unit-1 mhr-106 cultural variables

7/31/2019 Unit-1 MHR-106 Cultural Variables

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Human and Cultural variables in Global Organization

This episode is one of the many other similar ones which

underscore the HR Challenges in preparing people for Cross

Cultural working. Organizational culture is one of the latest

concepts in the fields of management and Organizational

Theory. Culture which is popularly called as "Shared values andBeliefs" fulfils important functions.

1. It conveys the sense of identity for organizational members.

2. It enhances social system ability.3. It facilitates the generation of commitment to some thing

larger than self.

4. It serves as a sense of making device that can guide and

shape behaviour.

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For instance cultures differ widely in terms of

concepts of time. Besides the obvious

implications for punctuality, the difference alsolies in how people from different cultures use

their time. An understanding and sensitivity to

such cultural differences in behavior and

orientations is necessary perquisites to developcross cultural competencies.

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The roots of cultural differences in the business

practices lie much deeper. Business cultures in

different countries are molded not just by the

behavior of culture, such as social institutions,public system, public policy, legal frameworks

and culture specific social values. Since these

provide the cultural context, in which business

is conducted, they are as much if not moreimportant in understanding the culture

differences in business practices.

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Factors affecting cultural variables.

1. Social Institutions:-

Countries differs considerably in the kind of social

institutions they have e.g., the way their education

system functions, the way financial system works,the structures of governance etc. which have a

direct impact on how business is conducted in

that country. These social institutions are

important artifacts of the culture and oftenembody its basic values and assumptions.

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Example- Education System in Germany has a

heavy emphasis on technical and

apprenticeship training, which can be

historically traced back to the artisan's guides of the Middle Age. This system focus on imparting

hands on technical skills in which the students

get assigned at the very early age, beside this it

also influences the business practices bybringing the specific set of skills into job market.

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Similarly one finds the cultural values of

individualism and entrepreneurship embodied in

the American Venture Capitalist System. This

system legitimizes and encourages risk takingand going it alone behavior, but also creates a

business environment in which investors have a

major impact on how business is run.

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2. Public Policy and legal framework:- The

government policies and legal frameworks of different

countries also reflects the cultural values of the country.

These influences the business practices in 2 ways;

a) They determine the broader framework for doing

business in the country.

b) They influence and circumscribe the managementpractices within the company.

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Cultural values also influence the interpretation

and implementation of the laws. It determines

the nature of the laws, which have direct

implication for management practices within thecompany.

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Example: - Lifetime employment in Japan which is

rooted in the literal interpretation of Article 27 ofJapanese Constitution. It is supported by its

cultural values Shakaisei (Social Consciousness)and Tate Shakai (Social Hierarchy and

paternalism). In contrast US Constitution also

guarantees the right work,, the right cultural value

of self reliance and " each for him" does notsupport it.

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3. Societal Cultural Values:- The most pervasive

impact on the business culture and practices in a

country comes from the broad cultural values of

the society. These values influence the businessin different ways at different levels.

At macro level cultural values allow certain kinds

of business to flourish, while not providing theright climate for others.

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Example: - French culture is known for its emphasis

on elegance, criticism and concern for Norms.

The cultural values of the society define themeaning and reason of business and how it is

organized. In many cultures, high profits and market

capitalization are not the criteria for doing business.

Such cultural difference has direct impact on the

Strategic Orientation of companies across cultures.

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Example: - While US Companies emphasizes

more on the profit dividends

And stock prices, Japanese companies focusmore on new product development and market

share.

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At the end the cultural values have a major

influence on the way people relate to each other

and what they aspire for in a job. In many

hierarchical cultures (e.g. India, Japan etc) themeaning and value of job lies in the status more

than in the pay packet. In these countries

people also expect to be recognized for their

seniority and age. ON the other hand in moreegalitarian cultures ( USA, Germany etc) people

expect rewards and compensation for their

performance than their seniority.15



Therefore it is evident that developing people to adapt

to and operate across business cultures of different

countries, require an appreciation of aspects which

are deeper and more pervasive than just crosscultural differences in behaviour. While an

understanding of differences in behavioural

orientation and etiquettes help people in becoming

cross culturally literate but to develop truly crossculturally educated global managers, it is essential to

provide an understanding into the deeper structures

which mould the culture.16



The Role of Culture in Global Organization



1) Focuses on the human side of the organization

2) Facilitates in creation of appropriate systems, norms

and standards.

3) Provide shared meaning to help people to worktogether to achieve the desired goals.

4) Guide leaders to attached meaning to the behavior of

people in the organization

5) Guide organization to determine its relationship with

the environment.

6) Shapes the attitude of people

7) Gives an individual a unique identity 18



Culture

Helps us organize our world

Shared values, understandings, assumptions

and goals (values, beliefs, norms)

Learned from earlier generation

Imposed by present members of society



Cross-Cultural Variables

In the Culture at Large

Language

Use of space

Perceptions of time

Meaning of nonverbal behaviours

Degree of individualism or collectivism

High context or low context

Importance o f hierarchy

Use of silence

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In Business and Industry

Role of written communication (inform? persuade?

document? reinforce?)

Level of informality among co-workers

Criteria for success (individual and organization)

Oral presentation styles (relatively formal or

informal?) Emphasis on task versus relationships

Goals of business as a cultural institution

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In Education

Purpose of education: to push the frontiers of

knowledge? to pass on tradition? to education

students in disciplines? to education students in howto be good members of society?

Relationship between teacher and student: is theteacher a revered figure in the culture? is the teacher

the repository of wisdom or a facilitator

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who guides students?

Benefit of education: does education confer

status or prestige? can it be a detriment for

certain members of the culture?

Behaviour of students in the classroom: are

students expected to participate actively in theclassroom? can students compete with one

another? can students challenge the teacher?

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Cultural variables can also be explained interms of the following parameters

1. National variables: These variables are

applicable across the nations.2. Socio-cultural variables: These include

religion, education, and language.

3. Cultural variables: These consists of values,norms, belief and so on….

4. Attitudes: These are reflected through work,

sense of time, materialism, individualism and

change. 25



5. Individual and Group employee job behavior: These

are seen in motivation, productivity, commitment and

ethics.

National culture is also influence by the following:

1. Kinship: Which guides family relationships

2. Education: It effects workers performance level inthe organization

3. Economy: It influence the pattern of resource

allocation26



4. Politics: Which determined government system

5. Religion: It can often overpower all other aspect

of culture

6. Associations: These determined the nature of group and its predominance, eg. Formal group,

informal group.

7. Recreation: These too influence the attitude

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THANK YOU

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