In order to make Hofstede’s five dimensions more visible and tangible for readers, Banks and others [2005] have grouped countries into six clusters linked with certain mental image. Next sections below explain these clusters in more details.
3.6.1 Contest
Banks and others [2005] define cultural dimensions common for Contest countries to be low power distance, high individualism, low uncertainty avoidance and high masculinity. Contest Countries are represented by Anglo-Saxon countries with some former British colonies approaching it.
Typical values for countries in this cluster are competition and freedom. The race for happy and successful living is open for members of these countries. Government role is to stay back and ensure fair rules with as minimal regulation as possible. People are motivated by fixed
communication, open discussion regardless the position in hierarchy is accepted and even conflicts do not disrupt work relations. These countries do not tend to focus on details but rather on big picture supported by planning systems, which aim at the overall objectives [Banks et al., 2005].
3.6.2 The Network
The Network cluster, comprising Scandinavian countries and the Netherlands, has low power distance and high individualism in similar with Contest countries. The main difference between these two clusters is masculinity, which is significantly lower in the Network cluster.
The Network countries prefer cooperation, consensus and friendly relations. People in this cluster are motivated by the feeling of contribution to their community and being recognized by this. They also expect to be heard especially on issues affecting on them directly. This means for managers that their role is to coordinate and facilitate rather than command and control. The mission of the company (or development project in this context) is not only short term profit but also welfare of employees and reliability [Banks et al., 2005].
3.6.3 The Family
Countries (China, Hong Kong, India, Indonesia, Malaysia, Philippines and Singapore) in the Family cluster have high power distance, low individualism and low uncertainty avoidance in common. The key words for this cluster are harmony and change. This means in practice, that employees in these countries feel obligation to their companies and leaders but not so much for the rules. As a result, projects or business operations are implemented quickly. Formal procedures may exist in great lengths but do not apply in specific situations and can always change. Building trust may take time but lasts once it is there. For employees it is necessary to make them feel like a part of family their leader being father -like figure. Harmonious relations are very important meaning negative feedback is avoided especially in public.
Therefore, people from this cluster communicate implicitly and indirectly [Banks et al., 2005].
3.6.4 Pyramid
Pyramid countries, such as Portugal, the Russian Federation, Greece, Korea, Bangladesh, Pakistan and most African and Arab countries and Latin America, share high power distance, low individualism and high uncertainty avoidance. The Pyramid provides clear structure for its members what it comes to hierarchy, mandate and processes. Power is unequally divided in these countries, which is also accepted. Therefore, management style is based on authority at the top of pyramid and it is supposed to oversee everything and set out policies for the common good. This means that good leader in these countries is visible and has personal prestige combined with power. Open discussion about company policies or decision-making is not tolerated although leader can answer all questions and delegate mandates in a structured way [Banks et al., 2005].
3.6.5 Solar System
The Solar System has many similarities with the Pyramid meaning high power distance and uncertainty avoidance. However, high individualism is dimension that differentiates countries in Solar System cluster from Pyramid countries. As in Pyramid, also countries in this cluster have clear hierarchy and structure in their organizations but members being highly individuals do not feel loyal to the company. Instead people are more tightly connected with their professional, academic peer group or department making coordination much more difficult than in Pyramid countries [Banks et al., 2005].
People in this cluster have an intrinsic motivation to do a good job according to their professional standards. Not surprisingly honour is one key word that can be used to describe this cluster. Managers are visible persons who are feared and respected at the same time.
However, they should exercise their control in subtle way in order avoid de-motivating people who take pride and honour in their work. This concern also conflict management where manager is only supposed to intervene if conflicts threatens to get out of hand. This discrepancy between respect for the authorities and self-realisation is the dilemma in Solar System countries. Solar System countries are represented by France, Belgium, Northern Italy and to limited extend Argentina and Spain [Banks et al., 2005].
3.6.6 The Well-Oiled Machine
The characteristics of Well-Oiled Machine countries are low power distance and high uncertainty avoidance. German -speaking countries, and in some extent Hungary and Czech belong into this cluster. Like in Solar System, also people in Well-Oiled Machine countries face dilemma with requiring structure and predictability but not accepting authority imposing such structure. Solution to this dilemma is to divide power so that it is on everybody responsibility to create such systems and to maintain them. People in these countries require rules to be objective and fair and information flowing freely. Leaders of these people should have convincing power through facts and their role is to be one of the experts intervening only as a last resort. Autonomy of employees is important and control can be experienced as demotivating. In general managers can rely on their people to perform punctually and as specified. Emphasis in this cluster is on systems, structure and objectivity with lot of transparency [Banks et al., 2005].
4 ASSUMED RELATIONSHIP BETWEEN AGILE AND NATIONAL CULTURES
After introducing agile values and Hofstede’s cultural dimensions, we start to have enough information to analyse the first research question that is: What kind of relationship there is between agile values and national cultures defined by Hofstede’s cultural dimensions? This chapter reveals first assumptions related to the relationship between agile values and Hofstede’s cultural dimensions.