Individualism and collectivism

Individualism and collectivism:

Traditionally conceptualized as a continuum, individualism –collectivism approach in the management of remuneration has received considerable attention from sociologists and social psychologists [Hofstede 1983; Hui and Triandis 1986; Wagner and Moch 1986]. Due to the recent shift from “collectivism” to “individualism” approach in remuneration the philosophy of reward system in UK has changed. In order to analyze those changes which took place let’s compare “individualism” and “collectivism” approaches in management.

Individualism refers to a self-orientation, an emphasis on self-sufficiency and control, the pursuit of individual goals that may or may not be consistent with in-group goals, a willingness to confront members of the in-group to which a person belongs, and a culture where people derive pride from their own accomplishments. In an individualistic environment, people are motivated by self-interest and achievement of personal goals. They are hesitant to contribute to collective action unless their own efforts are recognized, preferring instead to benefit from the efforts of others. Collectivism involves the subordination of personal interests to the goals of the larger work group, an emphasis on sharing, cooperation, and group harmony, a concern with group welfare, and hostility toward out-group members. Collectivists believe that they are an indispensable part of the group, and will readily contribute without concern for advantage being taken of them or for whether others are doing their part. They feel personally responsible for the group product and are oriented towards sharing group rewards.

Individualism -collectivism is a dimension of culture at both the societal and organizational levels, although most of the research has focused on societal or national culture. Thus, Hofstede [1980] has shown that countries such as the United States, Australia, Great Britain, and Canada demonstrate high scores on his individualism -collectivism index, while Venezuela, China, Pakistan, Thailand and Mexico score fairly low.