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Organizational Culture and Human Resource

Labour Relations & Cultural Fit
Cultural Fit
Organizational Culture:
 Organization’s vision and goals
 Values
 Rules
 Language
 Habits
Everything that defines the company, and the way it works in general.
An example of organizational culture is google and its innovative work environment that
had positioned them among the most popular companies for job seekers worldwide.
What is cultural fit?
That suitability between the company’s core values and employee’s
Is cultural fit important?
According to Cubiks International Survey on Job and Cultural fit “Most respondents
(82%) said they think measuring cultural fit is important and 54% said that their
organization has a clear definition of its culture.”
Importance of cultural fit:
 Higher job satisfaction
 Closer identification with the company
 Higher chances of retaining employees
 Increased employees commitment
 Better Job performance
Ways of measuring cultural fit:
 Face to face interview
 Personality, cultural fit, and competency questionnaires
 Assessment centres
 Phone interviews
 C.V.
 Simulation exercises
 References
 Trial days
Among others

with the goal of investing time helping long-standing customers and other stakeholders. they promote . An example of a company that has succeeded at creating an international culture and cultural fit: Cirque Du Soleil is an entertaining private company that started in Montréal and has opened their market to all over the world.Actions to improve cultural fit in international companies depending their strategy: If company aims to hire locals: Make sure to establish a culture and make it available for possible future employees. offer training programs. If company wants to encourage homebodies to venture abroad: Increase and test adaptability by start sending employees abroad for short period of times. Ex: IBM began sending executives to emerging markets as consultants. Among the things that had helped Cirque Du Soleil achieve the success they currently have with cultural fit is the fact that they educate and train their workers. language programs. it has Canadian and international employees working on tours globally and has been doing so for more than 20 years. and bring local employees to the headquarters office so they have a better understanding of the company’s culture as well as building stronger connections with superiors working from home base.

) and differences in levels of economic development. Its main purpose is to set laws (labour legistlation) and make sure everyone is treated fairly within a company and a nation. and that contracts are being complied with. and have developed a culture that allows employees to have a balance between work and life. because this is hard for a company that has most of its employees on tours regularly.Collective bargaining power . for example whether to transfer current workers to the new country and help them settle down to a new culture. Differences in legislation may be either an advantage or a disadvantage for a company. and make sure there is always someone new workers can relate to (people that speak the same language. Let’s compare Vietnam and Denmark’s labour laws.close relationships between supervisors and employees. working conditions and benefits through collective bargaining. There is surely a lot of reasons for making that strategic decision but let’s bring up a few facts we found interesting in comparing these two countries. These are for example differences in legal systems (laws). .) Labour Relations What are labour relations? Work relations that are in effect in the company and determined by employer and employee. similar age. Example: A Danish outdoor sports garments producing company Spectre is manufacturing its products (clothes) in Vietnam. What does this all mean when doing business internationally? When entering new markets abroad companies need to be aware of possible differences and problems they might face. Why? Because their labour laws are different. Companies come across plenty of decisions to make.Government . Many companies are manufacturing for example in Asia.Labour legislation . What are labour relations concerned with? . what is valued etc. Countries differ in labour laws. similar background. Unions are organizations of workers trying to get improvements in wages. cultural differences (how to handle things. they hire people adaptable.Contract administration Mostly the government of a nation dictates labour relations. etc. or hire local people and train them to fit company’s culture. Contract administration is making sure that both employer and employees are following laws and rules.Unions .

Cultural differences: While labour relations are concerned with labour legistlation it’s also important that companies understand differences in cultural view. For example when hiring a new employee employer needs to be aware of both legal and cultural requirements. 90% of these managers were graduates of Soul National University (online textbook source) .youtube.1) 2) 3) 4) - Minimum wage Denmark: 20$/hour Vietnam: 45$/month Maximum working hours per week Denmark: 37. unpaid leave Paid annual leave (minimum) Denmark: 25 days Vietnam: 12 days Conclusion: In this case Spectre was aware of differences in labour laws between these two countries and decided to move their manufacturing to Vietnam.High cost . . Up until 1999. paid leave Vietnam: 26 weeks.What does Cultural Fit and labour relations mean to the firm. when applying a job in a new country one needs to have a sufficient awareness of these kinds of demands and expectations. They hired local employees working in manufactures in Vietnam because if they transferred Danish employees to Vietnam they would’ve had to follow Danish labour laws with these people.5 hours Vietnam: 48 hours Maternity leave Denmark: 52 weeks.Higher level positions are filled by individuals from the home country of the company.Home standards are carried over to new market .com/watch?v=LuZV9kkzscg Strategy. the same thing stands also the other way. Samsung  Samsung began with senior management being South Korean. How will the company enter the new market regarding HR? 4 approaches for international Human Resources strategies Ethnocentric Approach. However. Example: Job interview of an Indian man applying for a job in USA.Low morale Examples: Toyota.Often used for entering the international market . https://www.

New/different perceptive for company .Cultural understanding . Firm will hire upper levels of management from the same region as host country.Most qualified individuals are employed .Polycentric Approach. .Lower costs . Geocentric Approach. .Company is divided by geographic regions. Senior officials in the company speak two or more languages.Employees throughout the firm are hired from local area .Cultural understanding/fit .Good approach if there is a lack of employees in host country Example: .Country must have low restrictions on foreign workers Example: Colgate Palmolive  More than half of the company is not from the United States. Regiocentric Approach.Firm will hire the most qualified individual.Higher morale amongst employees Example: John Deere  John Deere has developed low cost tractors and equipment that fits with the Indian culture only because they hired locals to bring knowledge of Indian culture to the company.Lower costs .Local Knowledge . regardless of cultural background.