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  • 1. International HumanResources ManagementMulticulturalism 1

2. Culture DefinedCulture is understood as the customs,beliefs, norms and values that guide thebehavior of the people in a society andthat are passed on from one generationto the next. 2 3. Culture Defined Culturehas a normative value Cultureis a group phenomenon Culturalpractices are passed on from generation to generation 3 4. Culture Defined Dominant culture Sub-cultureOrganizational culture Occupational culture4 5. Multiculturalism Multiculturalismmeans that people of differentcultures (and countries) interact regularly. Global firms are repositories ofmulticulturalism 5 6. Cultural predispositionsMNCs tend to have cultural predispositionstowards managing things in a particular waywhich helps identify specific steps it takes: Ethnocentricism Polycentricism Regiocentricism Geocentricism6 7. EthnocentricismThe home countrys culture is sought to beimposed on the subsidiaries. Exports policies and practices from homecountry to the subsidiary Expatriates from the home country managethe affairs Local employees occupy low-level and routinejobs Decision making and operations are largelycentralized out of the home country HQ 7 8. PolycentricismThe multinational adapts to the local culturalneeds of subsidiaries. Management policy is oriented to suit localneeds Autonomy in decision making to the subsidiaryto run their businesses Host country nationals head the organizationsupported by extensive training by the parentcompany Parent company ensures cultural parity andcorporate philosophy across all subsidiaries 8 9. GeocentricismThe multinational runs the subsidiary as aindependent entity. Localization is replaced with building a center ofexcellence at a global level Hiring the best person for the job.. could bea third country national Remain guided by Parent company culture andphilosophy 9 10. RegiocentricismThe multinational runs the subsidiary as aindependent entity, within a regional geography. Localization at a regional level, building a centerof excellence at a regional level Hiring the best person for the job.. usually athird country national with a regionalexperience Remain guided by Parent company culture andphilosophy 10 11. Cultural ModelsThree theoretical concepts that help understandthe nuances of different cultures betterGLOBE ProjectHofstedes Cultural DimensionsTrompenaarsFramework11 12. Globe Project GlobalLeadership and Organizational BehaviorEffectiveness 170 researchers, over 7 years from 17000managers in 62 countries, covering 825organizations Identified nine cultural dimensions thatdistinguish one society from another that haveimportant managerial implications 12 13. Globe ProjectGlobal Leadership and Organizational Behavior Effectiveness Assertiveness Future Orientation Performance Orientations Human Orientation Gender differentiation In-group collectivism Collectivism/ Societal Power Distance Uncertainty Avoidance13 14. Hofstedes Cultural Dimensions Basedon a study of IBM employees spreadacross the globe Identified 4 critical cultural dimensions: Power distance Uncertainty Avoidance Individualism Masculinity 14 15. Power Distance Theextent to which less powerful members of institutions and organizations accept that power is distributed unequally. Countries in which people blindly obey the orders of supervisors have high power distance Countries with low power distance tend to be decentralized and have flatter structures with more equality and decision making power 15 16. Uncertainty Avoidance Extentto which people feel threatened byambiguous situations and have created beliefsand institutions that try to avoid this. Countries with high uncertainly avoidance havea high need for security and a strong belief inexperts and their knowledge Countries with low uncertainty avoidanceaccept risks associated with the unknown, lessstructured activities, fewer written rules, willingto take risk, show initiative and assumeresponsibility for action 16 17. Individualism Individualismis the tendency to look afterthemselves and their family as opposed tocollectivism where people tend to belong togroups and to look after each other in exchangefor loyalty In countries with high individualism people areresponsible for themselves, individualachievement is ideal, and self sufficiency is lauded In countries with high collectivism groupmembership is paramount, groups protectindividuals in exchange for their loyalty to thegroup, societies tend to promote nepotism 17 18. Masculinity Wherethe dominant values in a society are success, money and other material things. Highmasculine cultures distinguish clearly between gender roles where men are dominant and assertive and work takes priority over other duties, and advancement success and money are important18 19. Trompenaars FrameworkAEuropean researcher who conducted aresearch with 15,000 managers from 28countries, representing 47 national cultures. Uses seven dimensions to describe culture alsocalled the 7d cultural dimensions model Universalism vs. particularism Individualism vs. collectivism Specific vs. diffuse Neutral vs. affective Achievement vs. ascription Past vs. present Internal vs. external control 19 20. Global IT Companies On a Cultural Make Over In Atos Origin India ( AOI), part of $ 6.6 billionEuropean IT major Atos Origin about 100 odd staffattend French classes after office hrs.At IBM employees employees are being encouraged tothink in terms ofa more globally integrated orgn and tapinto a programme called Shades of Blue tounderstand business nuances about any other country. 21. Global IT Companies On a Cultural Make Overcontd.. AtAccenture and IBM, there is a shift from a countryspecific strategy to a more global sourcing one. Till recently IBM used to process purchase orders in300 destinations. Now it does it in just three places Bangalore, Shanghai and Budapest. Big Blue has shifted Asia headquaters from Tokyo toShanghai in a bis to fanthom its new growth marketsChina and India. Atos Origin sees a savings upwards of 50% for clientwork if done from India. To take the benefit of Indiasourcing, it has send a team from French car markerRenault to AOI to bridge cultural gaps. 22. Parth Iyengar, VP Research,Gartner India says for multinationals, hiring staff in destinations loke India is least of the problems. But they are not used to doing small deals and delivering services out of low cost destinations. This does require a cultural change in hoe they work. 23. The IBM CaseFromdoing everything from pay roll to developing software to shipping servers as a country specific strategy, IBM is now going for best offshore options.For IBM Japan the hr is done in Manila, Pay roll in Shanghai, Procurement in Schenzen, accounting in Kuala Lumpur, technology support in Australia and so on. 24. The IBM Case contd..Itsshades of blue cultural orientation programme is targeted towards helping employees understand the needs of staffers across locations easily.The faster they do it the easier it will be for global giants to catch up with their smaller but more nimble competitors. 25. Cultural Make over of Koreancompanies Koreans working for Companies like LG, POSCO, Samsung and CISCO in India not only learn Hindi, Kannada and Oriya but adopt local names too.Posco (had 35 expats working in India in the year 2009) has made it mandatory to learn Oriya for a better understanding of local environment 26. Cultural Make over of Koreancompanies contd Anuragis the name of a KOPrian ChangChyong Jung working at LG Greater Noida.We have Korean interns who do their researchprojects with us and they have even shown culturaladaptation to the extent of adopting Indian names likePragya and Ashim. Some of them have also volunteeredfor a Sanskrit learning course arranged by LG India .Yasho Verma , DirectorHR & MS LG India( LG had 20 expats in the year 2009) 27. Cisco Case All its expats come from 4 places primarily,Europe, Singapore, Beijing and US. In at least two of these places the first languageis not English. Cisco has a language course of160 hrs. They have a 2 day orientation for employee,spouse, and children. They are planning to relocate over 20% of itssenior team in the next three years to itsglobalization centre. 28. Cisco Case Contd..The language course that we conduct , could be a combination of 80 hrs. in Hindi, 80 in Kannada or 120 in Kannada and 40 hrs in Hindi.Syed HodaSenior DirectorOperations, Globalization CentreCisco 29. http://www.nokia.com/corporate- responsibility/cr-report- 2007/employees/labor-practiceshttp://www.nokia.com/corporate- responsibility/employees/who-we-are

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