Human & cultural variables in Global organizations... Based upon KUK Curriculum....

1. HUMAN & CULTURAL VARIABLES
IN GLOBAL ORGANIZATION
Presented By::
Sanjeev & Binay
USM-KUK

2. .
“Organizational culture is one of the latest concepts in the fields of
management and Organizational Theory. Culture which is popularly
called as „Shared values and Beliefs‟ fulfills important functions. „‟
“Culture is the complex whole reinforce by knowledge, beliefs, art, law
morals customs & other capabilities. & habits of man as a member of
society.”
1. It conveys the sense of identity for organizational members.
2. It enhances social system ability.
3. It facilitates the generation of commitment to some thing larger
than self.
4. It serves as a sense of making device that can guide and shape
behavior.

3. CULTURE :
 Is learned, not inherited.
 Involves responses to a set of problems.
 Is by a group.
 Links group members by shared experience.
 Develops stable group membership.
 Makes the whole different from the simple sum of the
parts.

4. Hofstede‟s cultural dimensions
On multi-cultures the great work is done by
Dutch scientist, GEERT HOFSTEDE.
Hofstede precedes the GLOBE( Global
leadership & organizational behaviors
effectiveness) research project. He
identifies mainly four cultural dimensions:
POWER DISTANCE, UNCERTAINTY
AVOIDANCE, INDIVIDUALISM &
MASCULINITY.

5. POWER DISTANCE
Power distance is the extent to which less powerful
members of organizations accept that power is
distributed unequally. High power distance countries
have norms, values, beliefs such as:
 Inequality is fundamentally good.
 Everyone has a place, some are high, some are low.
 Most people should be dependant on a leader.
 The powerful are entitled to privileges.
 The powerful should not hide their power.

6. Countries of High & Low
power distance.
Low power distance countries:
US, Austria, Ireland, Norway & New Zealand.
High power distance countries:
France, India, Singapore, Brazil, Mexico &
Indonesia.

7. Uncertainty Avoidance
Uncertainty avoidance is the extent to which people feel
threatened by ambiguous situations & have created
beliefs that try to avoid these. High U.A accept:
 Conflict should be avoided.
 Deviant people & ideas should not be tolerated.
 Laws are very important & should be followed.
 Experts & authorities are usually correct.
 Consensus is important.
Denmark & Britain are low U.A. cultures.
Germany, Japan, & Spain are high U.A cultures.

8. Individualism VS Collectivism
Individualism is the tendency of people to look
after themselves & their family only.
Collectivism belongs to groups & to look after
each other in exchange for loyalty.
Individualism is common in US. Canada,
Australia, Denmark & Sweden.
Collectivism famous in India, Indonesia,
Pakistan & south American countries.

9. Masculinity VS Femininity
Masculinity refers to a situation in which the dominant values in a
society are success, money & other material things. High
Masculine cultures beliefs:
 Gender roles should be clearly distinguished.
 Men are assertive & dominant.
 Machismo maleness is good.
 People especially men should be decisive.
 Advancement, success & money are important.
High masculine societies choose jobs associated with long-term
careers & feminine societies choose short term employment,
before marriage.

10. VARIABLES OF CULTURE
ACCRODING TO HOFSTEDE
1. Individual and collectivist culture.
2. Masculine and feminine culture.
3. High power and low power distance culture.
4. Uncertainty avoidance.
5. Context culture(influenced by environment).
6. Immediacy and expressiveness.

11. VARIABLES ON THE BASIS
OF OTHER PARAMETERS
 National variables: Economic system, legal system, physical
situation, technological know-how etc.
 Socio-cultural variables: Religion, education, language.
 Cultural variables: Value, norms, beliefs etc.
 Attitudes: Reflects through work, sense of
time, materialism, individualization & change.
 Individual & group behaviors:
Motivation, productivity, commitment & ethics.

12. National culture & Human
behavior is also influenced by
 Kinship : Family relations.
 Education : Affects workers performance.
 Economy : Resource allocation.
 Politics : Govt system.
 Religion
 Association : Group work (informal-formal)
 Health : Level of productivity.
 Recreation : Impact on attitudes.

13. FACTORS AFFECTING CULTURAL &
HUMAN VARIABLES
1.Social Institutions
2.Public Policy & Legal Framework
3.Societal Cultural Values

14. 1.Social Institutions
Countries differs considerably in the kind of social
institutions they have e.g., the way their education
system functions, the way financial system works, the
structures of governance etc. which have a direct impact
on how business is conducted in that country.

15. For Instance:-
1.Education System in Germany has a heavy
emphasis on technical and apprenticeship
training, which can be historically traced back to
the artisan's guides of the Middle Age.
2.Similarly one finds the cultural values of
individualism and entrepreneurship embodied in
the American Venture Capitalist System.

16. 2.Public Policy & Legal Framework
The government policies and legal frameworks of
different countries also reflects the cultural values
of the country. These influences the business
practices in 2 ways:
a) They determine the broader framework for doing
business in the country.
b) They influence and circumscribe the management
practices with in the company.

17. Example: -
Lifetime employment in Japan which is rooted in the
literal interpretation of Article 27 of Japanese
Constitution. It is supported by its cultural values
Shakaisei (Social Consciousness) and Tate Shakai
(Social Hierarchy and paternalism).
In contrast US Constitution guarantees the right
work,, the right cultural value of self reliance

18. 3. Societal Cultural Values:-
(i)The most pervasive impact on the business culture
and practices in a country comes from the broad cultural
values of the society.
At macro level cultural values allow certain kinds of
business to flourish , while not providing the right
climate for others.
Example: - French culture is known for its emphasis on
elegance, criticism and concern for Norms.

19. (ii)The cultural values of the society define the
meaning and reason of business and how it is
organized.
Example: - While US Companies emphasizes more
on the profit dividends
And stock prices, Japanese companies focus more
on new product development and market share.

20. (iii) The cultural values also influence how the business is
organized and conducted in the societies.
Example: In China people conduct business based on
personal relationship ( Guanxi - Interpersonal relationship).

21. (iv) At the end the cultural values have a major influence on
the way people relate to each other and what they aspire for
in a job.
Example: In many hierarchical cultures (e.g. India, Japan
etc) the meaning and value of job lies in the status more
than in the pay packet.
ON the other hand in more egalitarian cultures (
USA, Germany etc) people expect rewards and
compensation for their performance than their seniority.

22. Various HR Variable Factors

23. Prepare for long process Obtain skilled labor Use Recent public policy
Recruitment & from government expatriates shifts encourage use
Develop trusting
Selection subsidized sparingly of sophisticated
relationship with recruit
apprenticeship program selection procedures
Make substantial inv. Be aware of Use bilingual Careful
In training government trainers observations of
Training regulations on existing training
Use general & cross- programs
training
cultural training
Use recognition & Note high labor costs Consider all Use technical
praise as motivator for manufacturing aspects of training as reward
Compensation labor cost
Avoid pay for
performance
Treat unions as partners Be prepared for high Understanding Tap large pool of
wages & short work changing labor cities
Labor Allow time for week Mexican Labor
Relations negotiations
Law
Include Participation Utilize works councils Approach Determine
to enhance worker participation employees motives
Incorporate group goal
Job Design participation cautiously before implementing
setting
participation
Use autonomous work
teams
Japan Germany Mexico China

24. BIBLIOGRAPHY
1. CROSS CULTURAL MANAGEMENT BY
D.K. BHATTACHARYYA
2. INTERNATIONAL HR MANAGEMENT BY
K. ASHVTHAPA & SADHANA DAS
3. CITEHR.COM
4. SLIDESHARE.COM