IHRM Chapter 2 - for Moodle PDF

BHRM 434 International HRM Chapter 2 IDEA & CULTURAL CONTEXT OF IHRM Chapter 1 For use with International Human Res...

BHRM 434 International HRM Chapter 2 IDEA & CULTURAL CONTEXT OF IHRM Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 1 of 32 Cross Cultural Management Research. Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 2 of 32 Four Perspectives on Culture Kluckhohn & Kroeber Geert 4 Definitions of Hofstede Culture Karl Hansen Edgar Schein Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 3 of 32  1. Kluckhohn & Kroeber def. of Culture  Thinking Culture  Feeling consists in  Reacting patterned ways of Acquired & transmitted mainly through stories and symbols; constitutes the distinctive achievements of different human groups embodied in artefacts The consists of traditional ideas and Essential Core of attached values Culture Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 4 of 32 2. Geert Hofstede def. of Culture ” Culture is the patterns of thinking, feeling and acting:  “Software of the Mind” A person’s “mental program” that predisposes the individual to behave in a certain way, though s/he has the ability to deviate from it and act in ways that are Chapter 1 new, creative or unexpected For use with International Human Resource Management 7e 5 of 32 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning 3. Klaus. P. Hansen’s 4 Elements of Culture Culture is the customs of that are practiced by the m  Consistent behavior (standardization) can be expected in various situations. 1. Communication Standardiza 2. Thought tion of 3. Feeling 4. Behavior Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 6 of 32 4. Edgar.H. Schein’s Concept of Org. Culture Identified 3 levels in Org. Culture: 1. Artefacts – tangible, overt, visible elements in an org. e.g. architecture, furniture, org. structure & processes 2. Espoused Values – intermediate level of consciousness; stated values, rules of behavior, corporate philosophy or public statement of identity 3. Underlying Assumptions – invisible and unconscious; deeply embedded and taken-for- granted behavior – convictions, perceptions, Chapter 1 thoughts and feelings For use with International Human Resource Management 7e 7 of 32 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. ISBN-10: 1473719026 © Cengage Learning  4. Edgar.H. Schein’s Conception of Culture. Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 8 of 32  The Hofstede Study. Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 9 of 32  The Hofstede Study /  An IBM sponsored study done in two period: 1967- 1969 & 1971-1973  Attitude survey of 116,000 IBM employees in 53 countries; questionnaires were translated into 20 different languages.  Included all hierarchical levels, covering employees in 38 profession groups ranging from unskilled workers to executives.  A later study involved participants from Asia Pacific region. Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 10 of 32 Hofstede’s 6 Cultural Dimensions 1. Individualism vs. Collectivism 2. Power Distance 3. Uncertainty Avoidance 4. Femininity vs. Masculinity 5. Short-term vs. Long-term Orientation 6. Indulgence vs. Restraint Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 11 of 32  Individualism vs. Collectivism  Individualism - Collectivism reflects the degree to which a society views its members as individuals or as group members (Hofstede, 1984).  In individualistic societies, individuals are primarily concerned with their own interests and the interests of their immediate family.  In highly collectivistic societies, individuals are not defined by their own actions but rather the groups’ actions. Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 12 of 32 Power Distance  Power Distance is the extent to which the less powerful individuals in a society accept inequality in power and consider it as normal (Hofstede, 1984).  In high power distance cultures, individuals respect their superiors and avoid criticizing them.  In low power distance countries, it is acceptable to challenge superiors, albeit with respect Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 13 of 32  Uncertainty Avoidance  Uncertainty Avoidance is the degree to which people in a culture generally prefer structure and predictability to risk taking and uncertainty (Hofstede, 1984).  Cultures high in uncertainty avoidance are made anxious by situations that are unstructured, unclear, or unpredictable.  On the other hand, low uncertainty avoidance cultures are reflective, less aggressive, relatively tolerant, and Chapter 1 unemotional. For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 14 of 32  Masculinity vs. Femininity  Masculine Cultures are those where the dominant values emphasize ambition, achievement, assertiveness, and competitiveness  Feminine Cultures have preference for quality of life, harmony, modesty, and security” (Hofstede, 2001). Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 15 of 32  Long-term or Short-term  Long-Term Orientation Orientation cultures value patience and persistence to achieve results that will manifest in the long run  Short-Term Orientation cultures focus on the present and have preference for immediate results or reward (Hofstede & Bond, 1988). Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 16 of 32  Indulgence vs Restraint  Indulgence refers to freedom to gratify natural human desires.  Indulgent cultures tend to focus on individual happiness and well being, leisure time is deemed important and there is greater freedom and personal control.  Restraint refers to the need to curb or regulate gratification of human desires.  In Restrained cultures, positive emotions are not freely expressed; happiness, freedom and leisure are not prioritised. Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 17 of 32 Table 2.1 Examples of the impact of the cultural context on HRM practices Chapter 2 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 18 of 32 The GLOBE Study. Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 19 of 32  The GLOBE Study  Global Leadership and Organizational Behavior Effectiveness  Goal was to determine whether/which leadership dimension are influenced by national culture  A transnational project by 170 scholars who worked together since 1993 to study societal culture, organizational culture, and attributes of effective leadership in 62 cultures.  Involved 17,370 participants from middle management, 951 organizations and 3 industries – Finance, Food and Telecommunications.  Divided world map into 10 cultural regions: SEA, Latin America, N. America, the Anglo cluster, Germanic and Latin Europe, Sub-Saharan Chapter 1 Africa, Easter Europe, Middle East and Confucian Asia For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 20 of 32  The 9 GLOBE Cultural Dimensions 1.Performance Orientation - refers to the extent to which an organization or society encourages and rewards group members for performance improvement and excellence. 2.Assertiveness Orientation - is the degree to which individuals in organizations or societies are assertive, confrontational, and aggressive in social relationships. 3.Future Orientation - is the degree to which individuals in organizations or societies engage in future-oriented behaviors such as planning, investing in the future, and delaying gratification. 4.Humane Orientation - is the degree to which individuals in organizations or societies encourage and reward individuals for being fair, altruistic, friendly, generous, caring, and kind to others. 5.Institutional Collectivism - reflects the degree to which organizational and societal institutional practices encourage and reward collective distribution of resources and collective action. 6.In-group Collectivism - reflects the degree to which individuals express pride, loyalty and cohesiveness in their organizations or families. 7.Gender Egalitarianism - is the extent to which an organization or a society minimizes gender role differences and gender discrimination. 8.Power Distance - is defined as the degree to which members of an organization or society expect and agree that power should be unequally shared. 9.Uncertainty Avoidance - is defined as the extent to which members of an Chapter 1 organization or society strive to avoid uncertainty by reliance on social norms, rituals, and bureaucratic practices to alleviate the unpredictability of future events For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 21 of 32  The Trompenaars & Hampden-Turner Study. Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 22 of 32 The Trompenaars & Hampden-Turner study ”  Over a decade, surveyed 1,500 executives in different industries from 28 countries.  Discovered 7 dimensions by which national cultures differ.  Discovered that people from different cultures differ from one another in very specific and even predictable ways.  Each culture has its own way of thinking, values, beliefs, and has different Chapter 1 preferences placed on a For use with International Human Resource Management 7e ISBN-10: 1473719026 variety of different 23 of 32 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning  7 Dimensions of Trompenaars & H-T Study I) 1. Universalism vs. Particularism 2. Individualism vs. Relations Communitarianism hips 3. Emotional vs. Neutral between 4. Specific vs. Diffuse 5. Ascription vs. Achievement people II) Concept 6. Sequential vs. Synchronic concept of time of Time III) 7. Internal vs. External control Concept Chapter1 2 Chapter of Nature For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 24 of 32 7 Dimensions of Trompenaars & H-T study 1.Universalism versus Particularism  Place high importance on laws, rules, values, and obligations. Deal fairly with people based on these rules, but rules come before relationships. VERSUS  Believe that each circumstance, and each relationship, dictates the rules that they live by. Their response to a situation may change, based on what's happening in the moment, and who's involved. 2.Individualism versus Communitarianism  Believe in personal freedom and achievement, and that people make their own decisions, and takes care of themselves VERSUS  Believe that the group is more important than the individual. The group Chapter 1 provides help and safety, in exchange for loyalty. The group always comes For before the use with International individual. Human Resource Management 7e ISBN-10: 1473719026 25 of 32 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning  7 Dimensions of Trompenaars & H- T study 3.Specific versus Diffuse  Keeps work and personal lives separate. Believe that relationships should not impact work objectives, and, although good relationships are important, believe that people can work together without having a good relationship. VERSUS  See an overlap between work and personal life. Believe that good relationships are vital to meeting business objectives, and relationships with others will be the same, whether at work or meeting socially. People spend time outside work hours with colleagues and clients. 4.Emotional versus Neutral  Believe that emotions must be kept in check. Reason influences actions more than feelings. Don't reveal what they're thinking or how they're feeling. VERSUS  Find ways to express emotions, even spontaneously, at work. Such cultures, welcome and accept expression of emotion. Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 26 of 32 7 Dimensions of Trompenaars & H- T study 5. Achievement versus Ascription  Believe people’s worth are based on what they do. Such cultures value performance, regardless of peoples’ background. VERSUS  Believe that people should be valued for who they are. Power, title, and position matter in such cultures, and roles define behavior. 6. Sequential Time versus Synchronous Time  Place high value on punctuality, planning (and sticking to plans), and staying on schedule. In such cultures, "time is money," and have high preference for structure and order. VERSUS Chapter 1  See the past, present, and future as interwoven periods. Work on several projects For at once,Human use with International andResource view plans and7ecommitments Management as flexible. ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 27 of 32 7 Dimensions of Trompenaars & H-T study 7.Internal Direction versus Outer Direction. Believe people can control nature or their environment to achieve goals. Includes how people work with teams and within organizations. VERSUS Believe nature, or the environment, controls people; Must work with their environment to achieve goals. At work or in relationships, the focus is on their actions on others, and avoid conflict where possible. Need reassurance that they're doing a good job. Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 28 of 32 Hall & Hall’s Cultural Dimensions. Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 29 of 32 Hall & Hall’s 4 Dimensions 1.High vs. Low Context Communication 2.Spatial Orientation actual distance between people when communicating 3.Monochrome vs. Polychrome time Sequential processes vs. Parallel actions 4.Information Speed Chapter 1 High or low information flow during communication For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 30 of 32  Hall & Hall’s 4 Dimensions 1.High vs. Low Context Communication  In high-context cultures there are many contextual elements that should be taken into account and help people to understand the rules. Many things are not said directly, much is taken for granted. Examples of high-context cultures are the cultures of France, Spain, Italy, Middle East, Japan, Russia.  In low-context cultures, people are expected to be outspoken straight forward, and where most things require explanation. Written instructions, contracts and documents have more value in negotiations. Examples of countries with Chapter 1 low-context cultures are Germany, Switzerland, USA, Scandinavia. For use with International Human Resource Management 7e ISBN-10: 1473719026 31 of 32 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning Hall & Hall’s 4 Dimensions 2.Spatial Orientation  Hall was the first scientist, who started to categorize cultures by their attitude to personal space.  In cultures with low territoriality people feel less need for personal space  Individuals from high territoriality cultures tend to show more concern for personal space. Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 32 of 32  Hall & Hall’s 4 Dimensions 3.Monochrome vs. Polychrome time  People from monochronuous cultures usually do one thing at a time. Careful planning and scheduling is important. Members of monochronuous cultures have difficulties with starting something new, when they still have not finished another activity. Germany, USA, Scandinavian countries are examples of such kind of cultures.  In polychronuous cultures human interaction is valued over time and material things. Being punctual is not that important in these cultures. People from such cultures pay more attention to human relations and do not mind doing several things at the Chapter 1 same time. Such cultures are present in Latin America, Middle East, Russia. For use with International Human Resource Management 7e ISBN-10: 1473719026 33 of 32 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning  Hall & Hall’s 4 Dimensions 4.Information Speed  Cultures with slow flow of information plan information carefully and structure it. They would tend to portion information, not to give more than absolutely necessary.  Cultures with fast flow of information think that the more quickly the information is spread, the better it is for all. Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 34 of 32 Impact of the Cultural Context on HRM Practices. Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 35 of 32 Table 2.1 Examples of the impact of the cultural context on HRM practices Chapter 2 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 36 of 32  The Development of. Cultures Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 37 of 32  Cultures Change There is increasing 1. International Connectedness 2. Global Economic Coordination 3. Harmonization of Laws & Regulations 4. Migration Cultures are not confined to given territories. This means new challenges for HRM.  How resistant are cultures to change? Chapter 1  Entire society workforces are aging  Generation Y are fast, self-organized & absorbed learners with distinct work-life balance preferences For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 38 of 32 Inclusivity, Diversity, Equity & Accessibility. Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 39 of 32  Charter of Rights and Freedoms  The Canadian Charter of Rights and Freedoms is contained in the Constitution Act of 1982  The Charter provides fundamental rights to every Canadian  It has the most far-reaching legal challenge for HR managers Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 40 of 32 Charter of Rights and Freedoms Freedoms  Freedom of conscience and religion  Freedom of thought, belief, expression and opinion  Freedom of peaceful assembly  Freedom of association Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 41 of 32 Charter of Rights and Freedoms  Rights  Right to life, liberty and security  Right to live and seek employment anywhere in Canada  Democratic rights  Equality rights for all individual  etc. Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 42 of 32  Employment Equity Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, Marion Festing, and Allen D. Engle, Sr. © Cengage Learning 43 of 32 Employment Equity Status of designated groups:  People with disabilities  Indigenous people  Members of visible minorities  Women Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, MarionCopyright © 2020 Festing, and byEngle, Allen D. NelsonSr. Education Ltd. © Cengage Learning 44 of 32 Employment Equity Benefits  Broaden base of qualified individuals  Enhance organization’s ability to attract and retain qualified employee  Enhance employee morale  Improve organization’s image in the community Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, MarionCopyright © 2020 Festing, and byEngle, Allen D. NelsonSr. Education Ltd. © Cengage Learning 45 of 32  Diversity  Diversity Management: The optimization of an organization’s multicultural workforce in order to reach business objectives Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, MarionCopyright © 2020 Festing, and byEngle, Allen D. NelsonSr. Education Ltd. © Cengage Learning 46 of 32 Managing Diversity – Benefits  Better utilization of talent  Increase marketplace understanding  Enhance creativity  Increase quality of team problem solving  Greater understanding in leadership positions Chapter 1 For use with International Human Resource Management 7e ISBN-10: 1473719026 By Peter J. Dowling, MarionCopyright © 2020 Festing, and byEngle, Allen D. NelsonSr. Education Ltd. © Cengage Learning 47 of 32