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CHAPTER 3: IHRM and Culture

CHAPTER 3: IHRM and Culture. Learning objectives (chapter 3). Define culture Explain the importance of culture in IB Explain the concept of culture as three layers of meaning Describe the basic research findings of Hofstede and Trompenaars

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CHAPTER 3: IHRM and Culture

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  1. CHAPTER 3: IHRM and Culture

  2. Learning objectives (chapter 3) • Define culture • Explain the importance of culture in IB • Explain the concept of culture as three layers of meaning • Describe the basic research findings of Hofstede and Trompenaars • Describe the differences between convergence, divergence, and crossvergence • Explain the importance of culture to IHRM • Describe the importance of culture to the conduct of research in IHRM • Explain the difficulties encountered when performing cross-cultural research • Define the universal, situational, and convergence assumptions underlying cross-cultural research

  3. Overview chapter 3: • The importance of culture • Cultural convergence and/or divergence • Research in IHRM • Impact of culture on IHRM

  4. The importance of culture

  5. A definition and description of culture • “Culture is the characteristic way of behaving and believing that a group of people have developed over time”

  6. Understanding culture as layers of meaning • Surface or explicit culture • Hidden culture • Invisible or implicit culture • Developing cultural understanding

  7. Figure 3.1: The three layers of culture

  8. Figure 3.2: Development of cross-cultural competences

  9. National and regional cultures • The research of Geert Hofstede • Power distance • Uncertainty avoidance • Masculinity • Individualism • Confucian dynamism • The research of Fons Trompenaars • Universalism versus particularism • Collectivism versus individualism • Neutral versus emotional • Diffuse versus specific • Achievement versus ascription

  10. National cultural clusters • Anglo • Arab • Far Eastern • Germanic • Latin American • Latin European • Near Eastern • Nordic • Independent

  11. Practical observations • Deal focus versus relationship focus • Informal versus formal cultures • Rigid-time (monochronic) versus fluid-time (polychronic) cultures • Expressive versus reserved cultures

  12. Dangers of oversimplification • Treating countries or cultures as homogeneous wholes • Cultures change

  13. Country culture versus MNE culture • Organizational culture and values • Centralization/standardization versus localization/customization

  14. Cultural convergence and/or divergence • Convergence: best practices • Divergence: local cultural practices • “Glocalization”: global and local

  15. Cultural research in IHRM • Inconsistent and vague definitions of terms like culture • Inaccurate translation of key terminology • Difficulty in obtaining representative or equivalent samples of research subjects • Difficulty in isolating cultural differences

  16. Limitations of studies • Mostly American perspectives • Lacking analytical approaches • Lack of research funds • Limited topics

  17. Forms of IHRM research • Cross-cultural research • Multicultural research • Research on HR practices in emerging market countries

  18. Basic assumptions of cultural research • Universal • Situational • Convergent

  19. Specific difficulties • The focus of researchers: emic vs etic • Language problems • Measurement/methodological problems

  20. Equivalence problems in cross cultural research • Metric (stimulus) equivalence • Conceptual equivalence • Functional equivalence • Subjectivity of topics • Factors other than culture

  21. Research content in IHRM • Selection and preparation of expatriates • Local foreign workforces • HRM practices in MNEs

  22. Impact of culture • Importance of culture on international business and IHRM

  23. Key terms • National culture • Organizational (MNE) culture • Surface, hidden, and invisible culture • Convergence, divergence, and crossvergence • Low context and high context • Power distance • Uncertainty avoidance • Masculinity • Individualism • Confucian dynamism • Universalism and particularism

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