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Understanding Culture: Cross Culture Skills and Conflicts -Managing across Culture-

Globalisation and HR Issues and Concerns- Cross Cultural Theories –Cultural Shocks-

Dealing with cultural shocks-Cultural training-Cross Cultural Negotiations.

Understanding

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Understanding

Culture

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The culture played a major role in GHRM as it involves

understanding and handling a new culture

and a new social system. what aspects should an

international HR manager should focus on and how

he should respond to cultural differences in an

international arena.

Introduction. . .

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• A culture is a way of life of a group of people--the behaviors, beliefs, values, and symbols that they accept, generally without thinking about them, and that are passed along by communication and imitation from one generation to the next.

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Culture is understood as the customs, beliefs, norms and values that guide the behaviours

of the people in a society and that are passed on from one generation to the next.

• “The prevailing pattern of values, attitudes, beliefs, assumptions, norms and sentiments”

(Beardwell & Claydon)

• “the collective programming of the mind which distinguishes the members of one

group from another” (Hall)

• “the collective programming of the mind which distinguishes the members of one group from another” (Hofstede, 1980 )

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Since 1980’s Managing Across culture has emerged as a

significant field for academic research and study.It’s emergence is the result of a number of

Triggers and Drivers.

Triggers are those factors and events that raised the alarm about importance of

understanding cultural differences when operating in different countries.

Drivers are those factors that resulted from or contributed to the triggers as shown here…

Managing Across Culture

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Triggers•Expatriates failure to complete assignments abroad• Recession in the 1980s• Economic development of Japan and South-east Asia• Economic development of China and India• “ Westernization ” of Central and Eastern Europe Drivers

•Multinational Companies• International Competition• Regional economic integration• Technical changes and flow of information• Trade and financial services • Political and cultural influences• Western management education• Reforms in developing countries

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According to the Alder ( 2002 ) managing across culture explains the behaviour of

people in organizations with employees and client populations from many different cultures

and it also describe and compare organizational behaviour within countries and

cultures and to seek to understand and improve the interactions of co-workers,

managers, executives, clients, suppliers, alliance partners from countries and culture

around the world.

It should be pointed out that the word “across” in managing across cultures implies……

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Theoretically, having to go in between and within countries and cultures and hence being able to

observe, describe and analyze their similarities and differences.

In practice, however, the process of managing across culture is broader than comparative management

because it implies…

(a)Broader understanding of the determining characteristics of national management systems.(b) The ability to distinguish between different systems and learn from models of good practices. This view of managing across culture is supported by number of recent studies

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Cross Culture Skills

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Conflicts• Cultural conflict is a type of conflict that occurs when

different cultural values and beliefs clash.

• Jonathan H. Turner defines it as a conflict caused by "differences in cultural values and beliefs that place people at odds with one another".

• On a micro level, Alexander Grewe discusses a cultural conflict between guests of different culture and nationality as seen in a British 1970 sitcom,

•  Fawlty Towers He defines this conflict as one that occurs when people's expectations of a certain behavior coming from their cultural backgrounds are not met, as others have different cultural backgrounds and different expectations.

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Cultural conflicts are difficult to resolve as parties to the conflict have different beliefs. Cultural conflicts intensify when those differences

become reflected in politics, particularly on a macro level.

Dysfunctional Role

Characteristics

Aggressor • Behaves aggressively toward other people, often by criticizing, condemning or blaming • Acts as an instigator of conflict and hostility • Makes others feel ashamed, incompetent, guilty or inferior

Blocker • Impedes or delays the progress of others • Limits the achievement/success of others • Distracts others from the task at hand

Rebel • Violates group norms and guidelines • Strong unwillingness to cooperate with others • Rejects accepted conventions of behavior

Self-Seeker • Demands full attention from others at all times • Prioritizes personal goals ahead of the goals of other people and/or the whole group • Places self-interests above moral principles and professional responsibilities

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Dominator

• Forcefully controls others, often through fear, bullying/aggression or abuse of power

• Dominates conversations by interrupting when other people are speaking

• Coerces others to follow orders/directions Social Loafer

• Lack of commitment, loyalty and dedication

• Fails to contribute meaningfully to group

• Irresponsible, unreliable and untrustworthy

To deal with this kind of cross cultural conflicts, there are few strategies which are. . . .

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Effective Management Strategies

Identify and Prepare for Potential Conflicts Before they Arise

Establish a Climate of Trust, Tolerance and Mutual Respect

Promote Effective Communication and Listening Skills

Brainstorm for Group Consensus

Act as a Third Party Mediator

Strategies to tackle with Cross Cultural Conflicts

• Cultural Awareness• Extensive interaction• Acceptance• Mutual respect • Enhance cross cultural

communication• Create a common corporate culture

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Cross cultural HR issues

Cross Cultural HR issues

• Impact of top tier management

– Multinational – USA/India/UAE/Japanese/Korean/European

– Core Values, key policies, management style

– System, Processes & Work Practices

– Joint Venture or chained

– Code of Conduct• Formal• Informal

• HR Policies

– Working Days, Working Hours, Leaves & Holidays

– Conglomerate design & structure

– Manpower cost/planning/hiring/induction

– Benefits management & compensation

– Performance & Potential Management

– Expatriation in & out– PF & miscellaneous fund raising

• Employee population mix

– Within India business situation

– Outside India business situation

– Social & cultural habits

– Foods & Etiquettes

– Management & leadership style

– Adaptation to alien-context – culture - working

• Work Culture

– Tendency of parent company in case of MNCs to have same work culture in an overseas company

– Disconnect between umbrella company culture & local context. Eg: Indian Subsidiary

– Misunderstanding due to lack of sensitization of local & social structure & cultural context

– Impact of blue collar workers – unions

– Morale, motivation, ownership & commitment of the work force

• Compensation & Benefits– Relatively low annual salary compared to Home

country Context

– High focus on variable Pay & bonuses and cash element rather than fixed salary & long term benefits

– Clear link of individual performance to variable pay & annual salary review

– Strong link of financial performance of the company to define variable pay & salary decision

Cross Cultural Theories

• Professor Geert Hofstede conducted one of the most comprehensive

studies of how values in the workplace are influenced by culture.

He defines culture as “the collective programming of the

mind distinguishing the members of one group or

category of people from others”. The six dimensions of national culture are based on extensive

research done by Professor Geert Hofstede, Gert Jan Hofstede, Michael

Minkov and their research teams.

• Professor Geert Hofstede conducted one of the most comprehensive studies of how values in the workplace are influenced by

culture. He analysed a large database of

employee value scores collected within IBM between 1967 and 1973. The data covered more than 70 countries, from

which Hofstede first used the 40 countries with the largest groups of

respondents and afterwards extended the analysis to 50 countries and 3 regions.

• The model of national culture consists of six dimensions. The cultural dimensions represent independent preferences for one state of affairs over another that distinguish countries (rather than individuals) from each other. The country scores on the dimensions are relative, as we are all human and simultaneously we are all unique. In other words, culture can be only used meaningfully by comparison. The model consists of the following dimensions 

This dimension expresses the degree to which the less powerful members of a

society accept and expect that power is distributed unequally. The fundamental issue

here is how a society handles inequalities among people.

Power Distance

Individualism Vs collectivism

The high side of this dimension, called individualism, can be defined as a preference for a loosely-knit

social framework in which individuals are expected to take care of only themselves and their

immediate families. Its opposite, collectivism, represents a preference for a tightly-knit

framework in society in which individuals can expect their relatives or members of a particular

in-group to look after them in exchange for unquestioning loyalty. A society's position on this dimension is reflected in whether people’s self-

image is defined in terms of “I” or “we.”

Individualism CollectivismIndependent

controlRelations with

groupGoals for one

selfSense of

belongingnessCompetitions with others

Harmony with others

Uniqueness is valued

Advise sought from others

Direct communication

Hierarchy important

Prefers to work alone

Prefer to work in groups

Individualistic countries

Collective countries

U.S Guatemala

Australia Ecuador

Great britain Venezula

Netherlands Indonesia, South korea, Taiwan

Masculinity Vs Femininity • The Masculinity side of this dimension

represents a preference in society for achievement, heroism, assertiveness and

material rewards for success. Society at large is more competitive. Its opposite, femininity,

stands for a preference for cooperation, modesty, caring for the weak and quality of

life. Society at large is more consensus-oriented. In the business context Masculinity

versus Femininity is sometimes also related to as "tough versus tender" cultures.

Uncertainty avoidance Index• The Uncertainty Avoidance dimension expresses

the degree to which the members of a society feel uncomfortable with uncertainty and ambiguity.

The fundamental issue here is how a society deals with the fact that the future can never be known:

should we try to control the future or just let it happen?

Countries exhibiting strong UAI maintain rigid codes of belief and behaviour and are intolerant of

unorthodox behaviour and ideas. Weak UAI societies maintain a more relaxed attitude in which practice counts more than principles.

Short term Vs long term• Every society has to maintain some links with

its own past while dealing with the challenges of the present and the future. Societies prioritize these two existential goals differently.

• In the business context this dimension is related to as "(short term) normative versus (long term) pragmatic" (PRA). In the academic environment the terminology Monumentalism versus Flexhumility is sometimes also used

Indulgence Vs restraint • Indulgence stands for a society that

allows relatively free gratification of basic and natural human drives

related to enjoying life and having fun.

 Restraint stands for a society that suppresses gratification of needs and regulates it by means of strict social

norms.

Application of model…Recruitment, Change management

Customer Service, Marketing

Outsourcing

Virtual Teams

Leadership

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A Sudden Exposure to unfamiliar Culture. . . !

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A Fish out of water. . . .!!

“Physical and emotional discomfort one suffers when coming to live in another country or a place different from the place of origin.”

( Sant Diego University)

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• Culture shock A person may experience it when he/she moves to a cultural environment which is different from his/her own and also is the personal disorientation a person may feel when experiencing an unfamiliar way of life due to immigration or a visit to a new country, a move between social environments, or simply travel to another type of life. One of the most common causes of culture shock involves individuals in a foreign environment. Culture shock can be described as consisting of at least one of four distinct phases: honeymoon, frustration, adjustment, and mastery.

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Culture shock is the feeling of disorientation, loneliness, insecurity or confusion that can occur when someone leaves his or her home country to live in a new culture. Culture shock may come with any of the following symptoms:

HomesicknessLonelinessDepressionNeed for more sleep than normalWithdrawal from social activitiesCompulsive eating or loss of appetiteStereotyping of and hostility towards host nationalsLack of energy

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• At the start, difference between the old and new culture is seen in a “romantic” light.

• Everything is wonderful and new.

• New food, new buildings, & new way of life.

• Anxiety arises when the difference between old and new become apparent.

• Biological Clock.• Miscommunication.

• One gets accustomed to the new culture.

• Things begin to seem “normal”.

• Culture begins to make sense.

• Full participation with new culture is finally achieved.

Honeymoon Frustration

AdjustmentMastery

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Cultural Training

Cultural Briefing

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•Provides a written set of situation that the trainee might encounter in living or working in the host country. Trainee selects one from a set of response to the situation and is given feedback as to whether is appropriate and why.

Cultural Assimilation

• Provides an opportunity for the trainee to go to the host country or another unfamiliar culture to experience living and working for a short time.

Field Experience

•Explain the major aspects of the host country culture including customs, traditions, every day behaviour.

Cultural Briefing

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• Explain the history, geography, economy, political and other general information about the host country region.

Area Briefing

• Allows the trainee to act out a situation that he or she might face in living or working in the host country.

Role Play

• Portray a real-life situation in business or personal life to illustrate some aspects of living or working in the host culture.Cases

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Cross Cultural Negotiations

Negotiation• Management’s ability to negotiate

productively effects their ability to implement strategies

• Negotiation is the process of discussion by which two or more parties

aim to reach a mutually acceptable agreement

• Negotiating across borders is more complex because of the number of stakeholders

involved

Process. . . .

Stage One – Preparation

• Negotiator must familiarize themselves with– The entire context and background of their

counterparts– To the specific subjects to be negotiated– Differences in culture, language, and environment

• Managers must have an understanding of their own negotiating style

Preparation• Managers should find out as much as possible

about– The kinds of demands that might be made– The composition of the opposing team– The relative authority that the members possess

• Develop a profile of their counterparts• They consider different variables during this

process as well

The Negotiation Process• Relationship building – taking time to build mutual

trust before starting business discussions– May require go-betweens– Be prepared to wait for the other party to start business

negotiations

• Exchanging task related information – during this stage each side makes a presentation and states its position, normally followed by a question-and-answer session– Role reversal: showing an understanding of the other

party’s viewpoint and needs

The Negotiation Process

• Persuasion – during this stage both parties try to persuade the other to accept more of their position while giving up some of their own; there are recognizable tactics for this stage– Stressful tactics

• Concessions and Agreements – at this point each side will make various concessions so that an agreement can be reached and signed

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CASE on MARUTHI

Glimpse of 25 years

Phase-I•1983- SMC(24%), Govt. of India(76%)•Market Dominance•Production Orientation•Trade Union Perspective

Phase-II•1995-SMC(50%, Govt. of India (50%)•Prod., M&S & People perspective•Initialization of competition•Customer Orientation

Phase-III•2008-SMC(54.2%), Listed in Stock Market•Intense Competition•Emphasis on Engineering Capability•Market orientation & talent perspective

Multi-cultural part• MSIL is a classy example of balanced mix of Indian & Japanese

culture in management styles:

Japanese•Long-term & detailed process•Long-term employment relationship•High Orientation to system/work practices•Strong character & commitment•Budget Process-Cost savings/reduction•Slowly/Lengthy Decision Making•Focus on Micro-business process

Indian•Rich in tradition & culture•High emotional quotient •High versatility-adaptability•Job Security•Orientation towards participative style•High sense of belongingness•Company & family connect

Conglomerate structure• Evolved a process of “Paired Leadership Model”

• Introduction of “Managing Executive Officer System” with focus on:– Policy Formulation & Key Decisions at board level– Execution of Key Policies & Decisions in day to day operations

• Benefits of New organizational structure:– Improved clarity & focus on key management responsibilities– Harmonization, leading to reduced compartmentalization– Improved coordination across the functions– Improved speed in decision making– Development & career enhancement process of Indian Professionals

MSIL’s training interventions• A well defined training module has been initiated at middle & senior management

level to:– Strengthen the bond– Address multi-cultural issues related to both Japanese & Indian employees

• The training program has been initiated with focus on:– Creating team synergy– Promoting culture of innovation– Enhancing risk taking abilities– Developing cultural sensitivity

• Language training has been brought in to bridge the language barrier; Specialized interpreters have been roped in to facilitate better understanding

• Effective communication across the company on regular basis across all levels divison

HR Ground Realities: Indian Context

• HRM, is strongly influenced by:– Local Culture– Social Norms– Local beliefs & practices

• Frequent failure of some MNCs:– A common mistake: overlooking the local ground realities under the

unconscious bias of their parent Corporate Culture, Policies & Practices

• People management in India or any other alien overseas operation cannot be successful managed in any “Japanese” or “American” or “Korean” or “Arab” or “European” way

HR Ground realities: Indian Context• Maruti is the most successful & live example of such business

success in India – The Suzuki Way – credit to Chairman O. Suzuki & the SMC Top Management Team.

• The team Govt. thus decorated Chairman O. Suzuki with – PADMA VIBHUSHAN – the highest Indian honor in year 2007

Concluding…

• Managing multi-cultural initiatives help an Organization keep a competitive HR advantage through:– Improved corporate culture

– Improved employee morale & higher retention of employee

– Enabling the organization to move into emerging markets

– Decreased interpersonal conflict among employees

– Increased productivity, innovation & brand identity

Concluding…

Developing a Global Corporate A Global Culture Global People & talent

potential