WHAT ABOUT FINLAND?
If we explore the Finnish culture through the lens of the 6-D Model©, we can get a good overview of the deep drivers of Finnish culture relative to other world cultures.
POWER DISTANCE
This dimension deals with the fact that all individuals in societies are not equal – it expresses the attitude of the culture towards these inequalities amongst us. Power Distance is defined as the extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed unequally.
Finland scores low on this dimension (score of 33) which means that the following characterises the Finnish style: Being independent, the hierarchy for convenience only, equal rights, superiors accessible, coaching leader, management facilitates and empowers. Power is decentralized and managers count on the experience of their team members. Employees expect to be consulted. Control is disliked and attitudes towards managers are informal and on a first-name basis. Communication is direct and participative.
INDIVIDUALISM
The fundamental issue addressed by this dimension is the degree of interdependence a society maintains among its members. It has to do with whether people´s self-image is defined in terms of “I” or “We”. In Individualist societies people are supposed to look after themselves and their direct family only. In Collectivist societies, people belong to ‘in groups’ that take care of them in exchange for loyalty.
Finland, with a score of 63 is an Individualist society. This means there is a high preference for a loosely-knit social framework in which individuals are expected to take care of themselves and their immediate families only. In Individualist societies offence causes guilt and a loss of self-esteem, the employer/employee relationship is a contract based on mutual advantage, hiring and promotion decisions are supposed to be based on merit only, management is the management of individuals.
MASCULINITY
A high score (Masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the winner/best in the field – a value system that starts in school and continues throughout organisational life.
A low score (Feminine) on the dimension means that the dominant values in society are caring for others and quality of life. A Feminine society is one where the quality of life is the sign of success and standing out from the crowd is not admirable. The fundamental issue here is what motivates people, wanting to be the best (Masculine) or liking what you do (Feminine).
Finland scores 26 on this dimension and is thus considered a Feminine society. In Feminine countries the focus is on “working in order to live”, managers strive for consensus, people value equality, solidarity and quality in their working lives. Conflicts are resolved by compromise and negotiation. Incentives such as free time and flexibility are favoured. The focus is on well-being, status is not shown. An effective manager is a supportive one, and decision making is achieved through involvement.
UNCERTAINTY AVOIDANCE
The dimension of Uncertainty Avoidance has to do with the way that a society deals with the fact that the future can never be known: should we try to control the future or just let it happen? This ambiguity brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways. The extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these is reflected in the score on Uncertainty Avoidance.
Finland scores 59 on this dimension and thus has a high preference for avoiding uncertainty. Countries exhibiting high Uncertainty Avoidance maintain rigid codes of belief and behaviour and are intolerant of unorthodox behaviour and ideas. In these cultures there is an emotional need for rules (even if the rules never seem to work), time is money, people have an inner urge to be busy and work hard, precision and punctuality are the norms, innovation may be resisted and security is an important element in individual motivation.
LONG TERM ORIENTATION
This dimension describes how every society has to maintain some links with its own past while dealing with the challenges of the present and future, and societies prioritise these two existential goals differently. Normative societies. which score low on this dimension, for example, prefer to maintain time-honoured traditions and norms while viewing societal change with suspicion. Those with a culture that scores high, on the other hand, take a more pragmatic approach: they encourage thrift and efforts in modern education as a way to prepare for the future.
With a low score of 38, Finnish culture can be classified as normative. People in such societies have a strong concern with establishing the absolute Truth; they are normative in their thinking. They exhibit great respect for traditions, a relatively small propensity to save for the future, and a focus on achieving quick results.
INDULGENCE
One challenge that confronts humanity, now and in the past, is the degree to which small children are socialized. Without socialization, we do not become “human”. This dimension is defined as the extent to which people try to control their desires and impulses, based on the way they were raised. Relatively weak control is called “Indulgence” and relatively strong control is called “Restraint”. Cultures can, therefore, be described as Indulgent or Restrained.
The relatively high score of 57 indicates that Finland is an Indulgent country. People in societies classified by a high score in Indulgence generally exhibit a willingness to realise their impulses and desires with regard to enjoying life and having fun. They possess a positive attitude and have a tendency towards optimism. In addition, they place a higher degree of importance on leisure time, act as they please and spend money as they wish.
WHAT ABOUT PAKISTAN?
If we explore Pakistani culture through the lens of the 6-D Model©, we can get a good overview of the deep drivers of Pakistani culture relative to other world cultures.
POWER DISTANCE
This dimension deals with the fact that all individuals in societies are not equal – it expresses the attitude of the culture towards these inequalities amongst us. Power Distance is defined as the extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed unequally.
With an intermediate score of 55, it is not possible to determine a preference for Pakistan in this dimension.
INDIVIDUALISM
The fundamental issue addressed by this dimension is the degree of interdependence a society maintains among its members. It has to do with whether people´s self-image is defined in terms of “I” or “We”.In Individualist societies people are supposed to look after themselves and their direct family only. In Collectivist societies, people belong to ‘in groups’ that take care of them in exchange for loyalty.
Pakistan, with a very low score of 14, is considered a collectivistic society. This is manifest in a close long-term commitment to the member ‘group’, be that a family, extended family, or extended relationships. Loyalty in a collectivist culture is paramount and overrides most other societal rules and regulations. Society fosters strong relationships where everyone takes responsibility for fellow members of their group. In collectivist societies offence leads to shame and loss of face, employer/employee relationships are perceived in moral terms (like a family link), hiring and promotion decisions take account of the employee’s in-group, management is the management of groups.
MASCULINITY
A high score (Masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the winner / best in the field – a value system that starts in school and continues throughout organisational life.
A low score (Feminine) on the dimension means that the dominant values in society are caring for others and quality of life. A Feminine society is one where the quality of life is the sign of success and standing out from the crowd is not admirable. The fundamental issue here is what motivates people, wanting to be the best (Masculine) or liking what you do (Feminine).
Pakistan scores 50 on this dimension, and as this is an exactly intermediate score it cannot be said if Pakistan has a preference for Masculinity of femininity.
UNCERTAINTY AVOIDANCE
The dimension of Uncertainty Avoidance has to do with the way that a society deals with the fact that the future can never be known: should we try to control the future or just let it happen? This ambiguity brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways. The extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these is reflected in the UAI score.
Pakistan scores 70 on this dimension and thus has a high preference for avoiding uncertainty. Countries exhibiting high Uncertainty Avoidance maintain rigid codes of belief and behaviour and are intolerant of unorthodox behaviour and ideas. In these cultures, there is an emotional need for rules (even if the rules never seem to work) time is money, people have an inner urge to be busy and work hard, precision and punctuality are the norms, innovation may be resisted, security is an important element in individual motivation.
LONG TERM ORIENTATION
This dimension describes how every society has to maintain some links with its own past while dealing with the challenges of the present and future, and societies prioritise these two existential goals differently. Normative societies. which score low on this dimension, for example, prefer to maintain time-honoured traditions and norms while viewing societal change with suspicion. Those with a culture that scores high, on the other hand, take a more pragmatic approach: they encourage thrift and efforts in modern education as a way to prepare for the future.
With an intermediate score of 50, the culture of Pakistan cannot be said to indicate a preference.
INDULGENCE
One challenge that confronts humanity, now and in the past, is the degree to which small children are socialized. Without socialization, we do not become “human”. This dimension is defined as the extent to which people try to control their desires and impulses, based on the way they were raised. Relatively weak control is called “Indulgence” and relatively strong control is called “Restraint”. Cultures can, therefore, be described as Indulgent or Restrained.
Pakistan, with an extremely low score of 0 on this dimension, can be said to be a very Restrained society. Societies with a low score in this dimension have a tendency to cynicism and pessimism. Also, in contrast to Indulgent societies, Restrained societies do not put much emphasis on leisure time and control the gratification of their desires. People with this orientation have the perception that their actions are Restrained by social norms and feel that indulging themselves is somewhat wrong.
What Should Be Taken in Consideration When Conducting Business in Pakistan?
Before undertaking business in Pakistan, it is important to understand the country’s laws and culture. For example, there are many restrictions regarding the transfer and holding of foreign exchange. This is an advantage for exporters, who need to be sure that their goods are legal for export. For those conducting business in Pakistan, there are no import/export restrictions on capital, profits, or dividends. In addition, there are no export/import taxes in the country.
Although the business climate in Pakistan has improved in recent years, it is still not completely free of corruption. According to the Global Competitiveness Report, about 40% of companies in Pakistan state that corruption is their greatest concern. In the same report, inefficient government bureaucracies and poor infrastructure were ranked the top two most problematic factors. The power sector, police, and tax authorities are among the most corrupt public bodies. They demand bribes and issue bogus fines to settle disputes.
If you are working with a Pakistani client, it is important to understand the culture and etiquette of the country. For example, you should avoid eye contact with employees who are more senior than you. You should not make eye contact with a Pakistani and make eye contact with them only if you are confident with their level of education. Similarly, you should never address someone higher than you.
The security situation in Pakistan has significantly improved. According to the annual survey conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI), foreign investors in Pakistan are more confident than ever before. The launch of commercial operations in Pakistan by international airlines has been a clear indicator of this. As an investor, you should also consider the attractive incentives that the government offers foreign businesses to invest in the country. In addition to tax breaks, the government allows companies to remit royalties, technology, and franchise fees.
In addition to the tax laws, you should also consider the government’s economic policies. In Pakistan, the government is focusing on implementing a Trade-Related Investment Policy Framework, which will direct investment into export-oriented production. The strategic location, natural resources, and human resource base of the country will allow you to make the most of the opportunities offered by the country. If you’re planning to invest in Pakistan, the government is a good place to start.
One of the major disadvantages of conducting business in Pakistan is the lack of property rights. There are few protections for property rights and disputes relating to foreign assets. Moreover, the legal system in Pakistan is not well-developed and may be subject to political interference. Therefore, it is important to avoid entering into any contract in the country if you can. Nevertheless, Pakistan has several advantages for doing business. The political stability in Pakistan is likely to continue to increase and the judicial system will be better equipped to protect your interests.
The legal system in Pakistan is ill-suited for international business. While the country’s judicial system has improved in terms of the protection of intellectual property, the economic climate is still not yet perfect. For example, book piracy and weak trademark enforcement remain substantial problems. Moreover, there are weak standards of privacy in Pakistan. While the legal system is developing in Pakistan, it is still not a good place to conduct your business.
“Sadly our governance deteriorated in the past 30 years. That is one of the biggest reasons we have not been able to fill our potential as a country. From now on my biggest challenge is how we can improve our state institutions, so we can improve our governance, so we can tap our potential.” – Imran Khan
The country is a fast-developing country. In fact, it is one of the “Next Eleven” countries that have a high potential to become the largest economy in the 21st century. There are several aspects of doing business in Pakistan that should be considered. However, these concerns must be balanced with the country’s economic growth. The country’s macroeconomic stability is the most significant issue.
References:
Practical Law: https://uk.practicallaw.thomsonreuters.com/
Cultural Atlas: https://culturalatlas.sbs.com.au/pakistani-culture/pakistani-culture-business-culture