multi culture
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International Human
Resources Management
Multiculturalism
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Culture Defined
Culture is understood as the customs,
beliefs, norms and values that guide
the behavior of the people in a society
and that are passed on from one
generation to the next.
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Culture Defined
Culture has a normative value
Culture is a group phenomenon
Cultural practices are passed on fromgeneration to generation
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Culture Defined
Occupationalculture
Organizationalculture
Sub-culture
Dominant culture
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Multiculturalism
Multiculturalism means that people of
different cultures (and countries) interact
regularly.
Global firms are repositories of
multiculturalism
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Cultural predispositions
MNCs tend to have cultural predispositionstowards managing things in a particular waywhich helps identify specific steps it takes:
EthnocentricismPolycentricism
Regiocentricism
Geocentricism
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Ethnocentricism
The home countrys culture is sought tobe imposed on the subsidiaries.
Exports policies and practices from homecountry to the subsidiary
Expatriates from the home countrymanage the affairs
Local employees occupy low-level and
routine jobsDecision making and operations are
largely centralized out of the homecountry HQ
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Polycentricism
The multinational adapts to the localcultural needs of subsidiaries.
Management policy is oriented to suit localneeds
Autonomy in decision making to thesubsidiary to run their businesses
Host country nationals head theorganization supported by extensivetraining by the parent company
Parent company ensures cultural parity andcorporate philosophy across all subsidiaries
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Geocentricism
The multinational runs the subsidiary as aindependent entity.
Localization is replaced with building a
center of excellence at a global levelHiring the best person for the job.. could
be a third country national
Remain guided by Parent company culture
and philosophy
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Regiocentricism
The multinational runs the subsidiary as aindependent entity, within a regionalgeography.
Localization at a regional level, building acenter of excellence at a regional level
Hiring the best person for the job.. usually
a third country national with a regional
experienceRemain guided by Parent company culture
and philosophy
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Cultural Models
Three theoretical concepts that helpunderstand the nuances of different culturesbetter
GLOBE Project
Hofstedes Cultural Dimensions
Trompenaars Framework
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Globe Project
Global Leadership and OrganizationalBehavior Effectiveness
170 researchers, over 7 years from 17000
managers in 62 countries, covering 825organizations
Identified nine cultural dimensions thatdistinguish one society from another thathave important managerial implications
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Globe ProjectGlobal Leadership and Organizational Behavior
Effectiveness
Assertiveness
Future Orientation
Performance OrientationsHuman Orientation
Gender differentiation
In-group collectivismCollectivism/ Societal
Power Distance
Uncertainty Avoidance
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Hofstedes Cultural Dimensions
Based on a study of IBM employees spreadacross the globe
Identified 4 critical cultural dimensions:
Power distance
Uncertainty Avoidance
Individualism
Masculinity
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Power Distance
The extent to which less powerful membersof institutions and organizations accept that
power is distributed unequally.
Countries in which people blindly obey theorders of supervisors have high power
distance
Countries with low power distance tend tobe decentralized and have flatter structures
with more equality and decision making
power
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Uncertainty Avoidance
Extent to which people feel threatened byambiguous situations and have createdbeliefs and institutions that try to avoid this.
Countries with high uncertainly avoidance
have a high need for security and a strongbelief in experts and their knowledge
Countries with low uncertainty avoidance
accept risks associated with the unknown,less structured activities, fewer writtenrules, willing to take risk, show initiative andassume responsibility for action
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Individualism
Individualism is the tendency to look afterthemselves and their family as opposed tocollectivism where people tend to belong togroups and to look after each other in
exchange for loyaltyIn countries with high individualism people
are responsible for themselves, individualachievement is ideal, and self sufficiency is
laudedIn countries with high collectivism group
membership is paramount, groups protectindividuals in exchange for their loyalty to the
group, societies tend to promote nepotism
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Masculinity
Where the dominant values in a societyare success, money and other materialthings.
High masculine cultures distinguishclearly between gender roles where menare dominant and assertive and work
takes priority over other duties, andadvancement success and money areimportant
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Trompenaars FrameworkA European researcher who conducted a
research with 15,000 managers from 28countries, representing 47 national cultures.
Uses seven dimensions to describe culture
also called the 7d cultural dimensionsmodel
Universalism vs. particularism
Individualism vs. collectivism
Specific vs. diffuse Neutral vs. affective
Achievement vs. ascription
Past vs. present
Internal vs. external control
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Global IT Companies On aCultural Make Over
In Atos Origin India ( AOI), part of $ 6.6 billionEuropean IT major Atos Origin about 100 odd staffattend French classes after office hrs.
At IBM employees employees are beingencouraged to think in terms ofa more globallyintegrated orgn and tap into a programme calledShades of Blue to understand business nuances
about any other country.
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Global IT Companies On aCultural Make Over contd..
At Accenture and IBM, there is a shift from acountry specific strategy to a more global sourcingone.
Till recently IBM used to process purchase ordersin 300 destinations. Now it does it in just threeplaces Bangalore, Shanghai and Budapest.
Big Blue has shifted Asia headquaters from Tokyoto Shanghai in a bis to fanthom its new growthmarkets China and India.
Atos Origin sees a savings upwards of 50% forclient work if done from India. To take the benefit ofIndia sourcing, it has send a team from French carmarker Renault to AOI to bridge cultural gaps.
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Parth Iyengar, VP Research,Gartner India says
for multinationals, hiring staff in destinations loke
India is least of the problems. But they are not usedto doing small deals and delivering services out oflow cost destinations. This does require a culturalchange in hoe they work.
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The IBM Case
From doing everything from pay roll todeveloping software to shippingservers as a country specific strategy,IBM is now going for best offshoreoptions.
For IBM Japan the hr is done inManila, Pay roll in Shanghai,
Procurement in Schenzen, accountingin Kuala Lumpur, technology supportin Australia and so on.
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The IBM Case contd..
Its shades of blue cultural orientationprogramme is targeted towardshelping employees understand the
needs of staffers across locationseasily.
The faster they do it the easier it will
be for global giants to catch up withtheir smaller but more nimblecompetitors.
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Cultural Make over of Koreancompanies
Koreans working for Companies likeLG, POSCO, Samsung and CISCO inIndia not only learn Hindi, Kannada
and Oriya but adopt local names too.Posco (had 35 expats working in India
in the year 2009) has made it
mandatory to learn Oriya for a betterunderstanding of local environment
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Cultural Make over of Koreancompanies contd
Anurag is the name of a KOPrian ChangChyong Jung working at LG Greater Noida.
We have Korean interns who do their research
projects with us and they have even shown cultural
adaptation to the extent of adopting Indian nameslike Pragya and Ashim. Some of them have alsovolunteered for a Sanskrit learning coursearranged by LG India .
Yasho Verma , DirectorHR & MS LG India
( LG had 20 expats in the year 2009)
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Cisco Case
All its expats come from 4 places primarily,Europe, Singapore, Beijing and US.
In at least two of these places the first
language is not English. Cisco has alanguage course of 160 hrs.
They have a 2 day orientation foremployee, spouse, and children.
They are planning to relocate over 20% ofits senior team in the next three years to itsglobalization centre.
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Cisco Case Contd..
The language course that we conduct ,could be a combination of 80 hrs. in Hindi,80 in Kannada or 120 in Kannada and 40hrs in Hindi.
Syed Hoda
Senior Director
Operations, Globalization Centre
Cisco
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http://www.nokia.com/corporate-responsibility/cr-report-2007/employees/labor-practices
http://www.nokia.com/corporate-responsibility/employees/who-we-are