UNIT 5- HUMAN RESOURCES

Question 1

Hofstede´s 5 cultural dimensions

Answer 1

1. Centrality: Power Distance
   Related to high levels of inequality and sense of hierarchy
2. Group: Individualistic/Collectivistic
   The degree of interdependence a society maintains among its members. To whom does one have responsibilities- oneself or the group?
3. Gender: Masculine/feminine
   Masculine societies have different characteristics than those of feminine cultures.
4. Uncertainty: Uncertainty Avoidance
   How much people feel threatened by ambiguous or unknown situations
5. Time: Long-term Perspective
   Long-term perspective, planning for future, perseverance values vs short term oriented and looking for immediate results

Question 2

Centrality- high power distance

Answer 2

• 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

Question 3

Centrality- low power distance

Answer 3

• Participative or consultative style of management
• Flat organizational structure
• Questioning the authority and lack of passive acceptance
• An inclination toward egalitarianism

Question 4

Group- individualistic cultures

Answer 4

• 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

Question 5

Group- collectivistic cultures

Answer 5

• 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

Question 6

Gender- masculine cultures

Answer 6

• 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

Question 7

Gender- feminine cultures

Answer 7

• 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

Question 8

Uncertainty- low uncertainty avoidance

Answer 8

• Undertaking risks
• Flexibility
• Tolerance toward differing opinions and behaviors

Question 9

Uncertainty- high uncertainty avoidance

Answer 9

• 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

Question 10

Time- long-term orientation

Answer 10

• A futuristic, dynamic mentality
• Emphasis the past and the future and observance of status
• Emphasis on persistence and perseverance

Question 11

Time- short-term orientation

Answer 11

• 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

Question 12

Ethnocentric human resource strategy

Answer 12

• 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

Question 13

Ethnocentric- positive and negative points

Answer 13

• 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

Question 14

Ethnocentric- when to use

Answer 14

• 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

Question 15

Polycentric human resource strategy

Answer 15

• 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

Question 16

Polycentric- positive and negative points

Answer 16

• 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

Question 17

Polycentric- when to use

Answer 17

• When there is need for local adaption, and company already has strong global corporate culture/don´t need one

Question 18

Geocentric human resource strategy

Answer 18

• 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

Question 19

Geocentric- positive and negative points

Answer 19

• 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

Question 20

Geocentric- when to use

Answer 20

• 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)

Question 21

EXPATRIATE CAREER MANAGEMENT

Answer 21

“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.

Question 22

HOW TO MANAGE EXPATRIATES

Answer 22

1- Preparation
2- Adaption
3- Repatriation

Question 23

Preparation

Answer 23

• 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

Question 24

Adaption

Answer 24

• 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

Question 25

Repatriation

Answer 25

• 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