HUMAN & CULTURAL VARIABLES IN GLOBAL ORGANIZATION Presented By:: Sanjeev & Binay USM-KUK
.“Organizational culture is one of the latest concepts in the fields of management and Organizational Theory. Culture which is popularly called as „Shared values and Beliefs‟ fulfills important functions. „‟“Culture is the complex whole reinforce by knowledge, beliefs, art, law morals customs & other capabilities. & habits of man as a member of society.” 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 behavior.
CULTURE : Is learned, not inherited. Involves responses to a set of problems. Is by a group. Links group members by shared experience. Develops stable group membership. Makes the whole different from the simple sum of the parts.
Hofstede‟s cultural dimensionsOn multi-cultures the great work is done by Dutch scientist, GEERT HOFSTEDE. Hofstede precedes the GLOBE( Global leadership & organizational behaviors effectiveness) research project. He identifies mainly four cultural dimensions: POWER DISTANCE, UNCERTAINTY AVOIDANCE, INDIVIDUALISM & MASCULINITY.
POWER DISTANCEPower distance is the extent to which less powerful members of organizations accept that power is distributed unequally. High power distance countries have norms, values, beliefs such as: Inequality is fundamentally good. Everyone has a place, some are high, some are low. Most people should be dependant on a leader. The powerful are entitled to privileges. The powerful should not hide their power.
Countries of High & Low power distance.Low power distance countries: US, Austria, Ireland, Norway & New Zealand.High power distance countries: France, India, Singapore, Brazil, Mexico & Indonesia.
Uncertainty AvoidanceUncertainty avoidance is the extent to which people feel threatened by ambiguous situations & have created beliefs that try to avoid these. High U.A accept: Conflict should be avoided. Deviant people & ideas should not be tolerated. Laws are very important & should be followed. Experts & authorities are usually correct. Consensus is important.Denmark & Britain are low U.A. cultures.Germany, Japan, & Spain are high U.A cultures.
Individualism VS CollectivismIndividualism is the tendency of people to look after themselves & their family only.Collectivism belongs to groups & to look after each other in exchange for loyalty. Individualism is common in US. Canada, Australia, Denmark & Sweden. Collectivism famous in India, Indonesia, Pakistan & south American countries.
Masculinity VS FemininityMasculinity refers to a situation in which the dominant values in a society are success, money & other material things. High Masculine cultures beliefs: Gender roles should be clearly distinguished. Men are assertive & dominant. Machismo maleness is good. People especially men should be decisive. Advancement, success & money are important.High masculine societies choose jobs associated with long-term careers & feminine societies choose short term employment, before marriage.
VARIABLES OF CULTURE ACCRODING TO HOFSTEDE1. Individual and collectivist culture.2. Masculine and feminine culture.3. High power and low power distance culture.4. Uncertainty avoidance.5. Context culture(influenced by environment).6. Immediacy and expressiveness.
VARIABLES ON THE BASIS OF OTHER PARAMETERS National variables: Economic system, legal system, physical situation, technological know-how etc. Socio-cultural variables: Religion, education, language. Cultural variables: Value, norms, beliefs etc. Attitudes: Reflects through work, sense of time, materialism, individualization & change. Individual & group behaviors: Motivation, productivity, commitment & ethics.
National culture & Human behavior is also influenced by Kinship : Family relations. Education : Affects workers performance. Economy : Resource allocation. Politics : Govt system. Religion Association : Group work (informal-formal) Health : Level of productivity. Recreation : Impact on attitudes.
FACTORS AFFECTING CULTURAL & HUMAN VARIABLES 1.Social Institutions2.Public Policy & Legal Framework 3.Societal Cultural Values
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, thestructures of governance etc. which have a direct impact on how business is conducted in that country.
For Instance:-1.Education System in Germany has a heavyemphasis on technical and apprenticeshiptraining, which can be historically traced back tothe artisans guides of the Middle Age.2.Similarly one finds the cultural values ofindividualism and entrepreneurship embodied inthe American Venture Capitalist System.
2.Public Policy & 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 management practices with in the company.
Example: -Lifetime employment in Japan which is rooted in theliteral interpretation of Article 27 of JapaneseConstitution. It is supported by its cultural valuesShakaisei (Social Consciousness) and Tate Shakai(Social Hierarchy and paternalism).In contrast US Constitution guarantees the rightwork,, the right cultural value of self reliance
3. Societal Cultural Values:-(i)The most pervasive impact on the business cultureand practices in a country comes from the broad culturalvalues of the society.At macro level cultural values allow certain kinds ofbusiness to flourish , while not providing the rightclimate for others.Example: - French culture is known for its emphasis onelegance, criticism and concern for Norms.
(ii)The cultural values of the society define the meaning and reason of business and how it is organized.Example: - While US Companies emphasizes more on the profit dividendsAnd stock prices, Japanese companies focus more on new product development and market share.
(iii) The cultural values also influence how the business isorganized and conducted in the societies.Example: In China people conduct business based onpersonal relationship ( Guanxi - Interpersonal relationship).
(iv) At the end the cultural values have a major influence onthe way people relate to each other and what they aspire forin a job.Example: In many hierarchical cultures (e.g. India, Japanetc) the meaning and value of job lies in the status morethan in the pay packet.ON the other hand in more egalitarian cultures (USA, Germany etc) people expect rewards andcompensation for their performance than their seniority.
Prepare for long process Obtain skilled labor Use Recent public policyRecruitment & from government expatriates shifts encourage use Develop trusting Selection subsidized sparingly of sophisticated relationship with recruit apprenticeship program selection procedures Make substantial inv. Be aware of Use bilingual Careful In training government trainers observations of Training regulations on existing training Use general & cross- programs training cultural training Use recognition & Note high labor costs Consider all Use technical praise as motivator for manufacturing aspects of training as reward Compensation labor cost Avoid pay for performance Treat unions as partners Be prepared for high Understanding Tap large pool of wages & short work changing labor cities Labor Allow time for week Mexican Labor Relations negotiations Law Include Participation Utilize works councils Approach Determine to enhance worker participation employees motives Incorporate group goalJob Design participation cautiously before implementing setting participation Use autonomous work teams Japan Germany Mexico China
BIBLIOGRAPHY1. CROSS CULTURAL MANAGEMENT BY D.K. BHATTACHARYYA2. INTERNATIONAL HR MANAGEMENT BY K. ASHVTHAPA & SADHANA DAS 3. CITEHR.COM 4. SLIDESHARE.COM