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Culture Documents
Seksioni 6 Ang
Seksioni 6 Ang
In four parts of the chapter, all the results obtained from the analysis of the data collected
from the designed questionnaire will be given. Also, based on the review of the literature
reviewed in the previous chapters.
From the questionnaire and the processing of the data according to the method explained
in the sixth section, the graph below is obtained, which summarizes the results on the six
indices/dimensions of the system of national values.
70.00
60.00 58.51
52.31
50.00
40.00
30.00
21.42
20.00 16.04
10.00 8.51
Power distance
This component addresses the issue of social inequality between all persons. The degree
to which less powerful members of institutions and organizations within a nation assume
and accept that power is unequally distributed is known as power distance. It conveys
how the culture feels about these social inequalities.
Albania's ranking of 77.54 indicates that it has a hierarchical society. Organizational
hierarchy is perceived as reflecting innate inequalities, centralization is preferred,
employees expect to be given instructions, and the ideal boss is a benevolent despot. This
shows that society accepts a hierarchical structure where everyone has a position and that
does not require any additional justification.
Auditors should be aware that businesses make more accounting errors in their financial
statements in a country with a large power distance (Hofstede, 1990 ). In his study from
2001, Hofstede added that personnel in institutions established in countries with
high hierarchical distances are usually uneducated. Employee fraud can be expected
to be more prevalent in these countries, and auditors should place greater emphasis
on the effectiveness of internal controls.
Individualism
The degree of interconnectedness that a society maintains among its members is the main
issue that this dimension tries to resolve. Whether or not people define themselves in
terms of "I" or "we" is important. People in individualistic society are expected to take
care of themselves and their immediate family. People in collective societies are
members of "in-groups" that care for them in exchange for loyalty.
Albania's extremely poor score of 21.42 shows that it has a collectivist social structure.
This is demonstrated by a strong and enduring commitment to the member "group,"
which may be a family, extended family, or extended relationships. In a collectivist
culture, loyalty takes precedence over most other social norms and laws. In society,
everyone accepts responsibility for other group members, fostering deep bonds.
Employer-employee interactions are viewed morally (as a family bond), hiring and
promotion decisions consider the employee's group, and management is the
administration of groups in collectivist society.
In societies with a collectivist culture, society's trust and respect for institutions, the
evaluation of relationships, the fulfillment of obligations and, above all, for
communication that can increase the interest of interested parties in the accounting
information disclosed by companies, can be where accounting information has the
greatest importance (Gray & Vint, 1995, Hofstede, 2011).
Masculinity
If the dimension has a low score (Feminine), then quality of life and compassion for
others are the dominant social ideals. Living a high quality life is a sign of success in a
female society and standing out from the crowd is not admired. The essential question is:
What drives people – the desire to excel (masculine) or the satisfaction of work?
(Feminine).
Due to the macho culture, people tend to have high expectations for their careers, like to
work for prestigious organizations and demand great compensation. According to
Hofstede (2011), nations with a macho culture are associated with competitive situations.
The success-driven society displayed by the culture of masculinity has a tendency
towards greater transparency in business information, therefore confidentiality in
providing information to stakeholders would be more prevalent in a feminist culture
(Gray & Vint, 1995). . The inclusion of masculinity in accounting decisions suggesting
the caliber of accounting knowledge, however, has been noted by Nabar and Boonlert -U-
Thai (2007).
Uncertainty Avoidance
The uncertainty avoidance dimension examines how a society responds to the notion that
the future is unpredictable and asks whether we should try to influence it or simply let it
happen. Because of the anxiety that comes with ambiguity, different societies have
developed different coping mechanisms. The uncertainty avoidance score reflects how
much citizens of a culture feel threatened by uncertain or unknown events and how much
they have developed structures and beliefs to avoid them.
Albania has a poor tendency to avoid ambiguity, scoring 8.51 on this metric. Low UAI
societies continue to have a more flexible attitude where departure from the norm is more
amenable to tolerance and practice is valued over principle. People in low UAI societies
are of the opinion that there should be no more regulations than are essential, and if any
of them are vague or ineffective, they should be changed or abandoned. Plans can
change, hard work is done when it is essential but not for its own sake, punctuality and
deadlines are not ingrained habits and innovation is not seen as a threat.
When valuations are overstated, accounting decisions that create a margin of safety to
increase future profits are not preferred by company managers in countries with low
uncertainty aversion cultures (Askary et al., 2008, Guan & Pourjalali, 2010). According
to Kwok and Tadesse (2006), countries with low uncertainty aversion dislike banking
financial system credit and there is evidence that this is because accounting information
is more important in these countries (Ali & Hwang, 2000).
Long-term orientation
This component explains how different civilizations place a special emphasis on these
two existential objectives, which every society must prioritize in addressing the problems
of the present and the future. Typical societies. which, for example, score low on this
metric favor adherence to old customs and conventions, while being wary of societal
change. On the other hand, high-achieving cultures adopt a more practical approach: they
promote savings and effort in modern education as a means of future preparation.
Albania's score of 52.31 shows its pragmatic attitude. People in pragmatic civilizations
take the view that reality is highly situational, contextual, and temporal. They display a
natural ability to adapt traditions to suit new circumstances, a strong desire to save and
invest, thrift and persistence in getting things done.
pleasure
The degree to which young children are socialized is an issue that has faced humanity
both past and present. We do not become "human" without socialization. Based on how
they were raised, this dimension is described as the degree to which people try to regulate
their impulses and tendencies. "Indulgence" refers to a tendency for relatively weak
control over one's urges, while "Restraint" refers to a tendency for relatively strong
control over one's urges. One can categorize cultures as tolerant or reserved.
SECTION 7: RECOMMENDATIONS
Our culture seems to be more relaxed than the norm. Plans can change, hard work is done
when it is essential but not for its own sake, punctuality and deadlines are not ingrained
habits and innovation is not seen as a threat. We must work to improve these areas. The
best approach to achieve this is by increasing publicity efforts and encouraging people to
take things more seriously.
Our culture seems to be prone to skepticism and pessimism. A more optimistic culture is
more self-confident, less prone to disease, and enjoys higher standards of living. More
time should be devoted to imagining and writing about the ideal future for each of us.
Think about ambitions and dreams. Imagine if everything goes according to plan.
SECTION 8: LIMITATIONS
When conducting a study, it is important to have a sufficient sample size to draw valid
conclusions. The larger the sample, the more accurate my results will be. Most people
would not complete the questionnaire so we had to send it to many people to get the
sample of 67 people.
SECTION 9: TERMINATIONS