MGT 674

Employee Relations Management

Ajaya Mishra

Employee Relations

Session 4

Culture and It’s Impact on Employee Relations …Unionization and Employment Generations …

Culture …

… an integrated pattern of human knowledge, belief, and behavior that depends upon the capacity for symbolic thought and social learning.

… the set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group.

Corporate Culture …

“...A group or organizational-level of shared beliefs and values that lead to norms and expectations for members of that culture.

It is the “glue” that holds an organization together through shared assumptions, beliefs, and processes. In short, it speaks to ‘how things are done here’

Hofstede’s Cultural Dimensions …

Power Distance Index (PDI) that is the extent to which the less powerful members of organizations and institutions accept and expect that power is distributed unequally. This represents inequality, but defined from below, not from above. It suggests that a society's level of inequality is endorsed by the followers as much as by the leaders.

Individualism (IDV) on the one side versus its opposite, collectivism, that is the degree to which individuals are integrated into groups. On the individualist side societies in which the ties between individuals are loose: everyone is expected to look after him/herself and his/her immediate family. On the collectivist side, societies in which people from birth onwards are integrated into strong, cohesive in-groups, often extended families which continue protecting them in exchange for unquestioning loyalty.

Masculinity (MAS) versus its opposite, femininity, refers to the distribution of roles between the genders which is another fundamental issue for any society. The IBM studies revealed that (a) women's values differ less among societies than men's values; (b) men's values from one country to another contain a dimension from very assertive and competitive and maximally different from women's values on the one side, to modest and caring and similar to women's values on the other.

Uncertainty Avoidance Index (UAI) deals with a society's tolerance for uncertainty and ambiguity. It indicates to what extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. People in uncertainty avoiding countries are more emotional, and motivated by inner nervous energy. The opposite type, uncertainty accepting cultures, are more tolerant of opinions different from what they are used to. People within these cultures are more phlegmatic and contemplative, and not expected by their environment to express emotions.

Long-Term Orientation (LTO) versus short-term orientation: Values associated with Long Term Orientation are thrift and perseverance; values associated with Short Term Orientation are respect for tradition, fulfilling social obligations, and protecting one's 'face'. Both the positively and the negatively rated values of this dimension are found in the teachings of Confucius, the most influential Chinese philosopher who lived around 500 B.C.; however, the dimension also applies to countries without a Confucian heritage.

World Average of Hofstede’s Dimensions…

Comparison in USA and India

Comparison Japan and Pakistan

Other Cultural Dimensions …

High Performance … a 'high performance culture' exists when everyone in the organization shares the same vision and where they trust and value each other's contribution.

Constructive … a constructive culture is defined simplistically as one oriented towards achievement, self-actualization, creativity, participation, valuing people, and one that places a high priority on healthy relationships between people.

Power Based on strength, justice, benevolence. Depends on acceptance of hierarchy and inequality

between people as legitimate Can degenerate into intrigue, politics and back-

stabbing

Structure Provides stability, justice and efficiency. Impersonal, Assumes people are not trusted

Achievement People aligned to the vision / purpose of company Self-supervision, High morale, teamwork, energy. Values larger than profit or growth Can lead to arrogance, elitism, lack of cooperation

Support Foster warmth and caring Open and lots of communication helps in greater

understanding People are not judgmental about each other Values harmony and avoids confrontation

Some other Clustures of Culture …

Bureaucratic Culture Formality, rules, standard operating procedures,

hierarchy.

Clan Culture Tradition, loyalty, personal commitment, high level of

socialization, self management, social influence

Entrepreneurial Culture High risk taking, creativity.

Market Culture Demanding goals like sales, profitability, market

share.

Socialization steps for shaping culture …

Role Model to sustain the Culture

Rituals, and Stories to reinforce the Culture

Adoption of Cultural Values

Reward to sustain the culture

Training for developing culture

Challenging Early Assignments

Careful Selection Removal who do not fit the Culture

Removal who deviate from culture

Culture and ER

Cultural Dimensions Features Effect on ER

Power Distance: High or Low

Inequality, Bossism, Lack of Open Communication

Individualistic / Collective

SelfishnessGroup Cohesion.

Masculinity / Femininity

Aggression, High PDCaring and Nurturing

Uncertainty Avoidance High tolerance / patienceLow tolerance / patience

Long term / Short term Orientation

Respect , tradition/ valueOpportunity…

Cultural Dimensions Features Effect on ER

Power Strength, justice, acceptability

Structure Stability, justice, efficiency

Achievement Aligned to vision, self supervisory, team work, high morale.

Support Warmth and caring, open communication, values harmony .

Others ….

Social values

Organization History

Personal traits and orientation.

Leadership style

…….……

Characteristics of Nepali Management Culture

value of non-assertivenessvalue of respect for seniors/elderly people value of loyalty, respect for authority &

hierarchyvalue of collectivismvalue of harmonyvalue of preserving facevalue of trust and relationship buildingvalue of tolerance and respect for differences

UNIONIZATION AND EMPLOYMENT CREATION …

Advantage and Disadvantage …

Advantage Disadvantage

Increased wage / benefits Labor strikes

Job protection Limited Flexibility

Collective bargaining Higher production cost

Good working condition Low competitive capacity

Factors Affecting Job Creation …

Economic Growth Industrial Service Agriculture

Business Environment Social, Technical, Political, Legal

Availability of Resources Power, Workforce, Raw Materials …

Occupational / Workplace Safety …

Occupational health and safety is a cross-disciplinary area concerned with protecting the safety, health and welfare of people engaged in work or employment. The goal of all occupational health and safety programs is to foster a safe work environment

To ensure the safety and health of workers, managers establish a focus on safety that can include elements such as:

management leadership and commitment employee engagement accountability safety programs, policies, and plans safety processes, procedures, and practices safety goals and objectives safety inspections for workplace hazards safety program audits hazard identification and control safety committees to promote employee involvement safety education and training safety communications to maintain a high level of awareness on safety

?…………