IHRM+6th+Edition+GlobalHRM_Ch05

Introduction to International Human Resource Management and Culture

• Multinational Enterprises (MNEs) face complexities due to diverse national cultures.

Learning Objectives

• Define and explain the concept of culture.

• Discuss the significance of culture in International Business (IB).

• Review research findings from G. Hofstede and F. Trompenaars.

• Understand the implications of culture for International Human Resource Management (IHRM).

The Nature of Culture

• Each country has unique characteristics (history, government, laws).

• Complexity increases with interaction among different national cultures.

• Cultural differences can significantly impact business operations.

Definition of Culture

• Culture encompasses shared behaviors and beliefs developed over time.

• Key aspects of culture:

  • Sense of identity and belonging.

  • Ability to adapt and transmit knowledge across generations.

  • Influences all aspects of management processes.

Layers of Culture

• Surface Culture: Observable elements (dress, food, customs).

• Hidden Culture: Values and philosophies (views on child-rearing, morality).

• Implicit Culture: Universal truths forming the core of cultural beliefs.

Developing Cultural Competency

• Increasing Transnational Competence:

  • Awareness

  • Respect

  • Reconciliation

Country and Regional Cultures

• Efforts to categorize worldwide cultures into limited sets based on similarities.

• Research highlights similarities and differences among cultures.

Geert Hofstede's Research

• Cultural Dimensions:

  • Power distance

  • Individualism vs. collectivism

  • Uncertainty avoidance

  • Masculinity vs. femininity

  • Long-term vs. short-term orientation

  • Indulgence vs. restraint

• Emphasizes adapting managerial practices to local cultures.

Fons Trompenaars' Research

• Cultural Factors:

  • Universalism vs. particularism

  • Individualism vs. communitarianism

  • Neutral vs. emotional expressions

  • Specific vs. diffuse interactions

GLOBE Project on Culture

• The GLOBE study builds on existing cultural frameworks and categorizes cultural values.

Cultural Clusters

• Groupings based on cultural similarities:

  • Anglo: Australia, Canada, UK

  • Arab: Middle Eastern countries

  • Far Eastern: Includes China, Japan

  • Nordic: Denmark, Sweden

Oversimplification in Cultural Research

• Risks of treating cultures as homogeneous groups.

• The need for understanding cultural dynamics and changes.

Country Culture vs. MNE Culture

• MNEs may prioritize their organizational cultures over local country cultures.

Cultural and Globalization Dynamics

• Divergence: Influence of cultural values on MNE practices.

• Convergence: Similarity in adopting best practices.

• Cross-vergence: Cultural systems blending across borders.

• Glocalization: Balancing global strategies with local practices.

Challenges in IHRM Research

• Criticisms: Lack of analytical rigor, reliance on descriptive data.

• Factors Limiting Research: Expenses, comprehensive knowledge, need for international cooperation.

• Research Difficulties: Inconsistent definitions, translation issues, variable identification challenges.

Forms of IHRM Research

• Cross-Cultural, Multicultural, Descriptive Research Types.

Specific Difficulties in IHRM Research

• Challenges in focused research, language, measurement, and cultural equivalence.

Impact of Culture on IHRM

• Cultural influences significant in areas such as:

  • Recruitment and hiring

  • Relationship building

  • Language use and communication

  • Organizational justice perceptions

  • Decision-making and performance evaluations.