IHRM and Multiculturalism

Learning objectives

Define culture Explain the importance of culture in IB Explain the concept of culture as three layers of meaning Describe the basic research findings of Hofstede and Trompenaars Describe the differences between convergence, divergence, and crossvergence Explain the importance of culture to IHRM Describe the importance of culture to the conduct of research in IHRM Explain the difficulties encountered when performing cross-cultural research

Overview

The importance of culture Cultural convergence and/or divergence Research in IHRM Impact of culture on IHRM

The importance of culture

A definition and description of culture

Culture is the characteristic way of behaving and believing that a group of people have developed over time

Understanding culture as layers of meaning

Surface or explicit culture Hidden culture Invisible or implicit culture Developing cultural understanding

Figure 3.1: The three layers of culture

Figure 3.2: Development of crosscultural competences

National and regional cultures

The research of Geert Hofstede Power distance Uncertainty avoidance Masculinity Individualism

The research of Fons Trompenaars Universalism versus particularism Collectivism versus individualism Neutral versus emotional Diffuse versus specific Achievement versus ascription

National cultural clusters

Anglo Arab Far Eastern Germanic Latin American Latin European Near Eastern Nordic Independent

Practical observations

Deal focus versus relationship focus Informal versus formal cultures Rigid-time (monochronic) versus fluid-time (polychronic) cultures Expressive versus reserved cultures

Dangers of oversimplification

Treating countries or cultures as homogeneous wholes Cultures change

Country culture versus MNE culture

Organizational culture and values Centralization/standardization versus localization/customization

Cultural convergence and/or divergence

Convergence: best practices Divergence: local cultural practices Glocalization: global and local

Forms of IHRM research

Cross-cultural research Multicultural research Research on HR practices in emerging market countries

Strategies to manage across cultures:

Increasing creativity and Innovation Demonstrating more sensitivity in dealing with foreign customers. Hiring best talent from any where Demonstrating a Global perspective. Creating a Super organizational Culture. Greater flexibility within the Organization to adapt to a wider range of environments. Evolve universally acceptable HR policies and practices.

Individual competencies:

Possess a strong personal identity. Have knowledge of the beliefs and values in a culture. Display sensitivity to the effective processes of the culture. Communicate clearly in the language of the given cultural group. Perform socially sanctioned behavior. Maintain active social relations within the cultural group. Negotiate the Institutional structures of that culture.

Key terms

National culture Organizational (MNE) culture Surface, hidden, and invisible culture Convergence, divergence, and crossvergence Low context and high context Power distance Uncertainty avoidance Masculinity Individualism Confucian dynamism Universalism and particularism