September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel Why are People in Luxembourg Happy? Language as an Identifier of Culture in the Grand Duchy by Dr Ursula Schinzel

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel Research Question: The purposes of this study: 1. to explain where Luxembourg fits in on Hofstede’s 7 dimensions of culture 2. to explain Luxembourg people’s high scores on the measure of happiness 2

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel Review of the Literature Review of the Literature Participant Observation (Primary Data) Participant Observation (Primary Data) Interviews (Primary Data) Interviews (Primary Data) Questionnaires (Primary Data) Questionnaires (Primary Data) Methods 3

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel Literature Review The era before Hofstede: The era before Hofstede: Maslow, Abraham Maslow, Abraham McClelland, David McClelland, David Herzberg, Frederick Herzberg, Frederick Rockeach, Milton Rockeach, Milton Hall, Edward Hall, Edward Kluckhohn, Florence and Strodtbeck, Fred Kluckhohn, Florence and Strodtbeck, Fred 4 The era after Hofstede: The era after Hofstede: Triandis, Harry Triandis, Harry Smith, Peter, B. Smith, Peter, B. Schwartz, Shalom Schwartz, Shalom Trompenaars, Fons & Hamden-Turner, Charles Trompenaars, Fons & Hamden-Turner, Charles De Mooij, Marieke De Mooij, Marieke Inglehart, Ronald Inglehart, Ronald The GLOBE, House, Robert; Hanges, Paul… The GLOBE, House, Robert; Hanges, Paul… Schein, Edgar Schein, Edgar Bond, Michael, Harris Bond, Michael, Harris Mintzberg, Henry Mintzberg, Henry Minkov, Michael Minkov, Michael Hofstede, Gert Jan Hofstede, Gert Jan McSweeney McSweeney The era besides Hofstede: The era besides Hofstede: Scholz, Christian; Böhm, Hans Scholz, Christian; Böhm, Hans Lewis, Richard D. Lewis, Richard D. Spizzo, Daniel Spizzo, Daniel The era beyond Hofstede: The era beyond Hofstede: Aaker, Jennifer Aaker, Jennifer Briley, Donnel Briley, Donnel Nakata, Cheryl Nakata, Cheryl Kirkman, Hong, Benet-Martínez, Leung, Hermans, Kempen…. Kirkman, Hong, Benet-Martínez, Leung, Hermans, Kempen….

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel The era before Hofstede (- 1980): The era before Hofstede (- 1980): Abraham Maslow Abraham Maslow David McClelland David McClelland Frederick Herzberg Frederick Herzberg Milton Rockeach Milton Rockeach Edward Hall Edward Hall Florence Kluckhohn Florence Kluckhohn Fred Strodtbeck Fred Strodtbeck Culture Theories 5

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel Hofstede’s Era ( ): Hofstede’s Era ( ): Christian Scholz Christian Scholz Hans Böhm Hans Böhm Richard D. Lewis Richard D. Lewis Daniel Spizzo Daniel Spizzo Culture Theories 6

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel The era after Hofstede ( ): The era after Hofstede ( ): Harry Triandis, Harry Triandis, Peter B. Smith, Peter B. Smith, Shalom Schwartz, Shalom Schwartz, Fons Trompenaars & Charles Hamden-Turner, Fons Trompenaars & Charles Hamden-Turner, Marieke De Mooij Marieke De Mooij Ronald Inglehart Ronald Inglehart The GLOBE: Robert House, Paul Hanges… The GLOBE: Robert House, Paul Hanges… Edgar Schein, Edgar Schein, Michael Harris Bond, Michael Harris Bond, Henry Mintzberg Henry Mintzberg Michael Minkov Michael Minkov Gert Jan Hofstede, Gert Jan Hofstede, McSweeney McSweeney Culture Theories 7

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel New theories: New theories: Jennifer Aaker Jennifer Aaker Donnel Briley Donnel Briley Cheryl Nakata Cheryl Nakata Kirkman, Hong, Benet-Martínez, Leung, Hermans, Kempen…. Kirkman, Hong, Benet-Martínez, Leung, Hermans, Kempen…. Culture Theories 8

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel What did he do? Born in the Netherlands in 1928 Born in the Netherlands in 1928 IBM HRM research in the 1960s IBM HRM research in the 1960s 116,000 questionnaires 116,000 questionnaires Identified 4 cultural dimensions, later added more: Identified 4 cultural dimensions, later added more: IDV/COLL, UAI, PDI, MAS/FEM, IDV/COLL, UAI, PDI, MAS/FEM, LTO, IVR, MON. LTO, IVR, MON. Dared to contradict Maslow, Herzberg, McClelland Dared to contradict Maslow, Herzberg, McClelland Brought cultural research from the US to Europe Brought cultural research from the US to Europe Emeritus Professor at Maastricht University Emeritus Professor at Maastricht University Start at 2:36 Start at 2:36 9 Geert Hofstede (1928- )

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 10 Culture is measured in terms of all of the following: symbols, heroes, rituals, values, practices, norms, beliefs, self-perceptions, cognitive ability and behaviours.

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 11 Heroes are persons that serve as model, i.e. S.A.R. Grand-Duc Henri, Jean-Claude Juncker, Andy+Franck Schleck, Charly Gaul, Obama, Merkel, Hollande…

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 12 Symbols are words, gestures, pictures or objects, i.e. jargon, dresses, hairstyle, flags or status symbols.

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 13 Rituals are collective activities (Schouberfouer), ways of greeting (Moien), social and religious ceremonies (Octave).

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 14 Values are broad tendencies, feelings that come in pairings like evil versus good, dirty versus clean, dangerous vs safe, forbidden vs permitted, moral vs immoral, ugly vs beautiful, unnatural vs natural, irrational vs rational.

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel Hofstede’s Dimensions of Culture 15 Masculinity versus Femininity (MAS) Power Distance Index (PDI) Long-Term versus Short- Term Orientation(LTO) Indulgence versus Restraint (IVR) Uncertainty Avoidance (UAI ) Individualism versus Collectivism (IDV) Monumentalism (MON) Hofstede's Dimensions of Culture - Explained Easily :

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 16 Individualism versus Collectivism (IDV) defined as “people looking after themselves and their immediate family only, versus people belonging to in-groups that look after them in exchange for loyalty”. Uncertainty Avoidance (UAI) defined as “the extent to which people feel threatened by uncertainty and ambiguity and try to avoid these situations”. Power Distance Index (PDI) defined as “the extent to which less powerful members of a society accept and expect that power is distributed unequally”. Masculinity versus Femininity (MAS) defined as “the dominant values in a masculine society are achievement and success; the dominant values in a feminine society are caring for others and quality of life”.

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 17 Long-Term versus Short-Term Orientation(LTO) defined as “the extent to which a society exhibits a pragmatic future-orientated perspective rather than a conventional historic or short-term point of view”. Indulgence versus Restraint (IVR) defined as “Indulgence stands for enjoying life and having fun. Restraint stands for regulation of these by strict social norms”. Monumentalism (MON) defined as “ veneration of heroes by buildings, songs, music, celebrations”.

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel Luxembourg 18 Unitary parliamentary democracy and constitutional monarchy Unitary parliamentary democracy and constitutional monarchy Grand Duke: Henri Grand Duke: Henri Prime Minister: Jean-Claude Juncker Prime Minister: Jean-Claude Juncker Official languages: Luxembourgish, French, German Official languages: Luxembourgish, French, German Capital Luxembourg (90,000 inhabitants) Capital Luxembourg (90,000 inhabitants) Size: 2,586 km2 Size: 2,586 km2 Population total: 511,000 Population total: 511,000 Motto: “Mir wëlle bleiwe wat mir sinn” “We want to remain what we are” Motto: “Mir wëlle bleiwe wat mir sinn” “We want to remain what we are” Anthem: “Ons Heemecht” – “Our Homeland” Anthem: “Ons Heemecht” – “Our Homeland” Queen Mary II and Marie-Astrid

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel Data Analysis: Participant Observation 19 HRone American Chamber of Commerce Chamber of Commerce and Sacred Heart University Luxembourg PaperJam Business Club European Commission Luxembourg prefers: Meeting in person, in a Hotel or Bank. Over Cocktail with Champagne/ Lunch or Dinner LPRA – Luxembourg Professionals Recruiters Association Brasseries, Restaurants, Hotels, Bars. Femmes Leaders Luxembourg POG – Personnel Officer’s Group Libreria Italiana BEE SECURE Fairs ‘Foires’ University Luxbg

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel PDI = 35(mQVAL7 – mQVAL2) + 25(mQVAL23 – mQVAL26) + C (pd) PDI = 35(mQVAL7 – mQVAL2) + 25(mQVAL23 – mQVAL26) + C (pd) UAI = 40(m QVAL20 – mQVAL16) + 25(mQVAL24 – mQVAL27) + C (ua) UAI = 40(m QVAL20 – mQVAL16) + 25(mQVAL24 – mQVAL27) + C (ua) IDV = 35(mQVAL4 – mQVAL1) + 35(mQVAL9 – mQVAL6) + C (ic) IDV = 35(mQVAL4 – mQVAL1) + 35(mQVAL9 – mQVAL6) + C (ic) MAS = 35(mQVAL5 – mQVAL3) + 35(mQVAL08 – mQVAL10) + C (mf) MAS = 35(mQVAL5 – mQVAL3) + 35(mQVAL08 – mQVAL10) + C (mf) LTO = 40(mQVAL18 – mQVAL15) + 25(mQVAL28 – mQVAL25) + C (ls) LTO = 40(mQVAL18 – mQVAL15) + 25(mQVAL28 – mQVAL25) + C (ls) IVR = 35(mQVAL12 – mQVAL11) + 40(mQVAL19 – mQVAL17) + C (ir) IVR = 35(mQVAL12 – mQVAL11) + 40(mQVAL19 – mQVAL17) + C (ir) MON = 35(mQVAL14 – mQVAL13) + 25 (mQVAL22 – mQVAL21) + C (mo) MON = 35(mQVAL14 – mQVAL13) + 25 (mQVAL22 – mQVAL21) + C (mo) Culture Calculation Formulas 20

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 21 Hofstede’s Cultural Dimension: Interviews’ and Questionnaires’ Results in Collaboration with Lindab Buildings Diekirch Table 1 Comparison Luxembourg – Luxembourg with Luxembourgish nationality (Lux. Nat.) – Hofstede’s estimates on Luxembourg (on a scale from 1-100, 1 being the lowest and 100 the highest score) LuxembourgLux. Nat.Hofstede’s estimates on Luxembourg PDI UAI IDV MAS LTO IVR MON1024-

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 22 Table 2 Cultural dimensions in Luxembourg - Lux. Nat. – France – Germany – UK – Belgium FR – Belgium NL – Italy – the Netherlands NL – China – USA – Japan (on a scale from 0-100) (0=lowest, 100=highest) Luxbg Lux. Nat. FranceGermanyUKBelgium FR Belgium NL ItalyNLChinaUSAJapan PDI UAI IDV MAS LTO IVR MON

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 23 Logistic Regression What is Logistic Regression? Logistic regression allows prediction of group membership, for example, prediction of whether someone is a belly dancer based on gender, occupational category, preferred type of reading material and age. Logistic regression allows to evaluate the odds (the probability) of membership in the group of belly dancers based on the combination of values of the predictor variables, 25 year old female sports professor, teaching hip-hop and reading dance books.

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 24 Logistic Regression Definition: Logistic Regression is a statistical method used to model the relationship between a qualitative dependent variable – like for example ‘ happiness ’ – and a combination of independent variables – like for example ‘ taking risk ’, ‘ free time for life ’, ‘ level of education ’ ‘ job level manager or non- manager ’, ‘ state of health ’, ‘ religion ’. Logistic Regression is calculated in SPSS. SPSS is a computer program from IBM. SPSS means ‘Statistical Package for the Social Sciences’. Between 2009 and 2010 it was called PASW – ‘Predictive Analytics SoftWare’.

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 25 Logistic Regression Regression Coefficients Odds Ratios Taking Risk Free Time for Life Level of Education Contradict boss State of health Importance of Religion Constant Table Logistic regression – Being happy – Regression coefficient and Odds Ratio

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 26 Correlation Matrix Taking Risk Free Time for Life Level of Education Contradict boss State of health Importance of Religion Taking Risk Free Time for Life Level of Education Contradict boss State of health Importance of Religion

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel Constant For a person who takes risks+(0.931)x1 And who takes free time for himself/herself +(0.974)x1 Who has a high level of education+(-0.930)x1 Who dares to contradict the boss+(1.096)x1 Whose state of health is good+(1.485)x1 For whom religion is important+(0.677)x1 e =e =3.605 z = = = logit = p with z = with the constant p= p = 0.97 The probability for this person to be happy is This is a very high probability, near 1. 27

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel Logistic Regression: The probability of Luxembourgers of being happy 28 Who does Not take risk Probability of being happy = 0.97 Person 1 Person 2 Probability of being happy = 0.94 Who takes free time for life for him/herself Who has a high level of education Who dares to contradict the boss Whose state of health is good For whom religion is important Who takes risk Who takes free time for life for him/herself Who has a high level of education Who dares to contradict the boss Who se state of health is good For whom religion is important

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel Correlation among all variables in SPSS 29 PDIUAIIDVMASLTOIVRMON HAPPY GENDERAGE EDUCATION PDI - UAI IDV MAS.206* ** - LTO IVR **.272 **.042- MON ** ** - HAPPY **.293 **.001- GENDER AGE ** EDUCATION RANK..230**.210 * ** N=134; * p<.05; ** p<.001

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel Conclusion Conclusion Luxembourgers are highly uncertainty avoidant highly uncertainty avoidant take their language as identifier take their language as identifier long-term oriented long-term oriented have low power distance have low power distance highly collectivist highly collectivist and are happy and are happy 30 HAPPY HIGH UNCERTAINTY AVOIDANCE LOW POWER DISTANCE HIGH COLLECTIVISM/ LOW INDIVIDUALISM LANGUAGE AS IDENTIFIER LONG-TERM ORIENTATION

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 31 PDI (Power Distance Indicator) in Luxembourg is low with 36/100. Lux.Nat. have an even lower PDI of 29, compared with China (80) and France (68) Luxembourg being small, hierarchy is not felt that much, boss and employees meet in the same sport clubs, supermarkets, bars, evening events EXPLANATIONS

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 32 UAI (Uncertainty Avoidance Indicator) is high, near 100 in Luxembourg (97) and Lux.Nat.(95) Uncertain and unknown situations are avoided, Secure, regulated, clear life without surprises, is preferred EXPLANATIONS

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 33 IDV (Individualism versus Collectivism) is medium (51.5) in Luxembourg and diverges from Lux.Nat. (34). Lux.Nat. are highly collective people, preferring the well-being of the group and country This is contrary to people in USA (91) and Italy (76), where people take their time for themselves or their immediate family EXPLANATIONS

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 34 MAS (Masculinity versus Femininity) is medium (47) for Luxembourg and Lux.Nat. (54) This shows a country where the characteristics of a masculine dominant country = competition and success, and those of a feminine dominant country = caring for others and quality of life, are equally distributed The most masculine countries are Japan (95), Austria and Venezuela, the most feminine are Sweden, Norway and The Netherlands EXPLANATIONS

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 35 LTO (Long-Term Orientation versus Short- Term Orientation) is high in Luxembourg (69) and Lux.Nat. (65) Long-term is characterized by foreseen, and planned events and by perseverance and thrift Contrary to USA (26) where short-term decisions are taken. Germany with score of 83 on LTO is the example for a highly long-term oriented country EXPLANATIONS

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 36 IVR (Indulgence versus Restraint) is medium in Luxembourg (53.5) and Lux.Nat. (55) In general people in Luxembourg indulge on life, they love profiting from the benefits of life, they enjoy life Italy has an IVR of 30, where religion, traditions and social rules limit personal enjoying of life EXPLANATIONS

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 37 MON (Monumentalism) is low in Luxembourg (10) but more than the double for Lux.Nat. (24). Lux.Nat. love their national traditions and nationality, the Grand Ducal family, National Day, National Hymn and are living their national identity. The USA (54.2) are living a strong MON, contrary to Japan (4); US people love symbols, banner, heroes, their president, elections… EXPLANATIONS

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 38 After World War I the need was to assure the national identity, to give value to the concept of ‘citizenship’, why it is important to be ‘Luxembourger’ and the advantages that come with the citizenship. When Nazism (World War II) engulfed small Luxembourg, because for Germans this small land seemed to be German, the Luxembourgish language attained its importance, the discriminating factor to distinguish between who is able to benefit from Luxembourgish citizenship and its advantages, and who not. Luxembourgish language defines the in-group. In order to benefit from all of the advantages of the Luxembourgish nationality, one has to be able to speak Luxembourgish. Luxembourgish is not only a dialect, but the key giving access to the advantages of the rights of the citizenship. French is for bureaucratic problems, German for religious ceremonies, Luxembourgish to define the in-group (Spizzo, 1995). LANGUAGE AS IDENTIFIER

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 39 Hofstede’s Dimensions of Culture in Luxembourg: Why are people in Luxembourg happy? Luxembourgers are happy because they: are highly uncertainty avoidant take their language as identifier are long-term oriented have low power distance are highly collectivist

September 2012 PhD Days 2012 Presentation by Dr Ursula Schinzel 40 Thank you for your attention