GLOBAL CULTURAL

DIFFERENCESSubject :

Human Resource Management

Faculty :

Dr. Nisha Kumari

Presented By :

AKSHAT JAIN (11517)

NITISH KASHYAP (10461)

SHIV DUTT SHARMA (10550)

Introduction

• “Culture is important to HRM practices.”

• Firms operating in multiple countries need to worry not just about meeting special needs of expatriate employees

but also about the design and implementation of HRM programs in diverse cross cultural settings.

Major Dimensions to Culture

Geert Hofstede, a Dutch professor, concluded that there are five major dimensions to culture:

1. Power Distance

2. Individualism-Collectivism

3. Uncertainty Avoidance

4. Masculinity/Feminity

5. Long-term/short-term orientation

Power Distance

Extent to which individuals expect a hierarchical structure that emphasizes status

differences between subordinates & superiors

Power DistanceDominant values Sample countries Organizational features Reward practices Staffing

practices  

Power DistanceHIGH

Top Down Communications

Class divisions Authoritarianism

Malaysia Philippines Mexico

Centralization and tall organizational structures

Traditional line of command

Hierarchical compensation system

Difference in pay & benefit reflects job & status differences; large differences between higher & lower level jobs.

Visible rewards that project power, such as a large office or company car.

Limited search methods in recruitment; emphasis on connections & “ whom you know”

Few formal mechanisms of selection

Superior makes selection choice for his /her sphere of influence

 

Dominant values

Sample Countries

Organizational Features

Reward practices

Staffing Practices

LOW Egalitarianis

m Status based

on achievement

Joint decision making

Netherlands Australia Switzerland

Flatter organisational structure

Decentralized control

Great degree of worker involvement

Egalitarian based compensation system

Small differences in pay & benefits between higher & lower level jobs

Participatory pay strategies (such as gain sharing) more prevelant

Multiple search method; extensive advertisenents

Formalized selection methods”to give everyone a fair chance”

Superior constrained in making selection choices

Selection based on merit; loyalty to superiors deemphasized

Individualism/Collectivism

Individualism• Put more emphasis on the

personal values, personal goals & matters related to individuals, and not the group of individuals.

Collectivism• It tends to identify themselves by

aligning its corporate group membership: give priority to group goals.

• Put more emphasis on harmonious relationships.

• Have more socially based emotions.

DOMINANT VALUES

SAMPLE COUNTRIES

ORGANIZATINAL FEATURES

REWARDPRACTICES

STAFFINGPRACTICES

HIGH Personal accomplishment

• United States• Great Britain• Canada

Organizations not compelled to care for employees total well- being

• Performance- based pay

• Individual achievement rewarded

Emphasis on credentials andvisible performanceoutcomes attributedto individual

Belief in Individual Control and responsibility

  Employee lookAfter their own Individual interests  

• External equity emphasized 

• Attempt made to isolate individual contributions (i.e. who did what)

• High turnovercommitment toorganization forcareer reasons • PerformanceRather thanSeniority as criterion for Advancement

Belief in Creating one’s Own destiny

  Explicit systems ofControl necessaryTo ensure complianceAnd preventWide deviation from organizationalnorms

• Emphasis on short term objectives

 

DOMINANT VALUES

SAMPLE COUNTRIES

ORGANIZATINAL FEATURES

REWARDPRACTICES

STAFFINGPRACTICES

LOW 

       

Team Accomplishment  Sacrifice for others 

Singapore South korea Indonesia

Organization committed tohigh level involvement inworkers personallives

Group-basedPerformance isImportant criterion forrewards

Value of credentialsAnd visible performanceoutcome dependson perceived contribution toteam efforts

Belief in group Control and Responsibility  Belief in the hand Of fate

  Loyalty to firmIs critical Normative ratherThan formal,systems ofControl to ensurecompilance 

Seniority-basedpay is utilized intrinsic rewardsessential internal equity guide pay policies personal needs(such as number of children) affect pay recieved

Low turnover;commitment toorganization as“family” Seniority playsAn important roleIn personnel decisions InterpersonalRelations areimportant

Uncertainty Avoidance

• Extend to which a society places a high value on reducing risk and

instability.

DOMINANT VALUES

SAMPLE COUNTRIES

ORGANIZATINAL FEATURES

REWARDPRACTICES

STAFFINGPRACTICES

HIGH 

       

Fear of random events and the unknown

Greece Portugal Italy

Mechanistic structures

Bureaucratic paypolicies utilized

Bureaucratic rulesto govern hiringand promotion

  High value Placed on stability

  Written rules andpolicies guide from the firm

Compensation programs tend tocentralized 

Seniority an important factor in hiring and promotion

  Low tolerance for ambiguity

  Organization strive to be predictable

Fixed pay moreImportant thanvariable pay

Government regulation limitemployee discretion in promotion andterminations

DOMINANT VALUES

SAMPLE COUNTRIES

ORGANIZATINAL FEATURES

REWARDPRACTICES

STAFFINGPRACTICES

LOW 

       

Unexpected viewed is challenging and exciting   

Singapore Denmark Sweden

Less structuredActivities Fewer writtento cope with changing withenvironmentalforces 

Variable pay aKey componentin programs Decentralizedpay program isThe norm

Fewer rules to govern hiringand promotion Seniority DeemphasizedIn personaldecision

Stability and routine seen as boring

  Managers aremore adaptableand tend tomake riskier decisions

External equityemphasized

 

Ambiguity seen as providing opportunities  

       

Masculinity/Femininity

• Degree to which a society views assertive or “masculine” behavior as important to

success and encourages rigidly stereotyped gender roles.

MASCULINITY

Dominant values Sample countries Organizational features

Reward practices Staffing practices  

HIGH

Material possessions important

Mexico Germany United states 

Some occupations labeled as “male” others as “Female”

Differential pay polices that allow for gender inequities

De facto preferential treatment for men in hiring decision into higher-level jobs(even it is illegal)

Men given higher power and status than women

  Fewer women in higher-level positions

Tradition an acceptable basis for pay decisions

“Glass ceiling” for women

Rigid gender stereotypes

    “male” traits rewarded in personnel decisions

Occupational segregation

 

Dominant values Sample Countries Organizational Features

Reward practices Staffing Practices

LOW

Quality of life valued more than material gain

The NetherlandsNorwaySwedenFinland

More flexibility in career choice for men and women

Jobs evaluated without regard for gender of job holders

Gender deemphasized in hiring decisions for any job

Men not believed to be inherently superior

  More women in higher level jobs

Focus on work content rather than tradition to assess value of different jobs

More women in upper level positions

Minimal gender stereotyping

    Well-developed “equity goals” for pay determination

Occupational integration between the sexes

Long-term/Short-term Orientation

• Extent to which values are oriented the future (savings, persistence) as opposed to the past or present (respect for tradition,

fulfilling social obligations).

Long-term/short term Orientation

Dominant values Sample countries Organizational features

Reward practices Staffing practices

HIGH

Future-oriented JapanHong KongChina

Stable Organizations

Long term rewards Slow promotions

Delayed gratification

  Low employee turnover

Seniority as basis for pay

Promotions from within

 Long term goals

  Strong company culture

Mangers rewarded for multiyear accomplishment

High employment security

      No expectation of frequent pay adjustment

High emphasis on coaching versus evaluation

        High investment in training and employee development

Dominant values Sample countries

Organizational Features

Rewards Practices

Staffing Practices

LOWPast-or present oriented United States

Indonesia Changing organizational

Short- term rewards

Fast promotions

Immediate gratification   High employee turnover

Recent performance as a basis for pay

Internal and external hires

Short-term goals   Weak company culture

Managers rewarded for annual accomplishment

Low employment security

      High expectation of frequent pay adjustment

Low emphasis on saving employees face

        High emphasis on evaluation versus coaching

        Low investment in training and employee development

BIBLIOGRAPHY

• World Wide Web

• Managing Human Resouces: Luis R. Gomez-Mejia, David B. Balkin, Robert L. Candy

• Human Resource Management: K. Ashwathapa

THANK YOU