international hrm - dimensions of culture - 1

7/29/2019 INTERNATIONAL HRM - Dimensions of Culture - 1

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INTERNATIONAL HUMAN

RESOURCE MANAGEMENT


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Topics

Dimensions of culture

Cross cultural adaptability

Theories of HRM: Convergence theory, Marxisttheory, cultural perspective

How intercountry differences affect HRM

Why international assignments fail

International staffing policies

Selection of expatriates


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Topics

Training of expatriates

International compensation

Performance appraisal of expatriates International labour relations

Repatriation, problems and solutions

HRM in Japan HRM in Europe


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Topics

HRM in USA

HRM in Multinational corporations


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Dimensions of Culture

We propose to discuss three cultural models:

1. Globe Project Team

2. Hofstedes model and

3. Trompenaars 7d cultural model

An understanding of these models equips international

managers with the basic tools necessary to analyse the

cultures in which they do business. The three approaches

also provide useful theoretical concepts to help understand

the nuances of different cultures better.


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Globe Project

The GLOBE (Global Leadership and Organizational

Behaviour Effectiveness) project team comprises 170

researchers who have collected data over seven years on

cultural values and practices and leadership attributes from

17,000 managers in 62 countries, covering as many as 825organizations spread across the globe.

The research team identified nine cultural dimensions

that distinguish one society from another and have important

managerial implications: assertiveness, future orientation,

performance orientation, human orientation, gender

differentiation, uncertainty avoidance, power distance,

collectivism/societal, and in-group collectivism.


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Assertiveness

This aspect is defined as the degree to which individuals in organisations or

societies are expected to be tough, confrontational and competitive versus

modest and tender.

Future Orientation

This dimension refers to the level of importance a society attaches to future-

oriented behaviours such as planning and investing in the future and

delaying immediate gratification.

Performance Orientation

Performance orientation measures the importance of performance and

excellence in society and refers to whether people are encouraged to strive

for continued improvement and excellence.


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Human Orientation

Human orientation is understood as the degree to whichindividuals in organisations or societies encourage and reward

people for being altruistic, generous, caring and kind to others.

Gender Differentiation

This is understood as the extent to which an organization or society

resorts to role differentiation and gender discrimination.

In-group Collectivism

This refers to the degree to which individuals express pride, loyalty

and cohesiveness in their organisations or families.


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Collectivism/Societal

This refers to the degree to which organisational and societal practices

encourage and reward collective distribution of resources and collective

action.

Power Distance

This refers to the degree to which organisational members or citizens of a

society expect and agree that power should be unequally distributed.

Uncertainty Avoidance

This refers to the extent to which members of an organisation or societystrive to avoid uncertainty by relying on social norms, rituals and

bureaucratic practices to minimize the unpredictability of future

happenings.


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GLOBEs ranking is highly helpful to international managers who

are seeking to be successful in cross-cultural settings. Anticipating

cultural similarities and differences allows multi-cultural managers

to develop the behaviours and skills necessary to act and decide in

a manner appropriate to the host country norms and expectations.


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Hofstedes Cultural Dimensions

In a discussion on multicultures, reference should be made

to the pioneering work done by the Dutch scientist, Geert Hofstede.

He identified four cultural dimensions around which

countries have been clustered, with people in each group exhibiting

identical behaviours.

The four dimensions are:

1. power distance,

2. uncertainty avoidance,3. individualism and

4. masculinity.


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Power Distance

Power distance is the extent to which less powerful members

of institutions and organisations accepts that power is distributed

unequally. Countries in which people blindly obey the orders of

superiors have high power distance.

High power distance countries have norms, values and beliefs suchas:-

Inequality is fundamentally good,

Every one has a place; some are high, some are low,

Most people should be dependent on a leader,The powerful are entitled to privileges and

The powerful should not hide their power.


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High Power v/s Low Power countries

The US, Austria, Ireland, Norway and New Zealand represent cultures

with low power distance. These societies exhibit characteristics almost

the opposite of the features listed above.

France, India, Singapore, Brazil, Mexico and Indonesia are examples ofsocieties with a high power distance.


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Uncertainty Avoidance

Uncertainty avoidance is the extent to which people feel threatened by

ambiguous situations and have created beliefs and institutions that try

to avoid these.

Countries with citizens who do not like uncertainty tend to have a highneed for security and a strong belief in experts and their knowledge.

Countries with low uncertainty avoidance have people who are more

willing to accept that risks are associated with the unknown and the life

must go on in spite of this.


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Specifically, high uncertainty avoidance countries are characterised

by norms, values and beliefs which accept that:

Conflict should be avoided,

Deviant people and ideas should not be tolerated,

Laws are very important and should be followed,

Experts and authorities are usually correct andConsensus is important

Low uncertainty avoidance societies tend to represent the antonym

of the above characteristics.


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Country Classification

SMALL POWER DISTANCE, WEAKUNCERTAINTY AVOIDANCE

NORDIC COUNTRIES, ANGLO

COUNTRIES, USA, NETHERLANDS

LARGE POWER DISTANCE, WEAKUNCERTAINTY AVOIDANCE

CHINA, HONG KONG, SINGAPORE,

INDIA, BANGLADESH, INDONESIA,

MALAYSIA

SMALL POWER DISTANCE, STRONG

UNCERTAINTY AVOIDANCE

GERMAN SPEAKING COUNTRIES

HUNGARYISRAEL

LARGE POWER DISTANCE, STRONG

UNCERTAINTY AVOIDANCE

TAIWAN, THAILAND, PAKISTAN,

LATIN COUNTRIES, EUROPE, JAPAN,KOREA


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Individualism

Individualism is the tendency of people to look after themselves andtheir family only. Individualism is common in the US, Canada, Australia,

Denmark and Sweden.

Specifically, countries high on individualism have norms, values and

beliefs which accept that:

People are responsible for themselves,

Individual achievement is ideal and

People need not be emotionally dependent on organisations or groups.

In the individualist societies, favoritism shown to friends and relatives is

considered to be unfair and even illegal.


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Masculinity

Masculinity refers to a situation in which the dominant values in a

society are success, money and other material things. Hofstede

measured this dimension on a continuum ranging from masculinity to

femininity.

High masculine cultures have norms, values and beliefs that:

Gender roles should be clearly distinguished,

Men are assertive and dominant,

Machismo or exaggerated maleness is good,

People especially men - should be decisive,Work takes priority over other duties, such as family and

Advancement, success and money are important.


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Country ClassificationIn highly masculine societies, jobs are clearly defined by gender. There are

mens job and womens jobs. Men usually choose jobs that are associated

with long-term careers. Women usually choose jobs that are associated with

short-term employment, before marriage.

COLLECTIVIST, FEMININETHAILAND, KOREA, VIETNAM,

INDONESIA, MALAYSIA, SINGAPORE,

COSTA RICA, CHILE, PORTUGAL, RUSSIA

COLLECTIVIST, MASCULINEHONG KONG, CHINA, JAPAN, PHILIPINES,

INDIA, BANGLADESH, MEXICO,

VENEZUELA, GREECE, ARAB WORLD

INDIVIDUALIST, FEMININESPAIN, FRANCE, NETHERLANDS, NORDIC

COUNTRIES

INDIVIDUALIST, MASCULINECZECHOSLOVAKIA, HUNGARY, POLAND,

ITALY, GERMAN SPEAKING COUNTRIES,

ANGLO COUNTRIES, USA


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Trompenaars Framework

Trompenaars, an European researcher, conducted anextensive research with 15,000 managers from 28

countries, representing 47 national cultures. He

describes cultural differences using seven dimensions

(the theory is therefore called 7d cultural dimensionsmodel):(i) universalism versus particularism,

(ii) individualism versus collectivism,

(iii) specific versus diffuse,(iv) neutral versus affective,

(v) achievement versus ascription,

(vi) past versus present (time dimension), and

(vii) internal versus external control


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CULTURAL DIMENSION CRITICAL QUESTION

Relationships with People:Universalism vs. particularism

Individualism vs. collectivism

Specific vs. Diffuse

Neutral vs. Affective

Achievement vs. Ascription

Perspective on Time:

Sequential vs. Synchronic

Relationship with the

Environment:

Internal vs. External Control

Do we consider rules or relationships more important?

Do we act mostly as individuals or as groups?

How extensively are we involved with the lives of other

people?

Are we free to express our emotions or are we

restrained?Do we achieve status through accomplishment or is it

part of our situation in life (e.g., gender, age, social

class)?

Do we do tasks in sequence or several tasks at once?

Do we control the environment or does it control us?

THE 7D MODEL OF CULTURE


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(i) Universalism versus Particularism

In cultures with universalistic orientation, people

believe in abstract principles such as the rules of law, religion

or cultural principles.

In universalistic cultures, the focus is more on formal

rules than on relationships; business contracts are adhered to

very closely and people believe that a deal is a deal. In a

particularistic culture, legal contracts are adhered to very

closely and the way, deals are executed also changesdepending on the situations.


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UNIVERSALISM PARTICULARISM

Countries following

the cultural

dimension

Orientations

USA

UK

Czech Republic

Rule bound

Contracts upheld

Business deals are

sacrosanct

Nigeria

Mexico

South Korea

Relationships bound

contracts are

subject to

modification

Business deals are

flexible to the

situation and the

person

Universalism versus Particularism


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(ii) Individualism versus Collectivism

This dimension is almost identical to Hofstedes valuedimension. In individualistic societies, the focus is on I or

me and the orientation is ones own growth. In collectivist

societies, the focus is on groups, including family,

organisation and community. Responsibility, achievementsand rewards are group-based. In individualistic societies,

people are trained from childhood to be independent, and

each person assumes individual responsibility for his/her

success or failure.


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Individualism versus Collectivism

INDIVIDUALISM COLLECTIVISM

Countries following

The cultural dimension

Orientations

Czech Republic

UK

Focus on me or I

Individual decision

making

Individual responsibility

Individual achievement

Nigeria

Egypt

Japan

Focus on We

Group decision making

Group achievement

Group responsibility


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(iii)Specific versus Diffuse

This cultural dimension focusses on how a cultureemphasizes on notions of privacy and access to privacy.

In specific cultures, individuals have large public spaces

and relatively small private spaces. While the public

space is open, the private one is guarded carefully andshared with only close friends and associates.

A diffuse culture does not allow any distinction

between public and private spaces.


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SPCIFIC DIFFUSE

Countries following

the cultural dimension

Orientations

Sweden

Czech Republic

UK

Business is separated

from other parts of life

Precision in

communication

Principled moral

reasoning

Norway

Mexico

China

Business is mixed up

With personal life

Vague communication

Situation based moral

Specific versus Diffuse


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(iv) Neutral versus Affective

In this dimension, Trompenaars focusses on theappropriateness of expressing emotions in different

cultures. In neutral cultures, the tendency of the people is

to control their emotions so that it will not interfere with

their judgement. In contrast, effective cultures encouragethe expression of emotions.

Expressions of anger, laughter, gesturing and a range

of emotional outbursts are considered normal andacceptable. But in neutral societies, emotions are

considered to be messy interference in achieving objectives.


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NEUTRAL AFFECTIVE

Countries following

The Cultural Dimensions

Orientations

Sweden

Czech Republic

UK

Focus is on task and not

on

Expressing emotions

Control over emotionsadmired

Physical contacts

avoided

Norway

Mexico

China

Expressions of emotions

in any situation is

accepted

Gesturing and touchingare common

Neutral versus Affective


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(v) Achievement versus Ascription

This dimension describes the methods used to acquire

status. In an achievement culture, an individual is accorded

status based on how well he/she performs his/her functions.

Status depends on achievement.

An ascription culture is one in which status is attributed

based on who or what a person is, his age, gender or social

connections. Achievement is not the criterion to accordstatus.


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SPECIFIC DIFFUSE

Countries following

the cultural

dimension

Orientations

Norway

Ireland

Austria

Status depends on

performance and

accomplishment

Titles are used when

relevant

Mixed of age and

gender in

management

Japan

Hong Kong

Argentina

Status depends on

ones pedigree

Titles are invariably

used Background and

age main

qualification for

management

Achievement versus Ascription


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(vi) Time Dimension

Time orientation has two dimensions. The first dimension of

Trompenaars is similar to Hofstedes there are different

emphasis on the past, present and future. The second refers to

sequential versus spectronic cultures. This dimension is unique to

Trompenaars. In sequential cultures, time is viewed as linear and

divided into segments that can then be divided and scheduled.

The followers of sequential cultures tend to do only one activity at

a time, keep appointments strictly and show a strong preference

for following plans as they are laid out and not deviating from

them. US, Mexico and France tend to follow sequential cultures.In synchronic cultures such as Portugal and Egypt, time is viewed

as circular and indivisible, and relationships are more important

than schedules.


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Time Dimension

PAST FUTURE

Countries following the

cultural dimension

Orientations

Hong Kong

Israel

Stability is respected

Past guides every action,

Any change is looked at

with suspicion

Strategic planning has no

relevance

Korea

Hong Kong

Strategic planning is

important

Change is considered

Necessary and beneficial

Assumption that

individuals can influencefuture

Hard work now shall lead

to future success


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(vi) Internal versus External Control

The final cultural dimension of Trompenaars relates to oneslocus of control his belief about whether he or she is the

master of his or her own destiny. Where individuals (read

managers) believe that they have control over outcomes, they

are said to be followers of internal locus of control. Instead, if

they believe that they have control over the outcomes, suchpeople (managers) deem to follow the tenets of external locus of

control.

Poland and Greece are the two countries whose citizens possess

strong internal locus of control, whereas, Ethiopians and Chinese

are said to be externals.


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INTERNAL CONTROL EXTERNAL CONTROL

Countries following the

cultural dimension

Orientations

Poland

Brazil

Greece

Managers tend to be

proactive

Ethiopia

China

Greece

Emphasis on

compromise

Harmony and

adjustment is good

Adaptation to cyclesManagers tend to be

fatalistic

Internal Control versus External Control

international hrm - dimensions of culture - 1

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