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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