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In The Name Of Allah The Most In The Name Of Allah The Most Beneficent And MercifulBeneficent And Merciful
CULTURAL COMPATIBILITY&
HUMAN RESOURCE PRACTICES
PRESENTERS
Zoya chaudhryIqra khanSidra GhazanfarFaizanKokab KhalidSher AfghanMudassir Khalid
CULTURAL COMPATIBILITY
ZOYA(MB-08-06)
CULTURE
“Culture is the customs and civilization of a particular people or group”
CULTURAL COMPATIBILITY
“It is the capability of different cultures to live together harmoniously.”
GLOBALIZATION
Globalization has resulted in significant implications for HR functions as they attempt to develop global HR strategies and design programs and processes to
manage a global workforce. The key to success is to balance global standardization and local autonomy.
ORGANIZATIONAL STRUCTURES
FOR
GLOBAL BUSINESS
1) Domestic exporter - heavy centralized activities in one country (financing, sales, marketing, human resources, strategic management) while sales are dispersed using agency agreements, and subsidiaries that are reliant on the home company
2) Multinational firm - control and management of finances out of central home base, while production, sales and marketing operations are in other countries. Products are made to fit local markets i.e. financial firms, General Motors etc
3) Franchisers - product is created, designed and financed in home country, but for product-specific reasons, there is a heavy reliance on foreign personnel for production, marketing, and human resources. i.e. McDonald's, KFC
4) Transnational firms - have no national home base, have several regional home bases, and optimize supply and demand constraints locally, central core for decision making, but dispersed power and financial power to the divisions. i.e. Citicorp, Sony, Ford
ORGANIZATIONAL EVOLUTIONARY DEVELOPMENT CURVE
GLOBAL MIND-SET MODEL
GLOBALLY ORIENTED CULTURES
1) ETHNOCENTRISM
Ethnocentric individuals interpret the world through the eyes of their own culture, not recognizing, even devaluing, cultures that are different from their own.
Ethnocentric can play an important role in preserving standards and uniformity across the global corporation
2) POLYCENTRISM Polycentric individuals adapt and assimilate to the values, attitudes and beliefs of another culture.
Polycentric individuals can play the role of empathetic “advisors,” effective at bridging the gap and transferring knowledge between the local environment and corporate.
The danger with the polycentric mindset is the tendency to “go native”, sometimes to the detriment of the organization’s objectives.
3) GEOCENTRISM Geocentric individuals believe there are certain cultural universals and commonalities in the world and that no culture is superior or inferior to another.
The geocentric mindset accepts the premise that bright people [do] bright things around the world
Also called “cosmopolitans,” these types of individuals focus on finding commonalities and spreading universal ideas and juggling the requirements of diverse places
GLOBAL MINDSET MODEL
DEVELOPMENTAL MODEL OF INTERCULTURAL
SENSITIVITY
Milton Bennett’s Model of Intercultural Sensitivity (1993) postulates a development progression that that all individuals go through as they develop into geocentric or cosmopolitans
As individuals mature globally, they move from the “ethnocentric” stages of denial, defense, and minimization to the “ethno relative” stages of acceptance, adaptation, and integration.
Other empirical work has demonstrated that the more international experiences individuals have, the less ethnocentric they become
Hence, associates who have reached the ethno relative stages of their individual development – those with geocentric mindsets – are vital for the new chaordic, Transnational HR organization to function effectively
IQRA(MB-08-12)
COLLECTIVISM
VS.
INDIVIDUALISM
COLLECTIVISM:
The Chinese culture is collective and of "high context."
Collectivism emphasizes group harmony and interdependence.
Chinese negotiators dislike taking the initiative and normally pay more attention to maintaining a harmonious relationship
In their decisions, more likely to consult their superiors motivation for favoring certain norms over others is
also driven by cultural factors Societal norms are known to reward those who
subscribe to them and punish those who deviate
Avoid open conflict, and when a conflict emerges, it must be resolved in inner circles before it becomes serious enough to justify public involvement
Use delaying tactics Use more obliging and avoiding conflict
resolution styles Maintain relations as key motivators in their
negotiation strategy
HR STRATEGIES FOR COLLECTIVISM
The North American culture is individualistic and of "low context”
Individualism emphasizes individual rights and independence.
American negotiators tend to be authoritative, autocratic and in a hurry to make a deal
Less decisive American executives emphasize personal
motivations (Self-Esteem, Position In Company)
INDIVIDUALISM:
Use less obliging and avoiding conflict resolution styles
Show more concern for goal achievement Individuals be responsible for all decisions by
themselves. Turning to superiors for instruction on ordinary
conflicts, particularly task-related conflicts could signal incompetence at one's level of responsibility
HR STRATEGIES FOR INDIVIDUALISM
FOUR ALTERNATIVES FOR A CROSS-BORDER
STRATEGY
LOCAL ADAPTATION:
1) International Strategy: Appropriate when there is little foreign business –
knowledge transfer from the center of headquarters.
Coordination costs are low.
2) Multinational Strategy: Affiliates are autonomous and local adapted. Cross-border advantages of standardization and
learning are low. Coordination-costs are lowest.
3) Global Strategy: Advantages of standardization of policies and
practices. Strong centralism. Lack of local responsiveness causes disadvantages. National segmented markets, cultures, policies set
barriers Coordination costs are high.
4) Transnational Strategy: Uses advantages from globalization, localization and
cross-border learning simultaneously. Coordination costs are highest
GLOBAL INTEGRATION:
HOFSTEDE’S MODEL OF CROSS-CULTURAL
DIFFERENCES
" Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster.“
Prof. Geert Hofstede
Geert Hofstede's model gives insight into other cultures so that international businesses can be more effective when interacting with people in other countries.
HOFSTEDE'S FIVE CULTURAL DIMENSIONS
1) Power Distance Index (PDI) : It is the extent to which the less powerful members of organizations accept and expect that power is distributed unequally
2) Individualism (IDV) : It is the degree to which individual is expected to look after himself
3) Masculinity (MAS): It is the degree to which women are assertive and competitive in any country
4) Uncertainty Avoidance Index (UAI ) : It indicates to what extent a culture makes its members to feel either uncomfortable or comfortable in unusual situations
5) Long-Term Orientation (LTO) : LT oriented cultures have the values of insistence & withholding while ST-oriented cultures respect their traditions, fulfill social duties and protect their own faces
HOME CULTURE (NORWAY) Vs. HOST CULTURE (PAKISTAN)
FAIZAN
(MB-08-33)
FAIZAN
TELENOR GROUP
• It ranks as world’s 7th largest mobile operator• More than 164 million mobile subscriptionsand operations in 13 countries
• The largest provider of TV services in theNordic region
• Organized into three business areas:– Mobile operations (13 countries)– Fixed-line (Nordic region)– Broadcast services (Nordic region)
BUSINESS AREAS
COMPANIES IN ALL BUSINESS AREAS PER COUNTRY
INDIA: NEW OPPORTUNITY
• On 29 October, 2008 Telenor has entered Indian market through a definitive agreement to subscribe to new shares in Unitech Wireless
• Subject to regulatory approvals, Telenor will hold a 60% controlling stake in Unitech Wireless
• Unitech Wireless plans to launch its services in mid 2009
TELENOR’S VISION
Telenor’s vision is simple:
“We're here to help”
It exists to help its customers get the full benefit of communication services in their daily lives.
CORE VALUES OF TELENOR
MAKE IT EASY for customers to get what they want, when they want it
BE RESPECTFUL of our customers and their local cultures
KEEP PROMISES about delivery, not over promising - actions not words
BE INSPIRING and strive to bring energy into the things we do
TELENORHUMAN CAPITAL
DIVISIONDEPARTMENT
SHER AFGHAN
(MB-08-75)
TELENOR BELIEVES
We believe that growth comes with sincere understanding of
People’s needs, in order to initiate changes
PEOPLE ARE TELENOR’S MOSTVALUABLE ASSET
Employed approximately 4 000 leaders – and a workforce on more than 36 000 man-years
Manages people and competence to ensure that the company fulfils its strategy
Is committed to creating a diverse organization (gender, ethnicity/nationality, age, disabilities)
Is responsible for high job satisfaction - opportunities for personal and professional development
Offers extensive opportunities for learning and development
VICE PRESIDENT
DIRECTOR
MANAGER
ASSISTANT MANAGER
EXECUTIVE
INTERNEES
HIERARCHY : TELENOR HUMAN CAPITAL DIVISION
TELENOR PAKISTAN
Telenor Pakistan launched its operations in March 2005
Telenor Pakistan is 100% owned by Telenor ASA
Telenor is spread across Pakistan, creating 2,500 direct and 25,000-plus indirect employment opportunities.
It has a network of 23 company-owned sales and service centers, more than 200 franchisees and some 100,000 retail outlets
ISLAMABAD HEAD OFFICE
MANAGEMENT:TELENOR PAKISTAN
VP HUMAN CAPITAL DIVISION TELENOR Mr. Nayab Baig
CEO TELENOR
Mr. Jon Eddy Abdullah
SIDRA(MB-08-16)
CULTURE&
HUMAN RESOURCE
CULTURAL COMPATIBILITY(AROUND THE GLOBE)
CULTURALLY COMPATIBLE
HR PRACTICES
ROUND THE
GLOBE
TELENOR “A SALAD BOWL”
NORWEGIAN BANGLADESHI
FIN
THAI
MALAYSIAN
PAKISTANI
HUNGARIAN
INDIAN
WELL-FIT PRACTICES FOR ALL CULTURES
1) There are no cabins in any Telenor centre. There is a central lobby where the front desk men to the Regional Officer (RO) all sit together.
2) There is a lot of respect given to all employees. Here the manager shakes hand with the mop. All the employees self-serve themselves. They are not allowed to make the service men work in their service
SELF-SERVICE
FREEDOM OF EXPRESSION
Telenor claims “ FREEDOM OF EXPRESSION
So, every person relating to any culture religion or believes is free to express
himself and pursue his values
Telenor has decided to serve halal food exclusively to their employees, on the Christmas celebration.
Telenor, which is the leading supplier of internet and telephony solutions in Norway, and deeply involved in foreign investments, has shown submission to Islam by deciding to serve halal food exclusively to their employees on their Christmas celebration.
HALAL FOOD
KOUKAB(MB-08-20)
CULTURALLY COMPATIBLE
HR PRACTICESIN
PAKISTAN
HAJJ POLICY FOR STAFF
Telenor do value the culture of its transnational bases
In Pakistan Telenor has the policy to send its 2 employees on Hajj every year
Free tickets to Hajj are drawn in a lucky draw
RAMZAN
Telenor arranges Aftar meal for its staff in Ramzan.
Telenor offices are being closed according to Ramzan timings
In non-Muslim countries, Muslim workers in Telenor are given prior permission to work according to Ramzan timings
DRESS
Telenor pursue cultural identities of their host countries in its events also
In the last annual meeting of Telenor, They decided sherwani as the dress code in Pakistan.
DRESS
Even in inter-province culture differences, the example of Quetta is interesting where employees aren’t asked to wear suits as a formal dress code. They wear shalwar kameez in offices
BELL
As a cultural symbol Pakistani Telenor offices have placed a big bell with a string on the main door of offices. It is for the purpose that any one who feels himself satisfied with Telenor can ring the bell. It is in coincidence with the practice of Late Mughal King Jahangir who used to listen to the petitions of his sub ordinates whoever has any complaint.
CONCLUSION
(MB-08-61)
MUDASSIR
CHALLENGES
Telenor face many challenges with the ever growing need of competent Human Resource.
It is really hard to hire and retain the best people especially around the globe.
The global companies face many challenges regarding the cultural identity of respective nations.
They have to adjust culturally to the environment of respective countries.
When hiring the HR staff of that very country, the organization is exposed to many challenges to make them perform at their best.
COMMENTS
Telenor is carrying out satisfactory culturally compatible strategies for its HR.
Although it is not promoting the “cultural identity” agenda that aggressively but even then it is facing much less cultural conflicts among its HR.
It may be due to the reason that it has divided itself in just two markets: Europe & Asia. The European market almost holds the same culture and three of its Asian market countries are Islamic.
Telenor is so far quite successful in hiring and retaining exceptionally talented HR worldwide.
Telenor has started a TELECOM MBAfor its leaders
WE VALUE CULTURAL
DIFFERENCES