1.25 business management
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Lec4_HRMG3202_NationalCulture.pptxExplaining Differences In Countries and HRM
Cultural Approaches
Godspower Onah
Lecturer, International HRM
Leicester Business School, DMU
HRMG 3203
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Outline of lecture
To explore the concept of national culture and various theoretical perspectives on national culture
To understand how differences between countries can be explained through the cultural lens
To explore some criticisms on the theories and the implication of culture in managing people
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What is Culture?
“a set of basic assumptions – shared solutions to universal problems of external adaptation (how to survive) and internal integration (how to stay together) - which have evolved over time and are handed down from one generation to the next” (Schein, 2004:14)
“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” (Briscoe and Schuler, 2004:116)
“the collective programming of the human mind that distinguishes the members of one human group from those of another. Culture in this sense is system of collectively held values” (Hofstede, 1984: 51)
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What is Culture?
No single accepted definition, but a broad consensus that culture refers to the pattern of values and beliefs which inform attitudes and behaviour and distinguish one group from another
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What is Culture?
These values and behaviours are passed on to new members of the group as the right way to see, think, feel and act in given circumstances – what Torrington (1994) refers to as ‘learned frameworks’
We draw on many sources for our cultural identity, including gender; social class; religion; workplace and country of origin….
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...For example, in India, Japan, the Middle East and Latin America staff may be appointed on the basis of being a family member (Briscoe and Schuler, 2004:117)
In the US, Europe and Australia, technical expertise or experience may be emphasised when appointing new staff
If MNCs seek to apply practices typical of the home country, they may cause resentment and low commitment
So, it is important to understand national cultural differences…
National Culture
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Cultural Dimensions
There are two respected authorities whose work seeks to distinguish between national cultures, based on identified elements of culture (‘cultural dimensions’):
Hofstede, Geert (1991), Cultures and Organisations: Software of the Mind, New York: McGraw-Hill
Trompenaars, F. (1993), Riding the Waves of Culture: Understanding Cultural Diversity in Business, London: Economist Books
They believe there are national cultural differences which have implications for MNCs
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Geert Hofstede
Studied 88,000 IBM employees in 72 countries, revealing Four Cultural Dimensions.
Subsequent studies, including samples of commercial airline pilots, civil service managers, 'up-market' consumers and 'elites' in several countries, validated earlier results.
Fifth Dimension added in 1991 following a study of students in 23 countries, using a questionnaire designed by Chinese scholars.
Sixth Dimension added in 2010, based on survey data for 93 countries…
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| Hofstede’s Cultural Dimensions | |
| POWER DISTANCE | extent to which people accept inequality |
| INDIVIDUALISM v COLLECTIVISM | extent to which people see themselves as individuals or part of a group |
| MASCULINITY v FEMININITY | extent to which the assertive acquisition of money and power or good relationships is valued |
| UNCERTAINTY AVOIDANCE | extent to which people accept change and uncertainty |
| LONG-TERM ORIENTATION | extent to which people maintain links with the past whilst dealing with the challenges of the present |
| INDULGENCE v RESTRAINT | extent to which people try to control their desires and impulses |
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High Power Distance
Workplaces have tall hierarchies and power is concentrated at the top
For example, Indian workers may tolerate authoritarian management because of the Caste system.
Low Power Distance
Workplaces have flatter structures and people throughout the organisation are empowered.
For example, Swedish workers are used to having a strong say in the workplace
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Individualism
People see themselves as individuals and look after their own interests
In countries like the US, employees may prioritise their own personal goals
Collectivism
People see themselves as part of a group and expect to be looked after by other members.
Countries like Japan have strong team allegiance and success is shared
Individualists place a high value on autonomy & personal achievement. The emphasis is on taking care of yourself & competing with others. Pay structures typified by individual performance-related pay.
Collectivists have a group emphasis & exchange loyalty for protection within the organisation. It is associated with sharing resources & emotional identification with others. Pay structures typified by collective bargaining.
Hofstede believed you could ‘score’ every country for each cultural dimension
Best viewed as a continuum
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Masculine Society:
Aggressive competitiveness
Success = Wealth
Gender roles highly defined
e.g., Germany, US
Feminine Society
Relationship building
Success = Quality of life
Few gender specific roles
e.g., Sweden, Finland
High UA involves stable, predictable work environments. Typified by the maintenance of rigid codes of behaviour & are intolerant of unorthodox behaviour & ideas.
Low level index people embrace the idea that life is unpredictable. There is less concern with rules, procedures or organisational hierarchies.
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High Uncertainty Avoidance
Low Uncertainty Avoidance
Rules; hierarchies
Predictability
Control and authority cherished and respected
E.g. Saudi Arabia; Japan
Few rules; control resisted
Embrace change
Creativity and flexibility cherished and respected
E.g. UK; US
High UA involves stable, predictable work environments. Typified by the maintenance of rigid codes of behaviour & are intolerant of unorthodox behaviour & ideas.
Low level index people embrace the idea that life is unpredictable. There is less concern with rules, procedures or organisational hierarchies.
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Long-term orientation takes a pragmatic approach: they encourage thrift and efforts in modern education as a way to prepare for the future. E.g. China; Germany
Short Term orientation is associated with maintaining time-honoured traditions. while viewing societal change with suspicion. E.g. Egypt; South Africa
Hofstede' new dimension is based on the study of Michael Bond in Hong Kong which had noted that Hofstede’s previous four cultural dimensions did not adequately reflect Asian perspectives on culture.
As Hofstede notes:
"Long Term Orientation stands for the fostering of virtues oriented towards future rewards, in particular perseverance and thrift. It’s opposite pole, Short Term Orientation, stands for the fostering of virtues related to the past and present, in particular, respect for tradition, preservation of ‘face’ and fulfilling social obligations.”From Hofstede (2001), Culture’s Consequences, 2nd ed., p 359
High long-term orientation: e.g. Japan, India
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Indulgence/ Restraint
Indulgence stands for a society that allows the relatively free gratification of basic human drives to enjoy life. e.g., Denmark; US.
Restraint stands for a society that suppresses gratification of needs and regulates by means of strict social norms. e.g., India; Germany
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https://www.hofstede-insights.com/product/compare-countries/
How do you think the UK score?
How do you think your home country score on Hofstede’s dimensions?
Geert Hofstede’s website
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Strengths of Hofstede’s Cultural Dimensions
Comprehensive study into how values in the workplace are influenced by national culture: sample of over 116,000 employees in over 70 countries
Seminal work, underscores importance of understanding national cultural differences and the implications for MNCs
Regularly updated and reinforced by qualitative studies, helping to validate and clarify findings
Ability to control for other variables e.g., organisational culture
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Some Criticisms of Hofstede’s Cultural Dimensions
Methodological (McSweeney 2002)
One sample: IBM
Low response rates in some countries
IBM employees not representative of national populations
How does one move from cultural values to differences in behaviour and performance
Generalises findings from the workplace (originally IBM subsidiaries), and other selective samples (e.g. students) to societies
Fails to account for differences within countries e.g. strong regional sub-cultures.
Some differences between countries are omitted e.g. US & Australia have similar scores for the cultural dimensions BUT there are differences in work motivation: (responsibility and recognition v job security and monetary rewards)
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Conceptual (Rubery and Grimshaw 2003)
Differences in cultures within countries, e.g., region, religion, gender
Culture ignores division between classes in society (power, inequality and politics)
Differences in values and norms within an organisation: international workforce; role of dominant groups
All societies change and influence each other: values seen as relatively stable, but what happens to values when business systems undergo very rapid change (e.g., China, Russia, etc.)?
Culture is too vague to be meaningfully used
Critique…
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Critique…
Ultimately, a survey is a ‘blunt instrument’ for uncovering the complexity of national culture - describes, but does not explain, what is happening
Survey questions and interpretation may not be valid (D’Iribarne, 1997)
For example, power difference is very high in France, but D’Iribane argues power is different from hierarchies. While France has large workplace hierarchies, managers wield limited power. In society, power is NOT concentrated in the hands of a few.
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Hofstede’s answer to the criticisms:
“I provided a skeleton for the countries he [D’Iribarne] studies, and he provided the flesh. The skeleton I proposed is a worldwide structure in cultural differences amongst countries.”
(Hofstede, 1999, p39)
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Implications of the Cultural Dimensions for MNCs
High power distance & Low uncertainty avoidance (e.g., Singapore; Indonesia): Organisations are viewed as families, where the head is expected to protect the members in exchange for loyalty. Typified by standardised work procedures.
High power distance & High uncertainty avoidance (e.g., France; Brazil): Typified by bureaucracies.
Low power distance & High uncertainty avoidance. (e.g., Germany; Switzerland): Organisations are well-oiled machines.
Low Power distance and Low uncertainty avoidance. (e.g., UK; Denmark): Organisations empower their staff.
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Implications of the Cultural Dimensions for MNCs
National cultural differences between home and host nation have been used to explain failures of some mergers and acquisitions
For example, US MNC Wal-mart’s acquisition of Wertkauf & Interspar supermarket chains in Germany. Transferring the American retail model into Germany did not work because the German tradition is to:
spend less time shopping in supermarkets
reject ‘service-with-a-smile’
reject autocratic management style and employment relations
Brewster et al. 2015:25
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Cultural Dimensions (Trompenaars, 1993)
Surveyed more than 15,000 managers in 28 countries over a 10-year span and Identified 7 Cultural Dimensions:
Individualism v Collectivism
Achievement v Ascription
Inner Directed v Outer Directed
Universalism v Particularism
Neutral v Affective
Specific v Diffuse
Sequential v Synchronic time orientation
Some overlap & some differences with Hofstede
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Cultural Dimensions (Trompenaars, 1993)
Individualism
You see yourself as an individual first.
Example: US
Collectivism (communitarianism)
You see yourself as part of a group first.
Example: Mexico
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Cultural Dimensions (Trompenaars, 1993)
An individual’s status is a function of how they have performed
Example: US
An individual’s status is a function of other factors e.g., social class, age, gender, connections.
Example: China
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Cultural Dimensions (Trompenaars, 1993)
Inner directed:
Individuals believe they are in control of their own fate
Tend to embrace change and pursue personal goals.
Example: US
Outer directed:
Individuals believe events cannot be directly controlled.
Seek stability & harmonious relationships at work
Example: China, Arab nations
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Cultural Dimensions (Trompenaars, 1993)
Universalism
Situations are paramount.
Everyone should follow the same rules & practices
Example: US
Particularism
Relationships are paramount
Rules should be adapted to strengthen good relationships.
Example: China
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Cultural Dimensions (Trompenaars, 1993)
Neutral
Stoicism is encouraged.
Example: Japan
Affective (emotional)
Emotional displays are encouraged.
Example : Mexico
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Cultural Dimensions (Trompenaars, 1993)
Specific
Home and work life are compartmentalised
Job titles are not carried over into other areas of life and socialising outside of work is limited
Example: US
Diffuse
Home and work life are inter-connected
Job title may influence how you are treated outside of work
Example: China
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Cultural Dimensions (Trompenaars, 1993)
Sequential time orientation:
People understand time as inflexible and a valuable commodity
the order in which events happen is important.
a high value is placed on punctuality and planning.
Example: US, UK, Germany
Synchronic time orientation:
People see the past, present & future as interlocked
and tend to work on several projects at once
Consequently, they view commitments & plans as flexible
Example of: Japan, Mexico, Argentina
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Relevance of Trompenaars’s work
Trompenaars aims to reconcile what appear to be opposing values within the dimensions
To be ourselves but understand other perspectives
To blend different views to maximise strengths/ limit weaknesses.
Reconciling differences will facilitate wealth creation
Rather than the dimensions themselves, it is the concept of reconciliation which distinguishes the work of Trompenaars from that of Hofstede.
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Relevance of Trompenaars’s work
As with Hofstede, there is a reliance on survey data - this measures but does not explain differences
Samples are not nationally representative
Limited perspective(managers)
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GLOBE Cultural Framework
Designed to extend and refine Hofstede’s work. Collected survey data from 20,000 middle managers working in nearly 1000 firms - 9 cultural dimensions identified:
Uncertainty Avoidance
Power Distance
Collectivism (societal)
Collectivism (in-group)
Gender Egalitarianism
Future Orientation
Assertiveness
Performance Orientation
Humane Orientation
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GLOBE Cultural Framework
Clusters provide a convenient way to analyse similarities and differences between cultural groups identified 10 distinct groups (Northouse, 2007, p.308):
Anglo
Latin Europe
Nordic Europe
Germanic Europe
Eastern Europe
Latin America
Middle East
Sub-Saharan Africa
Southern Asia
Confucian Asia.
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References
Briscoe, D.R. and Schuler, Randall S., (2004), International Human Resource Management, New York: Prentice Hall
Hofstede, G. (1984). National cultures and corporate cultures, in L. A. Samovar and R. E. Porter (eds) Communication between Cultures, Belmont, CA: Wadsworth
Schein, E. H., (2004), Organizational culture and leadership (3rd edition), San Francisco: Jossey-Bass
Torrington, D., (1994), International Human Resource Management: think globally, act locally, London: Prentice-Hall
Hofstede, G. 2011. Culture's consequences: comparing values, behaviors, institutions, and organizations across nations. London: Sage Publications
McSweeney, B. 2002. Hofstede’s model of national cultural differences and their consequences: A triumph of faith – a failure of analysis. Human Relations, 55(1): 89-118.
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Suggested Reading
Brewster, C.M Sparrow, P., Veron, G., and Houldsworth, E. (2011), International Human Resource Management, London: CIPD. Chapter 2 The Impact of National Culture.
Crawley, E., Swales, S., & Walsh, D. (2013). Introduction to International Human Resource Management. Oxford: Oxford University Press. Chapter 4: Understanding IHRM: The Cultural Approach
Tarique, I., Briscoe, D., & Schuler, R. (2016). International Human Resource Management. Abingdon: Routledge. Chapter 5: Country and Company Culture and IHRM
Tayeb, M (2005) International HRM: A multinational company perspective, Oxford: OUP
Child, J. 2002. ‘Theorizing about organization cross-nationally, part 1-an introduction’ in Warner and Joynt (eds.) Managing across cultures: issues and perspectives, London: Thompson. Also the Synthesis at the end.
Trompenaars, F and Hampden-Turner, C. (1997) riding the waves of culture: undertstanding cultural diversity in business. London: Nicholas Brealey
Thompson, P. and Mchugh, D. (2009) Work Organisations: a critical approach, Basingstoke: Macmillan
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