Week 2 MULTICULTURALISM

[Audio] International Human Resource Management Week 2 Multiculturalism Course Instructor: Dr Aneeq Inam.

[Audio] Learning Objectives After reading this chapter, you should be able to: Understand the nature of culture and how is it different from multiculturalism. Describe how do organizations manage across cultures. Understand communication challenges in a multicultural setup. Understand how countries can be compared on cultural dimensions. Describe the impact of an individual’s work values on the subsidiary/parent country’s operations.

[Audio] Culture Defined Culture is understood as the customs, beliefs, norms and values that guide the behavior of people in a society and are passed on from one generation to the next Definition of Culture: Culture refers to the customs, beliefs, norms, and values that shape how people behave in a society. Example: Greeting practices—In Japan, people bow to show respect, while in the United States, a handshake is common. Customs: Customs are traditional practices followed by a group of people. Example: Festivals—Thanksgiving in the United States involves a large meal with turkey. Beliefs: Beliefs are the ideas that people hold to be true. Norms: Norms are the unwritten rules of behavior in a society. Example: Dress codes—In many Middle Eastern countries, wearing modest clothing is a norm, while in Western countries, the dress code is often more relaxed. Values: Values are the principles or standards of behavior considered important in a society. Example: Individualism against Collectivism—In the United States, individual achievement is highly valued, while in Japan, the well-being of the group is often prioritized. Transmission of Culture: Culture is passed from one generation to the next through socialization. Example: Family traditions—Parents teach their children how to celebrate cultural holidays like Christmas or Eid. Importance of Culture: Culture helps maintain social order by providing a set of guidelines for behavior. Example: Laws and Ethics—Cultural values influence the creation of laws and ethical standards in a society. Adaptation of Culture: Culture can evolve and adapt over time, influenced by factors like globalization. Example: Fusion cuisines—The blending of different culinary traditions, such as Mexican-Korean fusion food, is a result of cultural adaptation. Source of the picture: ChatGPT.

[Audio] Features Of Culture It has a normative value: It prescribes do’s and dont’s which are binding on the members of a society. It is a group phenomenon: Culture applies to the members of a society. Society’s normative values are binding on each member and not vice versa. Passing on cultural practices: Cultural practices are passed on from generation to generation..

[Audio] Levels Of Culture Dominant Culture Sub-culture Organizational Culture Occupational Culture Dominant Cultures: Definition: The dominant culture is the set of norms, values, and practices that are most prevalent and influential within a society. It often represents the majority group's way of life and is usually the most visible culture in public life. Examples: In the United States, the dominant culture emphasizes individualism, democracy, and capitalism. Language: English is the dominant language in many countries, even in those with multiple languages. Media Influence: Western media, particularly Hollywood movies, reflects the dominant culture of Western ideals and lifestyle globally. Sub-Cultures: Definition: A sub-culture is a group within a larger culture that has its own distinct set of values, beliefs, and practices. Sub-cultures often form around shared interests, lifestyles, or social identities and can sometimes challenge the dominant culture. "unity in diversity". Examples: Youth Sub-Culture: Skateboarders or hip-hop communities have unique styles, slang, and values distinct from the mainstream culture. Organizational Cultures: Definition: Organizational culture refers to the shared values, beliefs, and practices that shape the behavior and interactions within a particular organization. It influences how employees interact with each other, how decisions are made, and the overall work environment. Examples: Google: Known for its organizational culture of innovation, openness, and employee empowerment. The casual dress code, open workspaces, and emphasis on creativity reflect this culture. Military Organizations: Typically characterized by a hierarchical structure, strict discipline, and a culture of loyalty and obedience. Non-Profits: Organizations like the Red Cross often have a culture centered around service, altruism, and a strong sense of mission. Occupational Cultures: Definition: Occupational culture refers to the shared values, norms, and practices that are specific to people within a particular profession or occupation. These cultures develop from the specific demands, challenges, and experiences unique to a profession. Examples: Healthcare Professionals: Doctors and nurses share a culture focused on patient care, ethics, and a commitment to lifelong learning. The emphasis on confidentiality, empathy, and quick decision-making is part of their occupational culture. Law Enforcement: Police officers often share a culture of solidarity, risk-taking, and a strong sense of justice. The emphasis on following procedures and maintaining public safety is central to this culture. Academics: Professors and researchers typically value intellectual rigor, independence, and the pursuit of knowledge, forming an occupational culture centered on scholarly activity and academic freedom..

[Audio] Culture as a Clan Culture as a Barrier in Mergers & Acquisitions Benefits of a Well-Developed Culture Control Mechanism Promotes Innovation Influences Strategy Energizes Employees Provides Identity Ensures Fit Effects of Culture Culture as a Clan: Creates a close-knit group within the organization. Weakness: Tends to develop xenophobia (fear of outsiders). Challenge: Managing diversity in a strong culture—pressure to conform conflicts with the benefits of diverse behaviors. Culture as a Barrier in Mergers & Acquisitions: Past Focus: Decisions based on financial factors alone. Current Focus: Cultural compatibility is crucial for successful mergers. Example: Tinplate Co. of India Ltd. failed to merge with Poysha Industries Ltd. due to cultural mismatch. Benefits of a Well-Developed Culture: Control Mechanism: Shapes employee performance by setting do's and don'ts. Promotes Innovation: Encourages processes that foster creativity and competitive advantage. Influences Strategy: Aligns organizational strategies with cultural values. Example: Motorola's culture emphasizes R&D, quality, and customer care, supporting its strategic goals. Energizes Employees: Motivates them to support and execute strategies effectively. Provides Identity: Enhances commitment and boosts morale when employees internalize company values. Ensures Fit: Leads to organizational commitment and job satisfaction, reducing employee turnover and attracting new talent..

[Audio] What Is Multiculturalism? It refers to regular interaction of people of varied culture from different countries Global firms are seen as repositories of multiculturalism "An American businessman rewarded the most outstanding member of a Japanese marketing team by promoting him to head the group. Rather than being proud and grateful, however, the top performer (promotee) seemed ashamed, and the others in the team were uncomfortable and demoralised. Contrary to what the American businessman had anticipated, performance in the team gradually declined. What the American businessman had not realised was that Japanese feel most comfortable while working in teams, with all sharing equally in decisions, workloads, and responsibility for outcomes"..

[Audio] Cultural Predispositions MNCs adopt four distinct disposition in doing things in a particular way: Cultural Orientation Polycentric Geocentric Regiocentric Ethnocentric Cultural predispositions are the natural tendencies or behaviors shaped by the culture someone grows up in..

[Audio] Ethnocentricism Home country’s culture is sought to be imposed on subsidiaries Policies and practices from home country exported to subsidiaries Expatriates from the home country manage affairs Local employees occupy low-level and routine jobs Decision making and operations are largely centralized, operated out of home country HQ Ethnocentrism: Walmart in Germany When Walmart expanded into Germany, it initially imposed American retail practices, such as cheerleading sessions for staff, which were culturally alien and poorly received by German employees and customers. This ethnocentric approach contributed to Walmart's eventual failure in the German market. Ethnocentric policy is justified on the following reasons: Perceived lack of competent host country nationals. Need to maintain a unified corporate culture among all subsidiaries. Greater control and loyalty of home country nationals. Key decisions are centralised. An ethnocentric policy, however, has a number of disadvantages: Host country nationals are denied promotional opportunities. Expatriate managers may not be able to adapt to local conditions easily and early. Expatriate managers are often poorly trained for international assignments and tend to commit mistakes..

[Audio] Polycentricism Multinational adapts to local cultural needs of subsidiaries Management policy oriented to suit local needs Autonomy in decision making to subsidiary head to run their businesses Host country nationals head firm with extensive training from parent company Parent firm ensures cultural parity and corporate philosophy across all subsidiaries Polycentrism: McDonald's in India McDonald's operates with a polycentric approach in India by adapting its menu to local tastes, offering vegetarian options like the McAloo Tikki burger, which cater to cultural preferences in India, rather than imposing a standard global menu..

[Audio] Regiocentricism Subsidiary operated as independent entity Localization at a regional level, building a center of excellence at a regional level Hiring the best person for the job; usually a third country national with a regional experience Remain guided by parent company culture and philosophy Regiocentrism: Coca-Cola in Latin America Coca-Cola applies a regiocentric approach in Latin America by developing marketing strategies that resonate with regional cultural similarities, such as shared language (Spanish) and cultural festivities, while still recognizing the differences between countries..

[Audio] Geocentricism Multinational runs subsidiary as an independent entity. Localization replaced with building a center of excellence at a global level. Hiring the best person for the job; could be a third country national. Remain guided by parent company culture and philosophy. Geocentrism: Unilever Unilever adopts a geocentric approach by creating global strategies that leverage talent and best practices from any country where it operates, blending insights from various markets to develop products and campaigns that have universal appeal while also being locally relevant..

[Audio] Features of Cultural Predispositions A close-up of a document Description automatically generated A close-up of a document Description automatically generated.

[Audio] Cultural Models Three theoretical concepts that help understand the nuances of different cultures better: Globe Project Team Hofstede’s Cultural Dimensions Trompenaars’ Framework.

[Audio] Globe Project Team Identifies 9 dimensions to distinguish societies Assertiveness Future Orientation Performance Orientations Human Orientation Gender differentiation In-group collectivism Collectivism/ Societal Power Distance Uncertainty Avoidance Globe Project The G-L-O-B-E (Global Leadership and Organizational Behavior Effectiveness) project team comprises 170 researchers who have collected data over seven years on cultural values and practices and leadership attributes from 17000 managers in 62 countries, covering as many as 825 organizations spread across the globe. The research team identified nine cultural dimensions that distinguish one society from another and have important managerial implications: assertiveness, future orientation, performance orientation, human orientation, gender differentiation, uncertainty avoidance Assertiveness: This refers to the degree to which individuals in a society or organization are expected to be tough, confrontational, and competitive. Example: In Germany, the workplace culture values direct communication and assertiveness, where employees are expected to be straightforward and task-oriented. Future Orientation: This dimension refers to how much importance a society places on future-oriented behaviors like planning, investing, and delaying gratification. Example: Japan's focus on long-term planning and continuous improvement, as seen in practices like kaizen, reflects a strong future orientation. Performance Orientation: This measures the emphasis a society places on performance and excellence, encouraging individuals to strive for improvement. Example: Singapore's educational system and work culture heavily focus on achieving high performance and excellence, pushing individuals to excel. Human Orientation: This is the degree to which a society or organization encourages and rewards altruistic, generous, and caring behaviors. Example: New Zealand's emphasis on community well-being and strong social safety nets highlights its high human orientation, where helping others is valued. Gender Differentiation: This refers to the extent to which a society or organization differentiates roles based on gender, often leading to gender-based expectations. Example: In Saudi Arabia, traditional societal norms result in clear gender roles and expectations, reflecting high gender differentiation. In-group Collectivism: This refers to the degree of loyalty, pride, and cohesiveness individuals feel toward their family, group, or organization. Example: In China, strong family ties and loyalty to one's group or organization, such as in family-run businesses, demonstrate high in-group collectivism. Collectivism/Societal: This concept refers to how much a society values collective action and the distribution of resources among the group as a whole. Example: Sweden's extensive welfare system and policies promoting collective well-being reflect a societal focus on collectivism. Power Distance: This is the extent to which individuals in a society or organization expect and accept that power is distributed unequally. Example: In India, hierarchical structures in organizations and society where subordinates defer to superiors illustrate a high level of power distance. Uncertainty Avoidance: This refers to how much a society or organization tries to avoid uncertainty by relying on rules, norms, and structured procedures. Example: Greece's preference for clear rules and structured routines shows a high level of uncertainty avoidance, aiming to minimize unpredictability..

[Audio] Hofstede’s Cultural Dimensions Identifies 4 cultural dimensions wherein each group exhibits identical behavior Power Distance Uncertainty Avoidance Individualism Masculinity Dutch scientist, Geert Hofstede. He identified four cultural dimensions around which countries have been clustered, with people in each group exhibiting identical behaviours. The four dimensions are power distance, uncertainty avoidance, individualism and masculinity. Hofstede's study preceded the G-L-O-B-E Research Project. However, we have taken the G-L-O-B-E study first because of its comprehensiveness and widespread research base. If Hofstede focussed on the employees of only I-B-M--, the G-L-O-B-E study covered as many as 825 organisations, picked up from among financial, food processing and telecommunication industries. However, the usefulness of Hofstede's study cannot be undermined. High power distance countries have norms, values and beliefs such as— 1. inequality is fundamentally good, 2. every one has a place; some are high, some are low, 3. most people should be dependent on a leader, 4. the powerful are entitled to privileges, and 5. the powerful should not hide their power. The US, Austria, Ireland, Norway, and New Zealand represent cultures with low power distance. These societies exhibit characteristics almost the opposite of the features listed above. France, India, Singapore, Brazil, Mexico, and Indonesia are examples of societies with a high power distance. Uncertainty Avoidance: countries high on individualism have norms, values, and beliefs which accept that: International Human 38 Resource Management Σ People are responsible for themselves, Σ Individual achievement is ideal, and Σ People need not be emotionally dependent on organisations or groups. In contrast, collectivist countries believe that: Σ One's identity is based on one's group membership, Σ Group decision making is best, and Σ Groups protect individuals in exchange for their loyalty to the group..

[Audio] Country Classification -1. Country Classification -1.

[Audio] Country Classification -2. Country Classification -2.

[Audio] Trompenaars’ Framework Uses 7 dimensions to describe culture Universalism against Particularism Individualism against Collectivism Specific against Diffuse Neutral against Affective Achievement against Ascription Past against Present Internal against External Control Trompenaars, an European researcher, conducted an extensive research with 15000 managers from 28 countries, representing 47 national cultures. He describes cultural differences using seven dimensions (the theory is therefore called 7D cultural dimensions model): Universalism against Particularism: This dimension examines whether people believe that general rules or specific relationships should be prioritized. ->People expect exceptions to be made for friends, family relations and others. Example: In the United States (universalism), contracts and laws are applied uniformly to everyone, while in China (particularism), personal relationships might influence the application of rules and agreements. Individualism against Collectivism: This refers to whether a culture emphasizes individual achievements and rights or focuses on group goals and loyalty. how a culture emphasises on notions of privacy and access to privacy. Example: The United States is highly individualistic, celebrating personal achievements and independence, whereas Japan emphasizes collectivism, with a strong focus on group harmony and loyalty. Specific against Diffuse: This dimension looks at whether people compartmentalize their work and personal lives (specific) or see them as interconnected (diffuse). Example: In Germany (specific), work and personal life are kept separate, while in Spain (diffuse), personal relationships often overlap with professional interactions. Neutral against Affective: This examines whether a culture encourages emotional expression (affective) or expects emotions to be kept in check (neutral). Example: In Italy (affective), people are open in expressing emotions in both personal and professional settings, whereas in Japan (neutral), there is a cultural preference for restraining emotions, especially in public. Achievement against Ascription: This dimension assesses whether status is earned based on achievements (achievement) or given based on factors like age, gender, or social connections (ascription). Example: In the United States (achievement), people gain status through their accomplishments, while in India (ascription), factors like age and family background can play a significant role in determining one's status. Past against Present against Future: This dimension explores whether a culture emphasizes traditions and history (past), focuses on current events (present), or plans for the future (future). Example: In the United Kingdom (past), there is a strong emphasis on history and traditions, while in the United States (present/future), there is a focus on innovation and future possibilities. Internal against External Control: This looks at whether people believe they control their environment (internal) or that their environment controls them (external). Example: In the United States (internal control), there is a strong belief in controlling one's destiny through hard work, whereas in many Asian cultures (external control), there is a greater acceptance that external forces, such as fate or nature, play a significant role in life outcomes..

[Audio] Benefits Of Managing Multiculture Increases creativity and innovation Exhibits sensitivity towards foreign customers Hires the best talent from anywhere Demonstrates a global perspective Creates a super-organizational culture Greater flexibility within the organization Has globally acceptable HR policies & practices.

[Audio] Dimensions Of Cross-cultural Mgmt Multicultural Management Leadership Gender Issues Multicultural Organization Communication HR Practices Teams Technology.

[Audio] Cultural Contrasts in Motivation Motivation Across Cultures Motivation refers to the way an individual engages himself or herself in need fulfi lling activities. At the heart of motivation is felt needs which drive the individual to act. The individual may have several ways to satisfy his or her needs. He or she selects the best course, and engages in a behaviour that begets rewards which help satisfy the felt needs. Thus, motivation takes place. Management Styles: Different cultures use distinct management styles to motivate employees. Example: American managers motivate through professionalism and friendliness, while Japanese managers use continuous counsel and persuasion, and Arab managers adopt a parenting approach with personal attention. Control: The sense of control is a key motivator, varying across cultures. Example: Americans value independence and self-control, Japanese find motivation in group harmony, and Arabs prefer a manager's control through a parental relationship. Emotional Appeal: Emotional motivators differ by culture. Example: Americans respond to opportunities rather than emotions, Japanese are motivated by company success and reputation, and Arabs are driven by appeals to self-esteem within authority structures. Recognition: How recognition is given varies across cultures. Example: Americans seek direct recognition for individual achievements, Japanese receive recognition through the group, and in Arab cultures, recognition is based on hierarchy, starting with the team leader. Material Reward: Material rewards are tailored to cultural values. Example: Americans are motivated by monetary rewards and material success, Japanese by group-based bonuses and benefits, and Arabs by gifts that honor individual and family achievements. Threats: The nature of threats that motivate varies by culture. Example: The threat of being fired motivates Americans, exclusion from the group is the greatest fear for Japanese, and a demotion that impacts reputation is a significant threat for Arabs..

[Audio] Leadership across culture Cosmopolitan: Flexible enough to operate comfortably in diverse cultural environments. Skilled at International Communication: Proficient in at least one foreign language and understands the complexities of interacting with people from different cultures. Culturally Sensitive: Utilizes experience in various national, regional, and organizational cultures to build relationships with culturally different individuals, while also understanding their own culture and cultural biases. Capable of Rapid Acculturation: Quickly adapts to unfamiliar or different cultural settings. Knowledge about Cultural and Institutional Influences on Management: Understands how national culture and a country’s social institutions impact the entire management process. A Facilitator of Subordinates’ Intercultural Performance: Uses a deep understanding of cultural differences in work and life to prepare subordinates for successful overseas experiences. User of Cultural Synergy: Leverages cultural differences by creating synergy that combines the strengths of each cultural group, and establishes performance standards that are understandable across cultures, leading to higher organizational performance than that of culturally homogeneous companies. A Promoter and User of the Growing World Culture: Understands, utilizes, and capitalizes on international advances in media, transportation, and travel that support the globalization of international business. A Commitment to Continuous Improvement in Self-awareness and Renewal: Committed to understanding and continuously questioning oneself for personal growth and improvement..

[Audio] Leader’s Role and Cultural Impact. Leader’s Role and Cultural Impact.

[Audio] Teams A screenshot of a computer Description automatically generated A screenshot of a computer Description automatically generated Strategies for Managing Teams Four strategies have been suggested to tackle problems of multicultural teams. Σ Adaptation—Acknowledging cultural gaps openly and working around them. Σ Structural intervention—Changing the shape of the team. Σ Managerial intervention—Setting norms early or bringing in a higher level manager. Σ Exit —Removing a team member when other options have failed..

[Audio] Dimensions of a Multicultural Organization The image illustrates key attributes that define a multicultural organization. Below are explanations for each element, along with an example: Minimum Inter-group Conflict: In a multicultural organization, there is reduced conflict between different cultural or ethnic groups. Example: A company has policies and a culture of open communication, ensuring that employees from different cultural backgrounds work harmoniously and resolve differences constructively. For instance, team-building activities are used to enhance understanding between local and expatriate employees. Pluralism: The coexistence of different groups with varying cultural identities within the organization is respected and maintained. Example: A multinational company actively encourages employees to celebrate cultural holidays from various regions, such as Diwali or Chinese New Year, promoting diversity and inclusion. Leadership Diversity: The leadership in a multicultural organization reflects the diversity of the workforce. Leaders come from various cultural, ethnic, and gender backgrounds. Example: A global tech firm ensures that its executive team includes members from different continents and gender backgrounds, bringing a variety of perspectives to decision-making. Structural Integration: The organization's policies and practices integrate employees from diverse backgrounds into all levels of the company. Example: A manufacturing firm ensures equal representation of women and minority groups in key departments such as engineering and management through targeted recruitment and development programs. Informal Networks: Informal social networks within the organization include members from diverse cultural backgrounds. Example: An advertising agency supports cross-cultural mentorship programs where employees from various ethnic backgrounds share knowledge and support each other's career growth. Bias-free Organization: The organization is free from systemic biases that favor one group over another, ensuring fairness in policies and practices. Example: A bank introduces blind recruitment, where personal details such as names, gender, and ethnicity are removed from resumes during the hiring process to eliminate unconscious bias. Identification: Employees feel a sense of belonging and alignment with the organization's goals, regardless of their cultural background. Example: An international consulting firm regularly solicits feedback from its diverse workforce and makes sure that its corporate values resonate with all employees, fostering a strong sense of identification with the company's mission..

[Audio] Framework Of Work Values. Framework Of Work Values.