Chapter 2 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 1 of 27 Chapter 2 THE CULTURAL CONTEXT OF IHRM START Chapter 2 Click on an item to go to its section. THE CULTURAL CONTEXT OF IHRM Vocabulary Objectives Definitions of culture Intro to cross-cultural management research The Hofstede study The GLOBE study The Trompenaars & Hampden-Turner study Hall & Hall’s cultural dimensions The development of cultures For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 2 of 27 Chapter 2 Click on the book cover below to return to this table of contents. Vocabulary Culture as defined by: Kluckhohn & Kroeber, Hansen, Schein artefacts, values, underlying assumptions cross-cultural management Hofstede: power distance, uncertainty avoidance, femininity vs. masculinity, individualism vs. collectivism, long-term orientation Confucianism, Confucianism dynamics GLOBE: ingroup, in-group collectivism vs. institutional collectivism organizational culture, national culture, gender egalitarianism, assertiveness, performance orientation, humane orientation Trompenaars, & Hampden-Turner: universalism vs. particularism, 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 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 3 of 27 Chapter 2 Objectives Learn these key findings and themes: 1. Definitions of culture 2. Cultural concepts 3. Results of various intercultural mgmt. studies: Hofstede, GLOBE, Trompenaars, & others 4. Reflections on cross-cultural mgmt. research For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 4 of 27 Chapter 2 5. Development of cultures For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 5 of 27 Chapter 2 Definitions of culture Kluckhohn & Kroeber def. of culture 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; consists of traditional ideas & their attached values For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 6 of 27 Chapter 2 The essential core of culture Hansen’s 4 elements of culture: 1. Communication 2. Thought 3. Feeling 4. Behavior For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 7 of 27 Chapter 2 Standardization of Schein’s concept of culture A culture has 3 levels: For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 8 of 27 Chapter 2 1. Artefacts - visible 2. Values – intermediate level of consciousness 3. Underlying assumptions – invisible, unconscious Schein’s 6 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 For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 9 of 27 Chapter 2 1. 2. 3. 4. 5. 6. For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 10 of 27 Chapter 2 Intro to cross-cultural mgmt. research Goals of cross-cultural mgmt. studies Describe Compare organizational behavior between countries & cultures For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 11 of 27 Chapter 2 Explain & improve interaction between employees, customers, suppliers or business in different countries & cultures For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 12 of 27 Chapter 2 The Hofstede study Hofstede’s 5 culture dimensions Power distance Uncertainty avoidance Femininity vs. masculinity Individualism vs. collectivism Confucianism or long-term orientation For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 13 of 27 Chapter 2 1. 2. 3. 4. 5. Long-term cultures characterized by: Great endurance, persistence in pursuing goals Position of ranking based on status Adaptation of traditions to modern conditions Respect of social & status obligations within limits High savings rates & high investment activity Readiness to subordinate oneself to a purpose For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 14 of 27 Chapter 2 The feeling of shame Short-term cultures characterized by: For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 15 of 27 Chapter 2 Personal candor & stability Avoiding loss of face Respect of social & status obligations without consideration of costs Low savings rates & low investment activity Expectations of quick profit Respect for traditions Greetings, presents & courtesies based on reciprocity For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 16 of 27 Chapter 2 Figure 2.1 Hofstede study: Power distance & individualism vs. collectivism For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 17 of 27 Chapter 2 Table 2.1 Impact of the cultural context on HRM practices Future Hofstede-style research issues Realization of cross-level studies Consider groups, organizations, & country levels Inclusion of cross-cultural differences Consider intracultural variance Inclusion of theoretically relevant moderators Consider sex, class affiliation, etc. For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 18 of 27 Chapter 2 Interaction between variables For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 19 of 27 Chapter 2 The GLOBE study Are there leadership behaviors, attributes & org. practices effective across all cultures? Are there leadership behaviors, attributes & org. practices effective in some cultures only? How much do leadership attributes affect the effectiveness of specific leadership behavior & its acceptance by subordinates? How much do behaviors & attributes in specific cultures influence the well-being of members in the researched societies? What is the relationship between these socio-cultural variables & an international competitive capacity of the various sample societies? For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 20 of 27 Chapter 2 The GLOBE study questions GLOBE’s 8 culture dimensions Institutional collectivism In-group collectivism Uncertainty avoidance Power distance Gender egalitarianism Assertiveness Performance orientation Humane orientation For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 21 of 27 Chapter 2 1. 2. 3. 4. 5. 6. 7. 8. For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 22 of 27 Chapter 2 The Trompenaars & Hampden-Turner study a Relationships between people 1. Universalism vs. particularism 2. Individualism vs. communitarianism 3. Emotional vs. neutral 4. Specific vs. diffuse 5. Ascription vs. achievement Concept of time 6. Sequential vs. synchronic concept of time Concept of nature 7. Internal vs. external control For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 23 of 27 Chapter 2 7 dimensions of Trompenaars & H-T study For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 24 of 27 Chapter 2 Hall & Hall’s cultural dimensions Hall & Hall’s 4 dimensions 1. High vs. low context communication 2. Spatial orientation actual distance between people when communicating 3. Monochrome vs. polychrome time sequential processes vs. parallel actions 4. Information speed For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 25 of 27 Chapter 2 high or low information flow during communication For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 26 of 27 Chapter 2 The development of cultures Cultures change There is increasing 1. International connectedness 2. Global economy coordination 3. Harmonization of laws & regulations 4. Migration How resistant are cultures to change? Generation Y are fast, self-organized & absorbed learners with distinct work-life balance preferences Entire society workforces are aging For use with International Human Resource Management 6e By Peter J. Dowling, Marion Festing, and Allen D. Engle. Sr. ISBN-10: 1408032090 © Cengage Learning 27 of 27 Chapter 2 Cultures are not confined to given territories. This means new challenges for HRM.