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Shift in culture, culture as a factor in people response to change.

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  1. 1. Shift in culture:-1.) Culture: In 1870, Edward Taylor, defined culture as “ that complex whole which includesknowledge, belief, art, morals, law, custom, and other capabilities acquired by man as a memberof society.Another definition by Geert Hofstede (1980) “ the collective programming of the mind whichdistinguishes the members of one human group from another…….culture, in this sense, includessystems of values; and values are among the buildings blocks of culture.2.) Shift: The term shift mainly focus on the following practices: -performance appraisal -training and development -compensationAnd so on.Here the question arises why “SHIFT IN CULTURE”?This will help, to be shifted from the process perspective to the outcome perspective how each ofthem can contribute to the system to capitalize the patriation(evaluation) as a process of addingvalues to the organizational competency.Further expanded the answer of this question we say, shift in culture will provide the uniqueopportunity for the MNE (who potentially loss their identity in home country) to develop astrong tie expatriate and the organizational culture of the MNE, thereby supplanting the nationalculture with that of the organization as the „foundation‟ culture of the „multiple‟ expatriate andhis/ her family. This „superimposed‟ culture will have to be built on trust between the expatriateand MNE.SPEED OF CULTURAL SHIFT:-Problem recognizing to those cultural shifts that promise to have long- term effects on the marketand workforce values are complicated when the deep values of cultural changes slowly.Why the cultural often slow to shift? FIRST, any change can be painful. People‟s values arereinforced by habit and a fear of to much novelty. SECONDLY, individuals start learning theirvalues in earliest childhood. At this stage culture is learned without conscious effort andconscious effort. This learning is very deep rooted, and so the individual is slow in modifyinghis/her unconscious values in later life. This has general implications; not only individuals butthe groups to which they belong cannot easily shift their unconscious values.
  2. 2. However, in recent past there have been notable examples of cultures apparently making radicalshifts in a short space of time. One example is Japan.
  3. 3. Culture as a factor in a people response to change:-In organization, Culture is shaped not only by the technologies and markets, but also by theculture preferences of leader and employees. Factors that cause the culture to shift:The culture may shift in response to significant changes in the business environment (such aseconomic change, technology, foreign interventions).1) Influenced to a degree by individual consideration, such as a. magnitude of the change from home to the host culture. b. the length of the time spent in the host country. c. the frequency of and time spent on return trips to the home country. d. the total time away from the home country.2) Why change? e.g, Companies operating only within the borders of the United States generally have the luxuryof dealing with a relatively limited set of economic, cultural, and legal variables. The UnitedStates is a capitalist, competitive society. And while the U.S. workforce reflects a multitude ofcultural and ethnic backgrounds, shared values (such as an appreciation for democracy) help toblur potentially sharp cultural differences. Although the different states and municipalitiescertainly have their own laws affecting HR, a basic federal framework helps produce a fairlypredictable set of legal guidelines regarding matters such as employment discrimination, laborrelations, and safety and health. A company operating multiple units abroad isnt blessedwith such homogeneity.3) Cultural factors:-Countries differ widely in their cultures-in other words, in the basic values their citizens adhereto, and in the ways these values manifest themselves in the nations arts, social programs,politics, and ways of doing things. Cultural differences from country to country necessitatecorresponding differences in management practices among a companys subsidiaries. Forexample, in a study of about 330 managers from Hong Kong, the Peoples Republic of China,and the United States, the U.S. managers tended to be most concerned with getting the job done.Chinese managers were most concerned with maintaining a harmonious environment, and HongKong managers fell between these extremes. A classic study by Professor Geert Hofstedeidentified other international cultural differences.4) Cultural diversity:-
  4. 4. Another term include under this is cultural diversity. Cultural diversity exists on followingdimensions:-a.) lndividualism and Collectivism. After the study of culture of sixty countries, Hofstede, aDutch researcher, has concluded that people differ in terms of individualism and collectivism.Individualism is the extent to which people place value on themselves; they define themselves byreferring themselves as singular persons rather than as part of a group or organization. For themindividual tasks are more important than relationships. Collectivism is the extent to whichpeople emphasise the good of the group or society: They tend to base their identity on the groupor organisation to which they belong. At work, this means that relationships are more importantthan individuals or tasks; employer-employee links are more like family relationships. Countries that value individualism are USA. Great Britain,Australia. Canada. Netherlands, and New Zealand. Countries that value collectivism are Japan,Columbia, Pakistan, Singapore, Venezuela, and Philippines. India may be placed near tocollectivism.b.) Power Orientation: Power orientation, also known as orientation to authority.c.) Uncertainty Avoidance: Uncertainty avoidance also known as preference for stability.d.) Masculinity: Masculinity, also known as assertiveness or materialism.e.) Time Orientation: Time orientation dimension divides people into two categories: long-term orientation and short-term orientation.
  5. 5. Significance of shift in Culture:-# Workforce Diversity: Workforce is the building block of any organization but there isworkforce diversity in global companies. Based on their place of origin, employees of a typicalglobal company can be divided into the following groups: a. Parent-country national – permanent resident of the country where the company isheadquartered. b. Host-country national-permanent resident of the country where the operations of thecompany are located. c. Third-country national - permanent resident of a country other than the parent countryand the host country. Further, workforce diversity can be seen in the context of employee mobility fromone country to another country for performing jobs. On this basis, an employee can be put in oneof the following categories:a. Expatriate-a parent country national sent on a long-term assignment to the host countryoperations.b. Inpatriate-a host-country national or third-country national assigned to the home country ofthe company where it is headquartered.c. Repatriate-an expatriate coming back to the home country at the end of a foreign assignment. Workforce diversity implies that various categories of employees notonly bring their-skills and expertise but also their attitudes, motivation to work or not to work,feelings, and other personal characteristics. Managing such employees with predetermined HRMpractices may not be effective but contingency approach has to be adopted so that HRMpractices become tailor-made.# Language Diversity: Language is a medium of expression but employees coming fromdifferent countries have different languages. Though English is a very common language, it doesnot serve the purpose adequately as it does not cover the entire world. While employees comingfrom different countries may be encouraged to learn the language of the host country for betterdissemination of the information, it does not become feasible in many cases. An alternative tothis is to send multilingual communications. It implies that anything transmitted to employeesshould appear in more than one language to help the message get through. While there are nohard-and-fast rules in sending such messages, it appears safe to say that such a message shouldbe transmitted in the languages the employees understand to ensure adequate coverage.
  6. 6. # Economic Diversity: Economic diversity is expressed in terms of per capita income ofdifferent countries where a global company operates. Economic diversity is directly related tocompensation management that is, paying wages / salaries and other financial compensation toemployees located in different countries. One of the basic principles of paying to employees isthat "there should be equity in paying to employees." However, putting this principle in practiceis difficult for a global company because its operations are located in different countries havingdifferent economic status. In such a situation, some kind of parity should be established based onthe cost of living of host countries.
  7. 7. Economic factors and shift in national culture:-1.) National culture: The culture characterizes the national group and influences the behavior ofits individual members. Dimensions of national culture: -power distance -uncertainty avoidance -individualism/collectivism -masculinity/femininity2.) Importance of National Culture: National culture sets the direction of how foreigninvestors are perceived by the host country and defines the host government‟s preferences ineconomic and social forms and consequently in its trade policies. Through their institutions,nations affect the norms according to which buying firms manage the post-acquisition process.3.) Economic factors: Economic factors are included economic organizations -socialist -capitalist -communist -individual ownership -company ownership -government ownership,power of labour and employers, the nature and composition of the labour force and the sourcesof supply and demand in the labour market.Now, question arises HOW ECONOMIC FACTOR INFLUENCE SHIFT?The possession of wealth does not itself lead to economic development. The most populouscountry in Africa, Nigeria, has received approximately $300,000 million in oil revenues since itsindependence, but its now probably poorer than when oil was first discovered there in the 1950s.Because these revenues were controlled entirely by the government, participation in governmentbecause the royal road to fast and fabulous illicit wealth………..enterprising Nigerians- of whomthere are many- concentrated their efforts on gaining political influence rather than moreproductive activities.
  8. 8. However, in some circumstances a correlation occurs between wealth and individualism. Thewealthier countries tend to be more individualist.
  9. 9. Foreign Intervention and influence on shifts in Local Cultures:There are two major sets of contingencies that can affect the intervention success: - Those having to do with the change situation. - Those related to the target of change.Both type of contingencies need to be considered in designing interventions.Researchers find out number of contingencies present in the change situation that can affect theintervention success. These include individual differences among organizational factors,organization members, and dimensions of the change process itself. Unless these factors areconsidered, designing an intervention will have little impact on organizational functioning orworse, it may produce negative results.Human process interventions typically focus on the total organization or an entire department, aswell as on relationship between groups. These include the following three change programs: 1.) Organization confrontation meeting. 2.) Intergroup relation. 3.) Large group intervention.Intervention by an outside power may cause a major shift in the culture. To shift people to thenew culture , shifting of the following four components is must – Results Actions Beliefs ExperiencesFactors Influencing InterventionThe conditions under which intervention by “outsiders” will significant influence the culture :- 1) The outsiders are respected. 2) They have regular contracts with significant groups within the society, they create relationships and role models .if any attempts are made to block these contracts, these trends to be unsuccessful. 3) Significant locals want change, and local political and social structure seems incapable of facilitating these changes. 4) The outsiders are perceived to offer the desire change.
  10. 10. Technology and shifts in national cultureFinancial wealth is likely to influence the process of social change and cultural shift when itcontributes to economic development. In practice, this means when the wealth is applied intechnological innovation. Technological development has three main stages: 1) Acquisition of existing technology. 2) Adoption of existing technology to local needs. 3) Creation of new technology.How technology influences values at macro levelTechnology innovation must be accompanied by a willingness to adjust to social consequencesof the innovation. The precise social impact of development is influenced at macro level by theextent of the investment in appropriate technology, and at micro level, by the impact that the newtechnology has upon the values of those implementing it. At macro level, Japanese development in the 1970s and 1980s shows theinterplay between technological policies and culture; - How values influence the choice of technology. - How its application influences social development.A fear of over-dependence on a single (UNITED STATES) market prompted JAPANESEcompanies to move many of these industries off- shores and invest at home in high technology This switch in technological focus couple with the shorter shelf-life oftechnological skills in new industries had the effect that increasing numbers of workers becometechnological obsolete when still in the mid career. Dropout from other industries had to be re-trained in order to stay in the workforce. The extent of JAPANESE lifetime employment has been exaggerated in the pastand certainly never extended all workers.How technology influences values at a micro levelAt a micro level, how does technology influence the behavior of individuals directly associatedwith its implementation?Within the organization, technology gives members the power to: 1) Create the :- a. Same numbers of old products or services more efficiently, b. Greater member of old products or services. 2) Create new product or services , 3) Develop new organizational structure and systems.
  11. 11. New technology causes members to adjust their relationships. e.g if the supervisor understandsless about the new technology than one has to do or explain its use to him/her, and spend lesstime in listening his/her instructions. In developed economies younger managers are increasingly less prepared to devotetheir lives to work for their own scale and instead demand career that offer “self-fulfillment”define in western terms. However, international manager cannot assume that technology exerts the samepressure on all cultures, and cannot assume that in all culture relationships are modified in thesame way. That is, he cannot infer from the universality of the technological revolution that allcultures are converging.