2132.part 2 ihrm
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ihrmTRANSCRIPT
Influence of National Culture on organisation culture
• Organisation behaviour shaped by cultural preferences of employees and leaders
• National Culture influences the extent to which leadership, teams and employees are socially valued and supported
• Directive styles of leadership fail in North America, North Europe, Australia and New Zealand
• Sweden and Japan support employee Involvement
The impact of culture 11/20/01 3
Influence of National Culture on organisation culture – The Family Culture
• Person-oriented• Face to face and Hierarchical: father-children
relationship• Work in this time is more like home• Japanese recreate the family in their corporate
culture• Indulgence to younger and respect to elder• Pressure is moral rather than legal• Relationship is for long term and one of loyalty• Culture clusters: Greece, Italy, Japan, Singapore,
South Korea, Spain, other nations which industrialized late and smaller companies
The impact of culture 11/20/01 4
The Eiffel Tower Culture
• Hierarchies – Bureaucratic division of roles,coordinated from top of hierarchy.
• Boss has legal authority confined to office• Ascribed status to a role and not to a person• Careers are assigned to professional
qualification• Personal relationships are not desired
• Culture clusters: Austria and Germany
The impact of culture 11/20/01 5
The Guided Missile Culture
• Egalitarian impersonal and task focussed• Project focussed is undertaken by teams and
groups• Status is achieved• Individualistic • Must do whatever it takes to complete the
project and what is needed is unclear
• Culture clusters: USA, Norway, Ireland
The impact of culture 11/20/01 6
The Incubator Culture
• Person-oriented organisation is secondary to fulfillment of individual
• Personal Egalitarian• Minimal hierarchies and structure• Creative and spontaneous• Leadership is achieved
• Culture Clusters: Sweden,USA (Silicon Valley), UK (Silicon Glen) and smaller companies
Characteristics of Trompenaars’ Four Types of Corporate Culture
Variables Family Eiffel TowerGuided Missile
Incubator
Relationship between employees
Diffuse relationships to organic whole to which one is bonded
Specific role in mechanical system of required interactions
Specific tasks in cybernetic system targeted upon shared objectives
Diffuse, spontaneous relationships growing out of shared creative process
Attitudes toward authority
Status is ascribed to parent figures who are close and powerful
Status is ascribed to superior roles, which are distant yet powerful
Status is achieved by project group members who contribute to targeted goals
Status is achieved by individuals exemplifying creativity and growth
Ways of thinking and learning
Intuitive, holistic, lateral, and error-correcting
Logical, analytical, vertical, and rationally efficient
Problems centered, professional, practical, cross-disciplinary
Process oriented, creative, an hoc, inspirational
Attitudes towards people
Family members Human resources Specialists and experts
Co-creators
Ways of changing
“Father” changes course
Change rules and procedures
Shift aim as target moves
Improvise and attune
Ways of motivating and rewarding
Intrinsic satisfaction in being loved and respected
Promote to greater position, larger role
Pay or credit for performance and problems solved
Participating in the process of creating new realities
Management style
Management by subjectives
Management by job description
Management by objectives
Management by enthusiasm
Criticism and conflict resolution
Turn other cheeks, save others’ faces, do not lose power game
Criticism is accusation of irrationalism unless there are procedures to arbitrate conflict
Constructive task-related only, then admit error fast and correct
Must improve creative idea, not negate it
CULTURE DIMENSIONS
• Globe Project• The GLOBE (Global Leadership and Organisational
Behaviour Effectiveness) project team identified nine cultural dimensions distinguishing one society to another– Assertiveness - individuals in organisations or societies are
expected to be tough, confrontational and competitive versus modest
– Future Orientation - future-oriented behaviours, delaying immediate gratification.
– Performance Orientation - strive for continued improvement and excellence.
– Human Orientation - individuals are encourage and reward for being altruistic, generous, caring and kind to others.
CULTURE DIMENSIONS
• Globe Project– Gender Differentiation - role differentiation and gender
discrimination.– In-group Collectivism - individuals express pride, loyalty, and
cohesiveness in their organisations or families.– Collectivism/Societal - organisational and societal practices
encourage and reward collective distribution of resources and collective action.
– Power Distance - power should be unequally distributed.– Uncertainty Avoidance - relying on social norms, rituals and
bureaucratic practices lo minimize the unpredictability of future happenings
Kluckhohn and Strodthbeck
• Pattern of behavior and thinking
S.No Orientation of People Pattern of Behaviour and Thinking
1 What is the nature of people?
Good ,Evil, Mixed
2 What is a persons relationship to nature?
Dominant, harmony or subjugation
3 What is the persons relationship to others?
Hierarchial, collectivist or others?
4 What is the modality of human activity?
Doing, being or containing
5 What is the temporal focus of human activity?
Future,present or past
6 What is the conception of Space?
Private,Public or mixed
1) What is the nature of people
• Doughlas MC Gregor “Human side enterprise” 1960 descibed the theory X and theory Y
• Task is change organisation structure,management practice,HR practice to allow individual potential to be released
Evil -Self centered, Indiff to org needs,lazy,lack ambition,dislike resp
Good-Potential to develop and assume resp,persue org goals, democracy exists with delegation of authority(Japan & Saudi Arabia)
Mixed – Middlemen exist and business contracts are specific legal contracts are flourishing(America and India)
2) What is persons relationship with nature
• Locus of control is external or Internal- Dominant,Harmony or Subjugation
• Americans dominant by nature think everything can be controlled and spend huge amounts of money on space research,weather control and biotech
• Diff of views is encouraged,org change is easy to implement and consultants play an imp role
• Eastern Countries believe in harmony and there should be peace in man and nature avoid conflicts
• Middle east and India have subjugation believe in destiny and god is controlling everything,astrology affects success and failure god
3) What is persons relationship with other
• Hierarchial, collectivist and others/individualistic• Importance of hierarchy, seniority age and sex,
Official Position• Thialand, China,Indonesia have follower ship
than leadership• Org culture taller and communication is top
down• Seniors are obeyed and diff of opinion is avoided• America is individualist and individual excellence
is valued in societyThe needs of group are uppermost and people
strive to consensus
4) What is modality of human activity
• Doing,being or containing• Doing- German, Americian, and English self
identification is imp and focussed on actions and performance
• Rate of Innovation is high• Being- People are philosophical and spend time
in abstract thinking • Middle East,India and China Status is from
birth,age and sex,family and social connection• Japan and Thailand focus on self control balance
between feeling and doing
5) What is the temporal focus on human Activity
• America is future oriented and believe it can be planned and controlled
• India ,Pakistan and Middle east countries base decisions on past
Hofstede
• 1,16,000 employees, 70 countries 3 regions East and West Africa, Saudi Arabia
• AssumptionsWork related values are not universalUnderlying values persisit where MNC
tries to impose same norm on foreign interest
Local values determine how headquarters are interpreted
MNC that insist on uniformity is in danger of creating morale problems and indifferences
Power Distance
• Less powerful member accept power is distributed unequally
• Distance b/w individual at different levels of hierarchy• Countries that obey blindly orders of superiors have high
power distance• Eg Mexico,India,South Korea,Finance,Indonesia and
Singapore have high PD• Greatest in Malaysia and least in Ireland and Austria• If the supervisory levels are less then highly qualified
people are employed • Salary gap is higher• Symbols and status will be highly valued and have high
motivation appeal• Organisations with low PD are decentralised, flatter
structure• US, Austria, Ireland, Norway,New Zeland
Uncertainty Avoidance
• People feel threatened by ambiguous situations and have created beliefs and instructions and avoid these
• High uncertainty oriented nations tend to have high need for security and strong belief in expert and knowledge
• Germany, Spain and Japan are anxiety prone and have stress, high premium on job security career planning and health insurance
• Clear rules and regulations are welcomed and those who give clear instructions are respected, low labour turnover, less ambitious employees
• Low uncertainty are more entreprenuerial,innovative and exhibit less emotional resistance to change- Denmark,Britain
• Swedes are shy and positive and feel suppressing emotions is good and talkativeness is negative they adopt a rational approach, new technology, encourage people to assume responsibity for actions
• Low uncertainty avoidance- US,UK & Sweden
Individualism
• Tendency to look after themselves and family only• Tendency to look after group and feeling of belongingness
in exchange of loyality – Collectivism• Individualist don’t have a strong emotional bond and are
loyal as long as it suits them• Americans high on Individualist score go to court against
authority and claim rights,individual decisions are valued over group
• USA,Canada, Sweden,Denmark are high on individualist score
• Collectivist feel WE “Employer and Employee” are one family and relationship prevails task and duty
• Promotion is on loyality and seniority• Pakistan, Latin America low on individualist score and low
GNP
Masculinity
• Dominant values are success,money and things• Japan high on masculinity lays importance of earning and
recognition,high on job stress• Germany and Spain are large scale enterprises and high
economic growth and low on conservation• Norway low on Masculinty as a cooperative,friendly
atmosphere and has employment security
MULTICULTURALISM
• Multiculturalism means that people from many cultures (and frequently many countries) interact regularly.
• Global firms are repositories of multiculturalism. • Not that the domestic firms have only
monocultures.
Cultural Predispositions
• Ethnocentrism• The home country’s culture is sought to be imposed on
subsidiaries.• The MNC exports its HR policies and practices from home
office to foreign locations.• Ethnocentric policy is justified on the following reasons:
– Need to maintain a unified corporate culture among all subsidiaries.• An ethnocentric policy - disadvantages:
– Expatriate managers may not be able to adapt to local conditions easily and early.
– Expatriate managers are often poorly trained for international assignments and tend to commit mistakes.
Cultural Predispositions
• Polycentricism• Multinational Corporation seeks to adapt to the local
cultural needs of subsidiaries• Polycentricism is more pronounced in the context of
human resource practices• Does not bestow absolute freedom to subsidiary heads as
stand alone units• Host-country managers visit home offices for extended
periods to get acquainted with the company's culture and are taught how to protect the nuances of corporate culture, respecting of course, the host country's beliefs and values.
Cultural Predispositions
• Regiocentricism• Regiocentric approach operates in the same way
as polycentricism• IHRM practices are applicable to regions.