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Creating employers' brand


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Creating employers' brand through organizational cultures, incl. different culture's spheres such as professional, industry, regional etc. cultures

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Creating employers' brand

  1. 1. Excellence through Culture, Talent, and Change Creating Employer’s Brand: Interacting Spheres of Culture and Corporate Culture Practice Hangzhou, April 2010 by Prof. Dr. Hora Tjitra Version 1.0
  2. 2. Creating Brand via Corporate Culture Globalization challenges for the HR partners and champions Challenges for Chinese companies (% of respondents from companies based in China, n=63) Three big challenges for Chinese What barriers, if any, has your company faced to undertaking activities outside mainland China? companies’ globalization • Developing Managerial Talent Our company does not have enough managerial talent 44 • Managing Cultural Barriers We lack sufficient capital 25 • Attracting International Talent We have an inadequate understanding of legal and/or reputation risks in other countries 24 Survey from McKinsey Quarterly Cultural barriers make the business difficult to manage 22 • Most executives at Chinese companies say the biggest obstacle to the global growth Potential customers have concerns about the quality of Chinese products 21 of their companies is a lack of managerial talent. Customers are unfamiliar with Chinese brands 19 • During the globalization, most Chinese companies face the challenge of Governments or other stakeholders in other countries had a negative reaction to our proposed activities 19 combining Chinese and Western forms of communication and cultural norms. Funds have been difficult to find outside mainland China 14 • 88% of the Chinese executives said that their globalization efforts were hindered by Logistical barriers make the business difficult to manage 11 the scarcity of people with real cross- Potential employees in new geographies are not familiar cultural knowledge or experience with our company 10 managing foreign talent. Other 5 Our company has faced no barriers 3
  3. 3. Creating Brand via Corporate Culture Chinese Company & Multinational Company in Practice In Top 50 Best Employers from university graduates’ perspective: 2003 2004 2005 2006 2007 Multinational Company 34 33 31 25 25 Chinese Company 16 17 19 25 25 Source: “While Western-style HRM practices have been increasingly implemented as part of China's social and economic reforms, there remain a number of questions as to their appropriateness and effectiveness in the unique Chinese context. So one question that we had was whether the positive relationship between Western-style HRM practices and employee organizational commitment that has been found in individualistic and capitalistic countries such as the USA, would also be found in collectivist societies that are in transition, for example China.” -- Dr Egri Professor of Management and Organization studies in the Faculty of Business at Simon Fraser University (SFU) and a visiting Professor of Management at Jiaotong University, Xi'an, China
  4. 4. Creating Brand via Corporate Culture What are Valuable for Chinese Employees? DBCC Model Personal Development Corporate Brand & Social Influence Competitive Compensation Corporate Culture
  5. 5. Creating Brand via Corporate Culture What Employees in China Value MNC perspective ✓ Interpersonal relationships are very important, and need to be central to the business. ✓ Functional competencies and cultural sensitivity are both important to staff. ✓ Employees who feel unvalued or unwanted are likely to leave even if they are paid well. ✓ It is vital to treating employees well to cultivate feelings of belonging and commitment to the firm. ✓ Employees must feel that their boss cares for them personally and professionally. They like to feel that their managers are taking an interest in their personal lives as well as career development. Chinese company’s perspective ✓ Good moral image of the company ✓ Outstanding overall strength ✓ Unique and impressive corporate culture ✓ Role model in the aspects of talent attraction, development and retaining Lui, Cecilia, How best employers retain talent in China, Jun. 2006
  6. 6. Creating Brand via Corporate Culture Interacting Spheres of Culture National/Regional Geography Professional History Education Political and Economic forces Training Climate Selection Religion Socialization Language Industry Functional Resources Technology External environment Product market Nature of task Regulation Time horizon Competitive advantage Corporate Founder / Leadership Administrative heritage Nature of product/industry stage of development
  7. 7. Creating Brand via Corporate Culture Regional Culture Regional cultures refer to differences within countries and similarities between countries. • East - West division and North - South division Geography History Political forces Economic forces Language Religion • Urban-based companies vs. Rural-based companies Commercial culture Administrative culture Cultural center Germany Frankfurt Bonn Berlin India Bombay New Delhi Calcutta China Shanghai Beijing Nanjing Near Eastern Nordic Finland Turkey Sweden Austria • Culture clusters Saudi Arabia Kuwait Greece Denmark Germany Oman Iran Norway Switzerland Arab Germanic - Similarities among countries create regional cultures beyond national Bahrain borders. Far Eastern Taiwan Chile Italy US Canada Anglo New Zealand UK Malaysia Singapore Mexico Portugal South Africa - Research on managerial values, work attitudes, and leadership styles in Hong Kong Thailand Argentina Belgium Australia Ireland Columbia France Spain different countries has confirmed these similarities, indicating this type of Latin Latin regional culture. Brazil AmericanEuropean Israel Japan India S. Ronen & O. Shenkar, Academy of Management Review Independent (1985)
  8. 8. Creating Brand via Corporate Culture National Culture Different cultures create the influence on the organizational chart in different countries. American Chinese French British Italian United Nations International Management, Reed Business Publishing (1985)
  9. 9. Creating Brand via Corporate Culture Regional Culture - Michelin Case • Michelin: rural-based company - The world’s largest tire maker and technological leader Michelin is the only major French company with headquarters outside Paris. - It is located in the isolated, rural Auvergne region in central France known for being modest, austere, and pragmatic. When it goes abroad, it also chose similar isolated, rural sites. - Michelin makes a point of recruiting engineers from local universities and not from outstanding universities. - Michelin’s family culture encourages dependency and an inward focus: employees could expect to spend their entire working lives with the company, living in a company town, complete with company housing, shops, and schools. Individualism is discouraged and criticism of the company is strongly ill-advised.
  10. 10. Creating Brand via Corporate Culture Industry Cultures • Degree of risk vs. Speed of feedback - Degree of risk involved in each decision of business - Amount of time the business takes to know the consequences of the decision • Product / Market Characteristics - Consumer electronics vs. Pharmaceutical industries: whether patent or standards provide more value High - UNIX: encouraging information sharing between rival companies Bet you Tough guy - One Swiss pharmaceutical company: “Clean desk” policy company macho Degree of risks • Regulation - Impact on market condition, such as level of competition, which in turn influences the degree of customer-oriented culture • Technology Work hard - Government regulation - technology is developed/protected or not - industry Process Low is more valued and crucial or not play hard • Sources of competitive advantage - Heavy industry vs. Service industry: efficiency over customer satisfaction & cost effectiveness over quality Low High - Capital-intensive industry vs. Knowledge-intensive industry: different focus of Speed of feedback capital sorts -- financial, human, intellectual
  11. 11. Creating Brand via Corporate Culture Industry Cultures - Sony Case • Sony acquired Columbia Pictures for $3.4 billion in 1989. • Sony insisted on the marketing and technological synergies expected to result from the marriage between Hollywood’s software and Japan’s hardware. • Sony got not only a bit of Hollywood but also a large chunk of American culture, while Americans became alarmed at the “Japanese invasion into the soul of America” . • In November 1992, Sony was forced to announce a $2.7 billion write-down on the value of Sony Pictures and Entertainment.
  12. 12. Creating Brand via Corporate Culture Professional Culture The idea of management as a profession and the need to create a “professional” culture are becoming more important to companies today. • Different MBAs: - Harvard-trained MBA: have a generalist approach and to work well in teams, and are hired by large companies into general management positions - MIT-trained MBA: be a specialists, perform well in individual assignment, often taking staff roles in smaller companies - INSEAD-trained MBA: have international background and experience as well as intensive cross-cultural exposure throughout the program • Professional culture including: - Dress code - Conduct code - Rules for expression of emotions - Value and belief - Method and approach
  13. 13. Creating Brand via Corporate Culture Functional Cultures Different functions - finance, production, marketing, and R&D - have different cultures, which become apparent when cross-functional teams are created to develop new products, design new policies, or explore new markets. What Marketing wanted What R&D proposed What Finance budgeted for What Design built What Production manufactured What Customers wanted
  14. 14. Creating Brand via Corporate Culture German Culture and Car Manufacturing Perfectionism Germans are perfectionists, therefore they expect a job to be well done. They look earnestly for deficiencies in their products or services and will criticize and improve the products to match up all their claims. Detail-oriented Germans like to go over details time and time again, they wish to avoid any mistake or misunderstanding later, and they are very patient. Engineering and quality preference Cars are made to last 10 to 15 years! Also doors, houses, chairs, tables, and everything should be solid!
  15. 15. Creating Brand via Corporate Culture Italian Culture and Clothes Fashion Historical culture center Italians are charming, intelligent people to whom Europe owes a great cultural debt. They are good at combining ultra-keen perception with ever-present flexibility. Emotional expression Italian communication style is eloquent, wordy, demonstrative and apparently emotional. This is normal for Italians, but usually over-dramatic for the other cultures. Social orientation Italians are gregarious, people oriented. They are friendly, talkative, and like social.
  16. 16. Creating Brand via Corporate Culture French Culture and Cosmetic Industry Extraordinary preference Frenchmen hate the mediocre. They think big and wide, and they are quite analytical about details in every aspect of their lives. Imaginative and abstract Frenchmen are quick, very imaginative and culture rich. Affective Autonomy Emphasizes the desirability of individuals pursuing affectively positive experience
  17. 17. Creating Brand via Corporate Culture Contact Address Hangzhou Office: Hong Kong Office: World Trade Center, Office Building D709 Success Commercial Building, 6/F, Room A 122 Shuguang Road, Hangzhou 310007 245 - 251 Hennesy Road, Wanchai P.R. CHINA HONG KONG 122 245-251 Contact Person: 6 A Jiewei Zheng D709 Phone +86 571 8763 1203 Phone +86 571 8763 1203 Phone +852 2585 8064 Fax +86 571 8763 1210 Fax +86 571 8763 1210 Fax +852 2802 1803 Email: