HRM Complexities 2017

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© 2018 Cambridge University Press and Australian and New Zealand Academy of Management
doi:10.1017/jmo.2017.79

Developing an understanding of the human resource (HR) complexities


in Pakistan with a GLOBE cultural lens

SADIA NADEEM* AND MARY F SULLY DE LUQUE**

Abstract
This article presents primary data from the GLOBE study in Pakistan and compares them with
secondary data from the 61 GLOBE societies, in an effort to increase the interest of scholars of
cross-cultural management in Pakistan and also provide a practically useful overview for businesses.
Results based on data collected from 152 middle managers using the original GLOBE research
instruments indicate that Pakistani society exhibits high power distance and in-group collectivism
but low assertiveness and gender egalitarianism. The results also indicate a desire to create a more
egalitarian society; however, people appear to treasure the lack of assertiveness and high in-group
loyalty. In light of these findings, the authors offer implications for management in Pakistan, in
accordance with cross-cultural management literature. In-depth research within Pakistan, as well as
comparative cross-national studies, are needed to develop a deeper understanding of the impact of
the culture on human resource practices in Pakistan.

Keywords: national culture, cross-cultural management, international human resource


management, cross-cultural issues in HRM in emerging markets, cultural dimensions

Received 12 March 2017. Accepted 6 December 2017

INTRODUCTION

T he 20th century was dominated by organizational entries into new markets, with multinationals
changing the very face of global business. The 21st century instead appears to be encouraging a
truly global village, in which few countries or businesses are isolated from international influences.
Cross-cultural studies in turn can facilitate greater understanding among societies, and global managers
can use them to evaluate new markets, design business strategies, and devise management practices. For
employees, job seekers, and migrant workers, such studies offer a first step toward understanding the
practices and values of other societies, as well as of multinationals that may have entered their domestic
markets. Some of the earliest cross-cultural literature dates back to McClelland (1961) and Kluckhohn
and Strodtbeck (1961) in the social sciences; since then, it has featured landmark studies by Hall
(1959, 1960), Hofstede (1980, 1991), Laurent (1983), Trompenaars (1993; also see Smith, Dugan, &
Trompenaars, 1996; Trompenaars & Hampden-Turner, 1997), Schwartz (1994), and House, Hanges,
Javidan, Dorfman, and Gupta (2004).
In acknowledging how cultural dimensions might inform management practices in the 21st century
(e.g., Cooke, Veen, & Wood, 2016; Farndale & Sanders, 2016; Devinney & Hohberger, 2017), this

* FAST School of Management, National University of Computer and Emerging Sciences, Islamabad, Pakistan
** Thunderbird School of Global Management, Arizona State University, Glendale, AZ, USA
Corresponding author: [email protected]

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Sadia Nadeem and Mary F Sully de Luque

article aims to expand understanding and illustrate the further use of cross-cultural studies, focused on
the national culture and business environment of Pakistan, by revisiting and adding to the GLOBE
study. The role of Pakistan and Pakistani workers in the global economy is considerable. Pakistan’s
2016 estimated gross domestic product (GDP) is $988.2 billion, ranking it 26 out of 230 countries
(World Factbook, 2017a). The sixth most populated country in the world, it hosts a population
of 188.02 million, and the Labour Force Survey estimates a working population of 59.7 million
(Economic Survey, 2015). In recent years, Pakistan has made noteworthy economic growth (Reuters,
2016; World Bank, 2016a), and it has significant future potential for growth too (World Bank, 2016a;
Cowen, 2017). Investments related to the one-belt-one-road and China Pakistan Economic Corridor
(CPEC) initiatives are likely to make Pakistan a hub of economic activity among China, Central Asia,
South Asia, the Middle East, and beyond (Siddique, 2014; The Wall Street Journal, 2015; Jamal, 2016;
Kiani, 2016; World Bank, 2016a). That is, beyond Pakistan’s strong historical trade relations with the
European Union, China, United Arab Emirates, United States, Saudi Arabia, India, Malaysia, Kuwait,
Afghanistan, United Kingdom, and Germany (Economic Survey, 2015; World Factbook, 2017b), it is
likely to expand its trade relations in breadth and depth.
To develop an understanding of the complexities of the culture and human resource (HR) man-
agement in Pakistan, this research extends the framework of the GLOBE study of cultural practices
and values (House et al., 2004) to include Pakistan, which was not a participant in the original
GLOBE project. We conduct a primary data analysis of the responses of 152 middle managers from
Pakistan, together with secondary GLOBE data from 17,370 middle managers across 61 societies
(House et al., 2004). The aim is to determine Pakistan’s score on the nine cultural dimensions of
GLOBE, for use by further research, as well as to examine the impact of these cultural dimensions on
HR practices in Pakistan. We also hope to encourage scholarly interest in cross-cultural management in
Pakistan. The study offers a theoretically robust, practically useful overview of Pakistan for businesses
operating in or planning to start trade relations with that country, as well as for those with employment
relations with Pakistani individuals, expatriates, and potential expatriates.

GLOBE, CROSS-CULTURAL STUDIES, AND MANAGEMENT PRACTICES


Cross-cultural studies help enhance international understanding, encourage collaboration, and improve
communication. In a recent retrospective article pertaining to culture, Kirkman, Lowe, and Gibson
(2017) argue that revisiting conceptualizations of culture is helpful, not only to remind ourselves of the
focus of cultural definitions and measurement but also to expand research beyond commonly studied
cultural dimensions (Devinney & Hohberger, 2017).
The GLOBE project, published first in 2004 (House et al., 2004), offers a comprehensive picture of
national cultures. Based on quantitative and qualitative research, this project measured nine major
attributes of culture: performance orientation, in-group collectivism, institutional collectivism, gender
egalitarianism, assertiveness, future orientation, power distance, humane orientation, and uncertainty
avoidance. Several dimensions had been proposed or measured in previous studies; some of the most
noted contributions were by Hofstede (1980, 1991, 2001), Schwartz (1994), Triandis (1995), and
Trompenaars (1993). In turn, various studies have debated (Jackson, 2003; Aycan, 2005; Cooke,
Veen, & Wood, 2016; Farndale & Sanders, 2016) and repeatedly confirmed (Chiang, 2005; Pudelko,
2005; Wilkinson, Eberhardt, McKaren, & Millington, 2005; Jackson, Schuler, & Werner, 2009;
Chiang & Birtch, 2010; Ollo-López, Bayo-Moriones, & Larraza-Kintana, 2011; Andreassi & Lawter,
2014; Festing & Knappert, 2014; Yahiaoui, 2014; Donate, Pena, & Sanchez de Pablo, 2015) the
influence of broad national characteristics on HR practices. A growing number of studies use the
GLOBE dimensions, citing their theoretical comprehensiveness and methodological rigor (Javidan,
Dorfman, Sully de Luque, & House, 2006). We accordingly rely on the GLOBE study’s proposed

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Using GLOBE to Understand the HR Complexities in Pakistan

cultural dimensions for the foundation of this study. We provide a thorough description, which offers a
fresh focus on these dimensions, and also analyze prior literature to detail the evidence regarding how
these dimensions affect various management practices.
The cultural dimension performance orientation reflects the extent to which a community encourages
and rewards innovation, high standards, and performance improvement (Javidan, 2004). Performance
orientation influences management practices, because societies with a higher performance orientation
recruit and select employees on the basis of their education, prior experience, personality traits, and
cognitive skills. In comparison, societies with a lower performance orientation employ softer criteria,
such as social and interpersonal skills, social class, or age (Aycan, 2005; Rao, 2009). Training and
development also appear more valued in high performance orientation societies, with training based on
the person’s past and desired future performance (Tsang, 1994; Wilkins, 2001; Javidan, 2004). These
societies emphasize results rather than people, set demanding targets, highlight results in performance
appraisals, reward performance with individual financial bonuses, and consider feedback necessary for
improvement (Javidan, 2004; Carr & Pudelko, 2006).
Collectivism, one of the most researched and complex cultural dimensions (Earley & Gibson, 1998;
Gelfand, Bhawuk, Nishi, & Bechtold, 2004), has appeared in many past studies (Kluckhohn &
Strodtbeck, 1961; Hofstede, 1980; Trompenaars, 1993; Schwartz, 1994; Triandis, 1995). On the
basis of its research, the GLOBE study divided collectivism into institutional collectivism and in-group
collectivism. Institutional collectivism is the degree to which organizational and societal institutional
practices encourage and reward collective distributions of resources and collective action; in-group
collectivism is the degree to which individuals express pride in, loyalty to, and cohesiveness with their
organizations, groups, and families (Javidan, House, & Dorfman, 2004). Scholars identify differences
across societies marked by collectivism versus individualism with regard to many facets of the orga-
nization. For example, research has examined the impact of collectivism on recruitment and selection
(Sinha, 1997; Herrera, Duncan, Green, Ree, & Skaggs, 2011; Manroop, Boekhorst, & Harrison,
2013; Cooke, Veen, & Wood, 2016), promotion (Aycan, 2005; Sekiguchi, 2006), performance
appraisals (Amba-Rao, Petrik, Gupta, & Von der Embse, 2000; Aycan, 2005; Varma, Pichler, &
Srinivas, 2005; Chiang & Birtch, 2010, 2011; Yahiaoui, 2014; Hossain, Abdullah, & Farhana, 2015),
compensation (Gomez-Mejia & Welbourne, 1991; Luis & Mejia, 1991; Schuler & Rogovsky, 1998;
Aycan, Kanungo, & Sinha, 1999; Chiang, 2005; Yeganeh & Su, 2011; Yahiaoui, 2014), teamwork
(Chen, Zhang, Zhang, & Xu, 2016), and CEO or top manager pay (Tosi & Greckhamer, 2004;
Pudelko, 2005). Although institutional and in-group collectivism are rarely studied as separate
dimensions, developing a better understanding of the notion of collectivism remains important for
determining successful management practices across societies.
A fourth dimension, gender egalitarianism, entails the degree to which the collective minimizes
gender inequality (Emrich, Denmark, & Hartog, 2004). This dimension suggests some overlap with
Hofstede’s (1980) masculinity dimension, which considered two aspects: the extent to which a society
appreciates masculine values, such as assertiveness and competition, and the differences in the degree to
which either gender exhibits such behavior. In the GLOBE study, gender egalitarianism instead
measures the equality of treatment of persons of both genders. For organizations, this dimension can
indicate whether men and women achieve equal representation in organizations across all levels
(Javidan, House, & Dorfman, 2004). Whereas the cultural dimension of gender egalitarianism has
received limited attention in management research, society’s appreciation for aggressive or caring
behavior, associated more with the assertiveness dimension, has received more attention.
This assertiveness dimension reflects the degree to which people are assertive, confrontational, and
aggressive in relationships with others (Javidan, House, & Dorfman, 2004). According to Hartog
(2004), an assertive society values competition, tough behavior, success, and progress. Such societies
believe in a just world and stress equity, competition, and performance. Non-assertive societies instead

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Sadia Nadeem and Mary F Sully de Luque

value modesty, tenderness, and cooperation, whereas competition is associated with defeat and
punishment. Trust derives from predictability; there is a greater emphasis on loyalty and integrity.
Tradition, seniority, and experience are important. Communications with others involve ambiguity
and subtlety, mainly to save face. In HR research since the GLOBE project, this assertiveness
orientation has been found to influence recruitment and selection (Pudelko, 2005; Leat & El-Kot,
2007; Chiang & Birtch, 2010, 2011), interactions, ratings given in appraisals (Chiang & Birtch,
2010), reward preferences (Leat & El-Kot, 2007), and communication styles (Ollo-López,
Bayo-Moriones, & Larraza-Kintana, 2011; Silva, Roque, & Caetano, 2015).
The future orientation culture dimension refers to the extent to which people engage in more
future-oriented behaviors, such as delaying gratification, planning, and investing in the future (Javidan,
House, & Dorfman, 2004). Generally speaking, cultures with high future orientations have the desire
and capability to identify goals for the future and plan in a systematic and disciplined fashion to achieve
those future aspirations. They also tend to have the discipline and self-control required for planning
and execution, but this trait implies that they may neglect existing personal and social relationships. In
contrast, cultures with low future orientations prefer to enjoy the present. They may not devote much
attention to designing or executing plans for the future or reflecting on how their current behavior will
influence their future (Keough, Zimbardo, & Boyd, 1999; Ashkanasy, Gupta, Mayfield, & Trevor-
Roberts, 2004). Thus, a high future orientation has positive consequences for project preparation,
training, and development initiatives (Tsui, Wang, & Xin, 2006; Liu, Li, Zhu, Cai, & Wang, 2014).
Another cultural dimension of the GLOBE study is power distance, or the degree to which members
of a collective expect power to be distributed equally in a society (Javidan, House, & Dorfman, 2004).
The concept of power distance also exists in other studies (Hofstede, 1980; Schwartz, 1994). As noted
for collectivism, extant research indicates differences in the effectiveness of HR practices according to
power distance levels. For example, processes such as 360° feedback or general employee feedback are
less appealing or effective in high power distance societies, because by nature, these methods require
more participation across hierarchal levels (Davis, 1998; Fletcher & Perry, 2001; Kazlauskaite &
Buciuniene, 2010; Ollo-López, Bayo-Moriones, & Larraza-Kintana, 2011; Sartorius, Merino,
& Carmichael, 2011; Zhang & Begley, 2011; Singh, Mohamed, & Darwish, 2013; Chen, Zhang, &
Wang, 2014; Jiang, Colakoglu, Lepak, Blasi, & Kruse, 2014), seeking feedback from subordinates may
appear to undermine a supervisor’s authority (Gregersen, Hite, & Black, 1996; Silva, Roque,
& Caetano, 2015), and appeal processes may seem unsuitable because they challenge authority
(Fletcher & Perry, 2001). Power distance also influences the design of training (Wang, Wang, Ruona,
& Rojewski, 2005; Festing & Barzantny, 2008; Fu & Kamenou, 2011; Ollo-López, Bayo-Moriones,
& Larraza-Kintana, 2011), compensation, appraisals (Schuler & Rogovsky, 1998; Chow, Lo, Sha, &
Hong, 2006; Singh, Mohamed, & Darwish, 2013; Festing & Knappert, 2014), communication
(Chen, Zhang, & Wang, 2014; Yang, Zhou, & Zhang, 2015), and career development (Aycan &
Fikret-Pasa, 2003; Chow, Lo, Sha, & Hong, 2006; Festing & Barzantny, 2008; Fu & Kamenou,
2011) initiatives.
Humane orientation is the degree to which a society encourages and rewards people for being fair,
altruistic, generous, caring, and kind to others (Javidan, House, & Dorfman, 2004). In humane-
oriented societies, the focus on others, including family, friends, community, and strangers, is more
important than on the self. Values of altruism, benevolence, kindness, love, and generosity have higher
priority, and needs to belong and affiliate motivate people (Kabasakal & Bodur, 2004). Management
literature has paid limited attention to this cultural dimension.
The final dimension, uncertainty avoidance, is the extent to which a society, organization, or group
relies on social norms, rules, and procedures to alleviate the unpredictability of future events (Javidan,
House, & Dorfman, 2004). Sully de Luque and Javidan (2004) describe uncertainty avoidance at three
levels: at the individual level, it indicates tolerance for ambiguity, extraversion, flexibility, and

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Using GLOBE to Understand the HR Complexities in Pakistan

independence. It therefore promotes feedback-seeking from superiors, peers, and subordinates, as well
as questions and observations (Sully de Luque & Sommer, 2000). At the organizational level, greater
uncertainty avoidance results in more feedback and preparation, as well as more planned and controlled
innovation. Finally, at the national level, seniority-based, rather than performance-based, compensa-
tion systems tend to be more prevalent in countries marked by high uncertainty avoidance (Schuler &
Rogovsky, 1998; Chiang, 2005; Lertxundi & Landeta, 2011). High uncertainty avoidance societies
also often offer childcare assistance and career break schemes (Schuler & Rogovsky, 1998).
Assessed one dimension at a time, these dimensions provide insight into cultures when considered
separately. However, for a more comprehensive picture of a particular culture, the scores on practices
(and values) for all nine dimensions should be considered together. It is also important to consider how
the cultural values and practices of the nine dimensions may correlate. For example, societies in the
GLOBE sample that value preparing for the future tend to value performance, as indicated by the
positive correlation (0.41, p < .05) between future orientation values and performance orientation
values at the societal level (Ashkanasy et al., 2004). Societies in the GLOBE sample that score lower on
assertiveness practices also tend to score higher on humane orientation practices, exhibited in the
negative correlation (–0.42, p < .05) between assertiveness practices and humane orientation practices
at the societal level (Hartog, 2004). Thus each society presents unique challenges and opportunities,
based on a combination of cultural dimensions.
In turn, studies of management practices often show that operating businesses in, for example,
China differs from operating businesses in the United States, the Netherlands, or other Western
societies (Xu Lu, 2003; Wang, Wang, Ruona, & Rojewski, 2005; Wilkinson et al., 2005; Tsui, Wang,
& Xin, 2006; Fu & Kamenou, 2011; Chen, Zhang, & Wang, 2014; Liu et al., 2014; Yang, Zhou, &
Zhang, 2015). India also offers cultural challenges entirely unique from those of China or Anglo-Saxon
countries (Sinha, 1997; Amba-Rao et al., 2000; Varma, Pichler, & Srinivas, 2005; Singh, Mohamed,
& Darwish, 2013). Furthermore, United States, German, and French organizations vary in their
practices (Festing & Barzantny, 2008; Festing & Knappert, 2014; Yahiaoui, 2014), as do Canadian
and South Korean (Dastmalchian, Lee, & Ng, 2000), Egyptian (Leat & El-Kot, 2007), and Turkish
(Aycan & Fikret-Pasa, 2003) groups. Together, growing research on wider ranges of countries and
broader dimensions offers cross-cultural insights that are more complex than early conceptualizations
provided. With this research project, we extend this effort further, into Pakistan, by assessing its society
according to GLOBE’s cultural dimensions.

METHODOLOGY
Measures
The GLOBE questionnaire contains ~ 190 complex questions about opinions and values, and focuses
on nine major attributes of culture and six global leadership competencies; the current study centers on
the cultural dimensions (GLOBE, 2016). The cultural dimension survey questions consist of two
sections: how cultural practices are perceived by each respondent (as is) and how each respondent
desires these practices to be (should be). The former are labeled cultural practices; the latter are labeled
cultural values. Furthermore, the study measures these cultural practices and values for both the society
and the organization through two closely linked questionnaires. Thus each cultural dimension com-
prises four types of questions: organizational practices (as is), organizational values (should be), societal
practices (as is), and societal values (should be). In the original GLOBE study, half the respondents
from each country complete the questionnaire for organizational practices and values, and the other
half complete the one for societal practices and values (Hanges & Dickson, 2004); the same practice
was followed in Pakistan.

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Sadia Nadeem and Mary F Sully de Luque

Each of the four areas comprise of 34–41 items that measure the nine cultural dimensions. The
range of items for each cultural dimension varies from 3 to 6. All items use 7-point measurement scales,
whose output labels vary according to the items. Further methodological information, including details
about the scale development, construct specification, dimension specification, item generation, item
review, and pilot testing of the questionnaire, is available in Hanges and Dickson (2004). The
questionnaires used by both the original and current study can be downloaded from the GLOBE
website (GLOBE, 2016).

Participants and procedure


In the original GLOBE study, the number of respondents per country ranged from 27 to 1,790
(Hanges & Dickson, 2004). A member of the original GLOBE team who led the statistical analyses for
the project recommended a preferred sample of 150 per country. Thus, for our investigation of
Pakistan, our target was 150 respondents. In accordance with the Phase 2 criteria of the GLOBE study,
middle managers representing local organizations (i.e., not multinationals) working in the food pro-
cessing, financial services, and telecommunication services industries participated. The selection of
these three industries reflected the belief that they should be present in almost all countries, and they
systematically differ enough from one another to create an overall sample of dynamic, traditional, and
high-technology organizations (Brodbeck, Hanges, Dickson, Gupta, & Dorfman, 2004). Sub-cultures
certainly exist within countries; the data in Pakistan predominantly were collected from multiple large
cities in the province of Punjab (most highly populated province), with some surveys completed in
organizations in southern Khyber Paktunkhua, to ensure that some variation in sub-cultures is covered.
The national language of Pakistan is Urdu, but the official language, in which most of the business is
conducted, is English. All higher education is also in English. Considering the target respondent group of
middle managers, this study uses English-language questionnaires. However, because of the length and
complexity of the questions, each survey was completed as a structured interview or in the presence of a
trained researcher. The respondents completed the questionnaire, and the researchers kept a copy of an
Urdu version with them to ensure that respondents could easily understand the key concepts. Each
questionnaire took an average of 90 minutes to complete. The achieved sample size is 152. In total, 85% of
the sample was male, and the average age of the respondents was 34.5 years (SD = 10.5 years).
To create an understanding of Pakistani culture, this investigation calculated composite scales for
each cultural dimension (3–6 items each) for Pakistan using GLOBE procedures (GLOBE, 2016).
Then, mean scores for all nine cultural practices scores were calculated. As discussed, the exploration of
each cultural dimension relied on four sets of questions (Figure 1). Scores for Pakistani practices

Societal Societal
Society

Practices Values

(AS IS) (SHOULD BE)


Organization

Organizational Organizational
Practices Values

(AS IS) (SHOULD BE)

Practices Values

FIGURE 1. FOUR CATEGORIES OF QUESTIONS FOR EACH CULTURAL DIMENSION

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Using GLOBE to Understand the HR Complexities in Pakistan

(as is) and values (should be) were then compared with the respective scores of the 61 other societies.
The gap between Pakistani practices and values was assessed at organizational and societal levels, which
also indicated the gap between Pakistani organizational and societal practices and values.

RESULTS
Understanding Pakistani culture
Table 1 summarizes the mean scores for all nine societal cultural practices and values of Pakistan and
the 61 GLOBE societies. It also ranks Pakistan’s mean scores, which provides an analysis of the gap
between its practices and values. Because the unit of analysis is each country, the min–max appears
only for the 61 society data set; Pakistan appears as an additional case for comparison. Table 2
summarizes the mean scores for the societal and organizational practices and values of Pakistan and the
gaps among them. The results pertaining to societal and organizational practices and values are
discussed in detail subsequently.

Performance orientation
The GLOBE performance orientation society practice score reaches an average rating of 4.10, with a
range of 3.20–4.94 on the 1–7 scale. The society value scores average 5.88, with a range of 2.35–6.58
(Table 1). Pakistan, with its performance orientation practice score of 3.87 (Table 1), has a ranking of
45 among 62 countries (Table 1). Thus its current practices locate it at a medium to low level with
regard to its focus on performance orientation. The performance orientation value score of 6.06

TABLE 1. COMPARISON OF SOCIETAL CULTURAL PRACTICES AND VALUES: PAKISTAN VERSUS GLOBE

Mean of 61 Min of 61 Max of 61 Scores for Pakistan’s Gap 61 Gap


societiesa societiesa societiesa Pakistan ranking societiesa Pakistan

Performance orientation practice 4.10 3.2 4.94 3.87 45 −1.78 −2.19


Performance orientation value 5.88 2.35 6.58 6.06
In-group collectivism practice 5.10 3.18 6.36 5.9 4 −0.54 0.68
In-group collectivism value 5.63 4.06 6.52 5.22
Institutional collectivism practice 4.24 3.25 5.22 3.77 55 −0.48 −1.57
Institutional collectivism value 4.71 3.83 5.65 5.34
Gender egalitarianism practice 3.38 2.5 4.08 2.47 62 −1.12 −1.64
Gender egalitarianism value 4.49 3.18 5.17 4.11
Assertiveness practice 4.14 3.38 4.8 3.2 62 0.31 −0.89
Assertiveness value 3.83 2.66 5.56 4.09
Future orientation practice 3.84 2.88 5.07 3.63 40 −1.60 −2.16
Future orientation value 5.44 2.95 6.2 5.79
Power distance practice 5.14 3.59 5.8 5.86 1 2.37 3.00
Power distance value 2.77 2.04 4.35 2.86
Humane orientation practice 4.09 3.18 5.23 4.11 27 −1.30 −1.58
Humane orientation value 5.39 3.39 6.09 5.69
Uncertainty avoidance practice 4.17 2.88 5.37 3.69 44 −0.44 −1.47
Uncertainty avoidance value 4.60 3.16 5.61 5.16

Notes: Higher scores indicate greater performance orientation, future orientation, assertiveness, collectivism, power dis-
tance, humane orientation, and uncertainty avoidance. Lower scores indicate greater male domination for gender egali-
tarianism.
a
Analysis of the original GLOBE data set, courtesy of the GLOBE team.

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Sadia Nadeem and Mary F Sully de Luque

TABLE 2. COMPARISON OF PAKISTANI SOCIETAL AND ORGANIZATIONAL MEAN SCORES

Score for Score for Pakistani Gap Pakistani society Gap organizational
Pakistani society organizations – organizationa practices – values

Performance orientation practice 3.87 4.64 −0.77 −1.57


Performance orientation value 6.06 6.21 −0.15
In-group collectivism practice 5.9 4.68 1.22 −0.83
In-group collectivism value 5.22 5.51 −0.29
Institutional collectivism practice 3.77 4.12 −0.35 −0.75
Institutional collectivism value 5.34 4.87 0.47
Gender egalitarianism practice 2.47 2.35 0.12 −1.5
Gender egalitarianism value 4.11 3.85 0.26
Assertiveness practice 3.2 4.40 −1.20 0
Assertiveness value 4.09 4.40 −0.31
Future orientation practice 3.63 4.90 −1.27 −1.18
Future orientation value 5.79 5.83 −0.04
Power distance practice 5.86 4.36 1.50 1.24
Power distance value 2.86 3.12 −0.26
Humane orientation practice 4.11 4.65 −0.54 −0.69
Humane orientation value 5.69 5.34 0.35
Uncertainty avoidance practice 3.69 4.70 −1.01 −0.39
Uncertainty avoidance value 5.16 5.09 0.07

a
Cultural dimensions for which the gap between societal and organizational scores is greater than 1 appear in bold.

indicates a gap equal to 2.19 between practices and values in Pakistan and thus a strong desire for the
society to be more performance oriented (Table 1).

Collectivism
The mean practice score for 61 societies on institutional collectivism is 4.24 (range 3.25–5.22), and
that for in-group collectivism is 5.10 (range 3.18–6.36) (Table 1). Thus, the overall scores are higher
for in-group collectivism than institutional collectivism in the GLOBE study, a pattern that also exists
in the data from Pakistan (Table 1). Pakistan’s institutional collectivism practice mean score is 3.77,
ranking it 55 among the 62 societies. Thus, the society does not encourage the collective distribution
of resources or collective actions; however, the mean of 5.90 puts it in fourth place for in-group
collectivism practices (Table 1).
The institutional collectivism values score of 5.34 is 1.57 points higher than the practice score
(Table 1). In contrast, there is a small gap of just –0.68 between the in-group collectivism practice and
value scores (Table 1). These calculations suggest that Pakistani society desires an increase in insti-
tutional collectivism but also persistence in its strong in-group ties with organizations and families,
seeking to reduce in-group collectivism only marginally. The in-group collectivism societal practice
scores for Pakistan are among the highest, such that the 1.22 gap for in-group collectivism between
societal and organizational practices (Table 2) indicates that the bond with the family as a group is
much stronger than the bond with coworkers or an in-group at work.

Gender egalitarianism
For gender egalitarianism, a minimum score of 1 indicates preferential treatment for men, and a
maximum score of 7 indicates favored treatment for women. The GLOBE study’s gender egalitar-
ianism practice score across 61 societies equals 3.38 (Table 1), with a range of 2.50–4.08 (Table 1),

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Using GLOBE to Understand the HR Complexities in Pakistan

indicating largely gender-differentiated societies. The mean score of 4.49 for the gender egalitarianism
value indicates a greater desire to create opportunities for women.
Pakistan’s gender egalitarianism societal practice score of 2.47 is the lowest among the 62 countries,
which indicates a very male-dominated society (Table 1). This domination also emerges in the
organizational practice score (Table 2). Yet the gender egalitarianism value scores of 4.11 and 3.85 for
society (Table 1) and organizations (Table 2), respectively, suggest a strong desire to create a more
balanced society in Pakistan.

Assertiveness orientation
The GLOBE’s assertiveness orientation practice score for 61 societies averages 4.14 (range 3.38–4.81).
The mean value scores equal 3.83 (range 2.66–5.56) (Table 1), which implies that people would prefer
less assertive behaviors. Pakistan’s GLOBE assertiveness orientation practice score of 3.2 ranks it last in
the list of 62 countries; it is a non-assertive society. The gap between the practice and value scores
is –0.89, calculated on the basis of Pakistan’s 4.09 assertiveness orientation value score (Table 1). This
dimension represents one of the smallest gaps we find; Pakistanis do not prefer to be more assertive but
rather are content to continue as a society that values cooperation and avoids confrontation. Although
the society score for assertiveness practice is the lowest in Pakistan, the 1.2 gap between societal and
organizational practices reflects greater assertiveness in organizations than in society (Table 2).

Future orientation
The average future orientation score for societal practices across 61 societies reaches 3.84 (range
2.88–5.07), thus indicating that most societies have a moderate future orientation level (Table 1).
Pakistan, which scores 3.63 and ranks 40 of 62 countries, exhibits a medium–low future orientation.
The 2.16-point gap between future orientation practice and value scores is significant, as calculated on
the basis of Pakistan’s 5.79 score on future orientation value. Pakistan stands among the countries with
the highest scores for future orientation values. Although this society is not particularly future oriented
in its practices, its organizations are more so, as indicated by the gap of 1.27 between organizational
and societal practices (Table 2).

Power distance
In the original GLOBE study, power distance practices achieved a mean score of 5.17 (range 3.59–
5.80), and the mean value was 2.77 (range 2.04–3.65) (Table 1). With its power distance practice
mean of 5.86, Pakistan ranks higher than any other society measured as part of the original GLOBE
study (Table 1). Pakistan’s power distance mean value score is 2.86, which creates a gap of –3.00
between practice and value (Table 1) – the largest gap across all nine cultural dimensions in the
Pakistan data set. That is, respondents really want to reduce power distance in their society. Although
Pakistan scored highest on power distance practices, it also exhibits a great gap (1.5) between societal
and organizational practices (Table 2), reflecting a slightly lower power distance culture created in
organizations, mostly by educated city dwellers working in large organizations, and society at large.

Humane orientation
For the GLOBE humane orientation practice, respondents reported a mean of 4.09 across 61 societies.
Pakistan, with a score of 4.11, is close to the average and ranks 27 among 62 societies (Table 1). For
this cultural dimensions, as societal practice scores increase, the value scores decrease. However,
Pakistan’s humane orientation value score of 5.69 ranks it fifth among the GLOBE societies (Table 1).
That is, despite its approximately average practice ranking, the society still desires to be more fair,
altruistic, caring, and kind.

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Sadia Nadeem and Mary F Sully de Luque

Uncertainty avoidance
Finally, across 61 societies, the uncertainty avoidance societal practice score has an average value of
4.17 (range 2.88–5.37). The mean uncertainty avoidance value score is 4.60 (range 3.16–5.16)
(Table 1). With an uncertainty avoidance practice score of 3.69, Pakistan ranks 44 among 62 societies;
its lower score and higher ranking indicates lower uncertainty avoidance. The uncertainty avoidance
value score is 5.16 (Table 2), revealing a desire to avoid uncertainty and seek orderliness, consistency,
structures, and procedures.

DISCUSSION
The practice and value scores of Pakistan on the nine GLOBE cultural dimensions provide an overview
of Pakistani culture. It scores notably high on power distance and in-group collectivism but low on
assertiveness and gender egalitarianism. This finding implies that Pakistan as a society accepts an
unequal distribution of power; in which people express pride in, loyalty to, and cohesiveness with their
families and society; where people avoid assertive, confrontational, or aggressive behavior; and that
acknowledges clear differences in gender roles in society. Considering the values scores reported for the
Pakistan sample, the results also indicate a desire to create a more egalitarian society, in which power is
shared more equally and differences between genders diminish. However, people appear to treasure the
lack of assertiveness and high in-group loyalty of their society and want to retain these cultural values.
What assistance can information about the culture of Pakistan offer to investors, potential investors,
corporations, and expatriates? In line with previous research regarding the implications of national
culture dimensions for management, this study outlines a brief discussion. In particular, as a society
with high in-group collectivism scores, Pakistan prizes loyalty to in-groups, families, and organizations.
People do not want to alter this societal value; they want to keep their strong in-group bonds,
particularly with families. At the organizational level, this bond is weaker than at the societal level, and
people would prefer to reduce it. However, it may not be possible to alter organizational practices and
values without changing societal practices.
Collectivist societies, such as China, Russia, and Korea, place heavy reliance on personal references
and recommendations, and authors have debated the ethical relativism of such practices (Dunfee &
Warren, 2001; Ledeneva, 2008, 2009; Luo, 2011; Horak, 2017; Horak & Taube, 2015). Such high
in-group collectivism practices also exist in Pakistan (Khilji, 2002; Khilji & Rao, 2013; Saher &
Mayrhofer, 2014). Several Western European multinationals that are operating in Pakistan have noted
that over time, their recruitment and selection processes have acquired a local flavor, such that they
devote greater attention to personal recommendations and references. However, companies with strong
organizational cultures continue to practice hybrid versions of recruitment and selection processes. In
our interviews with current managers, some of them mentioned their continued efforts to maintain fair
and transparent procedures but use personal recommendations as an additional criterion for short-
listing. Others cited personal recommendations and references as particularly helpful, because of the
lack of standardized academic and vocational qualifications in Pakistan.
In addition, with high in-group collectivism, training and development is more likely to be a reward
for maintaining good relations with higher management or a tool to maintain employee commitment
(Sinha, 1997; Wilkins, 2001; Fu & Kamenou, 2011; Sartorius, Merino, & Carmichael, 2011).
Promotions may be influenced by favoritism for in-group members rather than performance (Aycan,
2005; Sartorius, Merino, & Carmichael, 2011), and in Pakistan, such practices exist (Khilji, 2002;
Husain, 2012). Performance ratings are also influenced by interpersonal relations, similar to other
collectivist societies such as Bangladesh, India, and Tunisia, where ratings of low performers are
consistently inflated by raters who possess positive interpersonal affect toward those employees
(Varma, Pichler, & Srinivas, 2005; Yahiaoui, 2014; Hossain, Abdullah, & Farhana, 2015).

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Using GLOBE to Understand the HR Complexities in Pakistan

The distribution of pay and rewards on the basis of individual or group achievements, or the design
of an economic system based on individual or collective interests, relates to institutional rather than in-
group collectivism. Studies that treat collectivism as a single dimension, in line with Hofstede (1980),
note the greater use of performance-related pay related to individual rather than group performance in
individualistic societies (e.g., Gomez-Mejia & Welbourne, 1991; Schuler & Rogovsky, 1998; Chiang,
2005; Sartorius, Merino, & Carmichael, 2011). Pakistan’s institutional collectivism societal ranking is
low, with only a narrow difference between societal and organizational scores. Thus, despite its high in-
group collectivism ranking, initiatives based on organizational- or societal-level rewards are less
acceptable.
The difference in the scores of the two dimensions of collectivism can also be understood by the
strong preferences of individuals toward their family, social sect, religious sect, or residents of the same
region (Duncan, 1989; Khilji, 2002; Rahman, 2012; Khilji & Rao, 2013; Saher & Mayrhofer, 2014).
The lack of practice or desire for a broad distribution of resources and collective action results from the
feudal system that has long existed in Pakistan, in which landlords have controlled large swaths of
agricultural land (Husain, 2002; Rahman, 2012). Thus, acceptance of the unequal distribution of
collective resources aligns with Pakistan’s high power distance score.
Societies or organizations with high power distance also tend to exhibit greater acceptance of formal
authority derived from positions of power and status. For example, in China, seniors and supervisors
are trusted for their wisdom and expertise (Cooke, 2012). Rather than a joint assessment of needs by
managers and employees, decisions about training for employees are made unilaterally by managers or
supervisors (Wilkins, 2001; Festing & Barzantny, 2008; Fu & Kamenou, 2011; Fregidou-Malama &
Hyder, 2015). Career plans reflect supervisors’ or elders’ advice (Aycan & Fikret-Pasa, 2003; Festing &
Barzantny, 2008; Fu & Kamenou, 2011). Processes that require participation across hierarchical levels,
such as those that ask employees to share their opinions or provide information about their jobs to
superiors, seem less suitable (Chen, Zhang, & Wang, 2014; Yang, Zhou, & Zhang, 2015), as are
initiatives such as 360° feedback (Davis, 1998; Fletcher & Perry, 2001). Differences in pay and
benefits and different criteria for compensating top- versus lower-level employees also are more readily
accepted (Luis & Mejia, 1991). Employee share options and ownership plans are less prevalent
(Schuler & Rogovsky, 1998).
The impact of power distance on HR practices in Pakistan is not clear. Although the societal power
distance scores for Pakistan appear high, scores from the organization level indicate less acceptance of
unequal distributions of power. The results also signal strong desires to change this facet of societal
culture and to adjust the organizational culture to create more equality in both society and organi-
zations. Thus, organizations that want to create a low power distance culture might be able to do so,
though they need to invest in training to change mindsets and explain processes such as participative
management.
The practice of and desire for low assertiveness levels offers another important element for under-
standing human behavior in Pakistan. People are not assertive and tend to avoid confrontations. In line
with Hartog’s (2004) summary of the key characteristics of an assertive society, in Pakistani society,
people believe their control over their own fate is limited, so demanding targets, as well as the rewards
or penalties related to such targets, are not widely favored. The link of assertiveness to both high- and
low-context cultures (Hall, 1959), and communication (Hartog, 2004) suggests that communication
in Pakistan includes subtle and ambiguous language that avoids confrontation. However, no past
studies have explored this dimension. The limited international literature on this topic indicates that
assertiveness has significant implications for selection procedures (Pudelko, 2005; Chiang & Birtch,
2010, 2011), feedback in appraisals (Hartog, 2004; Varma, Pichler, & Srinivas, 2005; Chiang &
Birtch, 2010), and communication in day-to-day work (Ollo-López, Bayo-Moriones, & Larraza-
Kintana, 2011; Silva, Roque, & Caetano, 2015), as well as forecasting and target setting.

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Sadia Nadeem and Mary F Sully de Luque

From a business performance perspective, examining the cultural dimension of performance


orientation, as often reflected in bottom line figures, may be relevant. In the overall GLOBE sample,
societies indicate a 0.32 correlation between performance orientation practices and GDP per capita
(Javidan & Hauser, 2004). The GLOBE study relies on other economic indicators as well, by com-
bining items from the Human Development Report (UNDP, 1998), World Competitiveness Yearbook
(International Institute for Management Development, 1999), and Global Competitiveness Rankings
calculated by the World Economic Forum (1998). According to these data, correlations ranging from
0.29 to 0.61 exist between performance orientation societal practice scores and economic indicators,
such as economic prosperity, government support for prosperity, and the World Competitiveness
Index (Javidan, 2004).
Pakistan exhibits a medium to low-performance orientation practice score but also reports a strong
desire to be more performance oriented, at both societal and organizational levels. Javidan (2004)
suggests that societies with lower performance orientation scores focus more on who people are, rather
than what they do. To increase its performance orientation levels, Pakistani society would need to shift
its values toward something other than social class, which has long been part of the societal fabric
(Khilji, 2002; Husain, 2012; Rahman, 2012). In addition, management practices for selection,
training, rewards, and appraisals would need to align with more performance-oriented factors. At first
glance, some performance-oriented practices may appear to conflict with the high in-group collectivism
and low assertiveness cultural practices and values of Pakistan, as discussed in the preceding sections.
However, no correlation arises for performance orientation with assertiveness or with in-group col-
lectivism (House et al., 2004). Also, societies with low assertiveness, like Japan, and high in-group
collectivism, like China, have prospered economically. This finding reiterates the need to assess the
practice (and value) scores for all nine dimensions simultaneously to develop a comprehensive picture
of a particular culture.
Performance orientation practice scores correlate with future orientation (0.63) and uncertainty
avoidance (0.58) in the GLOBE study (House et al., 2004). This is reflected in the scores of Pakistan,
as the Pakistani society currently exhibits average to below average future orientation and uncertainty
avoidance. However, the organizational scores indicate a significant gap with societal practice scores in
Pakistan. That is, the society may be lacking in long-term planning and execution, but its organizations
are performing better and express a strong desire to improve further.
This discussion would not be complete without commenting on the low gender egalitarianism score,
which indicates whether women have similar opportunities as men, or if there is male domination, in
both society and organizations. The labor force participation rate of women in Pakistan is an estimated
25% (World Bank, 2016b), clearly highlighting the gender gap in employment. In our sample of
middle managers, only 15% of the respondents were women. This reflects the highly gendered roles in
South Asia, including Pakistan, that have been highlighted previously (Murray, 2013; Pio & Syed,
2014). In the current study, reported practices in the dynamic telecommunications sector are rather
more egalitarian, which may indicate a drive to change. Overall, the scores imply a strong desire to
create a more egalitarian society, at least among the educated middle class, which mainly constitutes
our sample.

Limitations and further research


This study collected data from Pakistani middle managers, using the GLOBE survey, and then
compared these data with the overall GLOBE data set (House et al., 2004). Some key limitations thus
include that the data collection in Pakistan occurred a few years after the data collection in other
countries. However, cultural values tend to remain relatively stable over long periods, so the gap of a
few years should not affect the comparison (Rokeach, 1979; Hofstede, 1980). Also, the analysis uses

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Using GLOBE to Understand the HR Complexities in Pakistan

the scales developed by the GLOBE team, and this study did not undertake an exploratory factor
analysis, because one of its key purposes is to compare Pakistan with 61 other societies that had
completed GLOBE scales. Furthermore, the sample size of 152 is not representative of the entire
population of Pakistan, though it is considered appropriate for cross-cultural research (Hanges &
Dickson, 2006). This study makes reasonable generalizations about society based on this sample.
Given the challenges associated with the length of the study (190 complex questions, 90 min to
complete), the sample size also is venerable.
Many avenues for further research also emerge; we present four critical areas. First, the unique
and complex design of the GLOBE study, based on cultural practices and values, reflects how
things currently are and how people wish they were, in society and organizations. Wide practice–value
gaps, which in Pakistan are prominent for power distance, performance orientation, future
orientation, and gender egalitarianism, need to be explored by in-depth studies, particularly
those focused on change management. The vast society–organization practice gaps for power
distance, future orientation, in-group collectivism, assertiveness, and uncertainty avoidance also reveal
research avenues for management scholars studying organization–environment interactions. For
example, for in-group collectivism, the society–organization gap reveals that the societal practice score
is higher than the organizational score, and the value scores show that people would prefer to maintain
the high society score, while reducing the organizational in-group collectivism score even further.
In-depth qualitative studies can explore the complex challenges and opportunities that these
findings represent.
Second, we inferred the impact of cultural dimensions on HR practices in Pakistan by using the
results of cross-cultural research carried out in other countries, as well as work published about
Pakistan’s economy and culture in other disciplines; a limited number of studies focus directly on this
topic. Thus, more work, including in-depth case studies, qualitative discussions, and surveys, could
provide a more comprehensive understanding of management in Pakistani culture. For HR, studies
should test the impacts of high and low cultural practice and value scores on recruitment and selection,
training, performance management, compensation, communication, and talent management. Focusing
on a combination of cultural dimensions can provide a more comprehensive picture. Furthermore,
independent studies within Pakistan or cross-country comparative studies could expand the body of
knowledge. For example, Pakistan has a low assertiveness score; in the original study, other societies
with low assertiveness scores included Sweden, New Zealand, and Switzerland, whereas Albania,
Nigeria, the United States, and Germany ranked among the most assertive (Hartog, 2004). Pakistan
also has a low gender egalitarianism score, whereas in the original study, Hungary, Poland, and
Denmark offered the least gender-differentiated practices (Emrich, Denmark, & Hartog, 2004).
Designing cross-country comparisons with such country samples can highlight the impacts of culture
on management.
Third, in our attempt to identify empirical studies that describe how the GLOBE cultural
dimensions influence various HR practices, we found that some cultural dimensions, particularly
power distance and collectivism, have received ample attention from cross-cultural scholars, producing
a larger body of knowledge about the impact of these dimensions on various HR practices. For
collectivism, the focus has been on general collectivism, as opposed to in-group or institutional forms
of collectivism. Uncertainty avoidance, performance orientation, assertiveness, and future orientation
have received more limited attention; the cross-cultural studies we reviewed did not include the gender
egalitarianism and humane orientation dimensions at all. We thus reiterate the suggestion by Devinney
and Hohberger (2017) that clarity regarding the impact of cultural dimensions on management could
be achieved by expanding beyond commonly studied cultural dimensions. We also support the
recommendation of McKeown and Petitta (2014), who call for a more complex understanding of
the international, interconnected, yet unique context of management studies.

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Sadia Nadeem and Mary F Sully de Luque

Fourth, this study provides data about the cultural dimensions of Pakistan. Further work can be
carried out to detail potential differences in the cultures of the main provinces of Pakistan: Punjab,
Sindh, Khyber Paktunkhua, and Baluchistan, as well as the newly formed province of Gilgit-Baltistan.
Such an effort could reveal differences and similarities in regional cultures.

CONCLUSION
Understanding the cultural compatibility of HR practices with a country’s culture is vital for effective
management in the increasingly global economy. As Pakistan becomes a more important player in the
global economy, it is pertinent to extend the GLOBE study by including Pakistan. Its high power
distance, high in-group collectivism, and low assertiveness values create unique challenges and
opportunities for businesses, especially because these values differ significantly from the dominant
management practices of the Anglo-Saxon cluster. Although Pakistani society seeks to change some
cultural values, such as reducing power distance and increasing gender egalitarianism, its desire to
preserve in-group collectivism and low assertiveness indicates that any contradictory management
practices would be difficult to implement. Thus, the insights provided about Pakistani culture and
management provide new and more detailed guidance to investors, potential investors, and employers
of Pakistani expatriates, who can gain a better understanding of Pakistani values and culture. This
study also opens avenues for further research into Pakistan, using the GLOBE dimensions.

ACKNOWLEDGMENT
The authors thank members of the GLOBE team, particularly Mansour Javidan for his support in
completing the project. The authors also thank the team of Pakistani researchers who invested their
time to collect data for this project, and the Pakistani participants of the study for completing the
questionnaire.
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