Individualism values the individual, while collectivism focuses on the group. Both ideologies have substantial influence over leadership and organizational management. Countries vary greatly in the individualism they exhibit. Individualist societies emphasize autonomy, assertiveness, freedom and independence. Societies with a more collectivist bent, in which the group takes precedence over personal needs, predicate behavior based on social obligations, harmony and cooperation.
Different cultures accept values that are reflected in how people relate to one another in varied contexts, such as the workplace.
Individualism
Within an individualistic culture, focus and value are on the individual employee and his or her specific needs. Individualistic cultures emphasize personal goals, rights, freedoms, self-expression, financial stability, and autonomy. The lines between managers and subordinates are blurred and undefined, promoting less restrictive organizational structures, empowering employees to challenge current systems, and volunteer new ideas and creativity. Individuals know people mostly from their own cultural network; consequently, intercultural interactions generally occur between strangers. It is only when individuals conduct business overseas or attempt to accomplish other goals outside their usual network that they are likely to engage in intercultural communication.
Collectivism
Collectivism places value on the group, expecting members to sacrifice and contribute to the group as an entity separate from the individual. As a result, employees entering the workforce are less independent and more interdependent. Decision-making is through collaboration and consensus, stressing the importance of group goals, rights, and needs. Consequently, individual decision making is intensely discouraged, and outside of the organization members are taught harmony and cohesiveness as being the utmost goal of each individual. In collectivistic cultures, the self is interdependent, which means that people feel linked to others in their primary group. Accordingly, collectivists must maintain connection and adjust their behaviour to uphold and be accepted by others; otherwise, they risk losing face. Consequently, they prefer to use indirect communication.
Collectivism/Individualism in the workplace
“The hiring process in a collectivist society always takes the in-group into account. Usually preference is given to hiring relatives. Hiring persons from a family one already knows reduces risks. In the individualist society family relationships at work are often considered undesirable, as they may lead to nepotism and to a conflict of interest.”
“The workplace itself in a collectivist society may become an in-group in the emotional sense of the word. The relationship between employer and employee is seen in moral terms. It resembles a family relationship with mutual obligations of protection in exchange for loyalty.”
What’s Important
In reality, societies and organizations are not defined as purely collectivist or individualistic. The lines between the two may be blurred in some areas and rigidly defined in others. Culture as a whole is a ball on a pendulum string caught between multiple contradictions, capable of swinging from one pole to the other, full of nuance, full of circumstance and never set in stone.