unit-1 mhr-106 cultural variables
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Human and Cultural variables in Global Organization
This episode is one of the many other similar ones which
underscore the HR Challenges in preparing people for Cross
Cultural working. Organizational culture is one of the latest
concepts in the fields of management and Organizational
Theory. Culture which is popularly called as "Shared values andBeliefs" fulfils important functions.
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 behaviour.
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For instance cultures differ widely in terms of
concepts of time. Besides the obvious
implications for punctuality, the difference alsolies in how people from different cultures use
their time. An understanding and sensitivity to
such cultural differences in behavior and
orientations is necessary perquisites to developcross cultural competencies.
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The roots of cultural differences in the business
practices lie much deeper. Business cultures in
different countries are molded not just by the
behavior of culture, such as social institutions,public system, public policy, legal frameworks
and culture specific social values. Since these
provide the cultural context, in which business
is conducted, they are as much if not moreimportant in understanding the culture
differences in business practices.
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Factors affecting cultural variables.
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. These social institutions are
important artifacts of the culture and oftenembody its basic values and assumptions.
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Example- 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. This system focus on imparting
hands on technical skills in which the students
get assigned at the very early age, beside this it
also influences the business practices bybringing the specific set of skills into job market.
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Similarly one finds the cultural values of
individualism and entrepreneurship embodied in
the American Venture Capitalist System. This
system legitimizes and encourages risk takingand going it alone behavior, but also creates a
business environment in which investors have a
major impact on how business is run.
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2. Public Policy and 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 managementpractices within the company.
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Cultural values also influence the interpretation
and implementation of the laws. It determines
the nature of the laws, which have direct
implication for management practices within thecompany.
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Example: - Lifetime employment in Japan which is
rooted in the literal interpretation of Article 27 ofJapanese Constitution. It is supported by its
cultural values Shakaisei (Social Consciousness)and Tate Shakai (Social Hierarchy and
paternalism). In contrast US Constitution also
guarantees the right work,, the right cultural value
of self reliance and " each for him" does notsupport it.
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3. Societal Cultural Values:- The most pervasive
impact on the business culture and practices in a
country comes from the broad cultural values of
the society. These values influence the businessin different ways at different levels.
At macro level cultural values allow certain kinds
of business to flourish, while not providing theright climate for others.
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Example: - French culture is known for its emphasis
on elegance, criticism and concern for Norms.
The cultural values of the society define themeaning and reason of business and how it is
organized. In many cultures, high profits and market
capitalization are not the criteria for doing business.
Such cultural difference has direct impact on the
Strategic Orientation of companies across cultures.
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Example: - While US Companies emphasizes
more on the profit dividends
And stock prices, Japanese companies focusmore on new product development and market
share.
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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. In many
hierarchical cultures (e.g. India, Japan etc) themeaning and value of job lies in the status more
than in the pay packet. In these countries
people also expect to be recognized for their
seniority and age. ON the other hand in moreegalitarian cultures ( USA, Germany etc) people
expect rewards and compensation for their
performance than their seniority.15
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Therefore it is evident that developing people to adapt
to and operate across business cultures of different
countries, require an appreciation of aspects which
are deeper and more pervasive than just crosscultural differences in behaviour. While an
understanding of differences in behavioural
orientation and etiquettes help people in becoming
cross culturally literate but to develop truly crossculturally educated global managers, it is essential to
provide an understanding into the deeper structures
which mould the culture.16
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The Role of Culture in Global Organization
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1) Focuses on the human side of the organization
2) Facilitates in creation of appropriate systems, norms
and standards.
3) Provide shared meaning to help people to worktogether to achieve the desired goals.
4) Guide leaders to attached meaning to the behavior of
people in the organization
5) Guide organization to determine its relationship with
the environment.
6) Shapes the attitude of people
7) Gives an individual a unique identity 18
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Culture
Helps us organize our world
Shared values, understandings, assumptions
and goals (values, beliefs, norms)
Learned from earlier generation
Imposed by present members of society
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Cross-Cultural Variables
In the Culture at Large
Language
Use of space
Perceptions of time
Meaning of nonverbal behaviours
Degree of individualism or collectivism
High context or low context
Importance o f hierarchy
Use of silence
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In Business and Industry
Role of written communication (inform? persuade?
document? reinforce?)
Level of informality among co-workers
Criteria for success (individual and organization)
Oral presentation styles (relatively formal or
informal?) Emphasis on task versus relationships
Goals of business as a cultural institution
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In Education
Purpose of education: to push the frontiers of
knowledge? to pass on tradition? to education
students in disciplines? to education students in howto be good members of society?
Relationship between teacher and student: is theteacher a revered figure in the culture? is the teacher
the repository of wisdom or a facilitator
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who guides students?
Benefit of education: does education confer
status or prestige? can it be a detriment for
certain members of the culture?
Behaviour of students in the classroom: are
students expected to participate actively in theclassroom? can students compete with one
another? can students challenge the teacher?
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Cultural variables can also be explained interms of the following parameters
1. National variables: These variables are
applicable across the nations.2. Socio-cultural variables: These include
religion, education, and language.
3. Cultural variables: These consists of values,norms, belief and so on….
4. Attitudes: These are reflected through work,
sense of time, materialism, individualism and
change. 25
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5. Individual and Group employee job behavior: These
are seen in motivation, productivity, commitment and
ethics.
National culture is also influence by the following:
1. Kinship: Which guides family relationships
2. Education: It effects workers performance level inthe organization
3. Economy: It influence the pattern of resource
allocation26
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4. Politics: Which determined government system
5. Religion: It can often overpower all other aspect
of culture
6. Associations: These determined the nature of group and its predominance, eg. Formal group,
informal group.
7. Recreation: These too influence the attitude
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THANK YOU
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