Cross Culture and Human Resource Management - Essay Example

CROSS CULTURE AND HUMAN RESOURCE MANAGEMENT Table of Contents Table of Contents 2 Introduction 3 Cultural Differences in Operational styles of UK andIndia: 3 Factors influencing the behaviour of expatriates in host environment: 8 Advantages and Disadvantages of working in bicultural managerial team 10 Benefits and drawbacks of devolving managerial responsibilities of HR to Indian management team 12 Conclusion 13 Reflective report 13 Reference List: 15 Bibliography 19 Introduction Cross cultural diversity is one of the primary issues being dealt within the corporate management processes all over the world. As business structures, environment and approaches are changing, the complicacies faced in management of the internal functions and performance of the firms is also growing in numbers. In the words of Borofsky (2007) as the concept of globalization started getting accepted by the firms and multinational organizations began to increase, the impact of cultural factors on the business decisions started showing themselves. Deal and Kennedy (2008) however focus in aspect of competition that urged the business houses to look for new markets and customer groups in order to enhance their scope of business and signified competition as one of the primary drivers in the inclusion of cultural factors in the business domain. Focusing on the functional aspect of the human resource processes of the business, Hampden-Turner (2009) stated that the two most essential roles of the HR managers is to ensure employee engagement and commitment towards their organizational responsibilities. This research is focused on establishing a subsidiary for British pharmaceutical company GlaxoSmithKline in India. The process of developing the subsidiary will undergo through many cultural challenges and analysis of the business environment of India. For the initial market research process, GSK will send some British managers for understanding the process of designing the functions for the India based subsidiary. The group of managers selected include 3 male and 2 female individuals out of which the female managers are married and will be travelling with their families. This also brings in the aspect of adapting to the social structure of India for all the managers. The personal reflections of the managers will also be considered in forming the report regarding the cultural environment of India. The responsibilities of the subsidiaries will be mainly related with evaluation of the critical cultural and environmental factors that can influence the operations of GSK. Cultural Differences in Operational styles of UK and India: Culture is one of the most crucial aspects of the human behaviour, their decision making processes and choices made while taking actions for fulfilling their goals. Based on this assumption the observation of Bate (2008) highlighted that culture influences the decisions and behaviour of a group of people and forms the basis of differentiation of one group from another. Thus, culture can consider as means for segregation of the global population based on their beliefs, behaviour and style of living. In order to assess the influence of culture in the work places of the business houses Geert Hofstede conducted an extensive survey on the employees of American technology firm IBM and formed the mode of cultural dimensions (Brown and Starkey 2008). The model of cultural dimensions highlighted five primary cultural aspects that influence the choice and actions of the employees within the corporate sector. The original model of Hofstede was developed with four primary factors that are power/distance, masculinity, individualism and uncertainty/avoidance (Hofstede 1980). Later on the aspect of Long-term orientation was included in the year 1991 and further addition was made by including indulgence in 2010 (Greger 2008). This section will analyse the issues and barriers faced by the concerned group of managers operating in India for GSK: Figure 1: Comparison of cultural dimensions of India and United Kingdom (Source: Geert Hofstede, 2015) It can be identified from the given figure that the level of power distance in India is relatively high (77) in comparison to UK (35). This shows that the dependency on the superiors and managers of an organisation is high in comparison to that of the UK. The directions of work and decisions are taken by the top authorities of an organisation while the operational level employees are expected to perform in accordance to the decisions of their leaders. The British managers in this context have a different experience as UK work process requires the employees to take decision and act. The managers will initially not be able rely on the decision making skills of their subordinates. In order to manage the diversity among the employees, the group of managers have to understand and study the various concepts that are embedded among the Indian population (Brannen and Peterson 2009). Apart from this, the influence of the political system of India on the corporate activities is high. The managers of GSK will thus have to identify any source or contact who can help them in managing the barriers created by the political structure of India in the establishment of GSK subsidiary. For some cultural groups, acceptance towards new culture and ethnicity is natural while other religious and ethnic groups tend to restrict themselves within their cultural framework and prevent outsiders from penetrating their cultural beliefs (Felix Thomas and Jenifer 2013). The managerial policies in UK do not support inequality among their employee base on the basis of their ethnicity or cultural differences. Thus, the primary approach of the managers will be to frame the work structure of the company on the basis of performance rather than the social and cultural concepts. The score given in the above graph shows India’s score as 48 and indicates a balance between the need for collectivism and individualism in the social structure. It means need of accepted in a higher and larger social framework exists among the individuals and in corporate terms reflects the need for teamwork for overseeing the organisational scaffold. On the other hand, the dominant religion of India is Hinduism which also highlights the individualistic aspects present among the Indian nationals (Schein 2006). Messner (2013) stated that the Indian employee base has a high tendency towards collective work that can alter the work structure of the business. The managers will also find it difficult to align the personal interests of various religious and cultural individuals working together and hence it can be difficult to enhance the responsibility of the employees regarding their own structure. In order to ensure that the employees can perform their own duties in an individualistic manner the managers should try to identify the potential and existing skills of the employees and hence allocate their jobs accordingly (Colella and Miller, 2009). This will also help in reducing the cultural influence on the work practices of the subsidiary. The gap between the masculinity score of India and UK are relatively less (56 and 66 respectively). India has always tried to reflect their strengths and capabilities. The work structure of the companies operating in India is highly influenced by competition and the achievements of the individuals to be positioned at top of the chain (Leung, et al 2008). On the contrary, the culture of UK is designed with the concept of personal interests that also directs the professional choices of the individuals. UK managers may find it hard to generate employee engagement and commitment towards the organisational causes. However, based on the given score, it can be observed that UK work culture also follows a similar trend that judges the performance of the employees on the basis of their achievements and hence the managers should not find it difficult to design the work structure and work environment. India portray low score of 40 in this respect that signifies that a low approach towards avoidance of uncertainty. Au and Fukuda (2002) observed that in India there exists a basic acceptance towards imperfection and the members are ready to change the initial plan of action based on the situation. The group of managers thus operating in India will find it difficult to develop a perfectionist approach among their employee base. Also adjustments and adaptations are important aspect of a character in order to succeed and thus it is believed that adjustment can covert the impossible to possible (Jindal, Sharma and Bagade, 2013). The employees will not be ready to progress in a situation where there can be risks. On the contrary, UK reflects that they are happy not knowing the uncertainty or risks and plan according to the changes in the situations being faced with. The managers will have to design their management technique in a manner which can control the flow of information among the employee base. This will help them in segmenting the activities and also develop higher efficiency among the employee base of the firm. It can be stated that the people believe towards the theory of karma where the past and present actions of a person defines their future life. Also other religious groups existing in India have a similar belief and thus aim to fulfil the ultimate objective of their life. It will be easy for the managers to develop a disciplinary employee base if they can relate the work structure with the cultural objectives of the employees. Considering the ability of the employees to engage in long-term objectives, the managers will have limited barriers for aligning the personal objectives of the employees with the organisational objectives. Benet-Martinez, et al. (2002) noted that UK work culture also follows a similar trend and thus managers can also instigate changes in the strategic approach which will not demoralise the employees. The score of India in this respect is 26 that show high cultural dominance and scepticism supported by distrust. The managers will have to understand that people belonging to this group have a basic concept that their actions and decisions are being guided by their social norms and religious values and must correspond to these factors. The indulgence of cultural and social significance in the work processes of the firms will also harm the overall objectives for the organisation (Brannen 2009). Also as Indian culture has high make dominance, the female managers may have to endure rough behaviour from the male employees. The concept of an open work structure that can include females as an inherent part of the workforce is yet to develop in India. This will be crucial prospect for designing the work structure of GSK subsidiary. The managers will have to design their training and development process by including these factors so as to reduce hostility among the employees related to gender discrimination. Factors influencing the behaviour of expatriates in host environment: In relation to the analysis of the cultural dimensions evaluated in the preceding segment of the report, the external factors that govern the actions of external members of a society will analyse in segment. The managers will find it difficult to adjust with the political influence of India that imposes intense authority over its corporate sector including both public and private operations. The political structure of India is democratic in nature and has high value for all the religious groups existing in the nation in order to generate vote banks (Nguyen and Benet-Martinez 2007). Also the managers have to deal with the sub-political structures are increasing rapidly in the nation on the basis of their different social and religious categorisation. For instance, a political party named Bahujan Samaj Party focuses on the upgradement of the lower caste people of the society while the contemporary ruling party is known as Bhartiya Janata Party that is highly criticised for its Hindu focused approach (Jindal, Sharma and Bagade 2013). The managers have to reduce the personal emotions in the work place in order to reduce the influence of political behaviour among the employees. They also have to understand that political activities within in Indian workforces are also triggered from cultural or social disputes and thus should focus on designing an individualistic work structure where the personal interests of the employees do not clash with each other (Black and Gregersen 2000). Designing the pay structure and the reward structure of the workforce in India will be the toughest challenge for the managerial group of GSK. Apart from this, the managers will find it difficult to designate the roles of the employees in accordance to their skills as employees belonging from well-to-do families may not be ready to work with lower level employees. The economic disparity within the national population is of high value to differentiate the social status of the people. Economic interdependence is high in India is also related with the family ties of an individual (Tadmor and Tetlock 2006). The pay structure designed by HR managers of the multinational firms has to consider the power distance score of the country in this regard (Thomas, et al 2008). Thus, the incentives, increments of an individual employee are decided based on the designation and the gap between the income of the superior and the lower level employees. The managers have to maintain this gap in order to design their pay structures and also relate to the economic balance that exists within the society (Marquardt and Horvath 2001). Also the treatment of the various cultural and social groups by the Government and other regulatory bodies of the country also influence the framework of the organisations regarding their employment standards and organisational statistics. On the other hand, scholars such as Brannen (2009) stated that existence of gap in economical standards is essential in the population of a country and also in the employee base of a country in order to ensure that the management can easily segregate their workforce with criteria of roles, responsibilities, skills, qualifications and approach towards work. The managers must note that the social beliefs and cultural ties of the members of Indian population are high and control almost all the decisions of the people. The barriers for the managers in this regard will be design their functional aspects in relation to the social beliefs ans behaviours of the employees. Also the expectations of the employees will differ in accordance to their social class which will disrupt the reward and compensation structure of the company. It has to be noted that upbringing of the individuals reflect their desires and expectations from their professional streams (Lau and Murnigham 2005). Apart from this, aspects such as social recognition, status and values are of high regards to the Indian employee base and hence these have to include the managerial policies of company. However, the primary barrier in this context is the diversity of culture that also changes the expectations of the employees and thus brings in discrimination from the employees (Kirchmeyer and McLellan 1991). Hence, the managerial should focus on developing a shared vision among the workforce which can be related with their personal needs. One of the most practical processes for aligning employee needs is to design reward structures with monetary rewards which can help the employee in gaining a higher social statute and also enable him/her to lead a well settled life. Thus there should be a lucrative pay structure which can attract the employees towards the organisational culture rather than the social believes of the workforce. The issues of safety for the managers will mainly relate with designing and implementing the rules of organisational health and safety. The aspect of safety in the organisational structures that are prominent in India is moderate. Because of the high population of the country the labour cost is low and thus manufacturing units can recruit large number of people ignoring the capability of the factories to sustain their employees in a healthy environment (Cameron and Quinn 2011). This is also connected to the fact that foreign MNEs are outsourcing their operational processes in India because of the high production capabilities and thus the requirement of the manufacturing units is also elevated. Price (2007) noted that many multinationals such as Adidas, Primark have been accused of using sweatshops operated in India for manufacturing their products and other merchandises. On the other hand, the economic misbalance in India is also urging the employees to engage in risky work which reduces the responsibilities of the managers towards the health and safety of the employees. The managers can implement fines or other penalties for ensuring that the employee base is aware of the organisational policies and follows them. Advantages and Disadvantages of working in bicultural managerial team Cultural diversity is a non-ignorable aspect of the corporate practices and operations, in the contemporary scenario. The expansion of business processes fuelled by technology, globalisation and competition has indulged numerous social, cultural and religious groups to work under a common management. However, there are both benefits and demits to the concerned form of work culture. DiBella (2008) noted that the organisational culture of an organisation should be able to amalgamate the expectations of the employees with the organisational objectives and hence diverse culture create barriers in process because of differences in the needs of employees belonging to different ethical or social background. Muse, et al (2008) argued that bicultural work environment is one of the most unique segments for developing the skills and knowledge base of an individual. The changes in the work approach and decision making styles of the colleagues enable an individual to evaluate and understand the gaps in his/her work process and adapt to the work scenario. In addition to this, bicultural work practices also include an array of strengths and weaknesses developed form the cultural aspects of the business (Benet-Martinez and Haritos 2005). It has to be considered that the work processes of the bicultural management also facilitate an individual to grow new skills and survive in unknown conditions. Benet-Martinez, Lee and Leu (2006) mentioned that organisational approaches towards bicultural management are strengthening because of the needs generating from the business development and growth strategies. However, bicultural management have two primary faults namely, communication and integration. Designing a common platform for communication among the employees can be a difficult process within a bicultural management. The differences in language create a major barrier for inter-department and superior communication within the work structure of a firm (Jehn and Mannix 2001). Focusing on aspect of integration, as mentioned above the difference personal needs and expectations of the employees creates barriers for development of a uniform work culture and hence can hamper the overall performance and productivity of the firm. Related with the aspect of integration, the decision making processes of the bicultural management systems are also complicated in nature. Messner (2013) noted that the cultural backgrounds of the employees also influence the framework of their experience and their response to various situations. Thus, a managerial team formed of individuals belonging to different cultural groups will initiate differences in the decision making process and hence the management process will be complicated. Although vision of the managers can be aligned but their approach towards achieving the goals can be different which will result in implementation of different work structures within a single organizational framework. Benefits and drawbacks of devolving managerial responsibilities of HR to Indian management team The operations of GSK in India will have to be massive changes in context of managing their functional departments and the human resource management of the company. The changes in the organisational structure of the firms will also focus on the creating new strategies for designing their work culture and ensuring proper utilisation of the people management of the company in accordance to their cultural and social norms (Gerhart and Fang 2007). Thus, considering the situation that the expatriate managers decide to distribute their roles among the local employees, there can be some benefits and drawbacks to the concept. The initial benefit this notion that as locals are more accustomed and knowledgeable regarding the preferences of the employees, skills and the influence of the religious and cultural backgrounds, the HR policies of the company can be framed with a specific focus on the organisational needs. In context of work culture management, Kirkman, Gibson and Shapiro (2001) mentioned that understanding the requirements, behaviour and influential factors of the employees will help a management in aligning the aims and interests of the company with that of their employees. Another factor will be the development of the recruitment and selection process, as the locals would know the condition of the job market better, they can also assess the potential contribution of the employees and their abilities to continue as a successor for the organisation in the future. Salk and Brannen (2000) however criticised that relying on the locals can also distract the policies and the organisational functions from the goals set by the top management. This could lead to development of misconception and erroneous decisions in the business process. Also Simons and Peterson (2000) added that locals can be biased towards certain employees which can also reduce the efficiency of the work process of the firm (Hur 2013). Most importantly in context of organisational functions such as recruitment, selection and performance appraisal, biasness can prove to be damaging for employee motivation and employee commitment towards the organisational goals. Biasness within operational levels also hampers the relationship between the employees and the managers. Relating the work process of GSK with the distribution of work among the local employees of India, it can be identified that the primary nature of the functions are decentralised which allows them to focus on the individual aspects of the work structure and the employee behaviour. Another critical reflection business process in GSK in context of their operations in India is the segmentation of incentives for the top management and the lower level employees. The lower level employees are more focused towards their physiological needs such as incentives, bonuses and increments while the employees functioning in the higher designations are focused towards social recognition and status (Cameron and Quinn 2011). These differences can better judged by the local employees rather than the expatriate managers of the host nation. Conclusion The importance of cultural influence and cultural diversity in the workforce management and work structure designing has increased in the business functions of the firm. The changes in external and internal prospects of management have also lead to alterations in the human resource management functions of multinational organisations. The report main focus the changes in practices of GlaxoSmithKline in respect of their functions in India and UK and evaluated them with cultural diversity in cross border business functions. The implementation of the cultural dimension model on the both the countries highlighted the major traits of their respective population. Also various managerial aspects such as the delegation of roles and responsibilities and the implications of working in a bicultural management processes are based on the nature of the structure. Overall it can be concluded that as most of business houses are trying to expand to new markets factors such as cultural diversity, operating in bicultural platforms, and entrustment of organisational responsibilities are also increasing within the firms. Nevertheless, the bottom-line of the evaluation remains that organisations should evaluate their decisions and approaches towards the cultural influences based on their strategic goals and objectives. Reflective report Working in a multicultural group is one of the most thrilling experiences I have ever had. Initially I was afraid and was not confident about position in the team, nor did I have any clue regarding how to communicate with my team members and adapt to the scenario at hand. However, as I started working with my team mates, I came to realise their needs and expectations and the influence of the culture background on their working styles. It was evident that the only way I could make myself comfortable was to communicate with them also try to understand their values in appropriate manner. I could relate this report with my personal experience as I saw the decisions taken by some team members were purely related with their social experience and upbringing. Focusing on the learning from the report, the utilisation of the cultural dimension model of Geert Hofstede was both delightful and challenging for me. I was thrilled to study the cultural, social and religious traits of India which is land of many religions and culture. Not only the influence but the logical conclusions that were generated by the use of the model helped us in understanding the process implemented by the concerned focus group for using their cultural experiences in the professional decision making process. I was of the view that working in a bicultural management process it would be difficult to perform as language would be basic problem in communication and understanding of responsibilities. However, after completing this segment of the report, I observed that bicultural workplace can enhance the scope of knowledge gathering and sharing and also help in developing new skills for surviving in a competition filled scenario. Nevertheless, I also have to careful about interpreting the specific directions that I receive from superiors or colleagues belonging to different ethical backgrounds. I would like to conclude that the overall experience of performing this task was challenging and also at the same time entertaining. Gathering knowledge regarding the cultural aspects of another country such as India was engaging. India is known to be a cultural hub and the largest secular nation in the world. 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