What do you understand by the term national culture Cultural Differences and People Management - Essay Example

? Cultural Differences and People Management Introduction The influence of globalization can be seen in most of the areas of human life segments. French (2010) labelled “Globalisation as a process in which the world appears to be converging economically, politically and culturally” (p.80). Business is one area in which globalization brought huge changes. Many of the established principles of business have undergone drastic changes because of globalization. Outsourcing and offshoring like new business principles brought fundamental changes in business management. Most of the prominent companies are operating internationally or cross culturally at present. As a result of that, it is inevitable for such companies to keep a diverse workforce for business success. French rightly pointed out that “In international ventures diversity is not an option – it is automatically part of the package” (French, 2010, p.84). Diverse workforce helps companies to reduce labour cost and exploit the expertise of cheap labour force available in overseas countries. However, management of diverse or multicultural workforce is not easy as the management of a single cultural workforce. Multicultural workforce often creates many challenges to the managers because of their contrasting interests. One of the major concerns created by international business or diverse workforce management is with respect to national culture. Since national culture of people from different countries varies immensely, it is difficult for the managers or executives to manage a diverse workforce effectively. Geert Hofstede and Trompenaars are some of the scholars who studied about the influence of national culture on cross cultural business management. This paper analyses the theories proposed by Hofstede and Trompenaars to know more about national culture and its implications on international business management. This paper also analyses why culture remains a core concept both for students of business and managers in work organisations. National culture Leung et al (2005) defined national culture “as values, beliefs, norms, and behavioural patterns of a national group” (p.357). It should be noted that the values and beliefs of one culture might not be the same of other cultures. For example, some cultures believe that killing of the enemies of their culture as a sacred act whereas other cultures believe that killing of even enemies is a sin. Same way some cultures believe that there is nothing wrong in keeping more than one wife whereas other cultures believe in marital relationships with only one woman at a time. It is not necessary that the perceptions of Chinese people about work be the same as that of the perceptions of Americans or Europeans. Chinese people are leading a mechanic life because of the autocratic administration whereas Americans and Europeans are leading much liberal life because of the democratic administrations prevailing in those regions. In short, national culture is a term associated with beliefs, values, norms, behaviour, political and social environments, etc. “Some cultures put more emphasis on universal commitments (like honesty) while others put more weight on loyalty to particular people and relationships” (Ghemawat and Reiche.2011, p.2). For example, people from some cultures are ready to tell lies in courts to save the life of their friends. On the other hand, people from some other cultures may not tell lies even for saving the life of their friend. Even though many scholars conducted extensive researches o know the importance of national culture in the management of diverse workforce or international business, the works of Hofstede and Trompenaars seem to be extremely important. Hofstede’s cultural dimensions According to Hofstede, “Culture is the collective programming of the mind distinguishing the members of one group or category of people from others” (Hofstede, n.d.). It should be noted that a person behaves and believes in a particular way because of the actions of his mind. For example, it is difficult for a child born and brought up in a Christian family to become a Muslim or Hindu later in his life. This is because of the fact that his mind is already programmed in a particular way by the teachings of his parents and community. Hofstede argues that each culture or community has some specific mind-sets, which are programmed in a particular way. It is difficult to change such programmed mind-sets easily. For example, Muslims like to have weekly off on Fridays whereas Christians like to have it on Sundays. This is because of their programmed mind-sets. While managing a workforce mixed with Muslims and Christians, managers will struggle to accommodate such contrasting needs of the diverse workforce. Hofstede has formulated five dimensions for national culture: Power Distance (PDI), Individualism versus Collectivism (IDV), Masculinity versus Femininity (MAS), Uncertainty Avoidance (UAI) and Long Term Orientation (LTI) (Hofstede, N.d.). (See Appendix 3 for country wise break up of dimensions of national culture). PDI refers to the extent of inequalities existing in the power or authority of people. In other words, it is the gap between the most powerful and least powerful people within a society. For example, in organizations with autocratic management style, the subordinates may have least power compared to the managers. On the other hand, in democratic organizations, the subordinates may have power slightly below than that of the managers. In other words, employees in democratic organizations may interact freely and work with more liberties. In some cultures, people like to work individually whereas in other cultures, they like to work collectively. Same way, some organizations encourage individual work whereas others encourage teamwork. For example, Apple is a company which encourages individual work over teamwork whereas Microsoft encourages teamwork. An employee joining Microsoft from Apple, may face lot of problems because of the distinctive work culture existing in these two organizations. Same way, an employee joining a Chinese company from an American company may also face difficulties because of the different beliefs with respect to IDV in these companies. Masculinity versus Femininity (MAS) refers to the distribution of roles between genders whereas UAI refers to the ability of people to avoid uncertain situations. Competitiveness, assertiveness, ambition and power are some of the masculine parameters whereas relationships and quality of life are some of the feminine parameters. In autocratic organizations, masculinity will be more whereas in democratic organizations feminine parameters will be more. Cultures with high value of UAI will approach issues emotionally and they will try to avoid uncertainty as much as possible. They do only one thing at a time. Long term oriented societies look for the future while giving less importance to the needs of present. Why French argues that Culture remains a core concept both for students of business and managers in work organisation? As mentioned earlier, diversity in workforce is not a myth but a fact in modern organizations. Diverse people always work in accordance with their inherited cultural values and parameters. It is necessary for students of business and managers in work organisations to know about the cultural traits of diverse workforce to formulate effective management strategies for them. Even in the same culture, no two individuals are alike either physically, or mentally. In the case of diverse culture, the physical and mental abilities of people vary much deeply than that varies in a single culture. Diversity can affect an organization’s functioning through four types of mediating variables. First, diversity can have “affective consequences”, such as lower organizational commitment or lower satisfaction. Second, “cognitive outcomes” refer to an increase in creativity and innovation. Third, a diverse organizational workforce is a symbol of equality. And last, diversity also has clear implications on the communication process within a group or organization (Mazur, 2010, p.10) An American, who works for an American organization may not demonstrate the same organizational commitment while works for a Chinese or Indian organization. The feeling of nationalism is inherited in the blood of majority of the people or employees. So, they will work hard for national organizations and work less for foreign organizations. Mangers should realise such elements of nationalism in the minds of diverse employees while formulating strategies for them. They should treat all the employees equally well irrespective of the cultural differences. When foreign employees develop a feeling that they are getting equal opportunities and considerations along with the local employees, they will try to forget about the feeling of nationalism and work hard in favour of the organization. Language, environment, social organizations, Context, authority, nonverbal communications, and Time conceptions (Cross-Cultural/International Communication, 2012) are some of the parameters which may affect cross cultural communication. It should be noted that these parameters are different for different cultures. For example, Americans shake hands with others to make their respect whereas Chinese people bow their head and Indians hold their hands together and say “Namaste” to greet others. Muslims mostly embrace each other to greet others. In short, cultural parameters of greeting and marking respect are different among different cultures. In cross-cultural communication, knowledge of these cultural traits is extremely important. For example, an American employee working in a Chinese firm may struggle to understand the messages delivered by his Chinese counterparts because of his lack of knowledge in Chinese culture. HR Managers should make sure that the employees get enough knowledge about the national culture of the foreign country to which they are deputized. “Efficiency is doing things right, whereas effectiveness is doing the right thing. Successful organisations balance efficiency and effectiveness through its application of diversity management policies that support efficiency by ‘doing things right’, and enhances effectiveness by ‘doing the right things’” (Worman, 2005, p.17). Both efficiency and effectiveness are the two sides of the same coin. In other words, it is difficult to have efficiency without effectiveness or vice versa. Efficiency and effectiveness of a diverse workforce depend on the management styles of the managers or the organization. It should be noted that diversity has many dimensions (See Appendix 1). Moreover, it is not necessary that different communities in a particular culture behave in the same manner. For example, the Cultural traits of Catholics and Orthodox believers are entirely different (See Appendix 2). It is the duty of the managers and business students to account for the cultural traits as well as community traits while formulating strategies for a diverse workforce. Trompenaars’ cultural model will help us to understand the arguments of French clearer. Trompenaars’ model After around ten years of extensive research, management consultants Fons Trompenaars and Charles Hampden-Turner published Seven Dimensions of Culture in 1997; Universalism versus particularism, Individualism versus communitarianism, Specific versus diffuse, Neutral versus emotional, Achievement versus ascription, Sequential time versus synchronous time and Internal direction versus outer direction (The Seven Dimensions of Culture, 2012). Universalism versus particularism is often labelled as rules versus relationships. In some cultures, people give more emphasize to rules whereas in other cultures people give more importance to relationships. A manager who is giving more importance to rules might not give that much importance to relationships since it is difficult for these two to travel in parallel directions. Individualism refers to belief in individuals whereas Communitarianism refers to the belief in Group. This parameter is analogues to Hofstede’s cultural dimension IDV. So it is not explained in detail here. The term Specific in Trompenaars’ model refers to the ability of workers to isolate personal work from professional work whereas diffuse refers to those workers who see interference between their personal work and professional work. For a manager, it is easy to manage workers in the specific category, but it is difficult for them to manage workers of diffuse category. Workers in specific category will complete their task with utmost perfection whereas workers in diffuse categories may not concentrate much in their work because of the interference of personal matters in their work. Same way, employees in the category of neutral can be easily managed whereas it is difficult to manage employees in the emotional category. Neutral employees accept rewards and punishment with a sportsman spirit whereas emotional employees take all the actions of the managers with certain degree of emotions. Achievement Versus Ascription refers to how employees view their status. For example, an American and Indian working in the same position for a company may have different feelings about their status. While the Indian may try to establish his position through achievements, American may try to establish his position through ascription. Managers should recognise such cultural traits well before formulating management strategies for each of them. It should be noted that individualised management strategies are necessary for a diverse workforce. The conceptions of time and environment are different for a diverse workforce. Employees from some cultures might be monochromic (those who have belief in doing one thing at a time) whereas employees from other cultures could be polychromic (those who have belief in doing many things at a time). Moreover, employees some cultures exhibit more commitments towards environment whereas employees from other cultures may exhibit less commitments towards the environment in which they work. All these parameters should be studied well by the business students and managers of organizations to implement suitable management strategies for each member of the diverse workforce. Conclusions Globalization has brought many challenges along with opportunities in the business world. One of the major challenges facing by modern organizations is the management of diverse workforce. The needs of employees from different cultures are not at all the same. In certain cases, the needs of employees from one culture could be entirely different from that of the employees of other culture. Managers and students studying businesses should recognize the needs of the diverse workforce well before formulating management strategies for them. References Cross-Cultural/International Communication. 2012. [Online] Available at: http://www.referenceforbusiness.com/encyclopedia/Cos-Des/Cross-Cultural-International-Communication.html [Accessed 30 October 2012] French, R., 2010. Cross-Cultural Management in Work Organizations. Publisher: Chartered Inst of Pers/Develop; 2nd Revised edition (March 1, 2010). Ghemawat, P. & Reiche, S., 2011. National Cultural Differences and Multinational Business. Globalization Note Series. [Online] Available at: http://www.aacsb.edu/resources/globalization/globecourse/contents/readings/national-cultural-differences-and-multinational-business.pdf [Accessed 30 October 2012] Hofstede, G., N.d. National cultural dimensions. [Online] Available at: http://geert-hofstede.com/national-culture.html [Accessed 30 October 2012] Leung, K., Bhagat, R.S., Buchan, N.R., Erez, M. & Gibson, C.B., 2005. Culture and international business: recent advances and their implications for future research. Journal of International Business Studies (2005) 36, 357–378. Mazur, B., 2010. Cultural Diversity in Organisational Theory and Practice. Journal of Intercultural Management. Vol. 2, No. 2, November 2010, pp. 5–15. Making Sense of Cross Cultural Communication, 2012. [Online] Available at: http://www.clearlycultural.com/geert-hofstede-cultural-dimensions/masculinity/ [Accessed 30 October 2012] The Seven Dimensions of Culture, 2012. [Online] Available at: http://www.mindtools.com/pages/article/seven-dimensions.htm [Accessed 30 October 2012] Worman, D. 2005. Managing Diversity Linking Theory And Practice To Business Performance. Chartered Institute of Personnel and Development (CIPD). April 2005. Appendix 1 Dimensions of Diversity Primary dimensions Secondary dimensions Tertiary dimensions • Race • Ethnicity • Gender • Age • Disability • Religion • Culture • Sexual orientation • Thinking style • Geographic origin • Family status • Lifestyle • Economic status • Political orientation • Work experience • Education • Language • Nationality • Beliefs • Assumptions • Perceptions • Attitudes • Feelings • Values • Group norms (Mazur, 2010, p.7) Appendix 2 Cultural traits of Catholics and Orthodox believers For Orthodox believers For Catholic believers • a group is more important than an individual person, a group cannot be wrong, the group’s representation works for all the group members • an individual is responsible for his/ her life and is independent from other members of the group, has ability to critical self-assessment and difficulty to create a group in organization • passive attitude is characteristic, authorities can make decisions concerning individuals without giving a reason standing behind them, no instructions are given • active, rational and social attitude is specific, explaining and instructing is important • phenomena are unrecognisable, rational arguments are not useful for attaining truth which has no logical nature; they have distaste for strict and conceptual thinking, they reveal preferences for emotional experiences and influencing sub consciousness • rationalism, gaining knowledge by learning, appealing to intelligence and logic are distinctive • the only freedom possible to achieve by humans is spiritual, the necessity of choices limits human liberty • freedom means the freedom of choice which together with responsibility is the most important value • any award results from approaching to organizational power or authorities. For being awarded individual must change and fit to its expectations • to deserve an award men should take actions which lead to reward. Any reward is always a natural consequence of desirable behaviour (Mazur, 2010, p.11-12) Appendix 3 Country PDI IDV MAS UAI LTO Japan 54 46 95 92 80 Hungary 46 55 88 82 Austria 11 55 79 70 Venezuela 81 12 73 76 Italy 50 76 70 75 Switzerland 34 68 70 58 Mexico 81 30 69 82 Ireland 28 70 68 35 Jamaica 45 39 68 13 China 80 20 66 40 118 Germany 35 67 66 65 31 United Kingdom 35 89 66 35 25 Colombia 67 13 64 80 Philippines 94 32 64 44 19 Poland 68 60 64 93 Ecuador 78 8 63 67 South Africa 49 65 63 49 United States 40 91 62 46 29 Australia 36 90 61 51 31 New Zealand 22 79 58 49 30 Czech Republic 57 58 57 74 Greece 60 35 57 112 Hong Kong 68 25 57 29 96 Argentina 49 46 56 86 India 77 48 56 40 61 Belgium 65 75 54 94 Egypt 80 38 52 68 Iraq 80 38 52 68 Kuwait 80 38 52 68 Lebanon 80 38 52 68 Libya 80 38 52 68 Saudi Arabia 80 38 52 68 United Arab Emirates 80 38 52 68 Malaysia 104 26 50 36 Pakistan 55 14 50 70 Brazil 69 38 49 76 65 Singapore 74 20 48 8 48 Israel 13 54 47 81 Ghana 77 20 46 54 16 Indonesia 78 14 46 48 Nigeria 77 20 46 54 16 Sierra Leone 77 20 46 54 16 Taiwan 58 17 45 69 87 Turkey 66 37 45 85 Panama 95 11 44 86 France 68 71 43 86 Iran 58 41 43 59 Peru 64 16 42 87 Spain 57 51 42 86 Ethiopia 64 27 41 52 25 Kenya 64 27 41 52 25 Tanzania 64 27 41 52 25 Zambia 64 27 41 52 25 El Salvador 66 19 40 94 South Korea 60 18 39 85 75 Uruguay 61 36 38 100 Guatemala 95 6 37 101 Thailand 64 20 34 64 56 Portugal 63 27 31 104 Chile 63 23 28 86 Finland 33 63 26 59 Costa Rica 35 15 21 86 Denmark 18 74 16 23 Netherlands 38 80 14 53 44 Norway 31 69 8 50 20 Sweden 31 71 5 29 33 (Making Sense of Cross Cultural Communication, 2012) Read More