This presentation looks at the cultural differences between Sweden and South Korea. The national culture differences as well as organisational culture differences are discussed. The emphasis is put on the challenges a Swedish individual will experience when being transferred for a job assignment in South Korea. Recommendations in terms of adjustment in management practices are provided.

1. MIND THE GAP
CCT Solutions
Intercultural Global Consultancy
Erinn Singman Kaine
Jenifer Kesik
Sezai Kaya
Ziqi Liu
26th November 2013

2. Contents
Sweden v South Korea
Process of Cross
Cultural Competence
Hofstede Dimensions
IKEA v South Korea
Culture Shock
Client Introduction
Challenges
CCT Background
Recommendations

3. CCT Solutions
Intercultural Global Consultancy
Cross cultural training
Decode cultural differences
Build cultural awareness
Set employees for a success in the new culture
Relocation
Cultural awareness and business functions

4. Anita
Jönsson
Mid Thirties
HR Director at IKEA Sweden
Joined the company 4 years
ago
Promoted 2 times since then

6. High
Global
TRANSITIONAL
Multi-domestic
Low
Integration
MNE Business Strategy
INTERNATIONAL
Low
High
Local Responsiveness
(Source: Adapted from Bartlett and Beamish 2010)

7. Geocentric Approach
Ethnocentric
Pholycentric
Regiocentric
Geocentric
Prevailing
organisational
culture
Home country
Host country
Regional
Global
Finance
Repatriation of profits
to home country
Retention of profits In
host countries
Redistribution within
region
Redistribution globally
Strategy
Global integration
National
responsiveness
Regional integration and
national responsiveness'
Global integration national
responsiveness
Marketing
Product development
determined mostly by
the needs of home
country customers
Local product
development based
on local needs
Standarised within region
but not across regions
Global products with local
variations
Personnel
practices
People of home
country developed for
key positions
everywhere in the
world
People of local
nationality developed
for key positions
within their own
country
Regional people
developed for key
positions everywhere
within the world
Best people everywhere
developed for best
positions everywhere in the
world
(Source: Adapted from Chakravarthy and Perlmutter 1985)

8. Job Description
Title: HR Manager
Location: Gwangmyeong, South Korea
Job Type: 2 years assignment
Responsible for:
Recruiting and selecting employees for a new store
Leading training and development programs for new
employees
Developing rewards system
Management of subordinates in the HR department
Developing and preserving organizational culture of IKEA in
South Korean branch

9. Awareness of Culture Shock
Home Country
Destination Country
Honeymoon
Home Country
Honeymoon
Acculturation
Acculturation
Emotional well-being
N
Reintegration
Disintegration
Disintegration
1 mth
2-3 mths
(Source: Adapted from Adler 1975)
2-3 mths
1 mth

10. Development of Cross-Cultural Competence
Reconciliation
Resolve differences
Integration
Adaptation
Respect
Appreciate cultural
differences
Awareness
Increased
awareness of
one‟s own cultural
perspective
Increasing transcultural competence
Education
Experienc
e
Reflection
Openness
(Source: Adapted from Briscoe et al. 2012)
Feedback

11. Cultural Differences

12. Geert Hofstede‟s
Cultural Dimensions
Power Distance
Individualism v
Collectivism
Masculinity v
Femininity
Uncertainty Avoidance
(Source: Adapted from Hofstede 2013)

13. Power Distance (PDI)
The extent to which the less powerful members of
institutions and organizations within a country expect and
accept that power is distributed unequally.
(Source: Adapted from Hofstede 2013)

14. Power Distance Differences
LOW POWER DISTANCE
HIGH POWER DISTANCE
- Flat organisational pyramid
- Hierarchal organisational pyramid
- Authority is disliked, status is diminished
- The employees with higher positions obtain
special privileges and respect
- Decentralised decision structure:
Employees participate in decision making
- Centralised decision structure: Decisions
are made without the subordinates‟
participation
- Employees‟ ideas/ initiative is encouraged
- Employees‟ ideas are not taken into
consideration
- Information is easily transferred “top to
down” and vice versa
- The flow of information between top and
bottom is not efficient
(Source: Adapted from Hofstede 2013)

15. Individualism v Collectivism
(IDV)
Describes whether a person functions primarily as an
individual or within a group.
(Source: Adapted from Hofstede 2013)

16. Individualism v Collectivism
Differences
INDIVIDUALISM
COLLECTIVISM
- Individuals prefer to take care of themselves - Close relationships with family and/or in
and their family.
other relationships.
- One is expected to take responsibility for
their own actions.
- Loyalty is a fundamental characteristic in
society; one takes responsibility for the
actions of others.
- Corporate management is the management
of individuals.
- Management is the management of groups
within the company or organization.
- Employee and employer relationships are
based on a mutual advantage.
- Employee and employer relationships are
based on a moral connection.
- With regard to work opportunities, hiring and - Hiring and promotions consider the
promotions are primarily based on merit.
employees‟ „in-group‟.
- Guilt and loss of self-esteem.
(Source: Adapted fromHofstede 2013)
- Shame and loss of face.

17. Femininity v Masculinity
(MAS)
Masculinity represents the dominant male sex role
pattern in the vast majority of both traditional and modern
societies.
(Source: Adapted from Hofstede 2013)

18. Femininity v Masculinity
Differences
FEMINITITY
MASCULINITY
- Dominant values include caring for others
and quality of life
- Directive style of management
- Relationship orientated
-Task orientated
- Conflicts are resolved by negotiation
- Solutions based on power
- Work life balance is very important (People
work for living)
- Work is expected to take over the family
life (People live to work)
- Shorter working hours: typically 9am-6pm
- Longer working hours: typically first to
arrive and last to leave
- Career is optional for both sexes
- Career is optional for women
(Source: Hofstede 2013)

19. Uncertainty Avoidance (UAI)
The extent to which the members of a culture feel
threatened by uncertain or unknown situations.
(Source: Hofstede 2013)

20. Uncertainty Avoidance
Differences
MODERATE UNCERTATINTY AVOIDANCE
HIGH UNCERTAINTY AVOIDANCE
- Entrepreneurs are relatively free from rules
- Entrepreneurs are constrained by existing
rules
- Strong belief in common sense
- Strong belief in expertise
- Working hard only if its necessary
- Working hard
- Tolerance for ambiguity and chaos
- Need for precision and formalization
- Motivation by achievement and esteem or
belonging
- Motivation by security and esteem or
belonging
(Source: Adapted from Hofstede 2013)

21. The IKEA Way
"Maintaining a strong IKEA culture is one
of the most crucial factors behind the
continued success of the IKEA concept”.
-Ingvar Kamprad, founder of IKEA
(Source: Adapted from IKEA 2013)

22. Swedish Character of IKEA
“Over the years the unique IKEA culture and set of values have
developed from our roots in Sweden” (IKEA 2012, p.8)
(Source: Adapted from IKEA 2012)

23. Togetherness
Humbleness
Enthusiasm

24. High
Receptive
ACTIVE
Low
Integration
Active IHRM Strategy
Autonomous
Low
High
Local Responsiveness
(Source: Adapted from Briscoe et al. 2012)

25. Impact on HR Management
Selection and Recruitment
Training and Development
Rewarding System

26. Selection and Recruitment
• Soft skills
• Culture fit
• Qualification
• Clear job
description
MIND THE GAP
How to attract and select “the right
people”?
(Source: Adapted from IKEA 2013; Brewster 2007; Jackson 2002; Hofstede et al. 2010; Schneider 20

27. Rewarding System
• Non-financial incentives: worklife balance, flexible working
environment
• Nonfinancial incentives: Job security
• Benefit reflects status
• Group based performance-related pay
MIND THE GAP
What is the best way in rewarding
employees?
How to measure the performance
of staff in order to provide a fair
reward ?
(Source: Adapted from IKEA 2013; Brewster 2007; Jackson 2002; Hofstede et al. 2010; Schneider
and Barsoux 2003)

28. Training and Development
• “Paddle your own canoe”
• “I want your job”
• Formal instruction training
• Top down system
• Predictability and security in career
planning
MIND THE GAP
How to pass on the IKEA culture?
How to design effective training and development programs?
(Source: Adapted from IKEA 2013; Brewster 2007;
Jackson 2002; Hofstede et al. 2010; Schneider and
Barsoux 2003)

29. LOW
Leadership and Management Style
Uncertainty avoidance
Informal, Open, Caring
Theory Y Managers
CONSULT STYLE
Market
Family
Machine
Pyramid
HIGH
Authority, Discipline, Order
Theory X Managers
TELL STYLE
LOW
Power distance
(Source: Hofstede et al. 2010; Browaeys 2008; Schneider and
HIGH

30. Leadership and Management
Style
MIND THE GAP
How to delegate tasks?
Are IKEA‟s informality and
unconventional solutions going to
work?
Should Anita reveal her mistakes?

32. Adjustments in Management Practices
Personal Advice
(Source: Authors‟ own)

33. Bridge the Gap- Management
practices
• Assessment
Centre
• Headhunters
• Graduate
Programs
• Running cultural
seminars
• Skills and seniority
based career
development
• IKEA qualification
program
Recruitment
and
Selection
Leadership
Techniques
• Provide clear and
concise risk
orientated
instructions
Training and
Development
Rewarding
System
• Group based
performance
related payments
• Online appraisal
• Reward to reflect
status
(Source: Adopt from Brewster 2007; Jackson 2002; Hofstede et al. 2010; Schneider and Barsoux 2003)

34. Bridge the Gap- Personal Advice
BE Patient
BE Aware
BE Knowledgeable
ENJOY!

35. Thank You
Tack
감사합니다

37. References
Adler, P. S., 1975. The transitional experience: an alternative view of culture shock. Journal of humanistic psychology, 15 (4), 13-23.
Bartlett, C. and Beamish, P., 2010. Transnational management: text, cases and readings in cross-border management. New York: Mc
Graw- Hill.
Briscoe, D., 2012. International human resource management: policies and practices for multinational enterprises. London: Rutledge.
Brewster, C., 2007. International human resource management. 2nd edition. Chartered Institute of Personnel and Development.
Browaeys, M. and Price, R., 2008. Understanding cross-cultural management. 1st edition. Harlow: Prentice Hall.
Chakravarthy, B. and Perlmutter, H., 1985. Strategic planning for a global business. The Columbia journal of world business, 20 (2), 310.
Hofstede, G., Hofstede, G. and Minkov, M., 2010. Cultures and organizations: software of the mind. New York : McGraw-Hill.
Hofstede, G., 2013. Cultural insights - Geert Hofstede [online]. Available from: http://geert-hofstede.com. [Accessed 23 November
2013].
IKEA, 2012. IKEA group yearly summary [online]. Available from:
http://www.ikea.com/ms/en_US/pdf/yearly_summary/ys_welcome_inside_2012.pdf [Accessed 20 November 2013].
IKEA, 2013. What is it like to work at IKEA? [online[. Available from: http://www.ikea.com/ms/en_US/the_ikea_story/working_at_ikea/
[Accessed 20 November 2013].
Jackson, T., 2002. International HRM: a cross-cultural approach. 1st edition. SAGE Publications Ltd.
Kohls, L., 1979. Survival kit for overseas living. Yarmouth, ME: Intercultural Press.
Mohammed, Y., and Chelliah, Y., 2010. Adjustment in international students in Malaysian public university. International journal of
innovation: management and technology, 1(3), 275-278.
Schneider, S. and Barsoux, J., 2003. Managing across cultures . 2nd edition. Harlow: Prentice Hall.