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IHRM and

Multiculturalism

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Learning objectives

Define culture

Explain the importance of culture in IB

Explain the concept of culture as three layers of meaning

Describe the basic research findings of Hofstede andTrompenaars

Describe the differences between convergence,divergence, and crossvergence

Explain the importance of culture to IHRM

Describe the importance of culture to the conduct ofresearch in IHRM

Explain the difficulties encountered when performingcross-cultural research

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Overview

The importance of culture

Cultural convergence and/or divergence

Research in IHRM

Impact of culture on IHRM

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The importance of culture

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A definition and description of culture

Culture is the characteristic way of behaving

and believing that a group of people have

developed over time

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Understanding culture as layers of

meaning Surface or explicit culture

Hidden culture

Invisible or implicit culture

Developing cultural understanding

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Figure 3.1: The three layers of culture

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Figure 3.2: Development of cross-

cultural competences

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National and regional cultures

The research of Geert Hofstede Power distance

Uncertainty avoidance

Masculinity

Individualism

The research of Fons Trompenaars Universalism versus particularism

Collectivism versus individualism

Neutral versus emotional

Diffuse versus specific Achievement versus ascription

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National cultural clusters

Anglo

Arab

Far Eastern

Germanic

Latin American

Latin European

Near Eastern

Nordic

Independent

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Practical observations

Deal focus versus relationship focus

Informal versus formal cultures

Rigid-time (monochronic) versus fluid-time

(polychronic) cultures

Expressive versus reserved cultures

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Dangers of oversimplification

Treating countries or cultures as

homogeneous wholes

Cultures change

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Country culture versus MNE culture

Organizational culture and values

Centralization/standardization versus

localization/customization

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Cultural convergence and/or

divergence Convergence: best practices

Divergence: local cultural practices

Glocalization: global and local

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Forms of IHRM research

Cross-cultural research

Multicultural research

Research on HR practices in emerging

market countries

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Strategies to manage across cultures:

Increasing creativity and Innovation

Demonstrating more sensitivity in dealing with foreign

customers.

Hiring best talent from any where Demonstrating a Global perspective.

Creating a Super organizational Culture.

Greater flexibility within the Organization to adapt to a

wider range of environments. Evolve universally acceptable HR policies and practices.

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Individual competencies:

Possess a strong personal identity.

Have knowledge of the beliefs and values in a culture.

Display sensitivity to the effective processes of the

culture. Communicate clearly in the language of the given

cultural group.

Perform socially sanctioned behavior.

Maintain active social relations within the cultural group. Negotiate the Institutional structures of that culture.

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Key terms

National culture

Organizational (MNE) culture

Surface, hidden, and invisible culture

Convergence, divergence, and crossvergence

Low context and high context

Power distance

Uncertainty avoidance

Masculinity

Individualism

Confucian dynamism

Universalism and particularism