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2017_ihrm_lecture_3.pptxAgenda
Introduction
Strategic International Human Resource Management
Culture and International HRM/ Cross-cultural management
Global Staffing and International Assignments
Institutions, Actors and Micropolitics
Global Talent Management
International Compensation and Reward
Global Labour Regulation and Corporate Social Responsibility
Global Diversity Management
Gender and IHRM
Summary and review
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2017
Review
Multinational Enterprise is part of a diverse external network in each country
Different Customer preferences, availability of suppliers, governmental regulation and workforce may require the subsidiary to behave differently across countries.
Inside, the MNE forms an internal network through Headquarters and Subsidiaries
Leadership can be categorized as Transformational or Transactional
MNEs have to decide how to manage their subsidiaries, between autonomy and control
Cultural assumptions are inherent to management -> This Class
Cross-Cultural Management
The Quantitative
Approach
The Descriptive
Approach
Identity and Self- Categorization
Stereotypes
Openness
Multicultural teams
What makes multicultural teams different from other teams? - Culture?
Multiple forms of being different
There are multiple forms of being different
Functional Diversity
Gender Diversity
Age Diversity
Cultural Diversity
What is culture?
The rules of the game
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What is culture?
Two perspectives on how diversity affects teams
Creative Stream: Diversity increases team performance:
access to a wider knowledge base
different perspectives
heightened creativity
Conflict: Diversity decreases team performance
difficult to find common ground
differing viewpoints lead to higher conflict
different interpretation of the objectives of the task at hand
fights over dominant viewpoints
Approaching culture and cultural difference
Scholarly interest about culture has started to increase in the area of management studies in the 1980s
Two major attempts at quantifying culture
Hofstede & Project GLOBE
Hofstede researched personality of employees from IBM in over 50 countries
Project GLOBE (1993-2004) studied 63 societies
Relations between people
Universalism vs. particularism -- a rule-oriented society (a well-developed legal system) vs. a person-oriented society
Individualism vs. communitarianism – the individual is more important than the group or the group is more important than the individual
Motivational orientation
Sharply defined roles for men and women vs. similar roles
Uncertainty avoidance – seeking to avoid uncertainty vs. tolerating high uncertainty
Power distance – people feel comfortable with large differences in power among people or they prefer equality
Attitudes toward time
Long-term vs. short term orientation – patient about results or not
Sequential vs. synchronic – prefer to do tasks one at a time or comfortable doing several things at once
Inner vs. outer time – preference for working on one’s own schedule or comfortable working on group’s schedule
Socio-cultural dimensions
Paternalism – superiors provide guidance, protection, and nurturing while subordinates are loyal and deferential
Fatalism – the belief that it is not possible to control the outcomes of one’s actions, so hard work and long-term plans are not worthwhile
Western vs. Non-Western Values
Individualism
Achievement
Equality
Winning
Internal self-control
Pride
Respect for results
Respect competence
Time is money
Collectivism/ group
Modesty
Hierarchy
Harmony
External control
Saving face
Respect for status
Respect elders
Time is life
Western vs. Non-Western Values
Action/ doing
Systematic
Tasks
Informal
Assertiveness
Future/ change
Control
Specific/ linear
Verbal
Being/ acceptance
Humanistic
Relationship/ loyalty
Formal
Indirectness
Past/ tradition
Fate
Holistic
Non-verbal
Variables
Hofstede’s variables
Individualism/Collectivism
Uncertainty Avoidance
Power Distance
Aggressiveness
Long Term/Short Term Orientation
For a quick overview see: http://www.geert-hofstede.com/
Assumptions
Both research projects assume that culture can be quantified and assessed numerically
Let’s look at the results
http://www.clearlycultural.com/geert-hofstede-cultural-dimensions/individualism/
Some Critical Reflections
http://openlearn.open.ac.uk/mod/oucontent/view.php?id=397445§ion=4.5
Tempting… But what can we really understand from these measures?
Hofstede never intended for his research to be used at the interpersonal level
Country populations tend to show normal distribution
Mean values may matter but should this guide our behaviour?
Country A
Country B
Are we making things too easy?
What about sub-cultures, ethnic groups,…?
Different families?
Different individuals’ personalities?
Can we really make decisions based on societal cultural means?
Let’s take a descriptive approach
Quick Summary
Quantitative values for culture may not be sufficient to understand why people behave or do not behave a certain way
To understand culture we need to have an understanding of the history of societies that individuals are embedded in
By viewing people as members of societies, nations or other groups we engage in categorization
A Descriptive Approach
Social Identity and self categorization
We feel part of certain groups and different from others who are not part of this group
Minimal group experiments
We distinguish between an in-group and outgroup
We tend to treat people better who we see as part of the ingroup
Based on our direct and indirect experience with outgroups we form general opinion about how “these people are”
Stereotypes regarding outgroups
Stereotype content model
Stereotypes affect the perception of warmth and competence of a group of people
Fiske and colleagues, 2002
Example of stereotype content (NOT “THE TRUTH”; just the opinion of some people)
Fiske and colleagues, 2002
Pitfalls of Categorization
We may not value people as individuals
Confirmation bias: When we look for cultural characteristics we will find them!
It may reduce our openness to get to know the individual and bias our perceptions
Potential Remedies
Strong shared vision
Common identity
Interpersonal trust
Openness for experience and intellectual curiosity
A bit of Naivety
Exploring people’s needs through Nonviolent communication
Summary
Quantitative approaches to culture are tempting but have limited reliability when it comes to individuals
To understand culture we need to understand the history of societies that individuals are embedded in
It is normal for people to categorize people into ingroups and outgroups
Stereotypes of outgroups typically affect perceptions of warmth and competence
Potential remedies to conflicts include striving for a common identity, interpersonal trust and curiosity to get to know the other
Seminar 3: In your workshop group:
With your team, you work as cross-cultural consultant, preparing business people for collaborations with people from other countries.
First, we will create a list of the countries from which students in the room originate?
Form small teams and you will get assigned TWO of these countries. Ideally, neither country you are assigned to is your own country.
Business people from these two countries will meet, and we have to prepare them for cultural differences. Based on the work of Geert Hofstede, and other sources, write bullet-points and later present them to the class.
Does the information about your culture sound reasonable? We will get feedback from people who originate from these countries.
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Questions? What are the 3 things that you learned in this lecture?
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Agenda
Introduction
Strategic International Human Resource Management
Culture and International HRM/ Cross-cultural management
Global Staffing and International Assignments
Institutions, Actors and Micropolitics
Global Talent Management
International Compensation and Reward
Global Labour Regulation and Corporate Social Responsibility
Global Diversity Management
Gender and IHRM
Summary and review
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Questions?
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