of organizational culture and national culture are based on the angle of our research- the recruitment, hiring and promotion of employees.
And the most crucial limitation for our research is that the confidence level of a country relation to one or another cultural dimension (the country, not covered in Hofstede`s study) is not very high. The survey we used for collecting the data does not allow us to state it strongly due to the variance in rate of responses (varies from 38 to 71 percent) and the number of employees across every country (from 7 employees in Kazakhstan till 70 people in Latvia). The survey which was sent out to employees and managers had to contain minimum questions and limited options for answers, because it was sent out and completed during the working hours of people. As our goal was to collect the maximum amount of data from each country, this implied that the completion of the survey had to take minimum time and effort. The questions were mostly determined on highlighting the angle of our research: the basic features of employees hired in MSC.
Mediterranean Shipping Company is a privately owned enterprise, which implies that the annual reports and other financial data are unavailable for publicity. 6Organizational culture versus National culture in MSC BScB(IM) 2012
Method In order to perform the analysis in the main thesis, we had to choose a successful multinational company. For analysis to answer the questions stated in our thesis, the chosen company had to fulfill several criteria. First of all, the company had to be multinational with an office in Denmark, since this is the field where we are active. Since our thesis is focusing on the intercultural differences, the only differentiating feature of every office, covered by our research, is a country of location only, status and function within MSC had to be homogeneous, meaning that offices should not be divided into manufacturing- service or headquarters- subsidiaries. Given the angle of our analysis of the interaction between the organizational culture and the national culture, which is the employee’s selection and recruitment, we wanted to base our study on the service company, where customer relationship management is a core competence and employees interact with the clients on a daily basis. This is crucial factor for our angle, since the employees in such company, with this nature of work, are the direct representatives of the company.
We have chosen MSC, because it has fulfilled all the above mentioned criteria, being a successful multinational organization, placed as second largest container operator in the shipping industry worldwide. For our data collection and analysis we have chosen MSC Scandinavia Holding, which is a part of MSC and includes independent offices in 16 countries.
Interviews and questionnaire
For collecting the data for our research we have used both qualitative and quantitative methods. As a quantitative method of research we have chosen to use an online survey- Qualtrics Survey Software. We have designed an online questionnaire consisting of 7 basic multiple choices questions (see the Appendix 1). The questionnaire was structured non-disguised, which implies that the questions were listed in pre-arranged order and the participants were 7Organizational culture versus National culture in MSC BScB(IM) 2012
informed of the purposes of data collection. The questions were close-ended, given that participants had to select from the fixed list of replies. We have chosen a mail survey approach for questionnaire distribution. We sent the link to the general e-mail address of each MSC Scandinavia Holding (MSC- SH) office, which every employee is a part of, thus covering all 755 people working for this company. We have chosen the mail survey, as it is the most economically reasonable method, which involved minimum financial resources from our side and this method has the highest geographical coverage. This method also excludes the interviewer`s bias, thus, considering all above mentioned advantages mail survey is the most appropriate data collection method in our situation. The questionnaire was aimed to collect the maximum responses across all the MSC-SH offices, therefore the questions were not too much in depth. The questions were designed to characterize the MSC employee across basic features: nationality, age, gender, education, position, and years of experience. The software we have used for online data collection has estimated the average time for completing one questionnaire, which is 37 seconds. The timing was a very important aspect for the survey. The time used by employees for completing our survey was constrained by their tight working schedule. The data collected in the survey provided us with the necessary information about the employees; however the personal information per individual stays confidential, which was a condition that had to be applied for the survey.
In order to find out the current situation of MSC-SH in international context we have interviewed the CEO of MSC-SH, Mr. Lars Funding (see interview in Appendix 2). He gave us his opinion on how MSC SH is coping with the intercultural differences between its 16 countries and the overview of how these challenges are influencing management of the company. We have conducted a focus interview as a qualitative aspect of our study. We have chosen this type of interview to interpret statistically significant findings, parallel with our quantified study. We have used unstructured opened 8Organizational culture versus National culture in MSC BScB(IM) 2012
questions for the interview to avoid giving a direction for the responses and reveal the personal context of his answers. The opinion of Mr. Lars Funding was very important, giving a bigger weight for our statements and conclusions, because he is the person managing the serious issues with intercultural communication within MSC SH and represents all 16 countries of MSC-SH in other MSC agencies worldwide.
Analysis The aim of the analysis was to combine the theory, empirical and qualitative data. In our thesis, the sector is the shipping industry, the company is represented by Mediterranean Shipping Company, and the nationalities are the local offices representatives of MSC – SH. We have been exploring the field of our research- MSC using the deductive method. Meaning, firstly we have described MSC as one multinational organization, with its values, history, corporate goals, and strategy. Afterwards followed by focus on MSC-SH as a part of MSC and finally we have examined separately each local agency within MSC-SH.
Since we have defined the field of our thesis and chosen the subject for research, our goal of study has gone through various evolutionary stages. Many materials from the theory we have studies for our thesis, failed to be applied successfully in practice, when collecting and analyzing data. Since we have sent out the questionnaires, we have been noticing different tendencies in the respondent behavior across countries. We have also received a number of feedbacks about the goals and means of our research from the regional and country managers, as well as the department managers. The feedbacks were different- some managers were concerned about the privacy of their employees, some were concerned about us revealing the confidential data about the company, some managers gave advices and showed a lot of interest in our study. We have been taking a lot of notes during the entire work process- after communicating with some of the MSC Denmark employees and other people from the shipping industry. During this process our vision of the 9Organizational culture versus National culture in MSC BScB(IM) 2012
problem statement and the ways of interpreting the collected data has modified.
Theoretical background
National Culture
Various studies exist on the subject of culture. Today hundreds of definitions exist to explain this term. Culture is what differentiates members of one social group from anther, what is passed from older generation to younger generation and what shapes the way they perceive the world. This is expressed through their behaviors and values. Anthropologists Kroeben and Klucholm have come up with the most optimal and generally accepted definition: “ Culture consists of patterns, explicit and implicit, of behavior acquired and transmitted by symbols, constituting the distinctive achievement of human groups, including their embodiment in artifacts; the essential core of culture consists of traditional (i.e., historically derived and selected) ideas and especially their attached values; culture systems may, on the one hand, be considered as products of actions, on the other, as conditioning elements of future action.”(Nancy J. Adler, Allison Gundersen 2010: 18)
Foundations of organizational culture
Organizational culture can be defined as “the collective programming of the mind that distinguishes the members of one organization from another” (Hofstede & Hofstede 2005: 282-283). It is “the set of shared, taken for granted implicit assumptions that a group holds and that determines how it perceives, thinks about and reacts to its various environments.” Organizational culture has three important characteristics: it is passed on to new employees through the process of socialization, influences the behavior at work, and operates at two levels, which vary in terms of outward visibility 10Organizational culture versus National culture in MSC BScB(IM) 2012
and resistance to change (Organizational Behavior, Aarhus School of Business, 2011: 425). The socialization process is the process of person learning the values, norms and behaviors, which allow him to be a member of that organization and is the main mechanism of embedding the organizational culture.
On the visible level the culture is represented by artefacts- the physical manifestations of an organizational culture, for example: dress-code, observable rituals and ceremonies, decorations, logos. On the less visible level of culture are the organizational values and believes. They are persistent characteristics, resistant to changes (Organizational Behavior, Aarhus School of Business, 2011: 426).
Organizational culture has four main functions: firstly, gives its` members an organizational identity: to distinguish the members of particular organizations from the others. Secondly, to facilitate collective commitment, meaning to encourage common goals and make employees proud of belonging to the organization. Another function is to promote social system stability; this proves employees with security and comfort within the organization, through the effective management of changes and conflicts. Finally, the fourth function is- shaping behavior by helping members to make sense of their surroundings, meaning that organization helps employees to understand why it does what it does and how it is going to accomplish the long-term goals (Organizational Behavior, Aarhus School of Business, 2011: 429-431).
Multinational organization
Multinational companies are enterprises which operate in more than one country. Given the international workforce, suppliers and customers, they have to face the global competition and take into account world`s economical and political situation, meaning that they have to act as a global player as well as have local responsibilities at the same time. This position brings a lot of 11Organizational culture versus National culture in MSC BScB(IM) 2012
advantages (less dependence on the economy or political situation of one single country; differentiated marked position; use of synergies- diverse visions and therefore solutions of a single problem) but also implies the challenge to combine many different nationalities and cultures under one roof (Sabine Scheffknecht 2007: 73).
National versus organizational culture
The difference of national and organizational cultures is rooted in their different mix of values and practices. National cultures are part of the personality, which is built during the first ten years of our lives, in the family and in the living environment, at school, and it contains most of our basic values. Organizational cultures are acquired when we enter a workplace as adults, with our values firmly in place, and organization values consist mainly of the organization’s practices- they are more superficial (Hofstede & Hofstede 2005: 284).
Neither managers nor researches know for sure the answer to what extent does the organizational culture influence national culture- enhances or diminished the national effect. However, unambiguous conclusion is that employees maintain or enhance their culturally specific ways of working when employed in the multinational organization. There are various hypothesis of why this is the case. It might be driven by the pressure from the foreign- owned company to form a single organizational culture, which brings out employees resistance. Perhaps our ethnic culture is so deeply ingrained in us by the time we reach adulthood that a company’s organizational culture cannot erase it. (Nancy J. Adler, Allison Gundersen 2010: 65).
“ Effective shared practices are the reason that multinational corporations can function at all. Employing multinational personnel, they cannot assume common values. They coordinate and control their operations through worldwide practices inspired by their national origin but that can be learned 12Organizational culture versus National culture in MSC BScB(IM) 2012
by employees from a variety of other national origins” (Hofstede & Hofstede 2005: 286).
Geert Hofstede
Geert Hofstede (1928)- a Dutch professor of social sciences, who interpreted a summary of factors, which determine cultural characteristics of different nationalities, based on research conducted in 1960-1970. The study was conducted within IBM, in its 60 international offices. The research has been conducted by means of questionnaires, collected from 116 thousand IBM employees. Each questionnaire contained 150 questions, which revealed how and to which extent do the cultural differences affect structure and the environment of organization. Hofstede was the one who managed to measure cultural and cultural differences, not just give them verbal description. Hofstede recognized 5 independent dimensions, which explain and systemize intercultural differences. These dimensions are Individualism versus Collectivism, Power Distance, Uncertainty Avoidance, Masculinity versus Femininity, Long versus Short term orientation.
Intercultural Dimensions
Individualism vs. Collectivism Individualism implies loose knit society, where people take care and look after primarily after themselves and their immediate families, considering themselves as separate individuals. Collectivism is characterized by tight social network, where people consider themselves as a part of a group and distinguish their group from another group. All members of the group have common goals and expect social protection and security from each other in exchange to loyalty. Members of collectivistic society place more importance of fitting in and saving face, whereas in individualistic societies people emphasize individual self- respect. (Nancy J. Adler, Allison Gundersen 2010: 52-53) 13Organizational culture versus National culture in MSC BScB(IM) 2012
Power Distance Power distance reflects the extent to which less powerful members of organizations accept an unequal distribution of power. (Nancy J. Adler, Allison Gundersen 2010: 54) Such inequality exists in every culture and organization, however it differs from culture to culture how less powerful members agree to tolerate this fact.
Uncertainty Avoidance Uncertainty avoidance – reflects the extent to which people in society feel threatened by ambiguity and therefore tries to avoid ambiguous situations by providing greater certainty and predictability. Organizations reduce uncertainty by establishing more formal rules, rejecting innovative ideas and behavior, and providing their employees with greater career stability. For example in countries with high uncertainty avoidance companies offer a life- time employment, whereas in countries with low uncertainty avoidance high job mobility is usual. (Nancy J. Adler, Allison Gundersen 2010: 55)
Masculinity vs. Femininity This dimension also characterized as career success and Quality of life oriented societies. Career success societies emphasize assertiveness and the acquisition of money and things (materialism), while not showing particular concern for people. By contrast, quality-of-life societies emphasize relationships among people, concern for others, and overall quality of life. Societies that stress career success usually define more strictly women’s and men’s roles than do quality-of-life societies (for example, women should take care of home and children, while men working to provide family). (Nancy J. Adler, Allison Gundersen 2010: 57)
Long-term vs. Short-term Orientation This dimension was discovered later by Hofstede in cooperation with his Hong Kong colleague Michael Bond and was meant to explain the extreme 14Organizational culture versus National culture in MSC BScB(IM) 2012
economic growth in 1990 of the “Asia`s Four Tigers”- Hong Kong, Singapore, South Korea and Taiwan. Also known as Confucian Dynamism, it measures employees’ devotion to the work ethic and their respect for tradition. (Nancy J. Adler, Allison Gundersen 2010: 59)
Other studies in this field
In line with Hofstede there were other scientists, who made a significant contribution to the field of intercultural differences and their affect on organizations.
Fons Trompenaars – Dutch author and consultant in field of cross cultural communication. He identified five culture dimensions: universalism versus particularism, individualism versus communitarianism, neutral versus emotionalism, specific versus diffuse and achievement versus ascription. Edward T. Hall and his wife Mildrerd Reed Hall, who extended a cultural model with another important dimensions. Firstly, low versus high context culture, where high context cultures have many “unwritten rules” and low context cultures use more explicit and direct communications style. This dimension explains the importance of non verbal signals and modes explicit messages. This provides an insight on the interaction between cultures and explains misunderstanding, which occurs in communication (Hall 2011). Secondly, dimensions of Time (monochromic versus polychromic) and Space (high territoriality versus low territoriality) were added.
“The GLOBE (Global Leadership and Organizational Behavior Effectiveness) study of 62 Societies”- a research program, conducted in 1991 by Robert J. House of the Wharton School of Business, University of Pennsylvania. The study has clustered 60 out of 62 countries according to their cultural similarities and has established 9 intercultural dimensions: Performance 15Organizational culture versus National culture in MSC BScB(IM) 2012
Orientation, Uncertainty Avoidance, Humane Orientation, Institutional Collectivism, In-Group Collectivism, Assertiveness, Gender Egalitarianism, Future Orientation and Power Distance. (Michael H. Hoppe 2007: 1)
Criticism of Hofstede`s study
The problem of Hofsetede`s research is the possibility of bias of statistical data, which was collected only from the employees of IBM; the company which might have very strong organizational culture. This may influence the data pool in a way that employees were hired with the same qualifications, skills and education, which eliminate or diminish the cultural difference affect. Another issue with using Hofstede`s intercultural dimensions as a theoretical base for our own research, is that fact of 50 years time difference. Hofstede`s dimensions were developed in 1960. Since then many significant political, social and economical changes have occurred. They have changed people`s way of thinking and behaving, as well as many organizations have entered intercultural phase and adapted to it successfully.
Empirical data
We have chosen to conduct our research in shipping industry. As our paper is in the scope of international business and organizational behavior in international context, we found shipping industry to be the most appropriate for this research. Shipping companies, due to the nature of business, are forced to operate in various parts of the world and own local offices worldwide, as well as dealing daily with foreign customers and suppliers.
Shipping industry carries about 90% of international trade (http://www.marisec.org/shippingfacts/worldtrade/index.php). It is the blood 16Organizational culture versus National culture in MSC BScB(IM) 2012
of the world`s economy. Without shipping export/ import of the raw materials, affordable food and manufactured goods would be impossible.
Shipping industry today is challenged, as well as given many opportunities by growing globalization, international trade, more flexible tax regimes and mobile workforce. This expands the possibilities to develop and grow, but also sharpens the competition.
According to Bloomberg (http://www.bloomberg.com/news/2011-01- 10/freight-rates-poised-to-tumble-as-35-mile-line-of-ships-passes-coal- demand.html), 2011 was a very tough year for shipping industry. The freight rates have hit the bottom since 2002. This is tightly connected with the world economy recession, which caused a decline in global trade. Freight rates are the indicators of the “economic health”, therefore even thought today we believe that the recession is over, and economy grows, freight is still in negative figures. This period for shipping industry is causing much lower turnovers in terms of money and TEUs, which caused fatal consequences for smaller companies and created a very sharp competition on the freight carrier`s market.
According to AXA- Alphaliner TOP 100 2011, the top ten biggest container operators are as follows.
Rank Operator TEU Share Existing fleet/ Orderbook 1 A.P.M- Maersk 2.518,522 15.9% 2 MSC 2.097,828 13.2% 3 CMA CGM Group 1.343,835 8.5% 4 COSCO Cntr L. 646,310 4.1% 5 Hapag-Lloyd 643,667 4.1% 6 APL 617,424 3.9% 7 Evergreen Line 614,278 3.9% 8 CSCL 533,867 3.4% 9 Hanjin Shipping 468,562 3.0% 10 MOL 435,469 2.7%
Picture1. AXC- Alphaliner TOP 100 Container Operators 2011 (http://www.marisec.org/shippingfacts/worldtrade/top-ten-container-operators.php) 17Organizational culture versus National culture in MSC BScB(IM) 2012
Company overview
MSC – Mediterranean Shipping Company was based in 1970 by Captain G. Aponte, which started when he bought his first ship, Patricia, followed my Rafaela and began a shipping line operating between Mediterranean and Somalia. In 1977 the company has significantly expanded through purchasing of second-hand ships and was operating services in Northern Europe, Africa and Indian Ocean and by the end of 1980 MSC operated ships to North America and Australia. In 1989 MSC has expanded through opening a branch of the main business- the cruise liner business. The name of the branch is MSC Cruises.
Today, MSC provides cargo movement through dedicated transshipment hubs, performs swift connections and efficient on-carriage services. MSC is a privately owned shipping line with the headquarters located in Geneva, Switzerland. MSC has 421 local offices in 145 countries which employs 50000 professionals. MSC has become a second largest freight carrier in the world in terms of container slot capacity and in number of container vessels operating. MSC operates in 6 continents, calling 335 ports through 200 direct and combined weekly liner services. Remarkably, MSC has grown through years with organic growth, not thought mergers and acquisitions.
MSC has also invested in crew training, shipyards, container workshops, ship planning centers and dangerous cargo management centers, which control the proper stowage of hazardous cargo worldwide through a very sophisticated MSC computer systems. (http://www.mscgva.ch/about_us/agents.html)
In order to show MSC`s position on the market we chose to use the SWOT (Strength-Weaknesses-Opportunities-Threats) analysis of the main players in the global shipping industry arena. 18Organizational culture versus National culture in MSC BScB(IM) 2012
1. A.P. Moller-Maersk
(Article: Business Monitor International Ltd.: Japan Shipping Report, Q2, 2011, p. 46-51)
A.P.M. Maersk is a highly diversified group with a significant presence in the shipping sector- accounts for around 15 percent of total global TEU capacity1. The company was formed in 1904 in Denmark and since then has become the biggest and the world`s most recognized shipping conglomerates. The group employs approximately 110000 people in 130 countries, and is also active in gas and oil sectors.
Strengths:
- The world`s largest container shipping line, with a biggest market share than any other carrier. Expanding fleet allows catching up the trade volumes.
- Maersk Line is a part of A.P.M Maersk – a large diversified group active within the gas and oil and terminal-operating sectors, which gives a lot of power to the company as the actor in shipping industry and enables to lobby.
Weaknesses:
- A large fleet is causing constantly a risk of overcapacity.
- Its presents in oil and gas sectors declines the hedging options of the company, since it is over -relying on the sector as a whole. It can be dangerous if, for example, the oil prices affect directly the bunker prices.
Opportunities:
- The company is planning to design and built 18000 TEU vessels
Treats:
1 20-foot equivalent unit 19Organizational culture versus National culture in MSC BScB(IM) 2012
- Company trades is DKK, therefore is sensitive to the DKK/USD exchange rate fluctuations
- The correlation of oil and bunker prices threatens profits.
2. Mediterranean Shipping Company
(Article: Business Monitor International Ltd.: Japan Shipping Report, Q2, 2011, p. 53-55)
Strengths:
- MSC is the second largest container shipper in the world, covering the direct port calls better than any of its competitors
- The long-term strategy for future development - ordering the largest vessel ever classified by Germanischer Lloyd2 and expansion of the Panama Canal.
- Company is not averse to chartering, which permits MSC to expand fleet
Weaknesses:
- Large fleet is a risk of overcapacity
Opportunities:
- Well positioned to capture the future volumes, as the global trade is expanding
- Recent partnership with CMA-CGM for fleet sharing. The partnership includes the sharing of some shipping lines and creating new ones for MSC
2 GL- Assurance, consulting and classification for the maritime and energy industries (http://www.gl- group.com/en/index.php) 20Organizational culture versus National culture in MSC BScB(IM) 2012
together with CMA- CGM, which would expand MSC port coverage and increase flexibility.
Threats:
- By scrapping some if its fleet, company becomes reliant on the chartering, if it wants to retain the market share. This can become expensive when charter rates increase.
3. CMA- CGM
(Article: Business Monitor International Ltd.: Japan Shipping Report, Q2, 2011, p. 56-63)
Is the world`s third largest shipping line. Compagnie Genarale Maritime (CGM) was formed in 1977 with the merger of the Messageries Maritimes (MessMar) and the Compagnie Generale Transatlantique (Transat). Compagnie Maritme Affretement (CMA) was founded the following year, 1978. The group has a special focus on the reefer cargo and also operates in the tourist industry, through its subsidiary Croiseres et Tourisme.
Strengths:
- Third largest shipping line in the world, has acquired a number of diversified subsidiaries, enabling to expand to various markets across the globe.
- CMA-CGM`s multi-modal divisions provides the customer with am integrated door-to-door service.
Weaknesses:
- Large fleet is a risk of over- capacity
- The firm is not as diverse as the competitors 21Organizational culture versus National culture in MSC BScB(IM) 2012
Opportunities:
- Partnership with MSC is a deal with a big potential for CMA. Sharing routs and fleet can expand the business fields for both companies.
Threats:
- The company must ensure that it does not place the importance of increase of market share over the recovery.
4. COSCO
(Article: Business Monitor International Ltd.: Japan Shipping Report, Q2, 2011, p. 79-83)
China Ocean Shipping Company (COSCO) dates back to 1961. Group was originally engaged in transport solutions but did not become a shipping company until 1993. In 2005, the company issued an initial public offering and now trades on stock exchange. Today COSCO has a strong presence in all major cargo shipping sectors, including container shipping, dry and liquid bulk, as well as terminal and logistics operations and shipbuilding.
Strengths:
- Highly diversified, this supports sustained growth and stability
- Strong relationships with Bank of China, which supported COSCO with a source of credit since 1960s
Weaknesses:
- Huge orderbook of fleet, which might result in excess capacity and significant financial obligations.
Opportunities: 22Organizational culture versus National culture in MSC BScB(IM) 2012
- Growing demand for raw materials in China can secure COSCO with ling term demand for dry bulk shipping services.
Threats:
- Overcapacity remains risk
5. HAPAG-LLOYD
(Article: Business Monitor International Ltd.: Japan Shipping Report, Q2, 2011, p. 68-71)
Hapag Lloyd has a 160 year history dating back to the foundation of German lines Hamburg-Amerikanische-Packetfahrt-Acttien-Gesellschaft and Norddeutscher Lloyd (NDL). The two lines merged in 1970 to form Hapag- Lloyd. In 1997, the line became a subsidiary of German tourism giant TUI AG, which purchased 100 percent of shares in Hapag-Lloyd in 2002.
Strengths:
- The company has expertise in the transportation of dangerous goods, the shipment of special cargo and stowage
- The company has a huge global presence and shares in two terminals : The Montreal Gateway Terminal and the Container- Terminal Altenwerder GmbH.
Weaknesses:
- Today Hapag-Lloyd operates only in container market
- Company had to rely on the state aid to carry it through the downturn
Opportunities: 23Organizational culture versus National culture in MSC BScB(IM) 2012
- The company is set to join the mega-vessel club with four vessels with a capacity of 13200 TEUs each on order
- In association with Grand Alliance carriers enables it to enter into vessel-sharing agreements or jointly operated services with ease.
Threats:
- Overcapacity risk
- Hapag- Lloyd trades in EUR, which might negatively influence the profits due to the volatility of the EUR/ USD exchange rate.
MSC Holding
MSC`s international strategy is to optimize the workflow in a way that the company’s strategic centers are running 24/7. Therefore the documentation centers are placed in Hong Kong (responsible for the Far and East), in Denmark (Central and Eastern Europe) and in Caribbean (USA, South America).
Our scope of research is the European entity- MSC Scandinavia Holding. It includes 16 countries and the headquarters are located in Copenhagen. The 16 countries work in the same Shipping Business Application software. The export documentation, finance and IT support of all 16 courtiers are handled in Riga, Latvia. All 16 countries after comparing them across 6 Hofstede`s intercultural dimensions show to be significantly different in a way people perceive the world and work ethics. This means that the common corporate values have been applied in different local conditions. This also affects the way each country should be managed and led. The same management style can’t be applied to Russia and Sweden, for example. 24Organizational culture versus National culture in MSC BScB(IM) 2012
Analysis
MSC organizational Culture
Every company and organization shares some common features which help them to stand out among the other players on the field. This is what organizational culture serves for. Organizational culture gives the sense of belonging to the employees of the organization. Especially a multinational company has to embed an organizational culture in every agency, since the employees are spread all over the world. Therefore it is important that they feel united over distance and still belonging to the same entity and following common goals. There are 11 mechanisms known for accomplishing this (Aarhus School of Business, Organizational Behavior, 2011: p. 434):
- Formal statement of organizational philosophy, mission, vision, values and materials used for recruiting, selection, socialization
- The design of physical space, work environment and buildings
- Slogans, language, acronyms and sayings,
- Deliberate role modeling, training programs , teaching and coaching by managers and supervisors,
- Explicit rewards, status symbols and promotion criteria
- Stories, legends and myths about the key people of events
- The organizational activities, processes or outcomes that leaders pay attention to, measure and control,
- Leader actions to critical incidents and organizational crises
- The workflow and organizational structure
- Organizational systems and procedures 25Organizational culture versus National culture in MSC BScB(IM) 2012
- Organizational goals and the associated criteria used for employee recruitment, selection, development, promotion, lay-offs, retirement.
The Mediterranean Shipping Company, as a multinational organization, puts a lot of emphasis on organizational culture, as a factor differentiating each MSC local agency worldwide. It has a strong power in terms of uniting and motivating the employees. MSC organizational culture can be characterized as external control culture type. MSC is operating in the industry, where competition is very sharp, goal achievement is highly valued (the company states its goals very clearly to the employees), and a battle for the market share is constantly present between the main actors in the shipping field. The organization formulated a clear mission combining economic and non- economic objectives, which inspire, motivate and give direction to all organization members. “Realizing the dream” and “beating the competition” is a common inspiring theme. MSC organizational culture is built upon six core values, which are highlighted on the intra and extranet of the company, and which managers refer to when conducting status meeting with the staff. These core values are: Trust, Responsibility, Common Sense, Enthusiasm, Teamwork, Results.
Responsibility encourages employees to be responsible for whatever action and decision they make. Every person in MSC is in charge of his own tasks and actions. Employees are responsible for taking care of their customers and serve them in the best possible way. Customer focus is extremely important. This core value implies not only the individual responsibility, but also social responsibility- meaning eliminating corrupt and unethical behavior, which might harm the community, its people and environment.
Common Sense implies using logic in all situations, in order to solve them in the best interest of the company. Common sense dominates over the structures and manuals, which will never be a replacement for taking responsibility and acting thoughtfully. 26Organizational culture versus National culture in MSC BScB(IM) 2012
Trust is a firm belief in honesty, integrity and reliability. Mutual trust within the company creates a foundation for effective communication and motivation, which is a base for all good relationships and a favorable working environment.
Teamwork is co-operative effort by MSC employees to achieve a common goal. Working together as a team by putting the interests of the company and customers before the personal ones, is known for bringing the best results.
Enthusiasm must be present in the daily work of every MSC employee. This is a crucial condition for creating a fruitful working environment and achieving the best results.
Good results are what keeps the company alive and is a logical outcome when all above mentioned values are successfully incorporated in company`s workflow.
MSC is incorporating the organizational culture through the artifacts- the characteristic symbols of the company- like the logos, yellow color, which is used in design and decoration of the office buildings (the color of MSC containers). The company is arranging various events and teaching programs for the employees. These are in the form of sport events arranged for the neighbor countries, which have a lot of in common business in commercial aspect, celebration of New Years Eves and other holydays. The educational meetings are arranged for the key employees and management to share knowledge and experience of handling common customers, issues, and day- to – day operations as well as just to meet in person and create bonds.
The MSC organizational culture is being kept and embedded in MSC Scandinavia Holding as well. However, as a joined entity it is sharing much more in common due to its purpose, functionality and structure. As mentioned above, from the organizational structure point of view, they share common operational software and internal server, common documentation 27Organizational culture versus National culture in MSC BScB(IM) 2012
and financial centers in Riga, and headquarters in Copenhagen. MSC SH human resource department arranges annually meetings and interviews with staff. They conduct an annual motivation survey, where employees disclose their opinions about management and daily routine. After submitting the entire results HR manager analyses the employee’s engagement rates and finds long and short term solutions for improvement. Another annual procedure is EDD- Employee Development Discussion. The discussion is held between the manager and his/her employees individually in the end of the year. This procedure consists of several steps: firstly, both manager and employee fill in a form, where answer questions about the general atmosphere in the office and in the department, the achievement of the past year and objectives for the coming period. The discussion reveals both interpersonal relationships and professional issues. The EDD is a chance for employee to inform his manager about their plans for future, both personal and professional, to express dissatisfaction, to discuss the possibilities of promotion or changing departments, for example.
Having discussed and described the organizational culture of MSC and all the measures taken to establish it, we will look at the cultural context – we will measure, using Hofstede`s intercultural dimension, the cultural differences of the 16 countries in MSC- SH (as mentioned before, we focus on this particular entity of MSC). However we can apply Hofstede only to 10 counties, which are Croatia, Denmark, Estonia, Finland, Hungary, Norway, Poland, Russia, Slovenia and Sweden. We will try to give characteristics to other 6 counties, not included in Hofstede`s study: Bosnia- Herzegovina, Belarus, Kazakhstan, Latvia, Lithuania, Uzbekistan, in our further analysis.
The analysis of 10 countries, using Hofstede`s intercultural dimensions, will be extended by adding the results of our own conducted research. Having distributed the questionnaire to all employees of MC-SH 16 countries, based on the collected responses, we will try to confirm or refute Hofsede`s results. 28Organizational culture versus National culture in MSC BScB(IM) 2012
However, we understand, that our results might not match with Hofstede`s classifications due to various reasons: research was made in a different company, the questions within the survey were not too much in depth and not revealing respondent`s personality; we also keep in mind the statistical error due to not equal amount of people in each county`s office and not 100% response rate. We have not scored the dimensions, as did Hofstede, however the responses we obtained can help us to make judgments regarding some of the dimensions. Given this, we cannot position with certainty every county within the dimension, we can only detect if it relates to one or another side of it, for example, if a given country has more features of the masculine or feminine nature.
Our research will look at the Masculinity versus Femininity dimension through the following angle: we will measure the rate of management positions in the office taken by women. As per Hofstede, in feminine societies, women have equal opportunity and are equally likely to take high positions in the company as men. This is the case for societies, where people have equal rights and the social roles and men and women are not strictly defined as: men providing for the family and women being responsible only for household and bringing up children. To make the above mentioned conclusion about the respondent culture, there should be more than one managers` position in the office of a given country.
Another dimension we will look at is Individualism versus Collectivism. We will base our conclusions on the responses to the questions about education (the multiple choice answers were: high school education, college degree, bachelor degree, master degree or other). As per Nancy Adler (p.52-54), in individualistic societies, companies hire people based on their education and professional skills, when in collectivistic societies, people often get hired through contacts within the company (being a good friend or a family member of a current employee of the company). Another criterion is the general rate of responses on the questionnaire. In collectivistic societies, the rate of 29Organizational culture versus National culture in MSC BScB(IM) 2012
responses will be high, because they are group-oriented and delegate the task to the whole department, as well as it will take longer time to submit all the answers, when in individualistic societies, the rate of responses will be low and the answers will be submitted immediately.
1. Croatia
Picture 2. Croatia (http://geert-hofstede.com/croatia.html)
Power Distance (PDI): Croatia scores high on this dimension (score of 73).
Meaning that in the society hierarchical order is accepted and followed. People have defined places in the social structure, which is applicable for the organizations, which are often centralized. Management has high authority and power in decision making and information distribution. 30Organizational culture versus National culture in MSC BScB(IM) 2012
Individualism versus Collectivism (IND): Croatia, with a score of 33 is considered a collectivistic society. This means that people built strong, long term oriented relationships. The sense of belonging is cruise for society, where the members of the group take responsibility and care for each other. This is reflected in the organizations. The relationships are often family-like, where all the benefits and punishments are equally shared by the employees.
Masculinity versus Femininity (MAS): Croatia scores 40 on this dimension and is thus considered a relatively feminine society. This implies that people value quality of life much higher than the career achievements. Meaning that people would prefer quality time spent with family then long working hours with higher pay. In feminine societies equal rights and social statuses are being provided to all its members. In organizations this implies that management position can be taken by both male and female and the salary variation is not too high between management and staff. In feminine organizations conflicts are solved by finding a compromise and a common ground. In organizations there is a high concern for environment and corporate social responsibility. Being better than others is not rewarded in any way.
Uncertainty avoidance (UAI): Croatia scores 80 on this dimension and thus has a very high preference for avoiding uncertainty. In high uncertainty avoidance society traditions are being kept, innovations are often resisted. People highly value security; they want to be sure about what is going to happen tomorrow. For organizations this means that employees are retained for long period and life time employment is possible. People like to follow guidelines and clear instructions in their work, as well as don’t like to be in a rush when making decisions. People rely on the bureaucracy.
Long term orientation (LTO): No scores available 31Organizational culture versus National culture in MSC BScB(IM) 2012
2. Denmark
Picture 3.Denmark (http://geert-hofstede.com/denmark.html)
PDI: With a score of 18 points Denmark is at the very low end of this dimension. This matches perfectly with what many foreigners in Denmark express: Danes do not lead, they coach and employee autonomy is required. Facts talk for themselves: Denmark has the highest out of 27 EU countries rate of employee’s autonomy. Danes believe in social equality. In organizations this is translated into very horizontal structures and rather familiar relationships between professors and students in the universities, for example.
IDV: Denmark, with a score of 74 is an Individualistic society. This implies that people stand for themselves and their close family members only. A short talk is enough, with no need to built strong deep relationships. Danes are known for very direct communication style, which altogether makes it fairy easy to start business.
MAS: Denmark scores 16 on this dimension and is therefore considered a feminine society. This implies that people value quality of life much higher than the career achievements. Meaning that people would prefer quality time spent with family then long working hours with higher pay. In feminine 32Organizational culture versus National culture in MSC BScB(IM) 2012
societies equal rights and social statuses are being provided to all its members. In organizations this implies that management position can be taken by both male and female and the salary variation is not too high between management and staff. In feminine organizations conflicts are solved by finding a compromise and a common ground. In organizations there is a high concern for environment and corporate social responsibility. Being better than others is not rewarded in any way.
UAI: With a score of 23 Denmark scores low on this dimension. This means that Danes do not need their life to be highly structured and predictable. People are adventurous and spontaneous, accepting changes and new things coming into their lives. Denmark has a reputation in innovation and design. For organizations this means that employees tend to switch jobs easily looking for new challenges and companies tent to implement innovations both technological and methodological.
LTO: The Danes score 46, making it a short term orientation culture, though
very close to the middle. This means that society has strong wish for possessing and to keep us with the modern trends. People don’t have a tendency to save up for future and are oriented on achieving quick results. Leisure time is important. Focus in business and politics is mostly on what is happening now, instead of in future.
3. Estonia 33Organizational culture versus National culture in MSC BScB(IM) 2012
Picture 4.Estonia (http://geert-hofstede.com/estonia.html)
PDV: Estonia scores low on this dimension (40). In Estonia employees are willing to have a manager, who includes them in decision making and allows expressing opinions.
As Hofstere explained the current situation is Estonia: “Estonia has recently passed the transition state, which means however that the older generation and state organizations often demonstrate high PDI tendencies. The older Soviet ways of thinking and relating to the world still remain and the boss- subordinate relationship among Estonians is sometimes more hierarchical than the score suggests.” (http://geert-hofstede.com/estonia.html)
IDV: Estonia is an individualistic country with a score of 60. This implies that people stand for themselves and their close family members only. Relationships have functional purpose. Communication style is very direct, which altogether makes it fairly easy to start business.
MAS: At a score of 30, Estonia is a feminine country. This implies that people value quality of life much higher than the career achievements. Meaning that people would prefer quality time spent with family then long working hours with higher pay. In feminine societies equal rights and social statuses are being provided to all its members. In organizations this implies that management position can be taken by both male and female and the salary 34Organizational culture versus National culture in MSC BScB(IM) 2012
variation is not too high between management and staff. In feminine organizations conflicts are solved by finding a compromise and a common ground. In organizations there is a high concern for environment and corporate social responsibility. Being better than others is not rewarded in any way.
UAI: With a score of 60, Estonia has a high preference for avoiding uncertainty. In high uncertainty avoidance society traditions are being kept, innovations are often resisted. People highly value security; they want to be sure about what is going to happen tomorrow. For organizations this means that employees are retained for long period and life time employment is possible. People like to follow guidelines and clear instructions in their work, as well as don’t like to be in a rush when making decisions. People rely on the bureaucracy.
LTO: No scores available
4. Finland
Picture 5. Finland (http://geert-hofstede.com/finland.html)
PDI: Finland scores low on this dimension (score of 33). This means that the society is equal; hierarchy is used for convenience only. In organization this 35Organizational culture versus National culture in MSC BScB(IM) 2012
means that employees can approach their managers easily. Employees are included in decision making process. The structure of organizations is horizontal.
IDV: Finland, with a score of 63 is an Individualistic society. This implies that people stand for themselves and their close family members only. Relationships have functional purpose. Communication style is very direct, which altogether makes it fairly easy to start business.
MAS: Finland scores 26 on this dimension and is thus considered a feminine society. This implies that people value quality of life much higher than the career achievements. Meaning that people would prefer quality time spent with family then long working hours with higher pay. In feminine societies equal rights and social statuses are being provided to all its members. In organizations this implies that management position can be taken by both male and female and the salary variation is not too high between management and staff. In feminine organizations conflicts are solved by finding a compromise and a common ground. In organizations there is a high concern for environment and corporate social responsibility. Being better than others is not rewarded in any way.
UAI: Finland scores 59 on this dimension and thus has a medium high preference for avoiding uncertainty. In high uncertainty avoidance society traditions are being kept, innovations are often resisted. People highly value security; they want to be sure about what is going to happen tomorrow. For organizations this means that employees are retained for long period and life time employment is possible. People like to follow guidelines and clear instructions in their work, as well as don’t like to be in a rush when making decisions. People rely on the bureaucracy.
LTO: The Finns score 45, making it a short term orientation culture. This means that society has strong wish for possessing and to keep us with the modern trends. People don’t have a tendency to save up for future and are 36Organizational culture versus National culture in MSC BScB(IM) 2012
oriented on achieving quick results. Leisure time is important. Focus in business and politics is mostly on what is happening now, instead of in future.
5. Hungary
Picture 6.Hungry (http://geert-hofstede.com/hungary.html)
PDI: Hungary scores low on this dimension (score of 46). This means that the society is equal; hierarchy is used for convenience only. In organization this means that employees can approach their managers easily. Employees are included in decision making process. The structure of organizations is horizontal.
IDV: Hungary, with a score of 80 is an Individualistic society. This implies that people stand for themselves and their close family members only. 37Organizational culture versus National culture in MSC BScB(IM) 2012
Relationships have functional purpose. Communication style is very direct, which altogether makes it fairly easy to start business.
MAS: Hungary scores 88 on this dimension and is thus a masculine society. This means that people live in order to work. The emphasis is on achievements and career growth. In organizations within masculine societies, manager is supposed to be decisive, high focus is on equity, fighting competition and results. When conflicts arise, they are usually solved by fighting them out.
UAI: Hungary scores 82 on this dimension and thus has a preference for avoiding uncertainty. In high uncertainty avoidance society traditions are being kept, innovations are often resisted. People highly value security; they want to be sure about what is going to happen tomorrow. For organizations this means that employees are retained for long period and life time employment is possible. People like to follow guidelines and clear instructions in their work, as well as don’t like to be in a rush when making decisions. People rely on the bureaucracy.
LTO: Hungary scores 50, making it a long term orientation culture. The long term oriented culture has a focus on the future results. People tend to save and invest. Organizations choose a long term strategy, which will bring the most benefits to a company in a long run.
6. Norway 38Organizational culture versus National culture in MSC BScB(IM) 2012
Picture 7. Norway (http://geert-hofstede.com/norway.html)
PDI: Norway scores low on this dimension (31). This means that the society is equal; hierarchy is used for convenience only. In organization this means that employees can approach their managers easily. Employees are included in decision making process. The structure of organizations is horizontal.
IDV: Norway with a score of 69 is considered an individualistic society. This implies that people stand for themselves and their close family members only. Relationships have functional purpose. Communication style is very direct, which altogether makes it fairly easy to start business.
MAS: Norway scores 8 and is thus the second most feminine society. Finland scores 26 on this dimension and is thus considered a feminine society. This implies that people value quality of life much higher than the career achievements. Meaning that people would prefer quality time spent with family then long working hours with higher pay. In feminine societies equal rights and social statuses are being provided to all its members. In organizations this implies that management position can be taken by both male and female and the salary variation is not too high between management and staff. In feminine organizations conflicts are solved by finding a compromise and a common ground. In organizations there is a high 39Organizational culture versus National culture in MSC BScB(IM) 2012
concern for environment and corporate social responsibility. Being better than others is not rewarded in any way.
UAI: Norway scores 50 and thus becomes a fairly pragmatic culture in terms of uncertainty avoidance. This means that Norwegian society is exposed to both ends of this dimension; thus having focus on planning and not being afraid of taking risks at the same time.
LTO: Norway scores 44 making it more of a short term orientation culture. This means that society has strong wish for possessing and to keep us with the modern trends. People don’t have a tendency to save up for future and are oriented on achieving quick results. Leisure time is important. Focus in business and politics is mostly on what is happening now, instead of in future.
7. Poland
Picture 8. Poland (http://geert-hofstede.com/poland.html)
PDI: At a score of 68, Poland is a hierarchical society. Meaning that in the society hierarchical order is accepted and followed. People have defined places in the social structure, which is applicable for the organizations, which are often centralized. Management has high authority and power in decision making and information distribution. 40Organizational culture versus National culture in MSC BScB(IM) 2012
IDV: Poland, with a score of 60 is an Individualistic society. As Hofstede claims, the high scores on PDI and IDV dimensions create a tension and contradiction in this culture. The relationships are delicate, but very intense and fruitful once you manage them. Managers in the organizations have to establish a certain communication pattern- having a personal contact this everyone in the organization, thus making everyone feel important, although not equal.
MAS: Poland scores 64 on this dimension and is thus a masculine society. This means that people live in order to work. The emphasis is on achievements and career growth. In organizations within masculine societies, manager is supposed to be decisive, high focus is on equity, fighting competition and results. When conflicts arise, they are usually solved by fighting them out.
UAI: Poland scores 92 on this dimension and thus has a very high preference for avoiding uncertainty. In high uncertainty avoidance society traditions are being kept, innovations are often resisted. People highly value security; they want to be sure about what is going to happen tomorrow. For organizations this means that employees are retained for long period and life time employment is possible. People like to follow guidelines and clear instructions in their work, as well as don’t like to be in a rush when making decisions. People rely on the bureaucracy.
LTO: Poland scores 32, making it a short term orientation culture. This means that society has strong wish for possessing and to keep us with the modern trends. People don’t have a tendency to save up for future and are oriented on achieving quick results. Leisure time is important. Focus in business and politics is mostly on what is happening now, instead of in future. 41Organizational culture versus National culture in MSC BScB(IM) 2012
8. Russia
Picture 9. Russia (http://geert-hofstede.com/russia.html)
PDI: Russia, scoring 93, is among the 10 percent of the most power distant societies in the world. Meaning that in the society hierarchical order is accepted and followed. People have defined places in the social structure, which is applicable for the organizations, which are highly centralized. Management has high authority and power in decision making and information distribution.
This is underlined by the fact that the largest country in the world is extremely centralized: 2/3 of all foreign investments go into Moscow where also 80% of all financial potential is concentrated. This causes a huge discrepancy between social layers- creating space large difference between the rich and the poor. This makes the status symbols very important attributes.
IDV: Russia scores 39 and thus is a collectivistic society. Family and friends are extremely important in everyday life. The relationships are carefully built and 42Organizational culture versus National culture in MSC BScB(IM) 2012
often last live-long. Interpersonal communication, mutual trust and respect are core values for making business and successful negotiations. Highly collectivistic society is also described as particularistic, meaning that rules and laws are perceived in the context of a particular situation. For example, people would not witness in the court against their family member or friend, even knowing he/she is guilty.
MAS: As per Hofstede, Russia’s relatively low score of 36 may surprise with regard to its preference for status symbols, but these are in Russia related to the high Power Distance. Having a closer look, we can notice, that the work place, for example, Russians tent to talk modestly, understate their status and achievements. It is very unpopular to brag about your successes. While the superiority of the boss is accepted, it is not appreciated among the co- workers. In feminine societies, people value quality of life, and take care of each other.
UAI: As per Hostede`s research, Scoring 95 Russians feel very much threatened by ambiguous situations, as well as they have established one of the most complex bureaucracies in the world. When applied to the business world, people prefer to have lot f background information about each other before starting a meetings or negotiations.
LTO: No score available
9. Slovenia 43Organizational culture versus National culture in MSC BScB(IM) 2012
Picture 10. Slovenia (http://geert-hofstede.com/slovenia.html)
PDI: Slovenia scores high on this dimension (score of 71). Meaning that in the society hierarchical order is accepted and followed. People have defined places in the social structure, which is applicable for the organizations, which are often centralized. Management has high authority and power in decision making and information distribution.
IDV: Slovenia, with a score of 27 is considered a collectivistic society. This means that people built strong, long term oriented relationships. The sense of belonging is cruise for society, where the members of the group take responsibility and care for each other. This is reflected in the organizations. The relationships are often family-like, where all the benefits and punishments are equally shared by the employees.
MAS: Slovenia scores 19 on this dimension and is thus considered a feminine society. This implies that people value quality of life much higher than the career achievements. Meaning that people would prefer quality time spent with family then long working hours with higher pay. In feminine societies equal rights and social statuses are being provided to all its members. In organizations this implies that management position can be taken by both male and female and the salary variation is not too high between management and staff. In feminine organizations conflicts are solved by 44Organizational culture versus National culture in MSC BScB(IM) 2012
finding a compromise and a common ground. In organizations there is a high concern for environment and corporate social responsibility. Being better than others is not rewarded in any way.
UAI: Slovenia scores 88 on this dimension and thus has a very high preference for avoiding uncertainty. In high uncertainty avoidance society traditions are being kept, innovations are often resisted. People highly value security; they want to be sure about what is going to happen tomorrow. For organizations this means that employees are retained for long period and life time employment is possible. People like to follow guidelines and clear instructions in their work, as well as don’t like to be in a rush when making decisions. People rely on the bureaucracy.
LTO: No scores available
10. Sweden 45Organizational culture versus National culture in MSC BScB(IM) 2012
Picture 11. Sweden (http://geert-hofstede.com/sweden.html)
PDI: Sweden scores low on this dimension (score of 31). This means that the society is equal; hierarchy is used for convenience only. In organization this means that employees can approach their managers easily. Employees are included in decision making process. The structure of organizations is horizontal.
IDV: Sweden, with a score of 71 is an Individualistic society. This implies that people stand for themselves and their close family members only. Relationships have functional purpose. Communication style is very direct, which altogether makes it fairly easy to start business.
MAS: Sweden scores 5 on this dimension and is therefore the most feminine society. This implies that people value quality of life much higher than the career achievements. Meaning that people would prefer quality time spent with family then long working hours with higher pay. In feminine societies equal rights and social statuses are being provided to all its members. In organizations this implies that management position can be taken by both male and female and the salary variation is not too high between management and staff. In feminine organizations conflicts are solved by finding a compromise and a common ground. In organizations there is a high 46Organizational culture versus National culture in MSC BScB(IM) 2012
concern for environment and corporate social responsibility. Being better than others is not rewarded in any way.
UAI: Sweden scores 29 on this dimension and thus has a low preference for avoiding uncertainty. . This means that Swedes do not need their life to be highly structured and predictable. People are adventurous and spontaneous, accepting changes and new things coming into their lives. For organizations this means that employees tend to switch jobs easily looking for new challenges and companies tent to implement innovations both technological and methodological.
LTO: The Swedes score 20, making it a short term orientation culture. This means that society has strong wish for possessing and to keep us with the modern trends. People don’t have a tendency to save up for future and are oriented on achieving quick results. Leisure time is important. Focus in business and politics is mostly on what is happening now, instead of in future.
Data analysis Having described and categorized 10 out of 16 counties in MSC- SH using Hofstede`s methods and theory, we will look into the data, which we have submitted from the employees of the company. We will look at the way MSC establishes a common corporate culture through the organizational goal and associated criteria used for employee recruitment and selection; characterize within two cultural dimensions- Collectivism versus Individualism and Masculinity versus Femininity each country, including the ones, not covered by Hofstede; and comparing our results with Hofstede`s results for countries included in his research.
Collectivism versus individualism 47Organizational culture versus National culture in MSC BScB(IM) 2012
As per Nancy Adler (2010) and article of Timothy Johnson “Respondent Cultural Orientations and survey participation: the effect of Individualism and Collectivism”, this dimension affects directly the non-response rate of the surveys. Members of individualistic societies are often not willing to participate in surveys (Adler, 2010). The reason for low responsiveness is the little personal benefit that can be extracted from completing surveys, as it is mostly seen as being time-consuming and irrelevant for the individual. On the other hand, collectivist societies have higher rate of response, as this process emphasizes cooperation and personal sacrifice (of time) for greater social good. In our study we have used this indicator of Individualistic versus Collectivistic dimension, to evaluate, according to it, the real life case- counties within MSC Scandinavia Holding. We have sent out a survey to 755 employees in 16 countries- which are all MSC Scandinavia Holding staff. The overall responses we have obtained are 261, which is 35 percent (see Appendix 3). We have submitted the response amount per country and compared with the number of employees in each office to calculate the response rate. We have illustrated the results in the Graph 1 below. The graph shows, that none of the countries has completed the survey with 100 percent rate of responsiveness; however, the highest result stands for MSC Denmark, where 47 out of 64 people completed the questionnaire. The lowest response rate belongs to MSC Croatia, where only 1 out of 17 people filled in the survey. The rates of responses of other countries vary from 71 to 14 percent. We do not state strongly which dimension each of the countries belongs to, as this single parameter does not provide sufficient evidence; however, we have chosen to use the 50 percent as a cutting line; the countries with rate of response below 50 percent are more likely to be individualistic, and countries above 50 percent are more likely to be collectivistic.
To be more specific, according to the assumption made above, we define Croatia, Finland, Russia, Poland and Slovenia as individualistic countries. Such results are dramatically different from what we expected. Out of ten 48Organizational culture versus National culture in MSC BScB(IM) 2012
countries, studied by G. Hofstede, only 3 were classified as collectivistic- Russia, Croatia and Slovenia; and these were the countries, with the lowest response rates, whereas we have expected much higher involvement of people in these MSC- SH offices. However, the results for Finland and Poland confirmed Hofstede`s classification.
Further on, we suggest that the following countries are more individualistic then collectivistic: Belarus, Hungary, and Estonia. The rate of responsiveness in these offices is higher than 30 percent, but still below 50 percent cutting line. Thus Estonia and Hungary matching Hofstede`s description.
Furthermore, the results of our survey showed that Kazakhstan and Denmark act as collectivistic cultures, performing the highest rate of responsiveness out of all offices. Remaining Bosnia- Herzegovina, Latvia, Lithuania, Norway, Sweden and Uzbekistan we characterize as being more collectivistic than individualistic, as the rates of responsiveness range in the percentage interval from 52 to 57.
Thus we conclude, that our results for Scandinavian countries- Denmark, Norway and Sweden deviate from Hofstede`s results. Surprisingly, employees in these offices showed enthusiasm to participate in our research.
Graph 1. Rates of responsiveness per country.
Masculinity versus femininity
According to Hofstede and Hofstede 2005, Masculinity versus Femininity dimension has significant influence on the business world and organizational 49Organizational culture versus National culture in MSC BScB(IM) 2012
structure in terms of female`s chances and opportunities in career and the probability of them climbing up the hierarchical ladder in the company. We have analyzed MSC- SH countries from the perspective of male and female management ratio in the company`s local offices. We have combined two questions from the survey to achieve the results, which we have submitted in Graph 2. It represents the percentage ratio of men and women in each country (see Appendix 4). The presence of females on the managing positions in the company indicates that the male and female roles in the society are not strictly defined, meaning that women are encouraged to have higher education and have as many growth and carrier opportunities as men. This can be observed in feminine societies, which value equality of its` members and quality of life.
Some of the results shown in the Graph 2 were expected, whereas, some were surprising. Unfortunately we do not have any data on this subject for Croatia and Uzbekistan, as none of the managers from these countries have completed the survey. We also cannot make any judgments about the countries with one male manager. The fact that the manager is male does not imply that a female did not have the same chance of getting this position; it might have been a coincidence, meaning that, this evidence is insufficient to claim, that the given culture is more likely to be masculine. Such countries are Belarus and Bosnia- Herzegovina.
The results were surprising for Scandinavian countries: Sweden and Denmark, which, as per Hofstede, are the world`s most feminine cultures, in our research appeared to have a big superiority of males over females in the managing positions in the company. The ratios are 5:2 for Sweden and 14:2 for Denmark respectively. Another surprising country is Russia. Hofstede argued that, even though Russia seems to be a masculine society, due to a very hierarchical structure of organizations and society itself, it is a feminine culture. Strict hierarchy is a cause of extremely high power distance in this 50Organizational culture versus National culture in MSC BScB(IM) 2012
country and not due to the masculine nature. However, the results of our survey show that in Russian organizations, managing positions are still principally occupied by males- the ratio is 8:2 respectively. The survey results for Slovenia also revealed the preference for male managers in given company- 3:1 ratio of male versus female managers respectively, thus conflicting with Hofstede`s description of Slovenia as feminine country.
Our study has confirmed Hofstede`s classification of Poland and Hungary as masculine cultures as we can observe a strong preference for male managers with male versus female ratio as 2:0 and 3:0 respectively. Another country, which shows to be more masculine, according to our results for this dimension, is Lithuania. The male and female manager ratio is 2:1 respectively (giving the percentage gap of 34).
On the other hand, as strongly feminine cultures in our research appeared to be Estonia, Finland and Kazakhstan with male versus female managers ratios of 2:4, 0:1 and 2:2 respectively; thus our results for Estonia and Finland matched Hofstede`s classification of these countries as feminine. The results for Kazakhstan might seem unexpected for many people, as the stereotype about Eastern countries usually defines them as having very traditional roles for genders in society. However, we, according to the analysis from the conducted survey, suggest that Kazakhstan is more likely to have a feminine nature of the society.
Another group of countries, which we examined, seem to have alike patterns of male and female distribution on managing positions- they are Norway and Latvia. In the MSC offices in these countries both males and females represent managing positions in the company with insignificant prevalence of men. We suggest that these 3 countries are more likely to be feminine. Even though, the percentage gap exists, it is considered to be rather small (14 percent in Latvia and 20 percent in Norway), given that, according to Forbes, statistics for labor force in general and for women in management particularly, still 51Organizational culture versus National culture in MSC BScB(IM) 2012
does not show the 50:50 ratio of men and women engagement in the job market, especially inequality, in favor of men, is observable on the higher top management positions and in the board of directors (http://www.forbes.com/2011/02/18/women-business-management-forbes- woman-leadership-corporate-boards.html).
Graph 2. Male versus Female manager ratio per county
In conclusion for data analysis of cultural dimensions, we want to point out and summarize the results for those six countries, which are not covered by Hofstede (see Appendix 5):
- Belarus: is classified as more individualistic than collectivistic culture, with insufficient data to characterize Masculinity versus Femininity dimension;
- Bosnia- Herzegovina is classified as more collectivistic than individualistic culture, with insufficient data to characterize Masculinity versus Femininity dimension;
- Kazakhstan is classified as collectivistic and feminine culture;
- Latvia is classified as more collectivistic than individualistic culture, and more likely to be feminine;
- Lithuania is classified as more collectivistic than individualistic culture, and more likely to be masculine;
- Uzbekistan is classified as more collectivistic than individualistic culture, with insufficient data to characterize Masculinity versus Femininity dimension. 52Organizational culture versus National culture in MSC BScB(IM) 2012
Our results reflect the comparison of all countries with each other from the common picture of responses to a relevant question. We did not score each dimension, as did Hofstede, using a common scale, therefore, we often formulated our conclusions as “more or less likely” to be placed on one or another side of two cultural dimensions we described.
MSC organization culture through employee recruiting and retaining
Our angle to look at MSC- SH organizational culture is aimed at mapping and comparing the criteria for recruiting staff in each office of MSC- SH across 16 participant countries. Our analysis will be rooted into defining the most average pattern of characteristics of individual within MSC – SH and comparing it to the average pattern of personal characteristics of employee in every, out of 16 MSC- SH regional offices.
Starting with the characteristics of an average employee in MSC- SH (see Appendix 6) we can conclude that its` representative is a
Female, which scores 54 percent out of all respondents:
Picture 12. Gender ratio
An employee of age from 20-30 years (51 percent) 53Organizational culture versus National culture in MSC BScB(IM) 2012
Picture 13. Age groups ratio
Single (64 percent)
Picture 14. Family status ratio
With a bachelor degree (41 percent)
Picture 15. Education degree ratio
Working in MSC on average 1-5 years (49 percent) 54Organizational culture versus National culture in MSC BScB(IM) 2012
Picture 16. Years of experience in MSC ratio
Having defined the average characteristics of an MSC- SH employee, our objective is to illustrate the dispersion of these characteristics across every country. As our questionnaire was structured, meaning that respondents had fixed options of answers, we were not able to calculate the numerical mean for every answer. Therefore we chose to refer to the most popular response option of every question from each respondent country and mapped it on the graph below. We have compared the employees from each country across five characteristics: gender, age, family status, education and years of working in MSC. On the graph we have presented below, we have coded the results in the following way: by selecting the most popular answer to every question in the respondent countries. The question about gender had two possible answers: 1- for male, 2- for female; question of age had six possible answers: 1- under 20 years, 2- from 20 to 30 years, 3- from 30 to 40 years, 4- from 40 to 50 years, 5- from 50 to 60 years, 6- over 60 years. The question about the family status suggested two possibilities: 1- married, 2- not marries. There were five optional answers for education: 1- high school degree, 2- college degree, 3- bachelor degree, 4- master degree, 5- other type of education (might be a PhD degree or any kind of specialized professional education). And, finally, the question on years of experience in MSC had 4 possible answers: 1- from 0 to 1 year, 2- from 1 till 5 years, 3- from 5 till 10 years, 4- over 10 years. According to the above mentioned coding (see Appendix 7) the results are summarized in the graph below. 55Organizational culture versus National culture in MSC BScB(IM) 2012
Graph 3. Survey results per country
In the graph every country is represented in different color in the following sequence: MSC Average employee, Belarus, Bosnia- Herzegovina, Croatia, Denmark, Estonia, Finland, Hungary, Kazakhstan, Latvia, Lithuania, Norway, Poland, Russia, Slovenia, Sweden and Uzbekistan. Every question on the X axis in the graph submits all the results per each country, thus visualizing the dispersion of the results.
Referring to question of gender, the results of MSC- SH, as a single unit, showed that the number of men and women in the company is almost the same- 46 versus 54 percent respectively. However, the countries, where men prevail are Bosnia- Herzegovina, Croatia, Denmark, Lithuania, Norway, Poland and Slovenia. Sweden scores 1.5 points in this question, due to the fact that the amount of males and females in the office is the same.
As mentioned before, the most common age category in MSC-SH is the range of 20-30 years. The results for this question appeared to be significantly different for five countries- Croatia, Kazakhstan, Denmark, Hungary and Slovenia, where the most common age category is 30-40 years. Three countries scored 2.5 in this scale, meaning the age categories of 20-30 years and 30-40 years are the most common with the same percentage- 50 and 50 percent for Bosnia- Herzegovina, 33 and 33 percent for Finland and 50 versus 50 percent for Lithuania.
The results for the question about family status are very homogeneous across all 16 countries- majority of employees are not married. The exceptions are Belarus and Hungary, where most of the employees are married and Uzbekistan, where the ratio of married and single employees is 50 and 50 percent. 56Organizational culture versus National culture in MSC BScB(IM) 2012
The question of education showed that the majority of employees in MSC- SH have a bachelor degree- 41percent. As illustrated on the graph, four countries deviate from the common overall average- Denmark, Hungary, Poland and Sweden. Across the employees in Denmark the dominating education level is a college degree- 38 percent, whereas in Hungary and Sweden- it is high school education, that prevails- 33 percent for Hungary and 39 percent for Sweden respectively. Statistics for education level in Poland showed dramatically different results out of all 16 MSC- SH countries. We observe that the education criteria for employee hiring in MSC Poland is very high- 85 percent out of 13 respondents have a Master degree, whereas other 15 percent are bachelors, meaning that all the employees have a higher education, which is remarkable.
Finally, the question on the employee retaining in MSC- SH- the results are very homogeneous. The average in MSC- SH is from 1 to 5 years experience within the company. The exceptions are Latvia and Slovenia. As per information, provided by MSC- SH executives, Latvian office had a huge expansion during the last year, which caused a need for new workforce, consequently, hiring of new employees. This explains the low average results on staying with MSC in Latvia. On the other hand, the Slovenian employees have been working in MSC-SH for 5 to 10 years on average. This fact might have been influenced by very high uncertainty avoidance of Slovenian culture, which has been defined by Hofstede.
Conclusion
As globalization is expanding, multinational organizations are becoming more similar, while the behavior of people within them is remaining culturaly unique. According to Nancy J. Adler, many managers believe that strong organizational culture can erase or diminish significantly the cultural differences within the organizations. However, Hofstede in his study proved 57Organizational culture versus National culture in MSC BScB(IM) 2012
that employees and managers bring their cultural background and ethnicity to the workplace. National culture in his study explained more than 50 percent of difference in attitudes and behaviors, which explained more than did professional role, age, gender or race. The biggest difference between national and organizational culture is that national culture is rooted in values and is absorbed by person from very young age, thus is a given fact for organization management, whereas organizational culture is rooted in practices, therefore can be manageable to some extent.
The objective of our thesis was to define organizational culture of MSC and national cultures within MSC Scandinavia Holding. We have looked at the artifact- such as MSC yellow color, logos and offices design, and at the core values of the company- Trust, Responsibility, Common Sense, Enthusiasm, Teamwork, Results. These core values are highly emphasized on all levels of the company in all areas of activity- on employee and top management levels, in internal cooperation, in communication with customers and suppliers. According to Lars Funding, MSC Scandinavia Holding CEO, these core values are the main mechanism for establishing a common corporate culture in all MSC offices worldwide (see Appendix 2). From his words, given that in all countries- both employees and managers “live by” this notion, managing cultural differences is becoming much easier. Secondly, we have described each country in MSC- SH based on Hofstede (data for only 10 countries out of 16 was available in his study). Parallel with that we have conducted our own survey, which was aimed at defining the basic features of employees in MSC- SH and find out if the selection of employees in this organization follow a common trend across all countries. As according to G.Hofstede (2005) and Nancy J. Adler (2010) pre-selection of employees play an important role in maintaining organizations values, meaning through hiring people of certain gender, age, nationality, and education. Another purpose of our survey was to define, on our own, independently from Hofstede`s research, two out of five cultural dimensions of the studied countries- Masculinity versus 58Organizational culture versus National culture in MSC BScB(IM) 2012
Femininity and Individualism versus Collectivism, compare our results with Hofstede`s and state them for countries, which he did not cover. According to both Hofstede (2005) and Nancy Adler (2010) the certain factors and behaviors of people point at belonging of the culture to one or another side of the cultural dimension. For Individualism versus Collectivism it is the rate of participation of people in the surveys and for Masculinity versus Femininity it is the equality in labor force distribution, especially on management positions.
The results we have obtained for the Masculinity versus Femininity dimension have not confirmed Hofstede`s theory for Denmark, Russia, Slovenia, Sweden, whereas Estonia, Finland, Hungary, Norway, and Poland have matched. Furthermore the data allowed us to define Kazakhstan as feminine culture, Lithuania as more masculine culture and Latvia as more feminine.
The results we have submitted for the Individualism versus Collectivism dimension have not confirmed Hofstede`s theory for Croatia, Denmark, Norway, Russia, Slovenia and Sweden. Whereas, Estonia, Finland, Hungary and Poland matched Hofstede`s classification. Furthermore, we have classified Belarus as more individualistic culture, Bosnia- Herzegovina, Lithuania, Latvia and Uzbekistan as more collectivistic and Kazakhstan as collectivistic.
As for data on selection and recruitment of employees, the obtained results did not show the expected homogeneity. People in all 16 MSC – SH countries, given their national differences, are not the same across such parameters as age, gender, family status and education. This means that the HR department in MSC – SH does not have a strong preference of a certain profile, when hiring a person. According to the CEO Lars Funding, MSC supports diversity and delegates lot of power and freedom to the local offices. This means that the criteria for hiring staff is dictated by the local conditions of labor market and local particularities of shipping industry in each country. MSC does admit and realize the complexity of managing cultural differences, however sees more benefits in cultural diversity, therefore company enhances it, instead of 59Organizational culture versus National culture in MSC BScB(IM) 2012
trying to diminish. As Mr. Funding mentioned, the interaction of even polar different cultures does not lead to problems, if people within the company follow the corporate values- base their interaction on mutual trust and stay responsible for their actions, and perceive themselves as a part of big MSC family.
References
Aarhus School of Business and Social Science (2011), “ Organizational Behavior”, Second Custom addition
Adler, N. J. (1983) “Cross-cultural management research: The Ostrich and the Trend”, the Academy of Management Review: 226-232
Adler, N.J and Gundersen A. (2010), “International Dimensions of Organizational Behavior”, 5th edition, Thomson South-Western
Chapman, M. (1997), “Social Anthropology, Business Studies, and Cultural Issues” International Studies of Management and Organization: 3-29
Dr. Chitakornkijsil P. (2010), “Intercultural Communication Challenges and Multinational Organization Communication”: National Institute of Development Administration (NIDA), Bangkok 10240 Thailand.
Czinkota, M. R., Ronkainen, I. A. and Moffet, M. H. (2005), “International Business”, Mason: South Western 60Organizational culture versus National culture in MSC BScB(IM) 2012
Hofstede, G. H. (2001), “Culture's consequences: comparing values, behaviors, institutions, and organizations across nations”. London: Sage,
Hofstede, G. and Hofstede, G. J. (2004), “Cultures and Organizations: Software of the Mind”. London: McGraw-Hill
Hofstede, G. H. (1994), “The business of international business is culture”, International Business Review: 1-14
Johnson T. (2000), “Respondent Cultural Orientation and Survey Participation: The Effect of Individualism and Collectivism”, University of Illinois at Chicago, USA
Kostova, T. (1999), “Transnational transfer of strategic organizational practices: A contextual perspective” Academy of Management Review: 308- 324
Pagell, M.; Katz, J.P. and Sheu, C. (2005), “The importance of national culture in operations management research”, International Journal of Operations and Production Management: 371-394
Scheffknecht S. (2011), “Multinational Enterprises- Organizational Culture VS. National Culture”, International Journal of Management cases.
Tosi, H. L., Mero N. P. and Rizzo, J.R. (2000),” Managing Organizational Culture” Blackwell: Oxford
Trompenaars, F. (1994), “Riding the Waves of Culture: Understanding Diversity in Global Business”, New York: McGraw-Hill 61Organizational culture versus National culture in MSC BScB(IM) 2012
Links
http://www.amstat.org/sections/srms/proceedings/papers/2000_161.pdf
http://www.bloomberg.com/news/2011-01-10/freight-rates-poised-to- tumble-as-35-mile-line-of-ships-passes-coal-demand.html
http://www.forbes.com/2011/02/18/women-business-management-forbes- woman-leadership-corporate-boards.html
http://geert-hofstede.com/croatia.html
http://geert-hofstede.com/denmark.html
http://geert-hofstede.com/estonia.html
http://geert-hofstede.com/finland.html)
http://geert-hofstede.com/hungary.html
http://geert-hofstede.com/norway.html
http://geert-hofstede.com/poland.html
http://geert-hofstede.com/russia.html
http://geert-hofstede.com/slovenia.html
http://geert-hofstede.com/sweden.html
http://www.gl-group.com/en/index.php
http://www.inspireimagineinnovate.com/PDF/GLOBEsummary-by-Michael-H- Hoppe.pdf
http://www.marisec.org/shippingfacts/worldtrade/index.php
http://www.marisec.org/shippingfacts/worldtrade/top-ten-container- operators.php 62Organizational culture versus National culture in MSC BScB(IM) 2012
http://www.mscgva.ch/about_us/agents.html
Appendices
Appendix 1. Questionairre
1. MSC Office
2. Gender
3. Age
4. Education
5. Family status
6. Manager/ employee
7. Years of work in MSC
Appendix 2. Interview with the CEO Lars Funding
1. How does MSC –SH (as being a multinational organization) handles the challenge of cultural differences among offices on management and employee level? 63Organizational culture versus National culture in MSC BScB(IM) 2012
Mr. Aponte delegates a lot of power to the region meaning we can apply our own culture as long as it is based on mutual trust and adherence to global policies.
2. Which advantages/ disadvantages of cultural diversity can you name, in our particular case?
Advantage: diversification more solutions to same problem, easy adjust local market condition as we respect local cultures. Disadvantage: mainly on communication which is difficult.
3. Which measures does MSC –SH headquarters undertake in order to establish a common organization culture across all 16 local offices?
We do respect local cultures and delegate a lot of power to the countries. In our region our management is based on our 6 core values which we all have to live by. An important part of all holding managers are to wave the flag and show our basic values in everything we do.
4. Can you mention any negative consequences from the misunderstandings based on cultural differences in MSC- SH?
We base a lot on verbal agreements which can be dangerous and lead to mistakes. Better to get everything in writing.
5. You have probably visited every MSC –SH office. Do the general atmosphere/ spirit differ a lot in all 16 countries? Is staff mostly homogeneous?
You see our basic values in all offices for sure. But you see cultural differences of course. 64Organizational culture versus National culture in MSC BScB(IM) 2012
Appendix 3. Rate of responsiveness
№ of № of MSC Office employees responces Rate of employees Belarus 8 3 38% Bosnia- Herzegovina 7 4 57% Croatia 17 1 6% Denmark 64 47 73% Estonia 24 9 38% Finland 63 9 14% Hungary 19 9 47% Kazakhstan 7 5 71% Latvia 70 37 53% Lithuania 23 12 52% Norway 41 23 56% Poland 68 13 19% Russia 237 37 16% Slovenia 22 6 27% Sweden 74 41 55% Uzbekistan 9 5 56% TOTAL 753 261 35% 65Organizational culture versus National culture in MSC BScB(IM) 2012
Appendix 4. Male versus Female manager ratio
Male_Manage Fem_Manag MSC Office r Fem_Manager Total Male_Manager er Belarus 1 0 1 100% 0% Bosnia- Herzegovina 1 0 1 100% 0% Croatia 0 0 0 0% 0% Denmark 12 2 14 86% 14% Estonia 2 4 6 33% 67% Finland 0 1 1 0% 100% Hungary 3 0 3 100% 0% Kazakhstan 2 2 4 50% 50% Latvia 4 3 7 57% 43% Lithuania 2 1 3 67% 33% Norway 3 2 5 60% 40% Poland 2 0 2 100% 0% Russia 8 2 10 80% 20% Slovenia 3 1 4 75% 25% Sweden 5 2 7 71% 29% Uzbekistan 0 0 0 0% 0% 66Organizational culture versus National culture in MSC BScB(IM) 2012
Appendix 5. Summary of Hofstede`s classification
Country/ Individualism/ Masculinity/ Uncertainty Long term Power Distance Dimension Collectivism Femininity avoidance Orientation
no data Croatia high collectivistic feminine high available Denmark low individualistic feminine low short term no data Estonia low individualistic feminine high available medium Finland low individualistic feminine high short term Hungary low individualistic masculine high long term Norway low individualistic feminine medium short term Poland high individualistic masculine very high short term no data Russia very high collectivistic feminine very high available no data Slovenia high collectivistic feminine very high available Sweden low individualistic feminine low short term 67Organizational culture versus National culture in MSC BScB(IM) 2012
The results of survey
Our survey Our survey Country/ results on results on Dimension individualism masculinity Croatia individualist can`t define Denmark collectivist more masculine Estonia more individualist feminine Finland individualist feminine Hungary more individualist masculine Norway collectivist more feminine Poland individualist masculine Russia individualist masculine Slovenia individualist more masculine Sweden collectivist more masculine Uzbekistan more collectivist can`t define Kazakhstan collectivist feminine Latvia more collectivist more feminine Lithuania more collectivist more masculine Bosnia more collectivist can`t define Belarus more individualist can`t define 68Organizational culture versus National culture in MSC BScB(IM) 2012
Appendix 6. Qualtrics Report
Initial Report
Last Modified: 04/29/2012 1. MSC-SH office:
# Answer Response %
1 Belarus 3 1%
Bosnia- 2 4 2% Herzegovina
3 Croatia 1 0%
4 Denmark 47 18%
5 Estonia 9 3%
6 Finland 9 3%
7 Hungary 9 3%
8 Kazakhstan 5 2%
9 Latvia 37 14%
10 Lithuania 12 5%
11 Norway 23 9%
12 Poland 13 5%
13 Russia 37 14%
14 Slovenia 6 2% 69Organizational culture versus National culture in MSC BScB(IM) 2012
15 Sweden 41 16%
16 Uzbekistan 5 2%
Total 261 100%
2. Gender:
# Answer Response %
1 Male 122 46%
2 Female 142 54%
Total 264 100%
3. Age:
# Answer Response %
1 Under 20 2 1%
2 20-30 134 50%
3 30-40 87 33%
4 40-50 29 11%
5 50-60 13 5%
6 Over 60 1 0%
Total 266 100% 70Organizational culture versus National culture in MSC BScB(IM) 2012
4. Position:
# Answer Response %
1 Employee 196 74%
2 Manager 70 26%
Total 266 100%
5. Family status:
# Answer Response %
1 Married 94 36%
2 Not married 170 64%
Total 264 100%
6. Education:
# Answer Response %
1 High School 43 16%
2 College degree 43 16%
3 Bachelor degree 110 41%
4 Master degree 59 22%
5 Other 11 4%
Total 266 100% 71Organizational culture versus National culture in MSC BScB(IM) 2012
7. Years of experience in MSC:
# Answer Response %
1 0-1 year 53 20%
2 1-5 years 130 49%
3 5-10 59 22%
4 Over 10 years 23 9%
Total 265 100% 72Organizational culture versus National culture in MSC BScB(IM) 2012
Appendix 7. Summary of all responses
Family Educatio Experience in MSC Office Gender Age status n MSC Belarus 2 2 1 3 2 Bosnia- Herzegovina 1 2.5 2 3 2 Croatia 1 3 2 3 2 Denmark 1 3 2 2 2 Estonia 2 2 2 3 2 Finland 2 2.5 2 3 2 Hungary 2 3 1 1 2.5 Kazakhstan 2 3 2 3 2 Latvia 2 2 2 3 1 Lithuania 1 2.5 2 3 2 Norway 1 2 2 3 2 Poland 1 2 2 4 2 Russia 2 2 2 3 2 Slovenia 1 3 2 3 3 Sweden 1.5 2 2 1 2 Uzbekistan 2 2 1.5 3 2 MSC Average 2 2 2 3 2