Comparative Employment Policy

Concept, significance, convergence theory, Marxist theory,

the cultural approach power Distance (PDI),
Uncertainty avoidance (UAI), Individuality (INV), Masculinity (MASC).
Conceptualizing Culture

 Culture is-
*derived mostly from the climatic conditions of
the geographical region and economic
conditions of the country.
* a set of traditional beliefs and values which
are transmitted and shared in a given society.
*norms,values,art, etc.
* a total way of life and thinking pattern that
are transmitted from generations to
generations.

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Why do cultures differ?
 Economic level and conditions.
 Climate.
 Social relations
 Societies developed patterns.

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Cultural sensitivity
 Cultural sensitivity is to have empathy to
accept cultural differences without allowing
one’s own values to surface in unproductive or
confrontational ways.
 Individuals have to understand cultural
differences and follow them rather than be
openly judgmental of the culture of the land.

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Cultural Universals
 Irrespective of the religion,race,region,caste
etc.all of us have more or less the same needs.
These common needs are refereed to as “
cultural universals”.

 It includes athletic,sports,cooking,dancing,
singing,education,status differentiation and
dream interpretation.

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Social environment
 Social environment consists of religious
aspects,language,customs,traditions,beliefs,
tastes and preferences,social institutes,living
habits,dressing habits etc.

 It influences the level of consumption.

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Hofstede’s Dimensions
of Culture
 According to Hofstede culture is the
aggregate value,beliefs and customs that
defines the common characteristics of
human group.
 Hofstede explained culturally based value
system as comprising four dimensions-
 Individualism/collectivism
 Power distance
 Masculinity/femininity
 Uncertainty avoidance 7
Individualism/Collectivism

Definition: the extent to which the

society is organized around
individuals or the group
 Individualism/collectivism are the
consequences of the culture and
affects the formation of
groups,productivity and marketing
practices.

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Collectivist vs. Individualist
 Collectivism – group solidarity, loyalty
and interdependence among
members (e.g. Asian & Latin
American cultures)
 Individualism – independence is
valued along with attention to detail
and control (e.g. US, UK)

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Individualistic Cultures
 Value independence of thinking and
focus on task issues over relationship
 Goals of self-actualization and self-
motivation are valued
 People speak for themselves
 Collectivist cultures value saving face,
protecting their groups

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 Individualism/Collectivism
Scale

Collectivism Individualism

Concern for Group harmony High concern for

vs. Personal Achievement Achievement and
personal growth

LOW HIGH

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Power Distance

Definition: Power distance denotes the

relationship between superiors and
subordinates.

 Cultures with stronger power distance

will be more likely to have decision-
making concentrated at the top of the
culture.

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Power Distance
 Acceptance of authority differences
among people
 High power distance cultures are status
conscious and respectful of age and
seniority
 Lower power-distance orientations
greater tendency to make decisions in
a consultative style

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 POWER DISTANCE SCALE

Social Integration Social Disintegration

Little concern for hierarchical Significant concern for
status hierarchical status

LOW HIGH

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Masculinity/Femininity

Definition: the extent cultures hold

values that are traditionally
perceived as masculine or
feminine
 Masculinity is the degree to which the
dominant value of the society are
success,money and material things
 Femininity is the degree to which the
dominant values of the society are caring
for others and quality of life.

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Masculinity - Femininity
 Masculine cultures value assertiveness,
independence, task orientation and self-
achievement

 Feminine cultures value cooperation,

nurturing, relationships and quality of life

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 Masculinity/Femininity Scale

Femininity Masculinity
Little concern for control Assertiveness and
Decisiveness,assertiveness Competitive
behavior/competition behavior

LOW HIGH

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Uncertainty Avoidance

Definition: “Indicates to what extent

a culture programs its members
to feel either uncomfortable or
comfortable in unstructured
situations”

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Uncertainty Avoidance
 Employees in countries with highest
score of uncertainty avoidance prefer
a system and a methodological work
based on rules that are not to be
deviated.
 Employees in countries with low
scores of uncertainty avoidance
prefer flexible organizations and
flexible work.

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 Uncertainty Avoidance Scale

Informal Relationships Formal Relationship

Little regards for High regards for
Structure & Control Structure& Procedure

LOW HIGH

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Hofstede’s Cultures Ranking in the Top 10

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Strategies for dealing with
cultural changes
 Making adjustment wherever
necessary.
 Communication
 Competitive Advantage.

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Workforce Diversity
 Workplaces in MNCs today are highly
diversified with the employees of
different countries,different age
groups, religions,races,ethnic
groups,colour and gender.

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 Diversity Wheel

Diversity is the mixture of people in business, with their variety of

backgrounds, experiences, styles, cultures, skills and competencies.

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 Learning’s from the Wheel

 As individuals, we are all diverse

 As organizations and work groups, some are more
diverse than others
 Important to understand your mix (customer’s,
employees & stakeholders) now both current state
and desired state
 People are both similar and different among a
variety of dimensions
 Need to understand the impact of culture

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Factors for workforce diversity
 Increase in Educational Opportunities
 Increase in number of employees
from developing countries.
 Changing gender roles.
 Changing roles of minorities.

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Strengths & Weakness of
Workforce Diversity
STRENGTHS WEAKNESSES
 Competitive advantage  Potential sources of
conflicts.
 Multi-ethnic unified societies
at workplace  Delay in decision-making.

 Efficient implementation of  Communication distortions.

organisational strategies.

 Repeats undesirable unity

among employees

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Factors contributing to Competitive Advantage

Appropriate
Strategies
Flexibility Creation
&
Innovation

Competitive
Attraction of Advantage
resources
Cost Saving

Problem
Solving Harmony
Skill

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 Strategies for managing workforce diversity

Individual
Strategy

Organisational National
Strategy Managing Strategy
Diversity

Group International
Strategy Strategy

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Individual Strategies
 Understanding the cultural background of
others.
 Belief that all cultures are good.
 Clear communication
 Perceive from others’ perspective
 Approach of “no-winning over” other’s culture.

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Organisational Strategy for Cultural
Diversity
 Recruitment and Selection Strategy
 Organizational policies and practices
 Cultural Training
 Use of counsellors
 Communication
 Structuring work teams
 Special benefits for women and old age.
 Formal socialization program.

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National Strategies
 Legislative approach towards equal
employment opportunity.
 Efforts of the cultural association.
 Efforts of the diplomatic mission.

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International Strategies
 Economic Unions and Regional
Integration
 Efforts of the MNC’s headquarters.
 Efforts of International Trade
Organisations and Financial
Institution

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THANK YOU!!!!!!

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