Chapter 2: Ihrm: and Culture

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CHAPTER 2: IHRM

and Culture
Overview chapter 2:

 The importance of culture


 Cultural convergence and/or divergence
 Research in IHRM
 Impact of culture on IHRM
A definition and description
of culture
 “Culture is the characteristic way of behaving and
believing that a group of people have developed over
time”
 Culture is the characteristic way of behaving and
believing that a group of people in a country or region
(or firm) have evolved over time and share.
Culture

 Gives them a sense of who they are, of belonging, of


how they should behave.
 Provides them the capacity to adapt to circumstances
(because the culture defines what is the appropriate
behavior in that circumstance) and to transmit this
knowledge to succeeding generations (in the case of
countries) or to new employees (in the case of
organizations).
Culture

 Affects every aspect of the management process – how


people think, solve problems, and make decisions (for a
country or a firm).
Understanding culture as
layers of meaning
 Surface or explicit culture
 Hidden culture
 Invisible or implicit culture
 Developing cultural understanding
Figure 3.1: The three layers
of culture
Layers in Culture
 Surface culture (the outside layer): things that are readily visible, such as
dress, food, architecture, customs, body language, gestures, etiquette,
greetings, gift giving.
 Hidden culture (the middle layer): values, religions, and philosophies
about things like child rearing, views of what is right and wrong.
 Invisible culture (the core): the culture’s universal truths.
Figure 3.2: Development of
cross-cultural competences
National and regional
cultures
 The research of Geert Hofstede
 Power distance
 Uncertainty avoidance
 Masculinity
 Individualism
 Confucian dynamism
 The research of Fons Trompenaars
 Universalism versus particularism
 Collectivism versus individualism
 Neutral versus emotional
 Diffuse versus specific
 Achievement versus ascription
The research of Geert
Hofstede
 Degree of acceptance of power distance between bosses
and subordinates.
 Degree of individualism or collectivism.
 Degree of masculinity or femininity in social values.
 Degree of uncertainty avoidance or tolerance for
ambiguity.
The research of Fons
Trompenaars
 Universal versus particular (emphasis on rules versus
relationships).
 Collectivism versus individualism.
 Range of emotions expressed (neutral versus
emotional).
 Range of involvement with other people (diffuse versus
specific).
 Method of according status to other people (based on
achievement or ascription).
Practical observations

 Deal focus versus relationship focus


 Informal versus formal cultures
 Rigid-time (monochronic) versus fluid-time (polychronic)
cultures
 Expressive versus reserved cultures
Dangers of oversimplification

 Treating countries or cultures as homogeneous wholes


 Cultures change
Country culture versus MNE
culture
 Organizational culture and values
 Centralization/standardization versus
localization/customization
Cultural convergence and/or
divergence
 Convergence: best practices
 Divergence: local cultural practices
 “Glocalization”: global and local
Cultural research in IHRM

 Inconsistent and vague definitions of terms like culture


 Inaccurate translation of key terminology
 Difficulty in obtaining representative or equivalent
samples of research subjects
 Difficulty in isolating cultural differences
Limitations of studies

 Mostly American perspectives


 Lacking analytical approaches
 Lack of research funds
 Limited topics
Forms of IHRM research

 Cross-cultural research
 Multicultural research
 Research on HR practices in emerging market countries
Basic assumptions of cultural
research
 Universal
 Situational
 Convergent
Specific difficulties

 The focus of researchers: emic vs etic


 Language problems
 Measurement/methodological problems
Equivalence problems in cross
cultural research
 Metric (stimulus) equivalence
 Conceptual equivalence
 Functional equivalence
 Subjectivity of topics
 Factors other than culture
Research content in IHRM

 Selection and preparation of expatriates


 Local foreign workforces
 HRM practices in MNEs
Impact of culture

 Importance of culture on international business and


IHRM
Key terms

 National culture
 Organizational (MNE) culture
 Surface, hidden, and invisible culture
 Convergence, divergence, and crossvergence
 Low context and high context
 Power distance
 Uncertainty avoidance
 Masculinity
 Individualism
 Confucian dynamism
 Universalism and particularism

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