The Power Distance
The aspect of power distance showcases that the people in a society are not equal per se. It showcases that attitude towards the element of culture based on the existing inequalities. Power distance showcases the extent to which the lesser powerful societal members and the organizations in the country acknowledge that the power is unequally distributed. According to Hofstede insights 2020, Netherlands has a score of 38 on the dimension of power distance. This showcases that there is a Dutch leadership style in the country. Other prominent characteristics of power distance in America include;
- Independence
- Hierarchy gets established for convenience
- There are equal rights
- The superiors in the state are accessible
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- There is a coaching leader
- There is proper management which facilitates and more so, empowers the electorates
- Power is decentralized correctly, and the leaders are accountable
Individualism
The primary issue that gets addressed by the individualism dimension is the level of interdependence. In this respect, it has to do whether people regard themselves as ‘we’ or ‘I’ (Hofstead Insights, 2018). Thus, for the individualistic society, people are concerned about themselves while in a collectivists society, members are taken care of by groups which expect loyalty from them. The Netherlands is majorly an individualist society. People are supposed to take care of themselves means that there is a high preference for the loosely knit social network framework. Thus, people ought to take care of their families, and thus, hiring and promotion have to be done on merit.
Masculinity is another aspect that Hofstede framework explains about Netherlands culture. A high masculinity score depicts that such society gets governed by competition, success, and more so, achievement. In this respect, success gets defined by the winner, who is the best suited in the field. A low score which in this case depicts feminism dimension depicts that there is an aspect of caring and taking care of the rest members of the society. A feminine society is characterized by a high quality of life which is the ultimate sign of success. Usually, such a society does not value standing out of the crowd.
The Netherlands is regarded to be a feminine society as it has a score of 14. In such a society, it is crucial to establish a proper balance between social life and the world (Hofstead Insights, 2018). A leader in such a society ought to be supportive to the people and embraces a bottom to top decision-making process where all stakeholders become involved. The leadership values solidarity and excellent service delivery. The conflicts are settled through compromise and negotiation processes.
Uncertainty and avoidance is another dimension that Hofstede focuses on. This aspect showcases how society is ready to grapple with the unknown future. It establishes whether the leaders are prepared to control the future or allow fate to take its course. Thus, this aspect measures whether the members of a society feel threatened by unknown situations. Amsterdam has a score of 53 uncertainty score. It showcases that there is a minimal preference for avoiding the unknown or the uncertain. Such a society does not entertain intolerant or unorthodox school of thoughts. The members of the society have an urge to be busy, work hard, and being punctual. Although innovation is likely to be resisted, the aspect of security is crucial for the members to be motivated.
Amsterdam has a score of 67 in the aspect of long term orientation. It is a dimension that showcases how society is willing to maintain a practical nature. Such society members believe that the truth is dependent on the situation, time, and more so, context(Hofstead Insights, 2018). It showcases the ability of the society members to shift from their traditions to the new conditions quickly. The society members have a high propensity to save and invest in their quest to achieve results.
Indulgence dimension has a score of 68 in Amsterdam. Indulgence is a challenge that significantly confronts humanity, and it depicts how easily the children in society are socialized. It defines the extents to which the members of the society control their impulses or desires. Thus, the members of this society have a positive attitude and optimism towards indulgence. It is a society that places leisure time to a high degree of importance.
Indeed, Amsterdam demonstrates two dimensions of conscious capitalism which include conscious leadership and higher purpose. The leadership positions are acquired solely based on merit (Kaptein, 2003). There are very minimal if any incidences of corruption as the promotion is entirely based on merit. Furthermore, individualism dimension is depicted by Hofstelde insight to be 80%, meaning that hiring and appointment positions are achieved through merits. Secondly, the higher purpose principle of conscious capitalism is illustrated by visionary leadership objectives that seek to not only accrue profits but true value. The value of masculinity score is 14, which informs that Amsterdam constitutes of a feminine society. It is a society that embraces value, solidarity and always seeks quality life.
Section Three
Recommendations
The proposed company will adopt an organization culture that will readily embrace diversity. As such, the organization will be located in Amsterdam and will consider several factors. First off, the organization leaders will seek to ensure that the product and services offered are of high quality. In this respect, it will necessitate the implementation of the total quality management system to ensure minimal defects. Furthermore, the organization will be keen on working on the customer’s feedback in a bid to improve its service delivery. Not only will the organization be customer-centric, it will also focus on all stakeholders. Such an approach will be made through the adoption of bottom top and top-down decision-making approach. Such a strategy allows the employees and other stakeholders to be involved in the decision making process. Since Amsterdam is a feminine society, it will necessitate promoting and hiring staff based on merit. Such a strategy will enable the company to perfectly fit in society and easily forge out a feasible corporate social responsibility strategy.
The risk of obviating from the acceptable marketing mechanism is that the organization’s services or products will be outcompeted by similar companies in the market. The free market is regulated, and the market leaders are characterized by their capacity to produce high-quality services or products. Thus, failure to meet this criterion automatically disqualifies an organization from operating in such a society. When there are ethical issues present in the organization, there is a likelihood of possible lawsuits, low sales volumes, low customer loyalty, and low net profits. Netherlands government expects the business to deal with stakeholders transparently in the aspect of;
- Keeping records
- Fair dealing
- Confidentiality
- Corporate opportunities
Conclusion
Accordingly, it is accurate to assert that expanding the business in Amsterdam will be a feasible measure. I give several factors to endorse this. First off, the organization will seek to deliver quality products to the customers. The Holland market is characterized by the capacity to offer quality services to consumers. Undeniably, consumer loyalty will get achieved due to the high quality of services that the organization will be ready to dispense. Secondly, the organization will be prepared to embrace meritocracy in hiring or appointment process. The Netherlands being a feminine society, sticks to the ability of the company to practice equality by embracing diversity. For this reason, the company will embrace diversity at all levels of management and hiring process. Lastly, since the leadership will epitomize leadership that embraces the need to grapple with the followers’ needs without being compelled by profiteering interests.