The Role of Cultural The Role of Cultural Understanding in Understanding in

IHRM IHRM

What is What is Culture?Culture?

What is Culture?What is Culture?

The term Culture is usually used to describe a shaping process

That is, member of group or society share a distinct way of life with common values, attitude and behavior that are transmitted over time in a gradual, yet dynamic, process.

As As “Phatak, (1995)” “Phatak, (1995)” explains Cultureexplains Culture

A person is not born with a given culture, rather he or she acquires it through socialization process that begins at birth,

An American is not born with a liking for hot dogs, or a

German with a natural preference for beer, these behavioral attitudes are culturally transmitted.

Cultural Cultural EnvironmentEnvironment

Language, religion, values, attitudes, education, social

organization, technology,

politics, and laws of a country

Culture shockCulture shockA phenomenon experienced by people who move across cultures. They experience a shock reaction (or psychological disorientation) when exposed to new cultural experiences, because they misunderstand or do not recognize important cues

The Importance of The Importance of Cultural AwarenessCultural Awareness

Activities such as hiring, promoting, rewarding and dismissal will be determined by the practices of the host country and often are based on a value system particular to that country’s culture.

A firm may decide to head up a new overseas operation with an expatriate general manager but appoint as the HR manager a local person, who is familiar with the host country’s HR practices. This practice can sometime cause problems..

Tips to avoid Tips to avoid cultural misstepscultural missteps

Don’t…Don’t…

…view your culture as superior to that of others

…use the standards of your culture to evaluate the advantages and disadvantages of other cultures

…make overgeneralizations about countries and their cultures

Hofstede’s Hofstede’s Dimensions to CultureDimensions to Culture

Power distance

Individualism

Uncertainty avoidance

Masculinity/femininity

Long-term/short-term orientation

(what is the commitment)

http://geert-hofstede.com/

pakistan.html

Hofstede’s Dimensions to Hofstede’s Dimensions to Culture (Cont’d)Culture (Cont’d)

Power DistancePower Distance Power distance is defined as the extent to

which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.

Individualistic/CollectivisticIndividualistic/Collectivistic  In Individualist societies people are

supposed to look after themselves and their direct family only. In Collectivist societies people belong to ‘in groups’ that take care of them in exchange for loyalty.

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Masculinity/Femininity

The fundamental issue here is what motivates people, wanting to be the best (masculine) or liking what you do (feminine)

Masculine believe on success, achievement and competition,

where as feminine believe on quality of life and care.

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Uncertainty avoidance (tolerance Uncertainty avoidance (tolerance of unexpected events)   of unexpected events)   

The dimension Uncertainty Avoidance has to do with the way that a society deals with the fact that the future can never be known: should we try to control the future or just let it happen?

The extent to which the members of a

culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these is reflected in the UAI score. 12

Long-term/short-term Long-term/short-term orientationorientation

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Education System Education System NowadaysNowadays

Dimensions on Which Cultures Differ

Dimensions on Which Cultures Differ

The nature of people How people relate to others

(some people are very formal than others)

Primary mode of activity Conception of space Time orientation

Impact of Impact of Culture on Culture on IHRM IHRM PracticesPractices

Aspects of culture you Aspects of culture you can seecan see

Dress (Indian turban, Japanese Kimono)

Food (The manner in which

food is selected, prepared and presented and eaten)

Climate

Aspects of culture you can see Aspects of culture you can see (contd;)(contd;)

Communication style (Mr., Sir call name)

What motivates people (third world country motivate with money)

Role expectations (Asian and western family culture role)

Negotiation styles Non-verbal communication Tempo of work Attitude toward authority

Cross-Cultural Differences in the Workplace

Cross-Cultural Differences in the Workplace

How interviews should be conducted (phone etc..)

How managers should act with their subordinates

How training should be delivered

How people should be paid for work

Understanding who you are is the first step in beginning to understand who others are.

What is your cultural baggage?

Western vs. Non-Western Western vs. Non-Western ValuesValues

IndividualismEquality Internal self-

controlPrideRespect for

resultsRespect

competenceTime is money

Collectivism/ group

HierarchyExternal controlSaving faceRespect for

statusRespect eldersTime is life

THE UNITED KONGDOMTHE UNITED KONGDOM

British business etiquette (Do's and Don'ts) British business etiquette (Do's and Don'ts) DO respect personal space. The British value their

space and keeping an acceptable distance is advised.

DO remember to shake hands on first meetings. It is considered polite to do so.

DO make direct eye-contact with your British counterpart, however remember to keep it to a minimum or it could be considered impolite or rude.

DON'T ask personal questions regarding your British counterpart's background, occupation or income.

DON'T underestimate the importance of humor in all aspects of business in the UK.

The CultureThe Culture && BusinessBusiness

GERMANGERMAN Business practices Business practices First names are generally only used with family and

close friends and colleagues. Therefore, always use last names and appropriate titles. You will often find that colleagues who have worked together for years still maintain this level of formality.

German business protocol requires that colleagues should be greeted with a firm, but brief, handshake on both arrival and departure.

In German business dealings, it is important to provide solid facts and examples to back up proposals, given the German preference for analytical thinking and rational explanations.

The CultureThe Culture && BusinessBusiness

THE USATHE USA ( (American business etiquette (Do's and Don'ts))American business etiquette (Do's and Don'ts)) DO address your American business colleagues with a title,

such as “Dr”, “Ms”, “Mr”, or “Mrs”, and their last name when meeting someone for the first time.

DO say “please” and “thank you” to everyone for even the smallest kindness. Politeness is highly valued in the United States and Americans will expect you to be as polite as they are.

DON’T expect all companies to be the same. Business culture in the US differs from company to company on many levels, including industry, region and business structure. It is advised to research as much as possible about the individual business culture of your American associates before meeting with them.

DON’T be offended or surprised if your American colleagues cannot accept a gift. Gift giving is often discouraged or limited by many US companies and therefore most employees are unable to accept them.

The CultureThe Culture && BusinessBusiness