1
Q
Hofstede´s 5 cultural dimensions
A
- Centrality: Power Distance
Related to high levels of inequality and sense of hierarchy - Group: Individualistic/Collectivistic
The degree of interdependence a society maintains among its members. To whom does one have responsibilities- oneself or the group? - Gender: Masculine/feminine
Masculine societies have different characteristics than those of feminine cultures. - Uncertainty: Uncertainty Avoidance
How much people feel threatened by ambiguous or unknown situations - Time: Long-term Perspective
Long-term perspective, planning for future, perseverance values vs short term oriented and looking for immediate results
2
Q
Centrality- high power distance
A
- Centralized authority
- Paternalistic ways of management
- A number of hierarchy levels
- The acceptance of the privilege that comes with the power
Example: Asian countries often have high power distance
3
Q
Centrality- low power distance
A
- Participative or consultative style of management
- Flat organizational structure
- Questioning the authority and lack of passive acceptance
- An inclination toward egalitarianism
4
Q
Group- individualistic cultures
A
- Concentration on self or those very near and dear
- Own goals, interests and needs
- Emphasis on personal enjoyment, fun and pleasure over duties and social norms
5
Q
Group- collectivistic cultures
A
- Considering how collective norms impact on one´s behavior
- Sharing of resources and readiness to give up personal interests keeping in mind the collective interests
- Hostility or indifference toward out-group members
Example: Latin America and parts of Europe may have higher collectivism than the US
6
Q
Gender- masculine cultures
A
- Clearly distinct gender roles
- Success is associated with competitiveness, toughness and being assertive
- Much value is associated with mastery of people, nature, job, etc.
Example: Scandinavian countries tend to have a lower level of masculinity
7
Q
Gender- feminine cultures
A
- Overlapping of social gender roles
- Men, as well as women, are expected to focus on quality of life
- Emphasis on non-materialistic aspects of quality of life
8
Q
Uncertainty- low uncertainty avoidance
A
- Undertaking risks
- Flexibility
- Tolerance toward differing opinions and behaviors
9
Q
Uncertainty- high uncertainty avoidance
A
- Tendency to avoid risks
- Organizations with standardized procedures, written rules and clear structures
- Strong requirements for consensus
- Requirement for predictability highlighting the significance of planning
- Promotions depending upon age or seniority
10
Q
Time- long-term orientation
A
- A futuristic, dynamic mentality
- Emphasis the past and the future and observance of status
- Emphasis on persistence and perseverance
11
Q
Time- short-term orientation
A
- Orientation toward past and present
- A comparatively static, more conventional mentality
- Focus on stability and tradition
Example: Western countries have an increasing level of short-termism
12
Q
Ethnocentric human resource strategy
A
- Home country/corporate philosophy is implemented in all areas of the company, in every country we operate
- Key positions in foreign subsidiaries are staffed with expatriates from the parent group and decisions are often taken in line with headquarters
- This will centralize the parent-company control in decision making
- Managers transfer headquarters’ cultures and philosophy however, will be influenced by local culture as well
13
Q
Ethnocentric- positive and negative points
A
- Transfer corporate culture and best practices to subsidiaries
- Close control over subsidiaries
- Develop strong global corporate culture
- More expensive in moving people around the world
- Special training in cultural issues may be needed
- No knowledge about local culture preferences
- Can miss some business opportunities that require local underrstanding
14
Q
Ethnocentric- when to use
A
- When companies want to maintain corporate values in all operations globally (e.g., In customer service, quality control or financial planning)
- May feel local managers don´t have enough understanding or experience of company’s philosophy
15
Q
Polycentric human resource strategy
A
- Accept that each country culture is different, and adaption is necessary
- Acknowledge that local employees are more effective this task and that decentralized decisions help exploit local differences effectively
- Local managers run subsidiaries with some co-ordination from headquarters
- No language and culture barriers
- Less costly management process
- Harder for parent company to implement ideas and coordinate objectives
- Difficult for local managers to reach corporate level
16
Q
Polycentric- positive and negative points
A
- Usually cheaper (no relocation costs)
- Facilitate operations in host countries through cultural and market knowledge
- Local governments may better support those who focus on local talent
- Lower level of control
- Need technical training and remote introduction to corporate culture
17
Q
Polycentric- when to use
A
- When there is need for local adaption, and company already has strong global corporate culture/don´t need one
18
Q
Geocentric human resource strategy
A
- Emphasizes a collaborative technical approach between headquarters and staff in each country
- Based on shared technical understanding and common resource use rather than cultural and social issues
- Recruited based on technical abilities neither nationality nor corporate experience are that important
- Integrated global organization where business culture is highly similar in different places
19
Q
Geocentric- positive and negative points
A
- Easy to integrate any employees into the organization
- Good management works to find the best technical knowledge of each employee
- Its technical focus can help create an effective multicultural workplace
- Ignoring cultural differences can cause conflicts if not managed appropriately
- Doesn´t really create cultural diversity, or a temporary bonding
20
Q
Geocentric- when to use
A
- In sectors where all companies operate the same everywhere (engineers on an oil platform, military organizations)
- Standard way of working
- Cultural issues are not really relevant (but they are)
21
Q
EXPATRIATE CAREER MANAGEMENT
A
“A person who has citizenship in one country but is living in another country. Most expatriates only stay in the foreign country for a certain period of time, and plan to return to their home country eventually.”
- Failure to effectively manage expatriates and overseas workers may lead to less employees taking up such opportunities in the future, and complicate internationalization strategies.
22
Q
HOW TO MANAGE EXPATRIATES
A
1- Preparation
2- Adaption
3- Repatriation
23
Q
Preparation
A
- Receive training in soft skills and information on destination
- Clarity provided on future roles once assignment is ended
- Financial and professional support for moving and family integration
24
Q
Adaption
A
- Formalized and informal programs to help expatriates get more integrated in local business operation: informal meeting with staff, local guide etc.
- Provide mentors who may be experienced local employees or former expats from head office to provide advice and support
25
Repatriation
- Reintegration may also require time due to changes in processes and personnel in home operations
- Having maintained open corporate and social contact will facilitate this re-integration
