Comparative Employment Policy
Concept, significance, convergence theory, Marxist theory, the cultural approach power Distance (PDI), Uncertainty avoidance (UAI), Individuality (INV), Masculinity (MASC).
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Conceptualizing Culture
Culture is- *derived mostly from the climatic conditions of
the geographical region and economic conditions of the country.
* a set of traditional beliefs and values which are transmitted and shared in a given society.
*norms,values,art, etc. * a total way of life and thinking pattern that
are transmitted from generations to generations.
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Why do cultures differ?
Economic level and conditions. Climate. Social relations Societies developed patterns.
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Cultural sensitivity Cultural sensitivity is to have empathy to
accept cultural differences without allowing one’s own values to surface in unproductive or confrontational ways.
Individuals have to understand cultural differences and follow them rather than be openly judgmental of the culture of the land.
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Cultural Universals Irrespective of the religion,race,region,caste
etc.all of us have more or less the same needs. These common needs are refereed to as “ cultural universals”.
It includes athletic,sports,cooking,dancing, singing,education,status differentiation and
dream interpretation.
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Social environment Social environment consists of religious
aspects,language,customs,traditions,beliefs, tastes and preferences,social institutes,living
habits,dressing habits etc.
It influences the level of consumption.
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Hofstede’s Dimensionsof Culture
According to Hofstede culture is the aggregate value,beliefs and customs that defines the common characteristics of human group.
Hofstede explained culturally based value system as comprising four dimensions- Individualism/collectivism Power distance Masculinity/femininity Uncertainty avoidance
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Individualism/Collectivism
Definition: the extent to which the society is organized around individuals or the group
Individualism/collectivism are the consequences of the culture and affects the formation of groups,productivity and marketing practices.
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Collectivist vs. Individualist
Collectivism – group solidarity, loyalty and interdependence among members (e.g. Asian & Latin American cultures)
Individualism – independence is valued along with attention to detail and control (e.g. US, UK)
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Individualistic Cultures
Value independence of thinking and focus on task issues over relationship Goals of self-actualization and self-
motivation are valued People speak for themselves
Collectivist cultures value saving face, protecting their groups
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Individualism/Collectivism Scale
Collectivism
Concern for Group harmonyvs. Personal Achievement
Individualism
High concern for Achievement and personal growth
LOW HIGH
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Power Distance
Definition: Power distance denotes the relationship between superiors and subordinates.
Cultures with stronger power distance
will be more likely to have decision-making concentrated at the top of the culture.
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Power Distance Acceptance of authority differences
among people High power distance cultures are status
conscious and respectful of age and seniority
Lower power-distance orientations greater tendency to make decisions in a consultative style
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Social IntegrationLittle concern for hierarchical status
Social DisintegrationSignificant concern for hierarchical status
LOW HIGH
POWER DISTANCE SCALE
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Masculinity/Femininity
Definition: the extent cultures hold values that are traditionally perceived as masculine or feminine
Masculinity is the degree to which the dominant value of the society are success,money and material things
Femininity is the degree to which the dominant values of the society are caring for others and quality of life.
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Masculinity - Femininity Masculine cultures value assertiveness,
independence, task orientation and self-achievement
Feminine cultures value cooperation, nurturing, relationships and quality of life
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Masculinity/Femininity Scale
FemininityLittle concern for controlDecisiveness,assertiveness behavior/competition
MasculinityAssertiveness andCompetitive behavior
LOW HIGH
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Uncertainty Avoidance
Definition: “Indicates to what extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations”
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Uncertainty Avoidance Employees in countries with highest
score of uncertainty avoidance prefer a system and a methodological work based on rules that are not to be deviated.
Employees in countries with low scores of uncertainty avoidance prefer flexible organizations and flexible work.
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Uncertainty Avoidance Scale
Informal RelationshipsLittle regards for Structure & Control
Formal RelationshipHigh regards for Structure& Procedure
LOW HIGH
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Hofstede’s Cultures Ranking in the Top 10
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Strategies for dealing with cultural changes
Making adjustment wherever necessary.
Communication Competitive Advantage.
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Workforce Diversity
Workplaces in MNCs today are highly diversified with the employees of different countries,different age groups, religions,races,ethnic groups,colour and gender.
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Diversity is the mixture of people in business, with their variety of backgrounds, experiences, styles, cultures, skills and competencies.
Diversity Wheel
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As individuals, we are all diverse As organizations and work groups,
some are more diverse than others Important to understand your mix
(customer’s, employees & stakeholders) now both current state and desired state
People are both similar and different among a variety of dimensions
Need to understand the impact of culture
Learning’s from the Wheel
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Factors for workforce diversity
Increase in Educational Opportunities Increase in number of employees
from developing countries. Changing gender roles. Changing roles of minorities.
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Strengths & Weakness of Workforce Diversity
STRENGTHS Competitive advantage
Multi-ethnic unified societies at workplace
Efficient implementation of organisational strategies.
Repeats undesirable unity among employees
WEAKNESSES Potential sources of
conflicts.
Delay in decision-making.
Communication distortions.
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AppropriateStrategies
Creation&
Innovation
Cost Saving
Harmony
Flexibility
Attraction ofresources
ProblemSolving
Skill
CompetitiveAdvantage
Factors contributing to Competitive Advantage
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Strategies for managing workforce diversity
Managing Diversity
NationalStrategy
GroupStrategy
OrganisationalStrategy
Individual Strategy
InternationalStrategy
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Individual Strategies Understanding the cultural background of
others. Belief that all cultures are good. Clear communication Perceive from others’ perspective Approach of “no-winning over” other’s culture.
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Organisational Strategy for Cultural Diversity
Recruitment and Selection Strategy Organizational policies and practices Cultural Training Use of counsellors Communication Structuring work teams Special benefits for women and old age. Formal socialization program.
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National Strategies
Legislative approach towards equal employment opportunity.
Efforts of the cultural association. Efforts of the diplomatic mission.
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International Strategies
Economic Unions and Regional Integration
Efforts of the MNC’s headquarters. Efforts of International Trade
Organisations and Financial Institution
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