One feature of American national cultural characteristics is individualism ((Hofstede 1984; Tayeb 2005). Americans are independent, ambitious and individualistic, and believe that individuals can shape and control their own destinies. People pursue mainly their own interests. The primary commitment and loyalty of the individuals are not displayed to the company or any larger grouping of which they may be a member.
The individualistic nature of the society encourages promotion on the basis of performance as opposed to status, hierarchy, or gender. The emphasis on individualism includes freedom to pursue one’s career progression by moving from one company to another in the pursuit of success. Because of this employee’s freedom, companies feel free to hire and fire people at will. Traditionally, as a result of implementing the concept of scientific management by Frederic W. Taylor, jobs are clearly defined, and specialization is encouraged in American workplaces (SHRM 2008).
Moreover, Americans prefer participative management. Superiors are usually approachable, and subordinates willingly question authority. Americans live more easily with uncertainty than many other nations, and facilitate participation in decision-making and risk taking. Coupled with individualism, tolerance for uncertainty (Hofstede 1984) supports the American business culture, which is underpinned by entrepreneurial spirit, great creativity, and innovativeness.
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