Chapter 2

The Cultural Context of

IHRM
IHRM, Dr. N. Yang 1
 Chapter Objectives
 Review key issues and implications:
Definitions of culture
Cultural concepts
Results of various intercultural management
studies, such as Kluckhohn & Kroeber, Schein,
Hofstede, GLOBE, Trompenaars & Hampden-
turner, Hall & Hall, and several others
Reflections on cross-cultural management
research
Discussions on development of cultures
IHRM, Dr. N. Yang 2
 Definitions of Culture
 Culture consists in patterned ways of thinking, feeling,
and reacting, acquired and transmitted mainly by
symbols, constituting the distinctive achievements of
human groups … including their embodiments in
artefacts; the essential core of culture consists of
traditional ideas and especially their attached values
(Kluckhohn & Kroeber, 1950s)
 Mental programming, a system of shared values and
social norms, or “software of the mind” (Hofstede, 1991)
 Culture normally relates to nations but a nation-state
explanation is of ongoing debates and criticism.
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 Kluckhohn & Kroeber

 Culture consists in patterned ways of  Thinking

 Feeling
 Reacting

acquired & transmitted mainly by symbols,

constituting the distinctive achievements of human
groups, including their embodiments in artefacts

The essential traditional ideas &

consists of
core of culture their attached values

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Basic Elements of Culture
 Hansen’s description of cultures as the
customs of a community practiced by a majority
 Standardization may come up in specific
situations
 Standardization of communication
 Standardization of thought
 Standardization of feeling
 Standardization of behavior

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Levels of Culture
 Schien’s concept of culture in the
course of organizational research
Artefacts – visible
Values – intermediate level of
consciousness
Underlying assumptions – invisible,
unconscious

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Underlying Assumptions
 Nature of reality & truth
 Time dimension
 Effect of spatial proximity & distance
 Nature of being human
 Type of human activity
 Nature of human relationships

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Cross-cultural Management Studies

 Describe and compare the working behavior

in various cultures
 Explain and improve interaction between
employees, customers, suppliers or
businesses in different countries & cultures

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Hofstede’s Five Cultural Dimensions
 Power distance
 Uncertainty avoidance
 Femininity vs. masculinity
 Individualism vs. collectivism
 Confucianism or long-term orientation

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Confucianism Dynamics
Long-term Orientation
 Great endurance, persistence in
pursuing goals
 Position of ranking based on status
 Adaptation of traditions to modern
conditions
 Respect of social & status
obligations within limits
 High savings rates & high
investment activity
 Readiness to subordinate oneself to 
a purpose
 The feeling of shame
IHRM, Dr. N. Yang
Short-term Orientation
 Personal candor & stability
 Avoiding loss of face
 Respect of social & status
obligations without consideration
of costs
 Low savings rates & low
investment activity
 Expectations of quick profit
 Respect for traditions
Greetings, presents & courtesies
based on reciprocity
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Figure Results of Hofstede’s Study: Power distance
2.1 & individualism vs. collectivism

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Table Impact of the Cultural Context on
2.1
HRM Practices

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HRM in
Action
Long-term Development Plans of a
Case 2.2 German MNE in the USA
 A German MNE in the electrical  Can you explain CEO
industry expanded to the U.S., taking Hansen’s surprise using
a polycentric HRM approach to Hofstede’s cultural
recruit and promote local managers; dimensions?
 Invested in training and dev. for fast-  How does this situation
track career opportunities; compare to situations in
 CEO Peter Hansen was happy with your home country or
the firm performance, growth, and countries you are familiar
progress achieved with?
 However, he was shocked by  What are the limits of a
turnovers, including John Miller, cultural explanation?
Marketing Director, after high-level
training programs from top business
schools sponsored by the firim.

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Reflections of Hofstede’s Study
 The Western team and influence
on the form of the questionnaire
 Countries rather than cultures are delimited
some surveyed states do not exist today, like the former Yugoslavia
 Realization of intra-level studies
along with assessing the individual, groups, organizations, and country
levels
 Inclusion of cross-cultural differences
Consider intra-cultural variance
 Inclusion of theoretically relevant moderators
Consider variables like sex, class affiliation, etc.
 Effects of interaction between cultural variables

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14
Questions by the GLOBE Study
 Are there leadership behaviors, attributes and organizational
practices that are generally accepted and effective across cultures?
 Are there leadership behaviors, attributes and organizational
practices that are accepted and effective in some cultures only?
 How much do leadership attributes affect the effectiveness of
specific leadership behavior and its acceptance by subordinates?
 How much do behaviors and attributes in specific cultures influence
the economic, physical, and psychological well-being of members
in the researched societies?
 What is the relationship between these socio-cultural variables and
an international competitive capacity of the various sample
societies?
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Eight Cultural Dimensions of the
GLOBE Study
 Institutional collectivism
 In-group collectivism
 Uncertainty avoidance
 Power distance
 Gender egalitarianism
 Assertiveness
 Performance orientation
 Humane orientation

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 Reflections of the GLOBE
 Attempted to avoid a one-sided Western focus
 More industries, broader profiles, and levels of
analysis (e.g., individual, organizational,
societal) were taken into consideration
 Criticized for further differentiation of cultural
dimensions by Hofstede
 Data representation of cultures with large and
heterogeneous populations, such as China,
India, the USA
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Trompenaars & Hampden-Turner’s
Seven Dimensions of Culture
Relationships 1. Universalism vs. particularism
Between people 2. Individualism vs. communitarianism
3. Emotional vs. neutral
4. Specific vs. diffuse
5. Ascription vs. achievement

Concept of time 6. Sequential vs. synchronic

concept of time

Concept of nature 7. Internal vs. external control

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HRM in
Action
Case 2.2
Meeting on a Friday in Kenya
 A MNE has completed its
project in Kenya but has not
been paid
 A meeting with the
representative of the local
government agency was
arranged on Friday at 10 a.m.
 The representative was polite
and friendly, but the meeting
was frequently interrupted by
his phone calls and
conversations in local language
regarding his family event over
the coming weekend
IHRM, Dr. N. Yang
 Both parties got extremely
tense and finally had to
schedule a new meeting for
the following Tuesday
 How can you explain this
frustration with some cultural
dimensions, such as the
Trompenaars’?
 How does this situation
compare to your home
country or countries you are
familiar?
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Cultural Dimensions by Hall & Hall
 High vs. low context communication
Indirect vs. direct, implicit vs. explicit, verbal vs.
nonverbal expressions
 Spatial orientation
Actual distance between people when communicating
 Monochrome vs. polychrome concept of
time
Sequential processes vs. parallel actions
 Information speed
High or low information flow during communication
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The Development of Cultures
 Convergence or divergence
 Transnational regions
 Growing interdependence
 Intra-cultural changes
 Value shift between generations

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Static-dynamic Nature of Culture
There is increasing
International connectedness
Global economy coordination
Harmonization of laws & regulations
High flow of migration
Cultures are not confined to given territories.
This means new challenges for HRM.
 How resistant are cultures to change?
 Generation Y are fast, self-organized & absorbed learners
with distinct work-life balance preferences
 Aging of entire societies and the workforces
 Transferability of HR policies across cultures
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 Chapter Summary
 Definitions of culture
 Introduction to cross-cultural management
research, concepts, critiques, and debates
 Schein’s concept of culture
 Hofstede’s study
 The GLOBE
 Trompenaars & Hampden-Turner’s study
 Hall & Hall’s cultural dimensions
 The development of cultures
 Implications to HRM and IHRM

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 Vocabulary
 Culture as defined by Kluckhohn &
Kroeber, Hofstede, and Hansen
 Schein:
Artefacts, values, underlying assumptions
 Cross-cultural management
 Hofstede:
Power distance, uncertainty avoidance,
femininity vs. masculinity, individualism
vs. collectivism, long-term orientation,
Confucianism dynamics
 GLOBE:
In-group collectivism, institutional
collectivism, uncertainty avoidance,
power distance, gender egalitarianism,
assertiveness, performance orientation,
humane orientation
IHRM, Dr. N. Yang
 Trompenaars & Hampden-Turner:
Universalism vs. particularism,
individualism vs. communitarianism,
neutral vs. emotional, diffuse vs.
specific, ascriptive vs. achievement,
sequential vs. synchronic time,
internal vs. external control
 Hall & Hall:
High vs. low context, spatial
orientation, polychrome vs.
monochrome time, information speed
 Static-dynamic nature of culture
Organizational culture, national culture
Inter- and intra-cultural variables,
 Convergence and divergence of HRM
and practices
24
Discussion Questions
1.
1. Define
Defineculture.
culture.How
Howcan canculture
culturebe
beconceptualized?
conceptualized?
2.
2. Outline
Outlineand
anddiscuss
discusscross-cultural
cross-cultural management
managementstudies
studies
by
byHofstede.
Hofstede.
3.
3. Outline
Outlineand
anddiscuss
discussthe
theconcepts
conceptsand
andresults
resultsof
ofthe
the
GLOBE
GLOBEstudy.
study.
4.
4. Outline
Outlineand
anddiscuss
discussthe
thecultural
culturaldimensions
dimensionsbyby
Trampenaars
Trampenaarset etal.
al.
5.
5. Compare
Comparehigh
highvs.
vs.low
lowcontext
contextcommunication
communicationpatterns
patterns
6.
6. What
Whatdodoyou
youthink
thinkabout
aboutthe
thestatement
statement“cultures
“culturesinin
Europe
Europeare
arebecoming
becomingmoremoresimilar”?
similar”?

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