Chapter 2
The Cultural Context of
IHRM
IHRM, Dr. N. Yang
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Chapter Objectives
 Review key issues and implications:
Definitions of culture
Cultural concepts
Results of various intercultural management
studies, such as Kluckhohn & Kroeber, Schein,
Hofstede, GLOBE, Trompenaars & Hampdenturner, Hall & Hall, and several others
Reflections on cross-cultural management
research
Discussions on development of cultures
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Definitions of Culture
 Culture consists in patterned ways of thinking, feeling,
and reacting, acquired and transmitted mainly by
symbols, constituting the distinctive achievements of
human groups … including their embodiments in
artefacts; the essential core of culture consists of
traditional ideas and especially their attached values
(Kluckhohn & Kroeber, 1950s)
 Mental programming, a system of shared values and
social norms, or “software of the mind” (Hofstede, 1991)
 Culture normally relates to nations but a nation-state
explanation is of ongoing debates and criticism.
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Kluckhohn & Kroeber
 Culture consists in patterned ways of
 Thinking
 Feeling
 Reacting
acquired & transmitted mainly by symbols,
constituting the distinctive achievements of human
groups, including their embodiments in artefacts
The essential
core of culture
consists of
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traditional ideas &
their attached values
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Basic Elements of Culture
 Hansen’s description of cultures as the
customs of a community practiced by a majority
 Standardization may come up in specific
situations
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Standardization of communication
Standardization of thought
Standardization of feeling
Standardization of behavior
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Levels of Culture
 Schien’s concept of culture in the
course of organizational research
Artefacts – visible
Values – intermediate level of
consciousness
Underlying assumptions – invisible,
unconscious
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Underlying Assumptions
 Nature of reality & truth
 Time dimension
 Effect of spatial proximity & distance
 Nature of being human
 Type of human activity
 Nature of human relationships
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Cross-cultural Management Studies
 Describe and compare the working behavior
in various cultures
 Explain and improve interaction between
employees, customers, suppliers or
businesses in different countries & cultures
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Hofstede’s Five Cultural Dimensions
 Power distance
 Uncertainty avoidance
 Femininity vs. masculinity
 Individualism vs. collectivism
 Confucianism or long-term orientation
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Confucianism Dynamics
Long-term Orientation
Short-term Orientation
 Great endurance, persistence in
 Personal candor & stability
pursuing goals
 Avoiding loss of face
 Position of ranking based on status
 Respect of social & status
 Adaptation of traditions to modern
conditions
 Respect of social & status

obligations within limits
 High savings rates & high
investment activity
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 Readiness to subordinate oneself to 
a purpose
obligations without consideration
of costs
Low savings rates & low
investment activity
Expectations of quick profit
Respect for traditions
Greetings, presents & courtesies
based on reciprocity
 The feeling of shame
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Figure
2.1
Results of Hofstede’s Study: Power distance
& individualism vs. collectivism
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Table
2.1
Impact of the Cultural Context on
HRM Practices
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HRM in
Action
Case 2.2
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Long-term Development Plans of a
German MNE in the USA
A German MNE in the electrical
industry expanded to the U.S.,
taking a polycentric HRM approach
to recruit and promote local
managers;
Invested in training and dev. for
fast-track career opportunities;
CEO Peter Hansen was happy with
the firm performance, growth, and
progress achieved
However, he was shocked by
turnovers, including John Miller,
Marketing Director, after high-level
training programs from top business
schools sponsored by the firim.
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Can you explain CEO
Hansen’s surprise using
Hofstede’s cultural
dimensions?
How does this situation
compare to situations in
your home country or
countries you are familiar
with?
What are the limits of a
cultural explanation?
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Reflections of Hofstede’s Study

The Western team and influence
on the form of the questionnaire

Countries rather than cultures are delimited
some surveyed states do not exist today, like the former Yugoslavia

Realization of intra-level studies
along with assessing the individual, groups, organizations, and
country levels
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Inclusion of cross-cultural differences
Consider intra-cultural variance

Inclusion of theoretically relevant moderators
Consider variables like sex, class affiliation, etc.
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Effects of interaction between cultural variables
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Questions by the GLOBE Study
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Are there leadership behaviors, attributes and organizational
practices that are generally accepted and effective across cultures?
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Are there leadership behaviors, attributes and organizational
practices that are accepted and effective in some cultures only?
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How much do leadership attributes affect the effectiveness of
specific leadership behavior and its acceptance by subordinates?
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How much do behaviors and attributes in specific cultures influence
the economic, physical, and psychological well-being of members in
the researched societies?
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What is the relationship between these socio-cultural variables and an
international competitive capacity of the various sample societies?
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Eight Cultural Dimensions of the
GLOBE Study
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Institutional collectivism
In-group collectivism
Uncertainty avoidance
Power distance
Gender egalitarianism
Assertiveness
Performance orientation
Humane orientation
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Reflections of the GLOBE
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Attempted to avoid a one-sided Western focus
More industries, broader profiles, and levels of
analysis (e.g., individual, organizational,
societal) were taken into consideration
Criticized for further differentiation of cultural
dimensions by Hofstede
Data representation of cultures with large and
heterogeneous populations, such as China,
India, the USA
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Trompenaars & Hampden-Turner’s
Seven Dimensions of Culture
Relationships
Between people
1.
2.
3.
4.
5.
Universalism vs. particularism
Individualism vs. communitarianism
Emotional vs. neutral
Specific vs. diffuse
Ascription vs. achievement
Concept of time
6. Sequential vs. synchronic
concept of time
Concept of nature 7. Internal vs. external control
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HRM in
Action
Case 2.2
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Meeting on a Friday in Kenya
A MNE has completed its
project in Kenya but has not
been paid
A meeting with the
representative of the local
government agency was
arranged on Friday at 10 a.m.
The representative was polite
and friendly, but the meeting
was frequently interrupted by
his phone calls and
conversations in local language
regarding his family event over
the coming weekend
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Both parties got extremely
tense and finally had to
schedule a new meeting for
the following Tuesday
How can you explain this
frustration with some cultural
dimensions, such as the
Trompenaars’?
How does this situation
compare to your home
country or countries you are
familiar?
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Cultural Dimensions by Hall & Hall
 High vs. low context communication
Indirect vs. direct, implicit vs. explicit, verbal vs.
nonverbal expressions
 Spatial orientation
Actual distance between people when communicating
 Monochrome vs. polychrome concept of
time
Sequential processes vs. parallel actions
 Information speed
High or low information flow during communication
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The Development of Cultures
 Convergence or divergence
 Transnational regions
 Growing interdependence
 Intra-cultural changes
 Value shift between generations
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Static-dynamic Nature of Culture
There is increasing
International connectedness
Global economy coordination
Harmonization of laws & regulations
High flow of migration
Cultures are not confined to given territories.
This means new challenges for HRM.
 How resistant are cultures to change?
 Generation Y are fast, self-organized & absorbed learners
with distinct work-life balance preferences
 Aging of entire societies and the workforces
 Transferability of HR policies across cultures
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Chapter Summary
 Definitions of culture
 Introduction to cross-cultural management
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research, concepts, critiques, and debates
Schein’s concept of culture
Hofstede’s study
The GLOBE
Trompenaars & Hampden-Turner’s study
Hall & Hall’s cultural dimensions
The development of cultures
Implications to HRM and IHRM
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Vocabulary

Culture as defined by Kluckhohn &
Kroeber, Hofstede, and Hansen

Schein:

Trompenaars & Hampden-Turner:
Universalism vs. particularism,
individualism vs. communitarianism,
neutral vs. emotional, diffuse vs.
specific, ascriptive vs. achievement,
sequential vs. synchronic time, internal
vs. external control

Hall & Hall:
High vs. low context, spatial
orientation, polychrome vs.
monochrome time, information speed
Static-dynamic nature of culture
Organizational culture, national culture
Inter- and intra-cultural variables,
Convergence and divergence of HRM
and practices
Artefacts, values, underlying assumptions

Cross-cultural management
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Hofstede:
Power distance, uncertainty avoidance,
femininity vs. masculinity, individualism
vs. collectivism, long-term orientation,
Confucianism dynamics
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GLOBE:
In-group collectivism, institutional
collectivism, uncertainty avoidance, power
distance, gender egalitarianism,
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assertiveness, performance orientation,
humane orientation
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Discussion Questions
1. Define culture. How can culture be conceptualized?
2. Outline and discuss cross-cultural management studies
by Hofstede.
3. Outline and discuss the concepts and results of the
GLOBE study.
4. Outline and discuss the cultural dimensions by
Trampenaars et al.
5. Compare high vs. low context communication patterns
6. What do you think about the statement “cultures in
Europe are becoming more similar”?
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