HUMAN & CULTURAL VARIABLES
IN GLOBAL ORGANIZATION
Presented By:: Sanjeev & Binay USM-KUK
Organizational culture is one of the latest concepts in the fields of management and Organizational Theory. Culture which is popularly called as Shared values and Beliefs fulfills important functions. Culture is the complex whole reinforce by knowledge, beliefs, art, law morals customs & other capabilities. & habits of man as a member of society. 1. It conveys the sense of identity for organizational members. 2. It enhances social system ability. 3. It facilitates the generation of commitment to some thing larger than self. 4. It serves as a sense of making device that can guide and shape behavior.
CULTURE :
Is learned, not inherited. Involves responses to a set of problems. Is by a group.
Links group members by shared experience.
Develops stable group membership.
Makes the whole different from the simple sum of the
parts.
Hofstedes cultural dimensions
On multi-cultures the great work is done by Dutch scientist, GEERT HOFSTEDE. Hofstede precedes the GLOBE( Global leadership & organizational behaviors effectiveness) research project. He identifies mainly four cultural dimensions: POWER DISTANCE, UNCERTAINTY AVOIDANCE, INDIVIDUALISM & MASCULINITY.
POWER DISTANCE
Power distance is the extent to which less powerful members of organizations accept that power is distributed unequally. High power distance countries have norms, values, beliefs such as: Inequality is fundamentally good. Everyone has a place, some are high, some are low. Most people should be dependant on a leader. The powerful are entitled to privileges. The powerful should not hide their power.
Countries of High & Low power distance.
Low power distance countries: US, Austria, Ireland, Norway & New Zealand.
High power distance countries: France, India, Singapore, Brazil, Mexico & Indonesia.
Uncertainty Avoidance
Uncertainty avoidance is the extent to which people feel threatened by ambiguous situations & have created beliefs that try to avoid these. High U.A accept: Conflict should be avoided. Deviant people & ideas should not be tolerated. Laws are very important & should be followed. Experts & authorities are usually correct. Consensus is important. Denmark & Britain are low U.A. cultures. Germany, Japan, & Spain are high U.A cultures.
Individualism VS Collectivism
Individualism is the tendency of people to look after themselves & their family only. Collectivism belongs to groups & to look after each other in exchange for loyalty. Individualism is common in US. Canada, Australia, Denmark & Sweden. Collectivism famous in India, Indonesia, Pakistan & south American countries.
Masculinity VS Femininity
Masculinity refers to a situation in which the dominant values in a society are success, money & other material things. High Masculine cultures beliefs: Gender roles should be clearly distinguished. Men are assertive & dominant. Machismo maleness is good. People especially men should be decisive. Advancement, success & money are important. High masculine societies choose jobs associated with long-term careers & feminine societies choose short term employment, before marriage.
VARIABLES OF CULTURE
ACCRODING TO HOFSTEDE
1. Individual and collectivist culture.
2. Masculine and feminine culture.
3. High power and low power distance culture.
4. Uncertainty avoidance. 5. Context culture(influenced by environment). 6. Immediacy and expressiveness.
VARIABLES ON THE BASIS OF OTHER PARAMETERS
National variables: Economic system, legal system, physical
situation, technological know-how etc. Socio-cultural variables: Religion, education, language. Cultural variables: Value, norms, beliefs etc. Attitudes: Reflects through work, sense of time, materialism,
individualization & change.
Individual & group behaviors: Motivation, productivity, commitment & ethics.
National culture & Human behavior is also influenced by
Kinship Education Economy Politics Religion : Family relations. : Affects workers performance. : Resource allocation. : Govt system.
Association
Health Recreation
: Group work (informal-formal)
: Level of productivity. : Impact on attitudes.
FACTORS AFFECTING CULTURAL & HUMAN VARIABLES
1.Social Institutions
2.Public Policy & Legal Framework
3.Societal Cultural Values
1.Social Institutions
Countries differs considerably in the kind of social institutions they have e.g., the way their education system functions, the way financial system works, the structures of governance etc. which have a direct impact on how business is conducted in that country.
For Instance:1.Education System in Germany has a heavy emphasis on technical and apprenticeship training, which can be historically traced back to the artisan's guides of the Middle Age. 2.Similarly one finds the cultural values of individualism and entrepreneurship embodied in the American Venture Capitalist System.
2.Public Policy & Legal Framework
The government policies and legal frameworks of different countries also reflects the cultural values of the country. These influences the business practices in 2 ways:
a) They determine the broader framework for doing business in the country. b) They influence and circumscribe the management practices with in the company.
Example: -
Lifetime employment in Japan which is rooted in the literal interpretation of Article 27 of Japanese Constitution. It is supported by its cultural values Shakaisei (Social Consciousness) and Tate Shakai (Social Hierarchy and paternalism). In contrast US Constitution guarantees the right work,, the right cultural value of self reliance
3. Societal Cultural Values:(i)The most pervasive impact on the business culture and practices in a country comes from the broad cultural values of the society. At macro level cultural values allow certain kinds of business to flourish , while not providing the right climate for others.
Example: - French culture is known for its emphasis on
elegance, criticism and concern for Norms.
(ii)The cultural values of the society define the meaning and reason of business and how it is organized.
Example: - While US Companies emphasizes more on the profit dividends And stock prices, Japanese companies focus more on new product development and market share.
(iii) The cultural values also influence how the business is organized and conducted in the societies. Example: In China people conduct business based on personal relationship ( Guanxi - Interpersonal relationship).
(iv) At the end the cultural values have a major influence on the way people relate to each other and what they aspire for in a job. Example: In many hierarchical cultures (e.g. India, Japan etc) the meaning and value of job lies in the status more than in the pay packet. ON the other hand in more egalitarian cultures ( USA, Germany etc) people expect rewards and compensation for their performance than their seniority.
Various HR Variable Factors
Prepare for long process
Recruitment & Develop trusting Selection relationship with recruit
Make substantial inv. In training Use general & crosscultural training Use recognition & praise as motivator
Obtain skilled labor from government subsidized apprenticeship program Be aware of government regulations on training Note high labor costs for manufacturing
Use expatriates sparingly Use bilingual trainers
Training
Recent public policy shifts encourage use of sophisticated selection procedures Careful observations of existing training programs Use technical training as reward
Compensation
Avoid pay for performance Treat unions as partners Be prepared for high wages & short work week
Consider all aspects of labor cost
Labor Relations
Allow time for negotiations
Understanding changing Mexican Labor Law
Tap large pool of labor cities
Include Participation
Job Design
Incorporate group goal setting
Use autonomous work teams
Utilize works councils to enhance worker participation
Approach participation cautiously
Determine employees motives before implementing participation
Japan
Germany
Mexico
China
BIBLIOGRAPHY
1. CROSS CULTURAL MANAGEMENT BY
D.K. BHATTACHARYYA
2. INTERNATIONAL HR MANAGEMENT BY
K. ASHVTHAPA & SADHANA DAS
3. CITEHR.COM 4. SLIDESHARE.COM
